- Profit at Bank of America dropped 12% in 2022’s first quarter, to $7.07 billion compared with $8.05 billion over the first three months of last year, the bank reported Monday.
- The bank’s performance ran counter to its competitors in a couple of areas. Mortgage originations increased 7%, while JPMorgan Chase saw a 37% dip in that category and Wells Fargo saw a 27% decline, according to The Wall Street Journal.
- While the bank saw a 35% drop in investment banking revenue — JPMorgan, by comparison, experienced a 28% dip — Bank of America’s equity trading revenue surged 9.5%, topping $2 billion for the first time, Bloomberg reported. "Despite the market turmoil, we had zero days of trading losses," CEO Brian Moynihan told investors Monday, according to the wire service.
"[Russia] has never been a big part of our business … we’re helping clients unwind contracts there," Bank of America CFO Alastair Borthwick said Monday, according to The Wall Street Journal. The bank’s total Russia exposure encompasses roughly $700 million, the outlet reported.
Meanwhile, the bank released $362 million in loan-loss reserves it amassed as the COVID-19 pandemic ramped up.
That comes amid a 10% increase in outstanding loans and leases for the bank. Bank of America’s commercial loans ticked up 13%, while consumer loans rose 6%.
"Going forward, and with the forward curve expectation of rising interest rates, we anticipate realizing more of the benefit of our deposit franchise," Borthwick said Monday in a statement.
Noninterest income, which includes fees, dipped 8% in the final quarter before Bank of America shaves its overdraft fee. The drop from $35 to $10 per charge is expected to take effect in May.
The bank’s net interest income, meanwhile, jumped 13%, while its revenue ticked up 2% from 2021’s first quarter, to $23.23 billion.
Bank of America saw double-digit percentage-point declines in a handful of areas where its competitors also struggled during the quarter. A 75% slump in equities underwriting drove investment banking fees down 33%. And while equity trading revenue may have had an up quarter, fixed-income trading fell by 19%.
It appears, though, that speculation of a spike in expenses — as banks vie to retain talent — may have been overblown. Total expenses at Bank of America saw just a 1% increase. By comparison, JPMorgan’s expenses rose 2%. Citi saw a 15% jump but has been working for more than a year to revamp its technology to align with a pair of 2020 consent orders.