BofA Blows Away Wall Street’s Expectations

Bank of America (BAC) said it earned $2.83 billion, or 28 cents a share, last quarter, up slightly from $2.81 billion, or 44 cents a share, in the year-earlier period.  Wall Street had forecasted EPS of 9 cents and revenue of $27.97 billion.

The Charlotte-based bank also said that two factors that primarily drove results in the first quarter were: Provision for credit losses fell by $3.6 billion on a y/y basis, reflecting an improvement in credit quality ; and record sales and trading driven by industry-leading corporate and investment banking positions, helped drive results for Global Banking and Markets.

BofA saw strong capital markets activity in its Global Banking and Markets units. The unit’s net income increased $709 million to $3.2 billion and its total revenue hit $9.78 billion, up from $8.99 billion the year before. BofA said the division posted record performance in sales and trading. Equities revenue rose to $1.7 billion primarily driven by sales and trading revenues of $1.5 billion.

“With each day that passes, the 2010 story appears to be one of continuing credit recovery, and our results reflect a gradually improving economy,” BofA CEO said in a statement.

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