An improved credit situation and a return to profitability in its core businesses were the key drivers of Bank of America’s better-than-expected profit in the first quarter, CEO Brian Moynihan told CNBC Wednesday.
“All our businesses returned to profitability except home loans,” said Moynihan. “The housing market is stabilizing, but we still have a lot of work to do. We have to get through all the delinquencies and foreclosures,” he added.
Moynihan did not mention that all the major banks have received billions of dollars in bailout funds from the federal government since 2008 for the purpose of keeping them solvent and encouraging loans to struggling small businesses.
“We still have room to go, but we’re coming back,” Moynihan said, citing “lowered risk” and “good client activity.”
Earlier this month, Bank of America reported its earnings fell to $3.2 billion from $4.2 billion a year ago.