BofA Reports Q1 Net Loss on Litigation Costs
Bank of America reported a Q1/14 net loss of $276 million compared to net income of $1.5 billion in the same year-ago period. The bank said first quarter results include $6.0 billion in litigation expense related to the previously announced settlement with the Federal Housing Finance Agency (FHFA), and additional reserves primarily for previously disclosed legacy mortgage-related matters.
Revenue, net of interest expense, on an FTE basis declined 3% from Q1/13 to $22.8 billion. Excluding the impact of net debit valuation adjustments (DVA) in both periods, revenue was down 4% from the year-ago quarter to $22.7 billion. The bank said credit quality continued to improve with net charge-offs down 45% from Q1/13.
“The cost of resolving more of our mortgage issues hurt our earnings this quarter,” said chief executive officer Brian Moynihan. “But the earnings power of our business and customer strategy generated solid results and we continued to return excess capital to our shareholders.”
To read the entire Bank of America news release, click here.