Bank of America profit misses estimates as revenue falls
BofA shares dropped 3 per cent before the bell to $11.90
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Bank of America Corp reported a lower-than-expected first-quarter profit and its revenue fell, sending the No. 2 US bank’s shares down 3 per cent before the bell on Wednesday.
Net income quadrupled to $2.62 billion, or 20 cents per share, from $653 million, or 3 cents per share a year earlier as expenses dropped and the bank set aside less money to cover bad loans.
But total adjusted revenue fell 8.4 per cent to $23.85 billion, partly due to lower revenue from trading in fixed income securities and mortgages.
Revenue from the fixed income, currency and commodities markets fell $829 million to $3.3 billion.
Analysts on average had expected BofA to earn 22 cents per share, according to Thomson Reuters I/B/E/S.
BofA shares dropped 3 per cent before the bell to $11.90.
Earnings in the year-earlier period were affected by a host of one-time items including a $4.8 billion charge related to the value of its debt.
Net income quadrupled to $2.62 billion, or 20 cents per share, from $653 million, or 3 cents per share a year earlier as expenses dropped and the bank set aside less money to cover bad loans.
But total adjusted revenue fell 8.4 per cent to $23.85 billion, partly due to lower revenue from trading in fixed income securities and mortgages.
Revenue from the fixed income, currency and commodities markets fell $829 million to $3.3 billion.
Analysts on average had expected BofA to earn 22 cents per share, according to Thomson Reuters I/B/E/S.
BofA shares dropped 3 per cent before the bell to $11.90.
Earnings in the year-earlier period were affected by a host of one-time items including a $4.8 billion charge related to the value of its debt.
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First Published: Apr 18 2013 | 12:37 AM IST