Linda Young - AHN News Writer
Charlotte, NC, United States (AHN) - Bank of America Corp. saw its first-quarter profit drop to $653 million, compared to a profit of $2 billion for the same period last year.
Earnings were 3 cents per share, down from 17 cent per share a year ago.
The bank said that an accounting charge related to the bank's debt affected first-quarter profits.
However, revenue was also down for the quarter to $22.3 billion, versus $26.9 billion for the same quarter last year.
Bank of America (NYSE: BAC) was not alone in falling profits. Rival bank Morgan Stanley also saw its profits drop because of an accounting charge.
However, Morgan Stanley went into the negative territory, reporting a first-quarter loss of $119 million, compared to a profit of $736 million during the same period last year.
Morgan Stanley also saw revenues drop, slipping to $6.9 billion, compared to $7.6 billion last year.
Both Bank of America and Morgan Stanley have passed recent bank stress tests.
In addition, Bank of America is one of the largest banks in the world with 57 million customers.