Bank of America, the third largest bank in the US, has reported that first quarter net income rose to $4.70 billion, or $1.14 per share, from $2.68 billion, or $0.91 per share, a year ago. The profits represent a 75% increase on those of the previous corresponding period.
The US financial organization achieved its impressive improvement in overall earnings through diverse means, which included general business, sales of securities and, significantly, the addition of FleetBoston Financial, while the reduction of credit costs also played a part.
Revenue on a fully taxable-equivalent basis grew to $14.22 billion from $9.70 billion the previous year. However, first quarter earnings included merger and restructuring charges of $112 million before tax, which reduced net income by 2 cents per share.
I am very pleased with the continued momentum of our businesses, said Kenneth Lewis, chairman and chief executive officer for the bank. The continuing successful integration of the Fleet franchise has bolstered our ability to achieve future growth and value creation for our shareholders. In particular, we saw the strongest commercial loan growth in many quarters across our company and deposit growth continues to be robust. This quarter shows how our balanced business mix is paying off.
The banking organization also delivered record figures in net new retail consumer checking accounts, with 610,000 added in the first quarter. Additionally, net new retail savings accounts in the first quarter of 2005 were a record 759,000 and the bank opened 1.3 million new consumer credit card accounts in the quarter.
