The second largest bank assets in the US Bank of America
Corp. (BofA) has cut its net profit in I quarter 2016 by 13%. On the bank's performance influenced by low interest rates and falling income from trading operations.
The net profit of Bank of America fell to $ 2.68 billion in January-March, or 21 cents per share, compared with $ 3.1 billion, or 25 cents per share, during the same period in 2015 Adjusted earnings fell from 27 to 20 cents per share.
Revenue net of interest expense was $ 19.5 billion for the period, which is 6.7% lower than a year earlier.
Surveyed by Bloomberg analysts on average had forecast adjusted earnings of 21 cents a share on revenue of $ 20 billion.
The results of the I quarter include charges in connection with the adjustments of assets and pension expenses in the amount of 12 cents per share.
The proceeds from the bank's trading operations fell by 15.5% to $ 3.29 billion (consensus - $ 3.3 billion). J.P.Morgan Chase & Co. on Wednesday reported on the reduction of this figure by 11%.
Net interest income of Bank of America fell to $ 9.17 billion compared with $ 9.76 billion in the previous quarter and $ 9.41 billion a year earlier.
The Bank has reduced costs by 6.4% to $ 14.82 billion, in I quarter, Bank of America continued job cuts, sale and liquidation of branches.
Allocations to reserves to cover bad loans during January-March 2016 were increased to $ 997 million compared with $ 765 million in the I quarter of 2015 and $ 810 million in October-December.
BofA's shares fell 1% in the pre-auction in New York.
In 2015, the capitalization of Bank of America fell by 6%, from the beginning of 2016 it fell by 18%.