Bank of America this week reported first quarter earnings of $2.7 billion up from $2.4 billion, an 11 percent increase, despite a decline in mortgage banking income.
Per share (diluted), the increase was $1.83, a 15 percent increase from $1.59 per share earned a year ago.
Higher earnings were driven by an increase in net interest income, as loan balances and average deposits grew. Also driving the results were increases in card income, investment and brokerage services income and consumer and corporate services charges, reflecting the growing volume of business.
Mortgage banking income, however, declined 48 percent, driven by a slowdown in refinance activity. A $275 million writedown in mortgage banking assets, a result of faster prepayment speeds due primarily to the low interest rate environment, significantly reduced trading account profits.
Revenue on a fully taxable-equivalent basis grew 7 percent from the previous year to $9.69 billion.
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