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Bank of America reports 45% decline in first quarter

April 15, 2020

The coronavirus pandemic triggered a 45% decline in Bank of America's first-quarter results, causing the bank to set aside $3.6 billion for loan loss reserves as reported by CNBC.

The bank reported a profit of $4.01 billion, or 40 cents a share, not the estimated 46 cent a share analysts originally predicted. The bank's revenue of $22.8 billion matched expectations and trading exceeded expectations by more than $500 million. 

The pandemic was responsible for a profit drop by 45% ($1.79 billion) in the financial institution's consumer banking business and its wealth management profit fell 17% ($866 million). BOA's global banking profit was according to the report,"nearly wiped out as the company built larger reserves for commercial loan losses." The only division that made a profit for BOA was the trading division which increased 33% ($1.48 billion) and was attributed to strong client activity and volatility in the market.

"Our results reflect the strength of our balance sheet, the diversity of our earnings, and the resilience of our teammates to serve clients around the world," said Brian Moynihan BOA's CEO saod in a company release."Despite increasing our loan loss reserves, we earned $4 billion this quarter."

For more information on how the coronavirus has affected the ATM industry, clickhere.