Bank of America registers drop in Global Markets net income in Q1 2022
Bank of America Corp (NYSE:BAC) has just posted its financial report for the first quarter of 2022, with the Global Markets segment registering a marked drop in net income.
Global Markets net income decreased $459 million from the year-ago quarter to $1.6 billion – excluding net DVA, net income decreased 25% to $1.5 billion. However, the result for the first quarter of 2022 was well ahead of levels seen in the final quarter of 2021.
Global Markets revenue for the first three months of 2022 amounted to $5.3 billion, down 15%, due to lower FICC sales and trading revenues and investment banking fees. Excluding net DVA, revenue decreased 16%.
Sales and trading revenue in this segment decreased 7% in annual terms to $4.7 billion. FICC revenue declined to $2.7 billion, driven by the absence of gains in commodities from a weather- related event in Q1-21 and a weaker credit trading environment, partially offset by improved performance across macro products. Equities revenue increased to $2.0 billion, driven by increased client activity and a strong trading performance in derivatives.
Across all segments, net income for the first quarter of 2022 amounted to $7.1 billion, or $0.80 per diluted share, whereas pre-tax income declined 14% to $7.9 billion reflecting a smaller reserve release than Q1-21.
Revenue, net of interest expense, increased 2% to $23.2 billion.
Chair and CEO Brian Moynihan commented:
“We achieved solid first-quarter results earning $7.1 billion, continuing the momentum from record net income in 2021. Across our businesses, ongoing organic growth combined with good expense management drove operating leverage for the third consecutive quarter. Year over year we grew loans $70 billion and deposits by $240 billion.
Our strong first quarter client activity drove results that allow us to deliver for shareholders while continuing to invest in our people, businesses, and communities.”