Bank of America slides as first quarter revenue misses views

Shares in Bank of America slid in pre-market trade as its first-quarter revenue fell short of analysts’ expectations.

Net income fell 13% to $2.7bn, or $0.21 per share compared to $0.25 the year before and broadly in line with analysts’ forecasts of $0.20 per share.

However, revenue declined to $19.51bn from $20.9bn in the first quarter of 2015, which was lower than the $20.3bn expected.

Meanwhile, profits in the global markets division slid 4% to $889m, excluding the impact of accounting adjustments tied to debt valuations.

Adjusted revenue from trading dropped 16% to $3.3bn, while fixed income revenue was down 17%, reflecting a weak trading environment for credit-related products and lower revenues in currencies compared with a strong year-ago quarter, partially offset by an improved performance in rates and client financing.

Equities trading revenue fell 11% amid a weaker trading performance in a “challenging” market environment.

Bank of America’s global banking division saw a 22% decline in profit to $1.07bn, while profit at the consumer bank rose 22% to $1.8 billion.

Chief executive officer Brian Moynihan said: “This quarter, we benefited from good consumer and commercial banking activity. Our business segments earned $4.5bn, up 16% from the year-ago quarter. This was partially offset by valuation adjustments from lower long-term interest rates and annual compensation expenses.

“Despite volatile markets, our Global Markets business produced solid earnings. As always, we are focused on loan and deposit growth and managing expenses. By doing that, we continue to improve on what we do best: helping consumers live their financial lives and helping businesses grow and employ more people."

Bank of America shares were down 7% to $13.01 in pre-market trade.