The total revenue, net of interest expense, for the first quarter of 2012 was $22.28bn, compared to $26.88bn for the same period a year ago.
Bank of America CFO Bruce Thompson said the narrowing of its credit spreads reflects the significant progress the bank has made to strengthen the balance sheet.
"During the quarter, we increased our Tier 1 common equity ratio by 92 basis points from the prior quarter, improved our liquidity to record levels and continued to reduce risk-weighted assets. While the improvement in our credit spreads results in a negative adjustment to earnings this quarter, it should not overshadow the positive momentum that we are seeing in our businesses," Thompson said.
Consumer and banking business segment revenues (including net of interest expense, FTE basis) were $7.4bn, down $1bn from $8.4bn during the first quarter of previous year.
The net income of the above mentioned segment stood at $1.4bn, with a decline of $587m, compared to the net income of $2bn during the corresponding quarter of 2011.
Global Banking segment registered a net income of $1.6bn, in line with the year-ago quarter, as lower noninterest expense and lower credit costs from improved asset quality offset the decline in revenue.
Global Wealth and Investment Management segments’ net income was $547m comparable to the year-ago quarter while revenue declined 3% to $4.4bn largely as a result of lower transactional activity against the same quarter last year.
