Bank of America has recorded $6.7bn in net income in Q1 2024, a drop from $8.2bn year-on-year.
The adjusted net income for the period was $7.2bn, minus the FDIC special assessment.
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Revenue of $25.8bn, net of interest expense, declined by $440m, or 2%, in Q1 2024 for Bank of America due to higher investment banking and asset management fees, as well as sales and trading revenue, and reduced net interest income (NII).
NII fell 3% to $14.0bn ($14.2bn FTE), as higher deposit costs outweighed increased asset yields and modest loan growth.
Global wealth and investment management for Bank of America in Q1 2024 witnessed a net income of $1bn, basically the same as last quarter, and a record revenue of $5.6bn, up 5% from Q1 2023.
In addition, the Merrill Wealth Management arm saw record client balances of $3.3trn and AuM balances of $1.4trn.
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By GlobalDataThe Global Markets sector had a net income of $1.7bn. Net income, excluding net DVA, was $1.8bn in the first three months of 2024.
Global Markets revenue in the first quarter of 2024 was $5.9bn, up 5% from the previous year, due to greater investment banking fees and trade revenue.
Noninterest expense grew 4% to $3.5bn, fuelled by company investments, notably technology.
With net DVA excluded, sales and trading revenue of $5.1bn rose by less than 1%.
BofA reaction to Q1 2024
Chair and CEO Brian Moynihan stated: “We reported a strong quarter as our businesses performed well, adding clients and deepening relationships. We reached 36.9 million consumer checking accounts, with 21 consecutive quarters of net checking account growth. Our Wealth Management team generated record revenue, with record client balances, and investment banking rebounded. Bank of America’s sales and trading businesses continued their strong 2023 momentum this quarter, reporting the best first quarter in over a decade. Continued strong earnings and strong expense management both position our company to continue to drive our market leading positions across our businesses.”
From chief financial officer Alastair Borthwick added: “The first quarter saw continued organic growth in our businesses as we grew loans and deposits from Q1-23. We saw increased digital engagement as clients utilised the power of the Bank of America platform to meet their financial needs. Our net income was $6.7bn, and we were able to return $4.4bn to shareholders through common stock dividends and share repurchases this quarter.”
