New York, United States – Bank of America Corp, led by CEO Brian Moynihan, exceeded analysts’ expectations with its first-quarter results, showcasing strong net interest income and trading revenue. The bank reported earnings of 90 cents per share, surpassing the 82 cents per share estimate from LSEG, while revenue stood at $27.51 billion as opposed to the expected $26.99 billion.
Profit for the bank climbed by 11% to $7.4 billion, with revenue increasing by 5.9% to $27.51 billion. These gains were primarily driven by the rise in net interest income to $14.6 billion, beating the $14.56 billion StreetAccount estimate. Bank of America attributed this increase in NII to lower deposit costs and higher-yielding investments compared to the previous year.
CEO Brian Moynihan expressed optimism in the face of potentially changing economic conditions, highlighting the bank’s prudent investments for sustainable growth and its commitment to responsible expansion. He noted the positive performance of business clients, as well as the resilience of consumers who continue to spend while maintaining strong credit quality.
In premarket trading, shares of Bank of America rose by 2.2%. The bank reported a 17% increase in equities trading revenue to $2.2 billion, slightly exceeding the $2.12 billion estimate, and a 5% rise in fixed income revenue to $3.5 billion, compared to the $3.46 billion estimate. However, investment banking fees fell by 3% to $1.5 billion, missing the $1.6 billion estimate, due to an industrywide slowdown caused by trade uncertainties.
Despite concerns surrounding President Donald Trump’s tariff policies potentially leading to a recession, Bank of America’s provision for loan losses came in better than expected at $1.5 billion, surpassing the $1.58 billion estimate. The company’s stock has faced a 16% decrease this year amid market volatility.
Overall, banks like JPMorgan Chase, Morgan Stanley, and Goldman Sachs also outperformed analysts’ predictions, with a surge in equities trading revenue driven by market volatility during the quarter.