Bank of Americas has posted a net profit for the first quarter of fiscal 2018 of $6.9bn, up 30% year-on-year.
First-quarter revenue for Bank of America rose by almost 4% y-o-y to $23.12bn reflecting benefits from higher interest rates, as well higher asset management fees.
Bank of America retail banking highlights included:
- revenue rose by 9% to $9.0bn y-o-y;
- net income increased by $803m, or 42%, to $2.7bn;
- consumer lending rose by 8% with deposits up by 6% y-o-y;
- Merrill Edge brokerage assets rose by 18%, and
- active mobile banking users increased 12% to 24.8 million from 22.2 million at the end of Q117.
Other digital banking highlights included digital sales growing to 26% of all consumer banking sales. Mobile channel usage rose by 32% to 1.38 billion interactions. Bank of America’s P2P Zelle service reported 28.6 million payments, more than double the year-ago quarter.
Bank of America’s consumer banking unit’s cost-income ratio fell by 3 percentage points from the prior quarter to 50% despite continued investment in primary sales professionals, digital capabilities and financial centre builds/ renovations.
Bank of America ended the first quarter with 4,435 branches, including 32 new openings and 316 renovations during the past 12 months.
Brian Moynihan, Bank of America CEO said:”Our responsible growth model continues to deliver consistent results. Strong client activity, coupled with a growing global economy and solid US consumer activity, led to record quarterly earnings.
We grew loans in our business segments by $45bn and increased deposits by $41bn. We continue to invest in new capabilities in our mobile banking app, the expansion and renovation of our financial centres, and the hiring of additional client relationship professionals.
We believe these investments, and our focus on operational excellence, will drive sustainable growth over time.”