Bank of America Corp. (NYSE: BAC) reported Friday that its first quarter net income dropped 37.5% to $2.0 billion, or 17 cents per share, from $3.2 billion, or 28 cents per share ,in the year-ago quarter. Total revenue, net of interest expense, FTE basis for the quarter dropped to $27.09 billion versus $32.29 billion in the prior-year quarter. Analysts, on average, expected the company to report earnings of 28 cents per share on revenue of $27.08 billion.
"Strong growth in deposit balances and positive contributions from five of our six businesses reflect the steady improvement in the broader economy," said Chief Executive Brian Moynihan.
The company added that the latest quarter's results were positively affected by lower credit costs, gains from equity investments, and higher asset management fees and investment banking fees. These factors were partially offset by higher legacy mortgage-related costs, higher litigation expenses, and lower sales and trading revenue from the levels reported in the first quarter of 2010.
Shares of Bank of America dropped nearly 1% in Friday's pre-market trading.
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