Bank of America (BAC, Financial) reported impressive first-quarter results, surpassing analysts' expectations due to robust net interest income and trading revenue. The bank achieved earnings of $0.90 per share, compared to the London Stock Exchange Group's forecast of $0.82 per share. Revenue reached $27.51 billion, exceeding the anticipated $26.99 billion.
Profit increased by 11% to $7.4 billion, or $0.90 per share, while revenue grew by 5.9% to $27.51 billion. The growth was driven by higher net interest income, which rose to $14.6 billion, beating StreetAccount's estimate of $14.56 billion. This increase was attributed to lower deposit costs and higher-yielding investments.
CEO Brian Moynihan highlighted the resilience of both corporate and consumer clients, emphasizing the bank's strategic investments and diversified business model as key strengths. In pre-market trading, Bank of America's stock rose by 2.2%.
Equity trading revenue increased by 17% to $2.2 billion, slightly above the expected $2.12 billion, while fixed income revenue grew by 5% to $3.5 billion, surpassing the forecast of $3.46 billion. However, investment banking fees fell by 3% to $1.5 billion, below the expected $1.6 billion, due to industry-wide trade uncertainty.
Loan loss provisions were $1.5 billion, better than the expected $1.58 billion, as the bank prepares for potential economic downturns. Despite recent concerns about tariff policies, Bank of America's stock has dropped over 16% this year.
