Bank of America upbeat despite profits slide

Bank of America said it had seen a “strong” first quarter on Tuesday, despite posting a sharp fall in profits.

First quarter net income at the US lender dropped to $6.7bn from last year’s $8.2bn, while diluted earnings per share fell to $0.76 from $0.94.

Once adjusted for one-time expenses, net income was $7.2bn.

Total revenues, net of interest expense, eased 2% at $25.8bn.

Provisions for bad loans at the country’s second-biggest lender also jumped significantly, up 40% to $1.3bn.

In consumer banking, revenues fell 5% to $10.2bn, driven by lower deposit balances.

Global banking also saw revenues fall, to $2bn from $2.6bn, after higher investment banking fees only partially offset lower net interest income.

But global wealth and investment management fared better, with revenues up 5% at a record $5.6bn and net income of $1bn.

Chief executive Brian Moynihan said the lender had now seen 21 consecutive quarters of net checking account growth, to reach 36.9m accounts.

He continued: “We reported a strong quarter as our businesses performed well, adding clients and deepening relationships.

“Wealth management generated record client balances, and investment banking rebounded.

“Bank of America’s sales and trading businesses continued their strong 2023 momentum this quarter.

“Continued strong earnings and strong expense management both position our company to continue to drive our market-leading positions across our businesses.”