Bank of America (NYSE: BAC) reported first-quarter results on Monday that topped analysts’ estimates amid the better-than-anticipated credit quality of its borrowers. The bank disclosed a 9% increase in consumer banking revenue to USD8.8 Billion within the quarter. Shares rose 1.7% during morning trading Monday amid the news.
The multinational investment bank and financial services holding company reported earnings of USD0.80 per share, compared to the expected USD0.75 a share. Meanwhile, revenue amounted to USD23.33 Billion, slightly higher than analysts anticipated USD23.2 Billion.
“First-quarter results were strong despite challenging markets and volatility, which we believe reflect the value of our `Responsible Growth’ strategy,” Chief Financial Officer Alastair Borthwick said in a statement. “Net interest income increased by $1.4 billion versus the year-ago quarter supported by strong loan and deposit growth. Going forward, and with the forward curve expectation of rising interest rates, we anticipate realizing more of the benefit of our deposit franchise.”
Big U.S. banks took advantage of the deal-making boom in 2021 after the Federal Reserve fired liquidity into capital markets to help with the economic impact caused by Covid-19. Nevertheless, this year investment banking revenue has been affected by the continued volatility within equity markets.
Bank of America shares have tumbled 15% throughout the year and have a current market cap of USD312.76 Billion.