Shares of Bank of America Corp. (BAC) fell 2.9% in premarket trading Wednesday, after the moneycenter bank reported a first-quarter profit that fell below expectations, amid a $3.6 billion COVID-19-related reserve build, while revenue topped forecasts. Net income fell to $3.54 billion, or 40 cents a share, from $6.87 billion, or 70 cents a share, in the year-ago period. The FactSet consensus for earnings per share was 49 cents. Revenue fell to $22.77 billion from $23.000 billion, above the FactSet consensus of $22.70 billion. Net interest income fell 2.0% to $12.13 billion, beating the FactSet consensus of $11.74 billion, while book value per share increased to $27.84 from $25.57 to top expectations of $27.19. Fixed income, currency and commodities (FICC) revenue increased 13% to $2.7 billion and equities revenue jumped 39% to $1.7 billion. " Despite increasing our loan loss reserves, we earned $4 billion this quarter, maintained a significant buffer against our most stringent capital requirement, and ended the quarter with more liquidity than when we began," said Chief Executive Brian Moynihan. The stock has tumbled 31.6% over the past three months through Tuesday, while the SPDR Financial Select Sector ETF (XLF) has dropped 26.2% and the S&P 500 has lost 13.5%.
-Tomi Kilgore; 415-439-6400; AskNewswires@dowjones.com
(END) Dow Jones Newswires
April 15, 2020 07:13 ET (11:13 GMT)
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