Bank of America today reported first quarter net income of $1.21 billion, or 23 cents per share, compared to earnings of $5.26 billion, or $1.16 per share, in the same period a year ago as housing woes continued to rattle the banking giant.
Provisions for loan losses increased to $6.01 billion from $3.31 billion in the fourth quarter and $1.24 billion a year ago, largely related to problems in its home-equity, small-business and home-builder portfolios.
Net charge-offs were $2.72 billion, or 1.25 percent of total average loans and leases, up from $1.99 billion, or 0.91 percent in the fourth quarter.
Nonperforming assets increased to $7.83 billion, or 0.90 percent of total loans, leases, and foreclosed properties, up from $2.06 billion, or 0.29 percent, a year earlier.
On a positive note, the company’s direct-to-consumer mortgage originations increased 32 percent in the quarter to the highest level since 2003 thanks to a period of favorable interest rates, though they did halt wholesale lending at the end of the year.
Shares of Bank of America were off 91 cents, or 2.36%, to $37.65 in afternoon trading on Wall Street.
(photo: mwichary)
