Bank of America earnings fell in the first quarter of the year as a slowdown in global trade affected investment banking activity.
The big US banks took advantage of the trading boom last year, as a result of the liquidity channeled into the capital markets by the Federal Reserve in order to mitigate the financial impact of the coronavirus pandemic.
This year, however, the income from investment banking suffered a blow as due to the intense volatility in the stock markets, the companies postponed for later acquisitions and listings on the board.
The second largest US bank in terms of assets “released” $ 362 million from its provisions for provisions for bad loans.
For the first quarter of the year ending in March, the bank announced a 9% increase in revenues from consumer banking activities, which amounted to $ 8.8 billion.
The bank’s earnings for the same period fell to $ 6.6 billion, or 80 cents a share, for the quarter ended March 31 from $ 7.56 billion, or 86 cents a share, in the same period last year.
Analysts had expected average earnings of 75 cents per share, according to Refinitiv IBES Estimates.
Source: Capital
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