Bank of America reports 5% jump in income

Diluted earnings per share were $1.16, up 8 percent from $1.07 in first-quarter 2006.

Return on average shareholders’ equity was 16.16 percent.

Noninterest income increased 10 percent to $9.83 billion from $8.9 billion a year ago.

First-quarter results were driven by increases in service fee income, investment banking income, mortgage banking income and equity investment gains, according to a company news release.

“We demonstrated strong customer momentum across our lines of business, added thousands of net new checking account customers thanks to innovative products like Keep the Change, generated double-digit loan growth and deepened relationships with business and corporate clients,” said Kenneth D. Lewis, chairman and CEO, in the release.

That customer growth was offset, however, by the impact of a flat yield curve and normalizing credit costs, according to the release.

Total sales of retail products rose 6 percent to nearly 12 million units, and average loans to small business with less than $2.5 million in annual sales increased 30 percent to $14.01 billion.

Company shares (NYSE: BAC) closed Wednesday at $51.23, compared to a 52-week range of $45.86 to $55.08.