Bank of America Had Positive Trading Revenue Every Day of First Quarter
BofA Reports Positive Trading Revenue
Jin Lee/Bloomberg
Pedestrians walk past Bank of America Corp. signage in New York.
Pedestrians walk past Bank of America Corp. signage in New York. Photographer: Jin Lee/Bloomberg
May 3 (Bloomberg) -- Michael Price, president of MFP Investors LLC, talks about the state of the financial markets and factors driving corporate mergers and acquisitions, his investment strategy and some of his holdings, and concerns about food inflation. Price speaks with Tom Keene on Bloomberg Television's "Surveillance Midday." (Source: Bloomberg)
Bank of America Corp. (BAC), the first of the largest U.S. banks to disclose how many trading days yielded gains in the first quarter, had a perfect record for the period.
Trading-related revenue was positive every day and exceeded $25 million on 98 percent of days during the year’s first three months, the Charlotte, North Carolina-based lender said today in a filing with the U.S. Securities and Exchange Commission. In 2010, it had gains on 90 percent of trading days, with perfect records in that year’s first and third quarters, according to previous filings.
Bank of America, the largest U.S. lender by assets, had $4.9 billion in sales and trading revenue in the quarter, which outpaced that of Citigroup Inc. (C) and was 36 percent less than that of JPMorgan Chase & Co. (JPM) The global banking and markets division, run by Thomas K. Montag, posted first-quarter net income of $2.1 billion, higher than the overall company’s earnings as mortgage losses cut profitability.
Trading value at risk, a measure of the average amount the firm could lose on any given day, rose to $183.9 million in the first quarter from $157.1 million in the fourth quarter, the bank said. The firm had positive trading revenue on 79 percent of trading days in the fourth quarter.
To contact the reporter on this story: Michael J. Moore in New York at mmoore55@bloomberg.net.
To contact the editor responsible for this story: David Scheer at dscheer@bloomberg.net
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