Bank of America's profits fall as it misses analyst expectations on revenue

Billy Bambrough
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Bank Of America Reports Loss Due 6 Billion Dollar Legal Charge
Banks in the US are facing a torrent of new regulation on their trading activities combined with lower market activity (Source: Getty)

Bank of America's first quarter net profit slumped by 13 per cent to $2.68bn from $3.1bn last year.

It did though managed to match analysts expectations with earnings per share at $0.21, according to a Bloomberg poll.

Revenue came in under expectations at $19.5bn, down from $20.9bn in the same period last year. Watchers had forecast revenue of $20.09bn.

Shares climbed nearly four per cent in premarket trading in New York.

In its global markets division sales and trading revenue dropped 16 per cent, with fixed income down 17 per cent and equities down 11 per cent.

Read more: US markets have hit new highs

Brian Moynihan, chief executive, said:

Despite volatile markets, our global markets business produced solid earnings. As always, we are focused on loan and deposit growth and managing expenses. By doing that, we continue to improve on what we do best: helping consumers live their financial lives and helping businesses grow and employ more people.

JP Morgan Chase yesterday reported results for its first quarter, managing to beat analyst expectations, though profits still bombed by seven per cent.

Provision for credit losses of rose to $997m, compared to $765m in the same quarter last year.

Read more: What to expect from the big US bank results this week

Energy reserves rose by $525m from the last quarter to $1bn due to the increased risk facing the embattled sector.

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