Bank of America profit drops 18 percent on weak trading unit
NEW YORK (AP) — Bank of America's first-quarter profit fell more than 18 percent from a year earlier, hurt by weak performance in its trading unit.
Shares of Bank of America Corp. slipped about 1 percent before the stock market opened Thursday.
BofA said trading revenue fell more than 15 percent to $3.3 billion as it made less money from investment banking fees.
At its consumer banking unit, where the company makes most of its money, profit rose 22 percent to $1.79 billion as people deposited more money into their accounts and took out more loans.
The Charlotte, North Carolina-based bank reported a profit after payment of dividends to preferred shareholders of $2.22 billion, or 21 cents per share, in the quarter that ended in March. That's compared to $2.72 billion, or 25 cents per share, in the same period a year ago.
The results met the expectations of Wall Street analysts, according to FactSet.
BofA's revenue in the quarter was $19.51 billion, down 6.6 percent from $20.91 billion the year before.
On Wednesday, fellow bank JPMorgan Chase & Co. also reported a drop in first-quarter profit, hurt by weak results at its investment bank. But its earnings still beat Wall Street expectations. Citigroup Inc. will release its financial results on Friday.