Bank of America earnings rise 14 percent

SBJ Staff

Posted online April 24, 2006 | 11:00 pm

Charlotte, N.C.-based Bank of America Corp. reported first-quarter earnings of $5 billion, a 14 percent year-over-year increase fueled by a rebound in trading account profits and equity investment gains.

Per-share earnings were unchanged from a year earlier at $1.07, including merger and restructuring costs. Bank of America acquired Delaware-based MBNA Corp. Jan. 1.

Revenue for the quarter increased 31 percent to $17.94 billion from $13.74 billion in first-quarter 2005. Net interest income was $9.04 billion, compared to $7.71 billion last year, and noninterest income was $8.9 billion, up from $6.03 billion.

Company officials attribute across-the-board increases to strong performance in the consumer businesses and improvements in trading account profits, equity investment gains and investment banking income, as well as momentum in e-commerce and small-business banking.

Mass market small-business sales increased more than 21 percent from the same quarter last year, driven by increases in small-business online banking and small-business credit products.

Shares of Bank of America (NYSE: BAC) closed April 24 at $47.07, compared to a 52-week range of $41.13 to $47.44.[[In-content Ad]]