Reasons why Bank of America shares are under pressure today

Bank of America (NYSE: BAC)The company's performance was better than expected, but investors were more concerned about increased expenses and higher-than-expected nonperforming loan charge-offs. As of 12:30 p.m. ET, the company's shares were down slightly by about 3%.

Credit Card Business Suffers

Bank of America reported first quarter sales of $25.82 billion and EPS of $0.83, beating the Wall Street consensus estimate of $25.46 billion in sales and $0.77 in EPS. Revenue declined 2% year-over-year as higher investment banking and trading revenue did not offset lower net interest income.

Consumer Banking revenue declined 51 TP3T and average deposits declined 71 TP3T, but remained well above pre-pandemic levels. During the quarter, the bank added 245,000 new checking accounts and saw strong growth in the Global Wealth Management, Banking and Markets divisions.

"We had a strong quarter as our business performed well, adding customers and deepening郃 relationships," said Brian Moynihan, Simmons Chief Executive Officer, in a statement." Continued strong earnings and robust spend management enable our company to continue to maintain its market-leading position in each of our businesses.

However, there are some signs of continued economic uncertainty. The aggregate amount of non-performing loan charge-offs was $1.5 billion, an increase of $26% over the last three months of 2023, significantly higher than the analysts' estimate of $1.26 billion.

Is Bank of America Stock Down After Earnings Release Worth Buying?

Bank of America officials attributed the lower-than-expected charge-offs to an increase in credit-card problems, which they said was more of a hangover from the last three months of 2023, but said the number was stabilizing.

Bank of America also dealt with a number of one-time issues during the quarter, including the Federal Deposit Insurance Corp.'s (FDIC) decision to suspend the bank's operations in the United States.

In all, Bank of America has shown resilience in a turbulent economy. Investors looking to invest in a large nationally chartered bank should keep Bank of America in mind.

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Bank of America is an advertising郃 partner of The Ascent, a Motley Fool company.Lou Whiteman has no position in any of the above stocks.The Motley Fool holds a recommendation for Bank of America.The Motley Fool has a disclosure policy.

Why are Bank of America shares under pressure today?