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FINWIRES

Bank of America First-Quarter Results Top Street Views; CEO Moynihan Sees 'Resilient' US Economy

-- Bank of America's (BAC) first-quarter results topped Wall Street's estimates buoyed by double-digit gains in investment banking and asset management fees, while Chief Executive Brian Moynihan said factors including robust consumer spending indicate a resilient US economy.

The banking giant's per-share earnings increased to $1.11 for the March quarter from $0.89 a year earlier, surpassing the FactSet-polled consensus of $1.01. Total revenue, comprising net interest and noninterest income, improved 7% to $30.27 billion, ahead of the Street's view for $29.95 billion.

The stock was up 1.2% in the most recent premarket activity.

JPMorgan Chase (JPM) and Citigroup (C) reported better-than-expected first-quarter results on Tuesday, while Wells Fargo's (WFC) revenue missed market views. On Monday, Goldman Sachs (GS) posted first-quarter results above Street projections.

Bank of America's consolidated net interest income climbed 9% to $15.75 billion, while noninterest income inclined to $14.53 billion from $13.8 billion in the prior-year quarter.

The lender remains "watchful of evolving risks," but saw healthy client activity, including "solid consumer spending and stable asset quality, indicating a resilient American economy," Moynihan said in the earnings release. JPMorgan CEO Jamie Dimon also said Tuesday that the US economy remained resilient and that consumers were "still earning and spending."

Energy prices have soared in the aftermath of the US-Israel war with Iran that began at the end of February, curtailing shipments through the crucial Strait of Hormuz. Over the weekend, US-Iran peace negotiations in Pakistan ended without a deal, but a two-week ceasefire between Washington and Tehran still holds.

Revenue in Bank of America's global wealth and investment management division advanced 12% to $6.71 billion, boosted by a 15% rise in asset management fees to $4.2 billion, reflecting higher market valuations and robust asset under management flows.

The global banking segment saw 5% growth in revenue to $6.29 billion, driven by a 21% jump in investment banking fees to $1.8 billion. Consumer banking revenue rose to $11.05 billion from $10.49 billion a year ago.

Global markets revenue inclined 8% to $7.11 billion, buoyed by higher sales and trading revenue. The bank's fixed income, currencies and commodities revenue increased 2% to $3.5 billion, while equities revenue climbed 30% amid increased client activity.

Provision for credit losses fell to $1.34 billion from $1.48 billion in the 2025 quarter.

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Hormuz Disruptions Deepen as Oil Prices Rebound and Recovery Timelines Slip, Wood Mackenzie Says

Strait of Hormuz flows remain sharply constrained, with vessel traffic far below normal 170 daily levels and energy markets reacting to ongoing disruption, Wood Mackenzie said Tuesday.Wood Mackenzie said the waterway remains effectively restricted despite ceasefire signals, with uncertainty over safe passage continuing to deter shipping activity.Although the US and Iran are moving toward renewed talks, both sides remain far apart on terms, raising the risk of prolonged disruption to Gulf energy exports.A two-week ceasefire announced on April 7 and a subsequent 10-day pause in Lebanon had briefly lifted optimism around easing tensions, Wood Mackenzie added.However, two Indian vessels were forced to turn back over the weekend after coming under fire while attempting to transit the strait, underscoring ongoing risks.Iran's Islamic Revolutionary Guard Corps warned ships against moving in the Persian Gulf and the Sea of Oman, saying, "approaching the Strait of Hormuz will be considered co-operation with the enemy."Traffic had risen modestly after the ceasefire, with about 20 vessels transiting daily, but this remains far below the roughly 170 ships seen in February, according to Wood Mackenzie.That limited recovery has reversed, with minimal vessel movement recorded on Sunday, signaling continued disruption across oil, gas, and chemicals markets.Oil prices initially fell after the ceasefire, with Brent dropping about 14% from around $110 to below $95 per barrel, and later reaching just above $86, according to the report.Prices rebounded, with Brent June futures rising about 5% to around $95 per barrel, while European gas prices climbed to 61.5 euros ($72.21) per megawatt hour before easing to 40 euros.The United States has tightened its blockade, seizing a cargo vessel and increasing pressure on Iran-linked shipping, while both sides exchanged sharper rhetoric over the weekend, Wood Mackenzie said.Tasnim, a media outlet affiliated with Iran's Islamic Revolutionary Guard Corps, identified several locations that could "enter the conflict zone" if hostilities resume, including the Bab al Mandeb Strait.It also named Saudi Aramco assets and key oil terminals in Yanbu and Fujairah, which serve as alternative routes bypassing the Strait of Hormuz, Wood Mackenzie added.Wood Mackenzie said a peace deal could allow some tankers to resume movement quickly, but full restoration of normal traffic through the Strait of Hormuz may take until the end of June, citing Alan Gelder, senior vice president.Liquefied natural gas exports could see an initial surge after a peace deal, but a full return to normal operations would take longer, Wood Mackenzie said.Massimo Di Odoardo at Wood Mackenzie said restarting Qatar's LNG output could take three to four weeks for the South complex, while recovery of northern facilities would require a longer timeframe.Rising tensions between the United States and Iran have cast doubt on recovery timelines, with prolonged disruption in the Strait of Hormuz threatening deeper imbalances in global energy markets, Wood Mackenzie said.Brent crude has averaged about $85 per barrel in 2026, warning that prices near $90 could push global growth below 2% and into recession territory, said Peter Martin at Wood Mackenzie.

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