Bank of America Reports Q1 Earnings Loss
Bank of America (NYSE:BAC) reported a net loss of $276 million (5 cents per diluted share) in its first-quarter earnings before the market opened on Wednesday, down from $1.48 billion (10 cents per diluted share) during the same period last year.
The biggest factors that negatively affected earnings were falling mortgage originations and the bank’s litigation expenses, totaling $6 billion pretax (40 cents per share post-tax). Bank of America shares fell 2 percent in premarket trading and continued to drop after the bell rang.
Bank of America’s net revenue on a fully taxable-equivalent basis was $22.77 billion, a 3 percent slide from $23.41 billion last year. Excluding net debt valuation adjustments, revenue fell 4 percent, from $23.55 billion to $22.7 billion, and exceeded analyst expectations of revenue sliding to $22.32 billion (5 cents per share), according to a survey by FactSet.
The second-largest bank in the U.S. reported a net loss attributed to shareholders of $514 million (5 cents per share) from a profit of $1.1 billion last year. Mortgage production revenue for the quarter ending March 31 was $207 million from $815 million a year ago. The bank pulled back slightly on granting home loans, at $10.8 billion from $11.6 billion last year.