Bank of America Reports Q1 Profit

posted a profit in the first quarter on Wednesday. The Charlotte, North Carolina based bank posted a quarterly profit of $3.36 billion, or $0.27 per share, versus a year-ago loss of $276 million, or $0.05 per share. According to the press release, the latest quarter results included $0.06 per share in annual retirement incentive costs and $0.03 per share in charges to revenue for market-related net interest income adjustments. Its revenue, net of interest expense, on an FTE basis, dropped to $21.42 billion from $22.77 billion. However, analysts were expecting earnings of $0.29 per share on revenue of $21.50 billion. Revenue for Consumer Banking segment dropped 3 percent y/y to $7.5 billion, while revenue for Global Wealth and Investment Management came in stable at $4.5 billion. Net interest income, on an FTE basis, dropped $616 million from the year-ago period to $9.7 billion. Noninterest income slipped 6 percent y/y to $11.8 billion, while noninterest expense declined to $15.7 billion from $22.2 billion. At March 31, 2015, nonperforming loans, leases and foreclosed properties were $12.1 billion, versus $17.7 billion at March 31, 2014. At March 31, 2015, tangible book value per share was $14.79, versus $13.81 at March 31, 2014. At March 31, 2015, book value per share was $21.66, versus $20.75 at March 31, 2014. BofA reported litigation expense of $370 million in the first quarter, compared to $6 billion in the year-ago quarter. "We continued to strengthen an already strong and liquid balance sheet this quarter," said Chief Financial Officer Bruce Thompson. "We improved our liquidity, accreted capital and tightly managed expenses in a challenging interest rate environment. Meanwhile, credit quality remained strong, reflecting both the economic environment and our risk underwriting." The average estimate among 59 Estimize users was for earnings of $0.30 per share and revenue of $21.58 billion. Bank of America shares fell 0.44 percent to $15.75 in pre-market trading.