- Thomson Reuters
Bank of America just reported Q1 earnings that were right in line with expectations, but missed on revenue.
The firm reported earnings per share of $0.21 on revenue of $19.51 billion.
Analysts were expecting earnings per share of $0.21 on revenue of $20.09 billion, according to Bloomberg.
Here’s what CEO Brian Moynihan had to say:
“This quarter, we benefited from good consumer and commercial banking activity. Our business segments earned $4.5 billion, up 16 percent from the year-ago quarter. This was partially offset by valuation adjustments from lower long-term interest rates and annual compensation expenses. Despite volatile markets, our Global Markets business produced solid earnings. As always, we are focused on loan and deposit growth and managing expenses.”
Total trading revenue came in at $3.80 billion (versus $3.29 billion expected), down 16% from the same period last year.
Within trading, fixed income revenue came in at $2.4 billion ($2.32 billion expected), down 17% from the same quarter a year ago. Equities revenue came in at $1.04 billion ($970 million expected), down 11%.
Firmwide investment banking revenue was $1.16 billion ($1.17 billion expected), down 22% from the same period last year.
In the same quarter last year, Bank of America reported adjusted earnings per share of $0.36 on revenue of $21.4 billion.
Last quarter, Bank of America reported earnings per share of $0.28 ($0.26 expected) on revenue of $19.8 billion.
The first quarter is typically the strongest for investment banks, but analysts are expecting an unusually weak Q1 earnings season on Wall Street this year.
Choppy trading conditions in early 2016, fears over China’s growth, and a collapsed oil price are thought to have created a “perfect storm” for banks. Investment-banking revenue is down 36% across the Street, according to preliminary Q1 data from Dealogic – its lowest level since 2009. More on that here.