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Bank of America Q1 net income down

Bank of America has reported that its first-quarter 2008 net income declined to $1.21 billion from $5.26 billion recorded during the comparable quarter of 2007.

Diluted earnings per share for the period fell 80% to $0.23 from $1.16 in the same period in 2007. For the quarter, net interest income on a fully taxable-equivalent basis rose 20% to $10.29 billion from $8.60 billion in the same quarter of 2007 on strong loan growth; an increase from market-based net interest income; and the addition of LaSalle. The increase was partially offset by higher funding costs.

The net interest yield improved 12 basis points to 2.73%. Non-interest income declined 29% to $7.01 billion from $9.89 billion in the corresponding quarter of 2007.

Kenneth Lewis, chairman and CEO of Bank of America, said: Despite revenue growth in most of our businesses, these results clearly did not meet our expectations. The weakness in the economy and prolonged disruptions in the capital markets took their toll on our performance.

That said, we are continuing to invest in growth initiatives across the company, and believe our core strengths – including our diverse income stream, liquidity and capital – put us in a strong position to withstand the jolts to the system and emerge even stronger when conditions improve.