Bank of America reports lower Q1 profit
NEW YORK, April 19 – Bank of America Corp today reported a drop in first-quarter profits as the second-largest US bank took accounting charges related to its debt.
Bank of America said net income was US$653 million (RM2 billion), or 3 cents a share, in the quarter, compared with US$2.05 billion, or 17 cents per share, in the same period a year earlier.
The bank’s results included a US$4.8 billion negative valuation adjustment related to changes in the company’s credit spreads, equal to 28 cents per share.
Total revenue declined to US$22.3 billion from US$26.9 billion a year before.
Bank of America’s shares are up 60 per cent this year, after falling 58 per cent in 2011. The bank passed the Federal Reserve’s stress test in March, shifting investor concerns from its capital needs to its ability to grow earnings power in a time of low interest rates and increased regulation. – Reuters