Bank of America reported better-than-expected results for the first quarter, driven by strong net interest income and increased trading revenue. The bank posted earnings of 90 cents per share, outperforming analysts’ projections of 82 cents. Revenue reached $27.51 billion, surpassing expectations of $26.99 billion, marking a 5.9% increase year over year.
Net income climbed 11% to $7.4 billion, supported by $14.6 billion in net interest income (NII), which slightly exceeded the $14.56 billion estimate. The NII growth was attributed to lower deposit costs and increased returns from high-yielding investments compared to the same period last year. This key metric—reflecting the spread between what the bank earns on loans and pays out on deposits—has continued to support the bank’s profitability amid changing market conditions.
CEO Brian Moynihan noted that the bank’s clients, both business and consumer, have maintained strong performance and credit quality. He emphasized that disciplined investments in high-quality growth and the firm’s diversified operations have positioned the company well for continued resilience, even as economic uncertainty looms.
The bank also saw solid gains in trading. Equities trading revenue rose 17% to $2.2 billion, slightly above the estimated $2.12 billion. Fixed income revenue increased 5% to $3.5 billion, in line with the $3.46 billion forecast. These gains reflect broader market volatility, which has created opportunities for trading operations across major banks.
However, investment banking fees declined 3% to $1.5 billion, missing the expected $1.6 billion. The drop is in line with an industry-wide slowdown amid ongoing uncertainty in global trade and deal-making activity.
Provision for credit losses, a key indicator of how the bank is preparing for potential economic headwinds, came in at $1.5 billion—better than the expected $1.58 billion. This suggests the bank remains cautious but is not anticipating immediate deterioration in credit conditions.
Shares of Bank of America rose 4% following the release of the earnings report, though the stock is still down over 16% year to date. Investor concerns have lingered over the potential impact of political and economic developments, including trade and tariff-related uncertainties, on the broader economy and banking sector.
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