Bank of America
(BofA) has reported net income of $2.05bn for the three
months to 31 March, a fall of 35.5% from the $3.18bn earned by the
US’ largest retail bank in the year-ago period.

Results for the first quarter of fiscal
2011 were boosted by lower credit costs, gains from equity
investments and higher investment banking revenue; BofA also
reported strong growth in deposits.

Go deeper with GlobalData

Premium Insights

The gold standard of business intelligence.

Find out more

First-quarter highlights
included:

  • BofA’s retail focused Deposits business
    unit returned to the black, earning net income of $355m having lost
    $190m in the prior quarter (Q110: net profit of $701m);
  • US credit card performance metrics
    continued to improve with 30+ day delinquency rates near all-time
    lows, net losses declining for the sixth straight quarter and
    customer payment rates improving for the seventh straight
    quarter;
  • BofA’s Global Card Services business unit
    posted net income of $1.7bn, an increase of more than 75% from the
    year-ago-quarter as lower credit costs more than offset a $1.2bn
    decline in revenue. The lower revenue reflected a drop in net
    interest income from lower yields and lower average loans,
    including run-off portfolios, as well as lower non-interest income
    due to the impact of the CARD Act as provisions became effective
    throughout 2010;
  • Average deposit balances were above
    $1trn, gaining 4% from the year-ago period and 2% from the fourth
    quarter of 2010;
  • Regulatory capital ratios remained strong
    with the Tier 1 common ratio at 8.64% at 31 March compared 7.60% at
    March 31, 2010, and,
  • The provision for credit losses declined
    61% from the year-ago quarter.

BofA CEO Brian Moynihan
said:

“Strong growth in
deposit balances and positive contributions from five of our six
businesses reflect the steady improvement in the broader
economy.

“Our customer-focused
strategy is working well, and we also benefited from improved
credit quality.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

“While still soft, the
economy is healing; we see retail spending up versus the year-ago
period and continued declines in bankruptcy filings and delinquency
rates.”

BofA ended the first
quarter with a branch network of 5,805 outlets, having shuttered a
net 134 units or 2.2% of its branches during the year.

By contrast, rival
JPMorgan Chase increased its network by 3% over the same period,
ending the first quarter with 5,292 branches.