Bengaluru/New York — Financial institution of America topped estimates for first-quarter revenue as curiosity revenue grew and risky markets helped its inventory merchants rake in a document haul.
As markets whipsawed round US President Donald Trump’s tariff insurance policies, BofA introduced in 9% larger buying and selling income, mirroring developments seen at rivals.
“Although we doubtlessly face a altering economic system sooner or later, we imagine the disciplined investments we’ve got made for high-quality development, our numerous set of companies and the workforce’s relentless deal with accountable development will stay a supply of energy,” CEO Brian Moynihan stated.
Equities buying and selling jumped 17% to a document $2.2bn, whereas mounted revenue, currencies and commodities jumped 5% to $3.5bn.
“These outcomes had been sustained by an economic system rising at a reasonable tempo and the shopper considerations over commerce coverage and up to date market turmoil,” CFO Alastair Borthwick stated on a name with reporters.
“Nonetheless, our analysis workforce at this level doesn’t imagine we are going to see a recession and our purchasers proceed to point out encouraging indicators. Employment is clearly wholesome and shoppers have confirmed resilient.”
Rivals JPMorgan Chase and Goldman Sachs have additionally reported stronger efficiency from their buying and selling companies.
“As we’ve seen with different banks, buying and selling outcomes had been the star of the present,” stated Stephen Biggar, banking analyst at Argus Analysis.
“Nonetheless, a collapse in M&A [mergers and acquisitions] and IPO [initial public offering] deal quantity might doom a 2025 restoration if tariff turmoil shouldn’t be resolved quickly.”
BofA’s earnings had been $7.4bn, or 90c per share, within the quarter ended March 31, it stated on Tuesday. That compares with $6.7bn, or 76c per share, a yr earlier.
Analysts had been anticipating a revenue of 82c per share, based on estimates compiled by LSEG.
The second largest US lender’s internet curiosity revenue (NII) — the distinction between what it earns on loans and pays out on deposits — grew 3% to $14.4bn, partially helped by decrease deposit prices.
It maintained its NII forecast of $15.5bn-$15.7bn for the fourth quarter. Curiosity-rate cuts final yr had helped enhance sentiment amongst debtors, benefiting banks corresponding to BofA, which had forecast document internet curiosity revenue in 2025 earlier than Trump unveiled the brand new tariffs.
Shares rose 1.6% to $37.25 earlier than the bell. They’ve fallen 12.4% because the tariffs had been unveiled earlier this month.
Fears sparked by the tariffs have alarmed funding bankers globally, prompting dealmakers who had been as soon as bullish on Trump’s insurance policies to undertake a wait-and-watch strategy.
BofA’s funding banking charges fell 3% to $1.5bn within the first quarter. Within the first three months of 2025, US M&A exercise fell 13%, based on knowledge from Dealogic.
Provisions for credit score losses had been $1.5bn, larger than $1.3bn from a yr earlier.
Reuters
