Brian Moynihan, CEO of Bank of America, speaking on Squawk Box at the WEF in Davos, Switzerland on Jan. 17th, 2023.
- Bank of America's first-quarter earnings and revenue topped expectations on the back of higher interest rates.
- "Every business segment performed well as we grew client relationships and accounts organically and at a strong pace," CEO Brian Moynihan said in a statement.
Bank of America on Tuesday reported first-quarter earnings and revenue that topped expectations on the back of higher interest rates.
Here's what the bank did compared with Wall Street estimates according to Refinitiv:
- Earnings: 94 cents per share versus 82 cents per share expected
- Revenue: $26.39 billion versus $25.13 billion expected
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The bank stock erased premarket gains and fell about 1% in morning trading.
Bank of America said its net income increased 15% to $8.2 billion, or 94 cents per diluted share, from $7.1 billion, or 80 cents per diluted share, a year earlier. Revenue rose 13% to $26.3 billion from $23.2 billion.
The bank said its net interest income, what it makes lending money minus what it pays out to customers, jumped 25% to $14.4 billion during the quarter from a year earlier thanks to rising rates.
Money Report
"Every business segment performed well as we grew client relationships and accounts organically and at a strong pace," CEO Brian Moynihan said in a statement. "Our results demonstrate how our company's decade-long commitment to responsible growth helped to provide stability in changing economic environments."
Its noninterest income increased by just 1% to $11.8 billion as higher sales and trading revenue offset lower service charges and declines in asset management and investment banking fees, the bank said.
"We delivered our seventh straight quarter of operating leverage. We further strengthened our balance sheet and maintained strong liquidity," Moynihan said.
Bank of America set aside $931 million for credit losses in the first quarter. The bank said net charge-offs remained below pre-Covid pandemic levels.
Sales and trading revenue gained 7% to $5.1 billion in the quarter. Revenue from fixed income, currency and commodity trading increased by 27% to $3.4 billion, while equities trading revenue fell 19% to $1.6 billion.
