Bank of America faced a nearly 4% drop in its shares following its first-quarter earnings report, as increased provisioning for souring loans impacted profits. The bank's net interest income (NII) declined by 3% to $14 billion, attributed to elevated costs for customer deposits amid subdued borrower demand. Chief Financial Officer Alastair Borthwick anticipates a turnaround in NII, forecasting growth in the latter half of 2024. While JPMorgan, the largest U.S. lender, marginally adjusted its net interest income projections, Bank of America saw a surge in net charge-offs to $1.5 billion in Q1, primarily from credit card losses.

Despite concerns over credit quality, some investors remain optimistic, viewing the delinquencies as stabilizing. CEO Brian Moynihan confirmed plans for workforce reduction and reported a reduction of over 4,700 employees since Q1 2023. Banking executives acknowledge the challenges posed by fluctuating interest rates and economic uncertainty. Revenue from the segment surged at BofA, JPMorgan Chase, and Citigroup, buoyed by gains in debt and equity capital markets, despite a decline in interest payments due to tepid borrower demand. Additionally, BofA's Merrill wealth management division reported a 10% rise in profit to $1 billion, propelled by increased equity values and record revenue.