Bank of America (NYSE:BAC) on Tuesday reported first-quarter earnings and revenue that topped expectations on the back of higher interest rates.
Earnings proved 94 cents per share versus 82 cents per share expected, on revenue of $26.39 billion versus $25.13 billion expected
The bank stock erased premarket gains and fell 20 cents to $30.17. in morning trading.
Bank of America said its net interest income, what it makes lending money minus what it pays out to customers, jumped 25% to $14.4 billion during the quarter from a year earlier thanks to rising rates.
“Every business segment performed well as we grew client relationships and accounts organically and at a strong pace,” CEO Brian Moynihan said in a statement. “Our results demonstrate how our company’s decade-long commitment to responsible growth helped to provide stability in changing economic environments.”
Its noninterest income increased by just 1% to $11.8 billion as higher sales and trading revenue offset lower service charges and declines in asset management and investment banking fees, the bank said.
“We delivered our seventh straight quarter of operating leverage. We further strengthened our balance sheet and maintained strong liquidity,” Moynihan said.
Bank of America set aside $931 million for credit losses in the first quarter. The bank said net charge-offs remained below pre-COVID pandemic levels.
