{"id":25217,"date":"2012-04-20T03:31:00","date_gmt":"2012-04-20T03:31:00","guid":{"rendered":"https:\/\/www2.thestockmarketwatch.com\/stock-market-news\/bank-of-americas-q1-profit-falls-bac\/25216\/"},"modified":"2012-04-20T03:31:00","modified_gmt":"2012-04-20T03:31:00","slug":"bank-of-americas-q1-profit-falls-bac","status":"publish","type":"post","link":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/bank-of-americas-q1-profit-falls-bac\/25217\/","title":{"rendered":"Bank of America\u2019s Q1 Profit Falls (BAC)"},"content":{"rendered":"<p><script type=\"text\/javascript\"><!--\ngoogle_ad_client = \"ca-pub-1408583772585547\";\n\/* SMW - News Links *\/\ngoogle_ad_slot = \"3490797620\";\ngoogle_ad_width = 468;\ngoogle_ad_height = 15;\n\/\/-->\n<\/script><br \/>\n<script type=\"text\/javascript\" src=\"http:\/\/pagead2.googlesyndication.com\/pagead\/show_ads.js\">\n<\/script><\/p>\n<p><!--Ad Injection mfunc mode ad include code--><!--mfunc include_once('\/mnt\/Target01\/327806\/www.thestockmarketwatch.com\/web\/content\/stock-market-news\/wp-content\/plugins\/ad-injection\/adshow.php') --><!--\/mfunc--><\/p>\n<p><a href=\"https:\/\/thestockmarketwatch.com\/stock-market-news\/wp-content\/uploads\/2010\/12\/35.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"alignleft size-full wp-image-3035\" title=\"bank of america\" src=\"https:\/\/storage.googleapis.com\/smw-news-wp\/2010\/12\/35.jpg\" alt=\"bank of america\" width=\"120\" height=\"104\"><\/a>Bank of America Corp.\u2019s (<a href=\"https:\/\/thestockmarketwatch.com\/stock.aspx?stock=BAC\">NYSE: BAC<\/a>) profit fell sharply as declining consumer banking business and an accounting charge tied to its value of its debt weighed on its both revenues and the bottom line.<\/p>\n<p><span id=\"more-25217\"><\/span><\/p>\n<p>Bank\u2019s Per-share earnings dropped to 3 cents from 17 cents a year ago. Total revenue also fell 17% to $22.5 billion. However, those results include a $4.8 billion debt valuation adjustment, which does not reveal its annual financial performance.<\/p>\n<p><!--Ad Injection mfunc mode ad code--><!--mfunc adshow_display_ad_file_v2(array('ad_random_1.txt'), array(100), array('align' => 'float right', 'clear' => '', 'margin_top' => '', 'margin_bottom' => '', 'padding_top' => '', 'padding_bottom' => ''), array(), array()) --><\/p>\n<div style=\"float:right;margin-left:5px;\"><script type=\"text\/javascript\"><!--\ngoogle_ad_client = \"ca-pub-1408583772585547\";\n\/* SMW - in News 300 *\/\ngoogle_ad_slot = \"5684630733\";\ngoogle_ad_width = 300;\ngoogle_ad_height = 250;\n\/\/-->\n<\/script><br \/>\n<script type=\"text\/javascript\" src=\"http:\/\/pagead2.googlesyndication.com\/pagead\/show_ads.js\">\n<\/script><\/div>\n<p><!--\/mfunc--><\/p>\n<p>Meanwhile, Bank of America reported earnings stood at $653 million, compared with a year-earlier profit of $2.05 billion. Notwithstanding the current debt adjustment charge, revenue still declined 2.8%. Net income edged up to $5.5 billion from $3 billion a year ago.<\/p>\n<p>According to a poll conducted by Thomson Reuters, excluding the charge, BofA reported earnings stood at 31 cents a share, compared to analysts\u2019 estimates of 12 cents per share.<\/p>\n<p>BAC\u2019s shares climbed up on early trading on Thursday; however retreated for most the morning session and stood flat at $8.92 at midday.<\/p>\n<p>For the Wall Street heavyweight, some major gains came from two areas:\u00a0 improved trading results and reduced costs and credit loss reserves across the entire bank.<\/p>\n<p>Revenue from trading in fixed income, currency and <a href=\"https:\/\/thestockmarketwatch.com\/markets\/commodities\/today.aspx\">commodities<\/a> soared 10.8% to $4.1 billion&#8211;record sales for both Bank of America and Merrill Lynch, which Bank of America acquired during the financial crisis.\u00a0 The rise in revenue in these areas of business comes when some other banks have lost money on it.<\/p>\n<p>However, revenue from its consumer banking division- once a core business of BofA- fell sharply as consumers continue to cut spending amid fragile economic recovery. Revenue slid 12.3% to $7.4 billion and income also plunged 28.8% to $1.5 billion.<\/p>\n<p>Thanks to cost-cutting initiative, the bank reduced expenses 5.6% from a year earlier and 2% from the fourth quarter, to $19 billion.<\/p>\n<p>There was also an improvement in bank\u2019s capital position. Bank\u2019s Tier 1 capital ratio, a crucial gauge of a bank&#8217;s financial health, rose 2.05 percentage points to 13.37%. Meanwhile, bank\u2019s total non-performing loans declined to $27.8 billion from $31.6 billion.<\/p>\n<p>More Posts by this author<\/p>\n<ul>\n<li><a href=\"https:\/\/thestockmarketwatch.com\/stock-market-news\/market-updates\/why-i-think-gluu-can-climb-67-from-here\/25323\"><br \/>\nWhy I think GLUU can climb 67% from here.<\/a><\/li>\n<li><a href=\"https:\/\/thestockmarketwatch.com\/stock-market-news\/recent-events\/business-news\/gold-prices-marginally-higher-silver-prices-in-red\/25282\"><br \/>\nGold Prices Marginally Higher; Silver Prices in Red<\/a><\/li>\n<li><a href=\"https:\/\/thestockmarketwatch.com\/stock-market-news\/market-updates\/stocks-headed-for-a-strong-finish-20\/25280\"><br \/>\nStocks Headed for a Strong Finish<\/a><\/li>\n<li><a href=\"https:\/\/thestockmarketwatch.com\/stock-market-news\/market-updates\/stocks-extend-gains-as-investors-digest-latest-earnings-reports\/25278\"><br \/>\nStocks Extend Gains as Investors Digest Latest Earnings Reports<\/a><\/li>\n<li><a href=\"https:\/\/thestockmarketwatch.com\/stock-market-news\/recent-events\/business-news\/roadrunner-transportation-systems-rrts-announces-acquisition-of-de-transport\/25235\"><br \/>\nRoadrunner Transportation Systems &#8211; RRTS &#8211; Announces Acquisition of D&amp;E Transport<\/a><\/li>\n<li><a href=\"https:\/\/thestockmarketwatch.com\/stock-market-news\/recent-events\/business-news\/medical-action-industries-mdci-announces-plan-to-realign-into-strategic-business-units\/25234\"><br \/>\nMedical Action Industries &#8211; MDCI &#8211; Announces Plan to Realign into Strategic Business Units<\/a><\/li>\n<li><a href=\"https:\/\/thestockmarketwatch.com\/stock-market-news\/recent-events\/business-news\/wolverine-worldwide-www-and-forus-formation-of-a-new-joint-venture-lifestyle-brands-of-colombia\/25233\"><br \/>\nWolverine Worldwide (WWW) and Forus &#8211; Formation of a new joint venture, Lifestyle Brands of Colombia<\/a><\/li>\n<\/ul>\n<hr>\n<table style=\"border:none;margin:0;\">\n<tr>\n<td style=\"padding:5px;vertical-align:top;\" valign=\"top\">\n<img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/www2.thestockmarketwatch.com\/stock-market-news\/wp-content\/uploads\/2024\/08\/5.jpg\" alt=\"edliston\" width=\"125\" height=\"125\" class=\"photo\"><\/td>\n<td style=\"padding:5px;vertical-align:top;\" valign=\"top\">\n<div style=\"font-size:11pt;\"><b>Post Written By: Ed Liston <\/b><\/div>\n<div style=\"font-size:10pt;\">\n<p>Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing in his yacht.\n<\/p><\/div>\n<\/td>\n<\/tr>\n<\/table>\n<p><script type=\"text\/javascript\"><!--\ngoogle_ad_client = \"pub-1408583772585547\";\n\/* 336x280, created 7\/9\/11 *\/\ngoogle_ad_slot = \"3552319058\";\ngoogle_ad_width = 336;\ngoogle_ad_height = 280;\n\/\/-->\n<\/script><br \/>\n<script type=\"text\/javascript\" src=\"http:\/\/pagead2.googlesyndication.com\/pagead\/show_ads.js\">\n<\/script><\/p>\n<div style=\"margin:5px;margin-bottom:20px;font-size:11pt;\">&laquo; <a href=\"https:\/\/thestockmarketwatch.com\/stock-market-news\/\">Return to Stock Market News<\/a> &laquo; <\/div>\n","protected":false},"excerpt":{"rendered":"<p>Bank of America Corp.\u2019s (NYSE: BAC) profit fell sharply as declining consumer banking business and an accounting charge tied to [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":50312,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center 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