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Bank of America Corp (NYSE: BAC) Tuesday morning announced record results for the first quarter.
What happened
Bank of America said it earned 70 cents a share in the quarter for a $ 23 billion business, against forecasts of 68 cents a share and $ 23.1 billion. Net income reached $ 7.3 billion, up 6% from the same quarter last year, mainly due to strong operational leverage.
Net interest yield rose nine basis points to 2.51% while personal and commercial loans grew by at least 3%. Deposits also increased 5% during the quarter, reaching $ 1.4 trillion.
Net income was higher in Personal Banking, Wealth Management and Global Investment Management and Global Banking. However, the Global Markets unit saw its profits fall by 26% over last year due to poor trading results and lower investment banking fees.
Why is it important
Bank of America President and CEO Brian Moynihan said in a press release that the company had made a record quarterly profit. The executive cited the composition of the bank's business, its commitment to responsible growth, in addition to the current dynamics of economic growth and consumer activity in the United States.
The CEO also said that businesses of all sizes continue to borrow capital to stimulate the economy.
And after
Bank of America has stated that it remains in a position to generate solid and continuous growth "in the right way". The company plans to add 350 financial centers to new and existing markets by 2021, reaching over 90% of the US population.
Over the next two years, the company plans to increase its minimum starting salary to $ 20. The bank also plans to expand its environmental initiative to more than $ 300 billion over 10 years to "help create a sustainable, low-carbon future."
Shares closed Monday at $ 29.84 and were down slightly on Tuesday morning.
Related links:
Citi rocking after mixed results in the first quarter
Bank Of America surges 5% after record fourth-quarter profit
Photo credit: Mike Mozart, Flickr
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