Bank of America reported Q1/20 net income of $4.0 billion, down 45% from $7.3 billion in Q1/19. Nonperforming loans increased $504 million from Q4/19, primarily driven by a $353 million increase in commercial loans.
Bank of America’s Revenue dropped slightly to $22.8 billion from $23 billion one year earlier. The provision for credit losses increased to $4.8 billion, from $1 billion in Q1/19, driven by a $3.6 billion reserve build.
Net interest income declined 2% to $12.1 billion, driven by lower interest rates, partially offset by loan and deposit growth.
Average loan and lease balances in the business segments rose $57 billion, or 6% year over year, to $954 billion. Ending loan balances rose $68 billion, or 7%, since Q4/19 to $1 trillion.
Total net charge-offs increased $163 million, or 17%, from Q4-19 to $1.1 billion, driven by higher commercial charge-offs.
“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,” Brian Moynihan, chairman and CEO of Bank of America. “Despite increasing our loan loss reserves, we earned $4 billion this quarter, maintained a significant buffer against our most stringent capital requirement and ended the quarter with more liquidity than when we began.
“We remain a source of strength — our customers trusted us with $149 billion in additional deposits since year-end, which enabled us to provide liquidity to people, small business owners and corporate clients. We received nearly a million requests for assistance, and we announced a $100 million commitment to provide critical support to local communities. We are taking extraordinary steps to support our employees, clients and communities during this humanitarian crisis.”
