BofA Profit Drops 18 Percent on Weak Trading Unit

NEW YORK (AP) -
(AP Photo/Mark Lennihan, File)
(AP Photo/Mark Lennihan, File)

Bank of America’s first-quarter profit fell more than 18 percent from a year earlier, hurt by weak performance in its trading unit.

BofA said trading revenue fell more than 15 percent to $3.3 billion, as it made less money from investment banking fees.

At its consumer banking unit, where the company makes most of its money, profit rose 22 percent to $1.79 billion as people deposited more money into their accounts and took out more loans.

The Charlotte, North Carolina-based bank reported a profit after payment of dividends to preferred shareholders of $2.22 billion, or 21 cents per share, in the quarter that ended in March. That’s compared to $2.72 billion, or 25 cents per share, in the same period a year ago.

The results met the expectations of Wall Street analysts, according to FactSet.

BofA’s revenue in the quarter was $19.51 billion, down 6.6 percent from $20.91 billion a year ago,

In trading Thursday afternoon, shares of Bank of America Corp. rose 31 cents, or 2.2 percent, to $14.10.

On Wednesday, fellow bank JPMorgan Chase & Co. also reported a drop in first-quarter profit, hurt by weak results at its investment bank. But its earnings still beat Wall Street expectations. Citigroup Inc. will release its financial results on Friday.