Bank of America Corporation has reported net income of $2.6bn for the first quarter of 2013, compared to $653m in the first quarter of 2012. Revenue, net of interest expense, on a fully taxable-equivalent basis rose 5% to $23.7bn from $22.5bn a year ago.
Relative to the same period a year ago, the results for the first quarter of 2013 were driven by increased brokerage income, higher investment banking fees, and improved credit quality across all major portfolios, partially offset by lower mortgage banking income and lower net gains on the sales of debt securities. The first quarter of 2013 included $893m of pretax annual expense associated with retirement-eligible stock compensation costs, compared to $892m in the first quarter of 2012.
'Our strategy of connecting our customers to all we can do for them is working', said Chief Executive Officer Brian Moynihan. 'Solid increases in loan growth to small businesses and middle-market companies, four straight quarters of steady growth in mortgage originations, record earnings in wealth management, and another quarter near the top in investment banking fees show we are balanced, focused and moving forward'.
'There were many examples of progress this quarter', said Chief Financial Officer Bruce Thompson. 'We reduced noninterest expense by nearly $1bn year-over-year, and credit costs continued to decline. Our relentless focus on capital, liquidity, and expense reduction enables us to be in position to return excess capital to investors through the previously announced common stock repurchase program and preferred stock redemptions'.
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