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BofA ups energy reserves to $1B

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BofA ups energy reserves to $1B

on April 14 reportedfirst-quarter net income applicable to common stockholders of $2.22 billion, or21 cents per share, compared to $2.72 billion, or 25 cents per share, for the sameperiod in 2015.

Thoseresults reflect a hit of 7 cents per share for market-related net interest incomeadjustments and a charge of 5 cents per share in annual retirement-eligible incentivecosts.

The S&PCapital IQ consensus estimate for normalized EPS estimate for the quarter was 21cents.

Totalrevenue, net of interest expense, was $19.73 billion, compared to $21.13 billionin the year-ago quarter. The consumer banking segment brought in net income of $1.46billion, while global wealth and investment management contributed $652 million.Global banking's net income was $1.37 billion — with a $457 million increase incredit loss provisions, largely from energy. Global markets' net income was $677million, reflecting a 23% decrease in noninterest expense, thanks to lower litigation,but also a $48 million dip in sales and trading revenue.

"Thisquarter, we benefited from good consumer and commercial banking activity. Our businesssegments earned $4.5 billion, up 16% from the year-ago quarter. This was partiallyoffset by valuation adjustments from lower long-term interest rates and annual compensationexpenses," according to CEO Brian Moynihan.

Net interestyield for the first quarter was 2.05%, compared to 2.15% for the previous quarter,and 2.16% for the first quarter of 2015.

Totalnonperforming loans, leases and foreclosed properties for the quarter stood at $9.28billion, compared to $9.84 billion at the end of the preceding quarter.Net charge-offs in the period totaled $1.07 billion, compared to $1.14 billion forthe prior quarter and $1.19 billion in the first quarter of 2015. The quarter'sprovision for credit losses was $997 million, compared to $810 million in the previousperiod and $765 million in the year-ago period. Energy reserves increased $525 millionfrom the previous quarter to $1.0 billion, primarily driven by increased allowancecoverage for the higher risk subsectors.

Therewere 213,183 ending full-time equivalent employees for the first quarter, comparedto 219,658 employees in the year-ago quarter. The number of financial centers inthe U.S. was also down to 4,689 as of March 31 this year from 4,835 as of March31, 2015.