New York--Bank of America Wednesday reported higher quarterly profits behind higher deposits, although results in key operations were mixed.
Earnings for the first quarter were $3.4 billion compared to a loss of $276 million a year ago. The 2014 results were marred by a $6 billion charge for litigation.
Chief executive Brian Moynihan pointed to record deposits and a strong performance in investment bank advisory fees.
Mortgage production revenues jumped from $10.8 billion to $16.9 billion thanks to higher mortgages.
But net income for global markets sank 28 percent to $945 million, due in part to lower trading revenues. Revenues in the closely-watched fixed income trading category dropped seven percent.
Among other segments, BofA reported higher income in global banking, lower income in global wealth and investment management and essentially flat results in consumer banking.
"Continuing the trend from last quarter, we saw core loan and deposit growth, higher mortgage originations, and increased wealth management client balances," Moynihan said.
"We see continued encouraging signs in customer and client activity, with consumer spending increasing and utilization of credit by our commercial customers rising."
The results translated into earnings of 27 cents per share, two cents below analyst expectations.
Revenues dropped 5.5 percent to $21.42 billion, under the $21.50 billion projected by analysts.
Bank of America dipped 0.4 percent to $15.75 in pre-market trade.
AFP
