BofA stock surges after boosting profit on trading gains, interest income
Bank of America topped estimates on Tuesday for first-quarter profit as interest income grew and volatile markets helped its stock traders rake in a record haul, lifting its shares more than 4%.
As markets whipsawed around U.S. President Donald Trump’s tariff policies, the second-largest U.S. lender brought in 9% higher trading revenue, mirroring trends seen at rivals.
“There is a lot to potentially change given the uncertainty around the tariffs and the policies on the future path of the economy,” CEO Brian Moynihan told analysts on a call.
Equities trading jumped 17% to a record $2.2 billion, while fixed income, currencies and commodities trading revenue jumped 5% to $3.5 billion, propelling its markets revenue to the highest in more than a decade.
The bank recorded investment banking fees of $1.5 billion, down from $1.7 billion over the last quarter and down 3% on a year-on-year basis amid market uncertainty. But Borthwick said the deal pipeline was probably stronger than it was last quarter.
BofA’s earnings were $7.4 billion, or 90 cents per share, in the quarter ended March 31. That compares with $6.7 billion, or 76 cents per share, a year earlier.
Analysts were expecting a profit of 82 cents per share, according to estimates compiled by LSEG.
Source: MSN
