Bank of America Corp. (BAC) said Tuesday it had net income of $7.3 billion, or 70 cents a share, in the first quarter, up from $6.9 billion, or 62 cents a share, in the year-earlier period. Revenue edged down to $23.0 billion from $23.1 billion. The FactSet consensus was for EPS of 66 cents and revenue of $23.2 billion. Net interest income rose 10% to $$629 million, driven by higher interest rates and growth in deposits and loans. The company's loan book grew 5% to $292 billion, while its deposit base rose 3% to $697 billion. Loan loss provisions rose by $179 million to $1.0 billion. The company's trading reveneu fell 17% to $3.5 billion. FICC revenue fell 8% to $2.4 billion and equity trading fell 22% to $1.2 billion. "It was a challenging capital markets environment but our team and platform are optimized to serve clients and generate stable revenues across a range of market conditions over time," Chief Executive Brian Moynihan said in a statement. "We reduced expenses by four percent from the first quarter of 2018, contributing to the seventeenth consecutive quarter of positive operating leverage." The consumer banking division had net income of $3.2 billion, up 25% from a year ago. The global wealth and investment banking division had net income of $1.0 billion, up 14%. The global markets division had net income of $1.0 billion, down 26%, hurt by lower investment banking fees and falling trading revenue. Shares were down 0.3% in premarket trade and have fallen 0.3% in the last 12 months through Monday, while the S&P 500 has gained 8.5%.
-Ciara Linnane; 415-439-6400; AskNewswires@dowjones.com
(END) Dow Jones Newswires
April 16, 2019 07:02 ET (11:02 GMT)
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