Earnings at Bank of America tumbled in the first quarter to $653 million, or 3 cents a share, from $2 billion, or 17 cents a share, in the first quarter of 2011. Revenue was down 3 percent to $27 billion.
Regulatory capital ratios rose significantly and the provision for credit losses declined, reflecting improved credit quality. The bank”™s exposure to European countries declined as well.
In the consumer and business banking unit, earnings fell because of lower revenue and higher credit costs. Noninterest income fell because of the implementation debit card interchange fee rules.
In consumer real estate services, the number of delinquent mortgages was down, and the unit”™s loss narrowed from a year ago. The loss was due to the cost of managing delinquent and defaulted loans.
In the global banking business, credit quality improved, with nonperforming assets down almost 40 percent. Net income was little changed from a year ago and revenue was down because of lower investment banking fees.
In the global markets unit, revenue was down 20 percent from the year-ago quarter. Fixed-income, currency and commodity trading revenue was up as the European debt crisis stabilized.
KeyCorp up
KeyCorp, with branches in White Plains, Yonkers, Croton, Bedford, Mount Kisco, Tarrytown, Ossining, Rye Brook, and Pound Ridge, reported first quarter earnings rose to $199 million, or 21 cents a share, from $184 million, or 21 cents. Asset quality improved, nonperforming loans and nonperforming assets both fell. Charge-offs were down. The bank”™s net interest margin fell as a result of the low interest rate environment. Noninterest income rose, but electronic banking fees fell by $13 million as a result of new government pricing controls on debit transactions that went into effect Oct. 1. In the first quarter, Key sold stock and debt. The proceeds were used to buy back $2.5 billion in stock issued to the Treasury as a result of Key”™s participation in the Treasury”™s Capital Purchase Program.
CapitalOne revenue up
CapitalOne”™s earnings rose to $1.4 billion, or $2.72 a share in the first quarter from $1 billion, or $2.21 a share, in the first quarter of 2011. The 2012 quarter included a gain from the purchase of ING Direct Feb. 17. That acquisition sparked a $21 billion increase in loans in the quarter. Revenue was up almost $5 billion, or 22 percent. The provision for credit losses fell by almost $300 million, because of a drop in charge-offs. In the credit card division, net income was up 30 percent from the fourth quarter. Earnings and revenue were up in commercial banking.
Provident net rises
Provident New York Bancorp, the parent company of Provident Bank, reported a rise in earnings for its second quarter, ending March 31. Net income was $5.7 million, or 15 cents a share, up from $3.6 million, or 10 cents, a year earlier. The bank did more lending ”“ commercial loan originations rose to $129 million from $87 million a year earlier. The bank reported securities gains for the quarter of $1.7 million. Provisions for loan losses rose to $2.9 million in the quarter from $2.1 million in the year-earlier period. Net interest income rose by $1.4 million from last year”™s quarter, to almost $24 million.
Noninterest income rose by more than $2 million from a year ago to $8 million, mainly because of gains on the sale of securities. Lower occupancy expense was offset by increased compensation and benefits of more than half a million dollars during the quarter from new hires associated with the bank”™s expansion into New York City. Nonperforming loans rose from the previous quarter and the bank said it continues to see new problem loans on a limited basis.
