Bank Of America Blows Past Q1 Earnings Expectations

Brian Moynihan

For the first quarter of 2012, Bank of America reported adjusted EPS of 31 cents beating analysts’ estimates.

The bank’s stock was last up more than 4% in pre-marking trading.

From the release:

Bank of America Corporation today reported net income of $653 million, or $0.03 per diluted share, for the first quarter of 2012. Revenue, net of interest expense, on a fully taxable-equivalent (FTE)1 basis was $22.5 billion, including negative valuation adjustments related to changes in the company’s credit spreads of $4.8 billion pretax, or $0.28 a share.

The results compare to net income of $2.0 billion, or $0.17 per diluted share, in the year-ago quarter on revenue of $27.1 billion when the company reported negative valuation adjustments of $943 million, or $0.06 per share. Excluding the valuation adjustments from both periods, revenue was down 3 per cent in the first quarter of 2012 to $27.3 billion2.

“By focusing on building strong customer and client relationships, we’re doing more business and winning in the marketplace,” said Chief Executive Officer Brian Moynihan. “Our strategy is paying off:¬†With the economy steadily improving and because of the work we have done to strengthen and simplify our company, we saw improved profitability in all of our businesses this quarter compared to the fourth quarter of last year.”

“The narrowing of our credit spreads reflects the significant progress we’ve made to strengthen the balance sheet,” said Chief Financial Officer Bruce Thompson. “During the quarter, we increased our Tier 1 common equity ratio by 92 basis points from the prior quarter, improved our liquidity to record levels and continued to reduce risk-weighted assets. While the improvement in our credit spreads results in a negative adjustment to earnings this quarter, it should not overshadow the positive momentum that we are seeing in our businesses.”

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EARLIER POST: Bank of America, the second-largest U.S. bank, is expected to report first-quarter earnings around 7 a.m. today.

For the first-quarter of 2012,  analysts expect the Charlotte, North Carolina-based bank to deliver earnings of 12 cents EPS on revenue of $22.6 billion, according to data compiled by Bloomberg.

In Q4, BofA reported a loss of 3 cents a share on revenue of $25.1 billion.

SEE ALSO: Here’s Bruce Berkowitz’ Big Bullish Presentation On Bank Of America >

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