Bank of America earnings dipped in its first quarter

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The bank, which holds few Russian assets, reported $7.1 billion in profit in the first quarter, down from $8 billion one year ago.

Bank of America posted a 12% decline in first-quarter profits from a year earlier, a drop that was much smaller than the ones its rivals had reported the previous week.

"This is not a bad result for Bank of America, particularly the continued solid loan growth," said David Wagner, portfolio manager at Aptus Capital Advisors, who owns BofA shares, in an email. The bank didn't have to set aside much funds this quarter to cover potential losses as well, in contrast to JPMorgan Chase and Citigroup, who had to set aside money to cover the risk of a recession as well as for their exposure to Russia. BofA had to set aside $700 million to cover its exposure to Russia, compared with the $1.9 billion Citigroup set aside.

Bank of America has said roughly 25% of its overdraft/NSF fee revenue every year comes from NSF fees. Altogether, Bank of America estimates the step will cut its overdraft-fee revenues by 97% from where they were in 2009 — the year before it started taking incremental steps toward reining in overdraft-fee revenues.

 

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