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Bank Of America Q1 Profit Climbs, Tops View; Plans $25 Bln Stock Repurchase - Quick Facts

Bank of America Corp. (BAC) reported Thursday significantly higher first-quarter net profit of $7.56 billion or $0.86 per share from last year's $3.54 billion, or $0.40 per share.

Analysts had expected the company to earn $0.66 per share, according to figures compiled by Thomson Reuters. Analysts' estimates typically exclude special items.

Provision for credit losses decreased $6.6 billion to a benefit of $1.9 billion, reflecting a reserve release of $2.7 billion amid an improved macroeconomic outlook and balance declines. The last year's provision for credit losses were $4.8 billion.

The company's revenue for the quarter rose 0.2 percent to $22.82 billion from $22.77 billion last year. Analysts were looking for revenues of $22.13 billion.

Net interest income declined 16 percent to $10.2 billion, driven primarily by lower interest rates. Noninterest income rose 19 percent to $12.6 billion, reflecting strong capital markets results, as well as higher investment and brokerage income.

Separately, Bank of America announced that its Board of Directors has authorized the repurchase of up to $25 billion of common stock over time. The authorization is inline with the company's plan to return to shareholders excess capital that is not needed to support economic growth.

The Board also authorized repurchases to offset shares awarded under equity-based compensation plans.

For the second quarter 2021, the company's repurchase plans will be consistent with Federal Reserve System's restrictions that common stock repurchases and common stock dividends be correlated to the average quarterly net income for the previous four quarters.

In pre-market activity, BAC shares were gaining around 1.13 percent to trade at $40.33.

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