Bank of American Reports First Quarter Financial Results
Apr 18, 2022 By MarketDepth
Bank of America Corporation (NYSE: BAC) has announced first quarter financial results.
New Income Lower Than Previous Year
Net income amounted to USD 7.1 Billion or USD 0.80 per diluted share. Pretax income fell 14% to USD 7.9 Billion which reflects a smaller reserve release than the same period a year ago. Net interest income resulted in USD 1.4 Billion or 13% to USD 11.6 Billion driven by high deposit growth and investment of excess liquidity, loan growth and benefits from higher long end interest rates.
“First quarter results were strong despite challenging markets and volatility, which we believe reflect the value of our Responsible Growth strategy. Net interest income increased by $1.4 billion versus the year-ago quarter supported by strong loan and deposit growth. Going forward, and with the forward curve expectation of rising interest rates, we anticipate realizing more of the benefit of our deposit franchise. Asset quality continued to remain strong with net charge-offs about half of the year-ago quarter amount. Our balance sheet remained strong with $170 billion of regulatory capital and a CET1 ratio nearly 90 bps above our current minimum requirements. Capital strength allowed us to grow loans, weather the worst bond market in 40 years, support communities, and return more than $4 billion back to shareholders. With very minor direct exposure to Russia-based companies, our teams were able to assist clients and navigate through the complexities of the sanctions.”
Chief Financial Officer Alastair Borthwick
From Chair and CEO Brian Moynihan: “We achieved solid first-quarter results earning $7.1 billion, continuing the momentum from record net income in 2021. Across our businesses, ongoing organic growth combined with good expense management drove operating leverage for the third consecutive quarter. Year over year we grew loans $70 billion and deposits by $240 billion. Our teammates supported our clients while managing through the impacts of the pandemic, war in Ukraine, and an evolving rate environment. Our strong first quarter client activity drove results that allow us to deliver for shareholders while continuing to invest in our people, businesses, and communities.”
