Market Overview

Bank Of America Inches Higher On Q1 Beat


Shares of Bank of America Corp (NYSE: BAC) gained more than 1 percent early Tuesday morning after the company reported its first quarter results.

Bank of America said it earned $0.41 per share in the quarter on revenue of $22.2 billion; Analysts were expecting the company to earn $0.35 per share on revenue of $21.6 billion.

The bank's net income for the quarter rose 40 percent from a year ago to $4.9 billion. Net interest income (NII) rose 5 percent to $11.1 billion due to higher interest rates, while noninterest income rose 9 percent to $11.2 billion due to higher sales and trading results.

Paul Donofrio, Bank of America's Chief Financial Officer, commented the following in the company's press release:

"Each of our businesses reported higher revenue and earnings this quarter, and each recorded solid operating leverage. We grew loans and deposits, while remaining within our risk framework. We also did a good job managing expenses. Despite higher revenue-related expenses in our wealth management and capital markets businesses, we kept overall expenses flat year-over-year as we continued to focus on streamlining and simplifying our company. Our balance sheet remains strong. We grew capital even as we repurchased a net $2.3 billion in stock and paid $0.8 billion in common stock dividends in the quarter."

Here is a summary of how each business segment performed in the first quarter on a year-over-year basis.

Consumer Banking

  • Revenue rose 5 percent to $8.3 billion.
  • Net income rose 7 percent to $1.9 billion.
  • Mobile banking users rose 13 percent to 22.2 million.
  • Debit and credit card spending rose 5 percent.

Wealth And Investment Management

  • Revenue rose 3 percent to $4.6 billion.
  • Net income rose 4 percent to $770 million.
  • Long-term assets under management flows totaled $29 billion.

Global Banking

  • Revenue rose 11 percent to a record-high $5.0 billion.
  • Net income rose 58 percent and also hit a record high of $1.7 billion.
  • Investment banking fees hit a Q1 record of $1.6 billion.

Global Markets

  • Revenue rose 19 percent to $4.7 billion.
  • Net income rose 33 percent to $1.3 billion.
  • Sales and trading revenue rose 23 percent, fixed income rose 29 percent and equities rose 7 percent.

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