The Bank of America doubled its net income in the first three months of the year as credit costs improved, the lender said in a statement.
- Net income rose to $8.1 billion in the first quarter from $4.0 billion the same three months last year. This is equivalent to $0.86 per diluted share.
- Revenues increased 0.2% to $22.8 billion. Net interest income fell 16% to $10.2 billion, while noninterest income rose 19% to $12.6 billion.
- Provisions for credit losses fell $6.6 billion to a benefit of $1.9 billion. This reflects a reserve release of $2.7 billion amid an improved macroeconomic outlook and balance declines.
- Noninterest expenses rose 15% to $15.5 billion; loan and lease balances in the business segments fell 7% to $887 billion; and deposits climbed 25% to $1.8 trillion.
- Chief Executive Officer Brian Moynihan said record or near-record levels were seen in deposits, investment flows, investment banking revenue, digital users, and client engagement.
- “While low interest rates continued to challenge revenue, credit costs improved and we believe that progress in the health crisis and the economy point to an accelerating recovery,” said Moynihan.