BofA Beats Q1 Earnings Predictions
Bank of America Corp, US' largest bank by assets, has reported higher-than-expected earnings in Q1 today as the bank reduced the funds it set aside to cover bad loans.
BofA announced that it net income increased 28% per share to $2.83 billion.
Announcing the Q1 report, BofA chief executive Brian Moynihan said, "With each day that passes, the 2010 story appears to be one of continuing credit recovery, and our results reflect a gradually improving economy."
The bank had reported losses in the third and fourth quarter of the last fiscal year due to consumer credit problems. BofA's first-quarter per-share suffered losses last year due to an increase in shares outstanding, forcing the bank to sell shares in order to arrange funds to repay a government bailout.
Though five of the bank's six business units recorded profits during the first quarter, its revenue fell 11%. Experts maintained that BofA has benefited from a booming investment banking unit.
