Bank of America (BAC), the second-largest U.S. lender, has reported first quarter financial results that beat on the top and bottom lines.
As with other major U.S. banks, the results were given a boost by strong stock trading during the first three months of the year.
Bank of America announced earnings per share (EPS) of $1.11 U.S. per share, which topped the $1.01 U.S. forecast on Wall Street.
The profit was up 17% year-over-year and the highest in nearly 20 years.
Revenue of $30.43 billion U.S. beat the $29.93 billion U.S. expected among analysts. Sales were up 7.2% from a year earlier.
Management said that Bank of America benefitted from rising net interest income, higher trading revenues, and an increase in fees from investment banking and asset management.
Stock trading was a main driver of the beat, with revenue in that business rising 30% to $2.83 billion U.S. It was the bank’s best trading quarter in 15 years.
Investment banking revenue increased 21% to $1.80 billion U.S. during Q1.
Additionally, Bank of America’s consumer banking and global wealth divisions each gained more than 20% in revenue. CEO Brian Moynihan said consumer banking remains “healthy.”
Return on tangible common equity, a measure of a bank’s profitability, was 16%, a more than 200 basis point improvement from a year ago.
BAC stock has increased 40% over the last 12 months to trade at $53.35 U.S. per share.
Related Stories
