First-Quarter Results For Bank Of America Exceed Expectations

On the back of higher interest rates, Bank of America reported higher earnings and revenue for the first quarter on Tuesday.

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Based on Refinitiv, here's how the bank fared compared with Wall Street expectations:

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Earnings: 94 cents compared to the expected 82 cents

Revenue: $25.13 billion versus $26.39 billion

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Stocks of the bank fell 1% in morning trading after premarket gains were erased.

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Due to rising rates during the quarter, Bank of America made $2 billion more in net interest income than it did in the same period a year earlier.

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In a statement, CEO Brian Moynihan said that all segments of the company performed well, with client relationships and accounts growing organically at a rapid pace. “Our results demonstrate how our commitment to responsible growth over the past decade has helped our company to thrive in a changing economy.”

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As sales and trading revenue increased, noninterest income grew only 1% to $11.8 billion as service charges declined and fees for asset management and investment banking declined.

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In the quarter that ended June 30, Moynihan announced his seventh quarter of operating leverage. He added that the company had a strong liquidity position and a strong balance sheet.

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According to the bank, net charge-offs remained below pre-Covid pandemic levels after it set aside $931 million for credit losses in the first quarter.

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The company's sales and trading revenue increased 7% in the quarter to $5.1 billion, as fixed income, currency, and commodity trading revenue increased by 27% to $3.4 billion, while equity trading revenue declined 19% to $1.6 billion.

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