Bank of America (BAC) has reported better-than-expected first-quarter earnings due largely to higher interest income and a rebound in investment banking activity.
The second largest lender in the U.S. announced earnings per share (EPS) of $0.83 U.S. a share compared to $0.76 U.S. that was estimated among analysts.
Revenue for the January through March quarter totaled $25.98 billion U.S. versus $25.46 billion U.S. that was expected on Wall Street. Sales were down 1.6% from a year earlier.
The lender’s net interest income, which had been declining in recent quarters, totaled $14.20 billion U.S. in Q1, topping analysts’ estimates of $13.93 billion U.S.
Investment banking revenue jumped 35% to $1.57 billion U.S., exceeding the $1.36 billion U.S. estimate on Wall Street.
Bank of America said in its earnings statement that its sales and trading business turned in its best first quarter in more than a decade as the stock market boomed and Wall Street deals such as initial public offerings (IPOs) returned.
The stock of Bank of America has risen 18% in the last 12 months and currently trades at $35.95 U.S. per share.
