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. 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.