Bank of America returned to profitability in the first quarter as the bank was able to move beyond its legal troubles last year. However, the results came in short of some analysts’ estimates, the Associated Press reported.
The consumer banking giant said Wednesday that it earned $2.98bn after payments to preferred shareholders, compared with a loss of $514m a year earlier. BofA’s net revenue fell to $21.2bn compared with $22.56bn in the same period a year earlier.
On a per-share basis the bank earned 27 cents, compared with a loss of five cents a year earlier.
The Charlotte, NC-based bank’s legal expenses, which stemmed largely from the housing bubble and financial crisis, appear to be largely behind it for the moment.
BofA’s legal costs for the quarter were $370m, down slightly from the $393m in legal expenses in the fourth quarter and a fraction of the $6bn the bank paid out a year earlier.
The $6bn in expenses last quarter was the major driver of the company’s quarterly loss last year. The bank has paid out more than $70bn in legal settlements since 2008.
BofA’s overall business continues to have issues. Revenue declined or was basically flat in all four of BofA’s core businesses: consumer banking, wealth management, global banking and global markets.
Source : Punch