Bank of America Corp (NYSE: BAC) announced its financial results for the first quarter, with earnings and revenue beating estimations.
According to the company, revenue, net of interest expense, rose 7% from $20.8 billion to $22.2 billion, surpassing expectations of $21.61 billion. Net income jumped 40% to $4.9 billion, and EPS rose 46% to $0.41 per share, beating previous estimates of $0.35 per share. In addition, total expense was flat at $14.8 billion, in spite of higher revenue-related compensation expenses.
Fixed-income trading revenue increased 29% to $2.93 billion, beating estimates of $2.6 billion. Equity trading revenue rose 7.4% to $1.1 billion, also beating expectations.
“This quarter shows the value of our businesses as rates begin to rise and as we experience increased capital markets activity,” Brian Moynihan, the Chief Executive of BofA said on Tuesday.
“Each of our businesses reported higher revenue and earnings this quarter, and each recorded solid operating leverage. We grew loans and deposits, while remaining within our risk framework,” Paul M. Donofrio, the CFO of the company, said in the statement.
“We also did a good job managing expenses. Despite higher revenue-related expenses in our wealth management and capital markets businesses, we kept overall expenses flat year-over-year as we continued to focus on streamlining and simplifying our company. Our balance sheet remains strong. We grew capital even as we repurchased a net $2.3 billion in stock and paid $0.8 billion in common stock dividends in the quarter,” he said.