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Bank of America reports largest-ever Q1 profit -- near $7B

By
Sommer Brokaw
Bank of America reported a first quarter profit Monday of nearly $7 billion. File Photo by Alexis C. Glenn/UPI
Bank of America reported a first quarter profit Monday of nearly $7 billion. File Photo by Alexis C. Glenn/UPI | License Photo

April 16 (UPI) -- Bank of America on Monday reported a $6.9 billion profit for the first three months of 2018 -- the greatest quarterly net in its history, officials said.

"Strong client activity, coupled with a growing global economy and solid U.S. consumer activity, led to record quarterly earnings," said Chief Executive Officer Brian Moynihan in Monday's release.

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The record earnings resulted partly due to President Donald Trump's tax reform.

The bank said its net income was up 30 percent, to a record $6.9 billion -- but the income tax expense was about $1.5 billion, down 26 percent from last year.

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Without the benefit of the tax law, this year's gains would not have been so great since pretax income only rose 15 percent and revenue 4 percent.

In December, the Tax Act was enacted, lowering the the U.S. corporate tax rate. The new rate for the first quarter is 21 percent -- compared to 35 percent, previously.

The record haul for the Charlotte, N.C.-based bank was higher than Wall Street forecast predicted.

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Most financial analysts predicted the bank's earnings to be around $6.3 billion.

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Bank of America also said Monday it will open 500 new branches and expand into new market locations in Cincinnati, Cleveland, Columbus, Denver, Indianapolis, Lexington, Minneapolis-St. Paul, Pittsburgh and Salt Lake City.

Other banks also hauled in large earnings this year. JP Morgan Chase -- the United States' largest bank -- reported a profit of $8.7 billion; Citigroup disclosed $4.6 billion in earnings.

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JP Morgan Chase's profit, reported last week, was the largest of any U.S. bank in history, according to S&P Global Market Intelligence.

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