Bank of America Q1

Bank of America Corp posted its first quarterly profit since summer 2009 as it generated outsized bond trading revenue and set aside less money to cover bad loans. Big trading profits show the Merrill Lynch acquisition is paying off and the bank's lower credit provision signals that borrower defaults may be stabilizing as the economy improves.

Chief Executive Brian Moynihan has reshuffled management and is expanding Merrill Lynch's commercial and investment banking business in a bid to keep boosting the bank's profits. Moynihan sounded optimistic about the bank's outlook on a conference call with analysts."The worst of the credit cycle is clearly behind us," he said.Five of the bank's six major business units were profitable during the quarter, with the exception being the home loans unit.

Earnings were driven by arguably Lewis's most controversial deal in his nearly decade-long run as CEO -- the Merrill Lynch purchase, which closed in early 2009. Bank of America's global banking and markets division generated $3.2 billion of profit in the quarter, the best results of the six major business units. Record sales and trading revenue drove that profit, particularly in fixed income, currencies and commodities. That investment banking division reported $5.8 billion in revenues during the quarter.

The acquisition of Merrill Lynch was the main driver of the groups decision to purchase Bank of America for UASBIG. The overall credit quality of the overall consumer is improving and has been said not only by BAC, but also by its biggest competitor JP Morgan. I have a lot of faith in new CEO Brian Moynihan, primarily because he realizes the their business has changed with the aquistion of Merrill and is looking to expand on that segement of business.

-Richie Civello