Bank of America Corp.'s (BAC) first-quarter profit fell 36% as it set aside less for potential loan losses but revenue tumbled.
Shares dipped 2 cents to $13.11 in recent premarket trading.
The nation's biggest bank by assets, like much of the industry, has benefited from improved credit quality, which has allowed it to set aside less to cover potential loan losses. But big write-downs related to mortgage problems and new banking rules last year have weighed on its bottom line in recent quarters.
The company also said Friday it reached an agreement with bond insurer Assured Guaranty Ltd. (AGO) to resolve issues involving residential mortgage-backed securitization trusts. It expects the total cost of the agreement to be about $1.6 billion. Assured Guaranty's shares jumped 13% to $15.98 in recent premarket trading.
Bank of America's profit fell to $2.05 billion from $3.18 billion a year earlier. On a per-share basis, which includes preferred dividends, earnings slid to 17 cents from 28 cents. The latest and prior-year results included $202 million and $521 million, respectively, in merger and restructuring charges.
Revenue dropped 16% to $26.88 billion.
Analysts polled by Thomson Reuters most recently expected earnings of 27 cents on $26.69 billion in revenue.
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