-- 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.