Bank of America posts net income of USD 3.2 bn in Q1

NEW YORK: Bank of America has posted a profit of USD 3.2 billion in the January-March quarter of 2010 driven by Merrill Lynch's performance and fall in credit-loss provisions.

This compares with a USD 194 million loss in the fourth quarter, although it is 24 per cent lower than the profit in the same quarter a year ago, BofA said in a statement.

The banking entity attributed its profit to record sales and trading activity at it's investment bank, including acquisition of Merrill Lynch.

BofA has also witnessed an improvement in its credit quality as its provision for credit losses fell by USD 3.6 billion from the year-ago period.

It said the company's credit-loss provisions fell to USD 9.81 billion from USD 13.38 billion a year earlier and USD 10.11 billion in the prior quarter.

"With each day that passes, the 2010 story appears to be one of continuing credit recovery, and our results reflect a gradually improving economy," BoFA Chief Executive Officer and President Brian T Moynihan said.

The company's revenue fell 11 per cent from the year-ago period to USD 32 billion in the first quarter ending March 31, 2010.

BofA's net income from global banking operations and markets, which also include Merril Lynch's business, increased by USD 709 million to USD 3.2 billion and that from global wealth and investment management rose to USD 497 million.

The company's global commercial banking operations also returned to profitability, recording a net income of USD 713 million driven by lower credit costs and increased revenues.

BofA's average retail deposits during the quarter increased USD 15.2 billion from a year earlier on strong organic growth in Merrill Lynch Global Wealth Management business.