Bank of America swings to a profit in first quarter

Brian Fonzie Moynihan

Bank of America posted a profit, swinging from a surprise loss a year earlier when it took a charge of $6 billion for litigation expenses.

The financial services giant's shares slipped in premarket trading following the announcement.

The second-largest U.S. bank by assets posted net income attributable to common shareholders of 27 cents per share for the quarter ended March 31, compared with a loss of 5 cents per share a year earlier.

The results included a charge of 6 cents per share in annual retirement incentive costs and a 3 cent charge for market-related net interest income adjustments.

Revenue eased to $21.2 billion from $22.77 billion a year ago.

Wall Street expected the company to deliver quarterly earnings per share of 29 cents on $21.51 billion in revenue, according to consensus estimates from Thomson Reuters.

The bank has been mired in litigation since the financial crisis, which cost billions of dollars and reduced earnings. Last year, Bank of America struck a $16.65 billion settlement with the government to end investigations over bad mortgages.

"This historic resolution-the largest such settlement on record-goes far beyond 'the cost of doing business,"' said U.S. Attorney General Eric Holder, in a statement at the time.

The bank's shares have dipped almost 1.5 percent over the last 12 months.

-Reuters contributed to this report.

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