Profits down for Bank of America and BlackRock in the first quarter of 2016. For the US bank, however, the result is still in line with analysts' expectations: it reported for the first quarter of 2016 net profits of 2,68 billion dollars, or 21 cents per share, down by Up 15% from 3,1 billion or 25 cents a share a year ago a year ago.
BofA's turnover fell to $20,9 billion for the period from $21,6 billion a year ago. As indicated by the bank, the results were affected by a sharp decline in trading activity and the persistent climate of low cost of money. In the quarter, trading revenues fell by 15,5%, a worse performance than the one reported by JP Morgan the day before (-11%). In detail, trading on bonds and currencies recorded a drop of 17,5% while the revenues generated by trading on shares fell by 11%.
The performance of the BlackRock fund was also negative, reporting profits of 657 million dollars for the first quarter of the year, down from 822 million a year ago. On a unitary basis, the private equity group it earned $4,25 a share, down from $4,89 a share a year ago. Revenue fell 4% to $2,62 billion. Analysts were expecting earnings of $4,29 a share and revenues on a turnover of $2,72 billion. In presenting the results, the group confirmed that in the quarter it carried forward a restructuring program aimed at "streamlining and simplifying the organization". In March, the WSJ spoke of a reduction in the workforce of 400 units, equal to 3% of the total. Lastly, net inflows for the quarter amounted to $36,1 billion, most of which came from the United States and to a lesser extent from Europe, the Middle East and Africa.
