Bank of America (NYSE:BAC) delivered positive results on Tuesday, beating Wall Street expectations in several areas during a strong quarter for consumer spending and investor sentiment.
Net income rose 40pc to $4.9 billion, or 41 cents a share, in the first quarter, with rising interest rates boosted the bank’s net interest income by 5pc to $11.1 billion. Total client balances rose 11pc to $1.1 trillion, with brokerage assets growing $26.9 billion.
Overall trading revenue rose 23pc, led by a 29pc gain in bond trading, with the bank delivering an Earnings Per Share figure of 41 cents, above the 35 cents expected by Thomson Reuters analysts.
“Our approach to responsible growth delivered strong results again this quarter,” CEO Brian Moynihan said in a statement.
“Consumer spending was up, our wealth management business had strong asset management flows, investment banking fees rebounded nicely, and we continued to provide credit and capital to our corporate and institutional clients to help them drive the economy forward,” he said.
The Bank of America figures contrast with that of Goldman Sachs, also released this morning, who underwhelmed investors and sent shares down 3pc in pre-market trading. Bank of America shares rose 1.36pc.