Bank of America on Tuesday reported first-quarter earnings that topped analysts’ estimates for profit and revenue on better-than-expected interest income and investment banking.
Here’s what the company reported:
- Earnings: 83 cents a share adjusted, vs. 76 cents expected, according to LSEG
- Revenue: $25.98 billion, vs. expected $25.46 billion
The bank said profit fell 18% to $6.67 billion, or 76 cents a share; excluding a $700 million FDIC assessment, profit was 83 cents a share. Revenue slipped 1.6% to $25.98 billion as net interest income declined from a year earlier.
Net interest income, or the difference between what the company earns from loans and investments and what it pays customers for their deposits, was $14.19 billion, topping the $13.93 billion StreetAccount estimate.
Analysts will likely question Bank of America management for guidance on its NII, which has been declining in recent quarters as funding costs have climbed along with the rise in interest rates.
Investment banking revenue jumped 35% to $1.57 billion, exceeding the $1.36 billion estimate and following a similar rise at rivals including Goldman Sachs and JPMorgan Chase.
It’s also considerably higher than the guidance given by Bank of America CFO Alastair Borthwick, who told analysts last month to expect investment banking revenue to rise by 10% to 15% from a year earlier.
The bank’s trading operations also edged out expectations. Fixed income revenue fell 3.6% to $3.31 billion, slightly beating the $3.24 billion estimate, and equities revenue rose 15% to $1.87 billion, compared with the $1.84 billion estimate.
This story is developing. Please check back for updates.