Bank of America (BAC) posted a better-than-expected first-quarter profit, helped by robust results from trading operations and a $3.6 billion decline in credit-loss provisions.
The nation's biggest bank by assets said net income for the three months ended March 31 fell to $3.2 billion, or 28 cents a share after dividends, from $4.2 billion, or 44 cents, in the year-ago period. Analysts, on average, expected Bank of America to post earnings of 9 cents a share.
The company said results were driven by strong capital markets activity, including record sales and trading, and an improvement in credit quality that cut credit loss provisions dramatically. "With each day that passes, the 2010 story appears to be one of continuing credit recovery, and our results reflect a gradually improving economy," Chief Executive Officer Brian Moynihan said in a press release.
Bank of America Earnings Top Expectations