Home / Bank of America’s profit more than doubles in the fiscal first quarter

Bank of America’s profit more than doubles in the fiscal first quarter

 Bank of America’s profit more than doubles in the fiscal first quarter

Bank of America Corp. (NYSE: BAC) said on Thursday that its profit more than doubled in the fiscal first quarter. On the back of hawkish performance that it attributed to lower credit costs and robust growth in capital markets, the investment bank authorised a stock buyback programme worth £18.12 billion.

Bank of America shares remained almost flat in premarket trading on Thursday. The stock is currently exchanging hands at a per-share price of £29.17. In comparison, it had started the year 2021 at £21.77 per share after recovering from a low of £14.26 per share in March 2020.

Bank of America’s Q1 financial results versus analysts’ estimates

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Bank of America said that its net income in the first quarter printed at £5.87 billion that translates to 62.33 pence per share. In the same quarter last year, its net income was capped at a sharply lower £2.90 billion, or 28.99 pence per share. In the prior quarter (Q4), the Charlotte-headquartered bank had registered £4.04 billion of net income.

The American multinational valued its total revenue in Q1 at £16.53 billion that remained unchanged from last year. According to FactSet, experts had forecast the company to post £15.87 billion of revenue in the recent quarter. Their estimate for per-share earnings stood at a lower 47.84 pence.

Bank of America valued its net interest income at £7.39 billion in the first quarter or 15.9% lower on a year over year basis. Experts had called for a slightly higher £7.44 billion of net interest income.

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Other prominent figures in the Bank of America’s earnings report

Other notable figures in the Bank of America’s earnings report on Thursday include a 12% decline in consumer banking revenue and a 19% increase in global markets revenue. Credit loss provisions in the first quarter, as per the financial services holding firm, jumped to £1.38 billion of benefit from £3.48 billion of cost.

In separate news from the United States, Dell Technologies Inc. said on Thursday that it had decided to spin off its 81% stake in VMware (cloud computing software maker) – a move that will generate up to £7.03 billion.

Bank of American performed fairly downbeat in the stock market last year with an annual decline of close to 15%. At the time of writing, the New York Stock Exchange-listed company is valued at about £249 billion and has a price to earnings ratio of 21.30.