The consumer banking unit of Bank of America (BofA) has reported a net income of $1.78bn for the first quarter of 2016, up 22.1% compared to $1.46bn a year ago.
The division’s total revenue increased 3.2% to $7.65bn from $7.40bn in the prior year, the bank said in its earnings statement.
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Net interest income rose 6.4% to $5.18bn from $4.87bn a year earlier, while non-interest expense dropped 2.3% to $4.26bn from $4.36bn.
The unit’s provision for credit losses decreased 21.7% year-on-year to $560m from $716m.
Overall, the banking group posted a net income of $2.68bn, down 13.4% from $3.09bn in the year ago quarter. Revenue fell 6.7% to $19.51bn from $20.91bn a year ago.
Bank of America CEO Brian Moynihan said: This quarter, we benefited from good consumer and commercial banking activity. Our business segments earned $4.5 billion, up 16 percent from the year-ago quarter. This was partially offset by valuation adjustments from lower long-term interest rates and annual compensation expenses.
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