Bank of America posted Q1 profit that topped estimates, driven by the better-than-expected credit quality of its borrowers, according to a press release by Bank of America on Monday.
- The total revenues of the lender came in at $23.33 billion compared to $23.2 billion estimates. Earnings per share stood at 80 cents per share compared to an estimate of 75 cents per share.
- The bank stated that profit plunged 12% to $7.07 billion or 80 cents per share, topping the 75-cent estimate of analysts surveyed by Refinitiv. Revenue rose 1.8% to $23.33 billion, nearly matching estimates.
- Bank of America stated that a run of strong credit continued into Q1. Net loan charge-offs plunged 52% from a prior year to $392 billion.
- Alastair Borthwick, CFO of Bank of America, stated that Q1 results were solid despite challenging market and volatility, which reflect the value of their ‘Responsible Growth’ strategy.
The bank reported a slight $30M provision for credit losses, far less than the $468 million estimated by analysts. BAC up +2.40%, MS up +2.05%