Bank of America Corp on Thursday reported a drop in first-quarter profits as the second-largest U.S. bank took accounting charges related to its debt.

Bank of America said net income was $653 million, or 3 cents a share, in the quarter, compared with $2.05 billion, or 17 cents per share, in the same period a year earlier.

The bank's results included a $4.8 billion negative valuation adjustment related to changes in the company's credit spreads, equal to 28 cents per share.

Total revenue declined to $22.3 billion from $26.9 billion a year before.

Bank of America's shares are up 60 percent this year, after falling 58 percent in 2011. The bank passed the Federal Reserve's stress test in March, shifting investor concerns from its capital needs to its ability to grow earnings power in a time of low interest rates and increased regulation.


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