Bank of America reports lower first quarter profit

City A.M. Reporter
Bank of America Corp reported a drop in first-quarter profits as the second-largest U.S. bank took accounting charges related to its debt.

Bank of America said net income was $653m, or three cents a share, in the quarter, compared with $2.05 billion, or 17 cents per share, in the same period a year earlier.

The bank's results included a $4.8bn negative valuation adjustment related to changes in the company's credit spreads, equal to 28 cents per share.

Total revenue declined to $22.3bn from $26.9bn a year before.

Bank of America's shares are up 60 per cent this year, after falling 58 per cent in 2011. The bank passed the Federal Reserve's stress test in March, shifting investor concerns from its capital needs to its ability to grow earnings power in a time of low interest rates and increased regulation.