Bank of America's (NYSE:BAC) earnings per share tumbled 43% in the first quarter, missing analysts' estimates. The hit is due to a larger-than-expected increase in credit losses.
Earnings per share (EPS) came in at $0.40, down from $0.70 in the first quarter of 2019. Wall Street analysts were expecting $0.42.
The bank generated $22.8 billion in revenue in the first quarter, which was basically unchanged from the year before.
As with JPMorgan Chase, which reported Tuesday, Bank of America was hurt by provision of credit losses. Bank of America allocated $4.8 billion for loan losses in the quarter due to the economic fallout caused by the novel coronavirus pandemic.
"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. 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," BofA Chairman and CEO Brian Moynihan said.
The bank has $699 billion in global liquidity source, up from $579 billion at the end of the fourth quarter and $556 billion at the end of the first quarter of 2019.
Bank of America's common equity tier 1 ratio -- a test of a bank's fortitude that measures core equity capital divided by risk-weighted assets -- is 10.8%, down slightly from 11.6% a year ago but still well above minimum requirements.
Further, the company suspended its buyback program in the quarter, but it has not halted dividends, paying out $0.18 per share in the first quarter.