Bank of America on Wednesday reported a six-fold increase in first-quarter earnings based on lower expenses and improved credit quality.
The US banking giant said net income was $2.3 billion on revenues of $23.7 billion, compared with $328 million on revenues of $22.5 billion in the year-earlier quarter.
The better results were driven in part by $1 billion less in expenses due to company efforts to “streamline processes” and fewer costs related to service delinquent loans. The company had about 16,000 fewer employees in March 2013, compared with the year-ago period.
Like other banks, Bank of America also gained on stronger credit quality as the housing market steadies. The company’s provision for credit losses stood at $1.7 billion, down from $2.4 billion in the year-ago period.
Also, Bank of America said its non-interest income increased $1.4 billion from the year-ago period, thanks to negative accounting adjustments on some liabilities of just $90 million compared with $3.3 billion in the year-ago period.
“There were many examples of progress this quarter,” said Chief Financial Officer Bruce Thompson.
“We reduced non-interest expense by nearly $1 billion year-over-year, and credit costs continued to decline,” he said.
“Our relentless focus on capital, liquidity, and expense reduction enables us to be in position to return excess capital to investors through the previously announced common stock repurchase program and preferred stock redemptions.”
Bank of America profits up on better credit quality
