Bank of America reported first quarter 2012 net income of $653 million compared to net income of $2.0 billion for the same quarter one year ago. Revenue of $22.5 billion, net of interest expense, was down from $27.1 billion in 2011.

The bank said that results included negative valuation adjustments of $4.8 billion pre-tax from the narrowing of the company’s credit spreads. Credit loss provision charges of $2.4 billion were down significantly from $3.8 billion one year ago, declining to its lowest level since the third quarter of 2007 as credit quality improved.

“By focusing on building strong customer and client relationships, we’re doing more business and winning in the marketplace,” said chief executive officer Brian Moynihan. “Our strategy is paying off: With the economy steadily improving and because of the work we have done to strengthen and simplify our company, we saw improved profitability in all of our businesses this quarter compared to the fourth quarter of last year.”

To read the full text of the Bank of America news release click here.