Bank of America books 5% profit

Bank of America Corp. recorded a 5% increase in first quarter net income, as fee income rose despite a challenging credit environment.
APR 19, 2007
By  Bloomberg
Bank of America Corp. recorded a 5% increase in first quarter net income, as fee income rose despite a challenging credit environment. The Charlotte, N.C.-based bank posted net income of $5.26 billion, or $1.16 per share, during the first quarter, compared to $4.99 billion, or $1.06 during the same period a year ago. Excluding items, profits totaled $5.33 billion, or $1.17 per share. Merger and restructuring charges of $98 million from the year-ago period equaled 1 cent per share. Revenues increased 3% to $18.42 billion from $17.94 billion in the first quarter of 2006. Analysts surveyed by Thomson Financial expected earnings of $1.15 per share on revenue of $18.45 billion. Net income from consumer and small business banking profit was off 1% to $2.69 billion, compared to $2.72 billion in the year-ago period. Wealth and investment management fell 2% to $531 million, compared to $542 million during the year-ago period. Corporate and investment banking fell 5% to $1.45 billion. Credit card fees rose 16% to $2.45 billion, helped by the addition of 3 million new accounts. Overall fee income grew 10% to $9.83 billion, compared to $8.90 billion in the first quarter of 2006. BofA said it set aside $1.24 billion for credit losses, 2% less than the $1.27 billion set aside in the first quarter of 2006.

Latest News

No succession plan? No worries. Just practice in place
No succession plan? No worries. Just practice in place

While industry statistics pointing to a succession crisis can cause alarm, advisor-owners should be free to consider a middle path between staying solo and catching the surging wave of M&A.

Research highlights growing need for personalized retirement solutions as investors age
Research highlights growing need for personalized retirement solutions as investors age

New joint research by T. Rowe Price, MIT, and Stanford University finds more diverse asset allocations among older participants.

Advisor moves: RIA Farther hails Q2 recruiting record, Raymond James nabs $300M team from Edward Jones
Advisor moves: RIA Farther hails Q2 recruiting record, Raymond James nabs $300M team from Edward Jones

With its asset pipeline bursting past $13 billion, Farther is looking to build more momentum with three new managing directors.

Insured Retirement Institute urges Labor Department to retain annuity safe harbor
Insured Retirement Institute urges Labor Department to retain annuity safe harbor

A Department of Labor proposal to scrap a regulatory provision under ERISA could create uncertainty for fiduciaries, the trade association argues.

LPL Financial sticking to its guns with retaining 90% of Commonwealth's financial advisors
LPL Financial sticking to its guns with retaining 90% of Commonwealth's financial advisors

"We continue to feel confident about our ability to capture 90%," LPL CEO Rich Steinmeier told analysts during the firm's 2nd quarter earnings call.

SPONSORED How advisors can build for high-net-worth complexity

Orion's Tom Wilson on delivering coordinated, high-touch service in a world where returns alone no longer set you apart.

SPONSORED RILAs bring stability, growth during volatile markets

Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today's choppy market waters, says Myles Lambert, Brighthouse Financial.