Columbia Management posts loss as revenue tumbles in first quarter

Bank of America's Boston-based investment management arm, Columbia Management Group, saw net revenue tumble in the first quarter, resulting in a net loss as the bank pumped money into sagging cash funds.

Columbia Management's net revenue declined 44 percent to $179 million, reflecting the support provided to certain cash funds, Bank of America said on Monday. The decline was offset, in part, by the addition of U.S. Trust and growth in investment and brokerage services revenue.

Nevertheless, Columbia posted a a net loss of $79 million because of the cash funds support and higher revenue-related operating expenses, the bank said. In the year-ago quarter, Columbia Management reported net income of $54 million on $321 million in revenue.

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