Bank of America quarterly earnings beat expectations despite revenue slip
CFO Paul Donofrio says group has shown it can grow well in a lukewarm to slowing economy
New York — Bank of America missed revenue expectations in the first quarter, but its earnings still beat forecasts as the bank chopped its expenses and expanded its loan book. The second-biggest US banking group by assets followed rival domestic lenders by struggling to generate top-line growth in the latest quarter when its trading revenue fell. The bank’s share price eased 0.6% to $29.65 in premarket trading. Lower market volatility and its negative effect on trading held bank capital markets revenue at US banks during the first quarter. That has left many banks relying on expense cuts to drive profitability. JP Morgan & Co, the biggest US bank by assets, was the exception, increasing revenue and beating earnings expectations as its expenses rose with investment in new technology. Bank of America reported that revenue, net of interest expense, slipped to $23bn from $23.1bn a year ago, a number below analysts’ expectations of $23.3bn. The bank had 3% growth in consumer loans and...
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