Bank of America exceeded expectations in its first-quarter earnings, driven by increased interest income and a significant surge in trading revenue amidst fluctuating market conditions.
During a period marked by uncertainty surrounding U.S. President Donald Trump’s tariff strategies, Bank of America noted a 9% increase in trading revenue, reflecting similar positive trends reported by its competitors.
CEO Brian Moynihan highlighted the bank’s ongoing commitment to strong growth, stating, “While we may encounter a shifting economic landscape ahead, we believe our strategic investments in high-quality growth, together with our diverse business portfolio and the team’s unwavering dedication to responsible expansion, will continue to bolster our strength.”
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Equities trading soared 17% to a record $2.2 billion, and revenues from fixed income, currencies, and commodities saw a 5% increase, reaching $3.5 billion.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| BAC | BANK OF AMERICA CORP. | 36.67 | +0.72 | +2.00% |
Chief Financial Officer Alastair Borthwick attributed the robust results to moderate economic growth and heightened client concerns regarding trade policies and recent market shifts.
Despite these challenges, Borthwick expressed optimism, stating, “Our research team currently does not anticipate a recession, and our clients continue to exhibit positive signs. Employment remains strong, and consumer resilience is evident.”
Trading performance has also been reported positively by rivals like JPMorgan Chase and Goldman Sachs.
GOLDMAN SACHS’ PROFIT JUMPS AS TRADERS DELIVER GAINS
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| JPM | JPMORGAN CHASE & CO. | 234.72 | -1.41 | -0.60% |
| GS | THE GOLDMAN SACHS GROUP INC. | 503.98 | +9.54 | +1.93% |
Stephen Biggar, a banking analyst at Argus Research, remarked, “Trading results have emerged as the primary highlight for other banks as well.” However, he cautioned that a decline in merger and acquisition activity could hinder any potential recovery in 2025 if tariff-related issues persist.
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Bank of America reported earnings of $7.4 billion, or 90 cents per share, for the quarter ending March 31, compared to earnings of $6.7 billion, or 76 cents per share, in the same period last year. Analysts had forecasted a profit of 82 cents per share according to data from LSEG.
MAINTAINS NII FORECAST
The second-largest lender in the U.S. reported a net interest income (NII) of $14.4 billion, reflecting a 3% growth, attributed in part to lower costs associated with deposits. The bank has reiterated its NII forecast for the upcoming quarter, projecting earnings between $15.5 billion and $15.7 billion.
Furthermore, interest rate reductions from the previous year have fostered a more favorable outlook among borrowers, benefiting institutions such as Bank of America, which had anticipated record net interest income for 2025 prior to the announcement of the new tariffs by Trump.
Shares of Bank of America experienced a 1.6% increase to reach $37.25 in premarket trading but have declined by 12.4% since the tariffs were first introduced earlier this month.
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The tariff-related anxiety has reverberated across the investment banking sector, prompting dealmakers who were previously optimistic about Trump’s economic policies to adopt a more cautious stance.
Bank of America reported a 3% decrease in investment banking fees, totaling $1.5 billion, during the first quarter of the year. U.S. merger and acquisition activity also fell by 13% in the first three months of 2025, as indicated by data from Dealogic.
Moreover, provisions for credit losses amounted to $1.5 billion, up from $1.3 billion reported during the same period the previous year.
