Bank of America Corporation reported net income of $653 million for the first quarter of 2012. Revenue, after various changes, was $22.5 billion as the financial services giant worked to strengthen its balance sheet.
Reuters reported the results were better than expected and reflect and improving economy.
The results compare to net income of $2 billion, or $0.17 per diluted share, in the year-ago quarter on revenue of $27.1 billion when the company reported negative valuation adjustments of $943 million.
“By focusing on building strong customer and client relationships, we’re doing more business and winning in the marketplace,” said CE Brian Moynihan. “Our strategy is paying off: With the economy steadily improving and because of the work we have done to strengthen and simplify our company, we saw improved profitability in all of our businesses this quarter compared to the fourth quarter of last year.”
“The narrowing of our credit spreads reflects the significant progress we’ve made to strengthen the balance sheet,” said Chief Financial Officer Bruce Thompson. “During the quarter, we increased our Tier 1 common equity ratio by 92 basis points from the prior quarter, improved our liquidity to record levels and continued to reduce risk-weighted assets. While the improvement in our credit spreads results in a negative adjustment to earnings this quarter, it should not overshadow the positive momentum that we are seeing in our businesses.”
The number of new U.S. consumer credit card accounts opened in the first quarter of 2012 was up 19 percent from the year-ago quarter, and more than 1 million BankAmericard Cash Rewards cards have been issued since its introduction in the third quarter of 2011.
Credit card results are now in a business and consumer segment as Bank of America continues work to simplify its array of businesses. Bank of America has credit card and other operations in Wilmington and Newark.