Bank of America (BofA) reported a 12% YoY drop in Q1 2022 net income to $7.1bn alongside revenues of $23.2bn, up 2% YoY. Net interest income was up 13% to $11.6bn, driven by strong deposit growth, investments of excess liquidity, loan growth and ‘benefits from higher long-end interest rates’. Its major Consumer Banking business saw net income of $3bn, up 11% thanks to lower expenses and higher revenues. Global Wealth and Investment Management’s net income rose 28% to $1.1bn due to revenue increases on the back of higher asset management fees. However, Global Banking saw net income fall 21% to $1.7bn and Global Markets’ net income fell 22% to $1.6bn due to lower FICC sales, trading revenues and investment banking fees. BofA returned a total of $4.4bn to shareholders in the form of repurchases and dividends during the quarter. Its CET1 ratio was down 20bp QoQ to 10.4%.
BofA’s 6.25% Perp was flat at 103.63 cents on the dollar, yielding 4.6%.