Bank of America Tops Analysts’ Estimates On Higher Interest Income, Trading

Bank of America (BofA) has reported first-quarter results that surpassed analysts’ expectations for both profit and revenue, thanks to stronger-than-expected net interest income and trading gains, Hugh Son reported for CNBC.

Bank of America said it benefited from lower deposit costs and higher-yielding investments compared to the same quarter last year.

BofA said profit rose 11% to $7.4 billion, or 90 cents per share, while revenue increased 5.9% to $27.51 billion.

Net interest income (NII) — the difference between what the bank pays on deposits and earns from loans and investments — climbed to $14.6 billion, beating the $14.56 billion StreetAccount estimate.

The bank said it benefited from lower deposit costs and higher-yielding investments compared to the same quarter last year. “Our business clients have been performing well, and consumers have shown resilience, continuing to spend and maintaining healthy credit quality,” said CEO Brian Moynihan.

“Though we potentially face a changing economy in the future, we believe the disciplined investments we have made for high-quality growth, our diverse set of businesses, and the team’s relentless focus on responsible growth will remain a source of strength.”