Bank of America on Tuesday reported first-quarter earnings that topped analysts’ estimates for revenue and income on better-than-expected curiosity revenue and funding banking.
Here’s what the corporate reported:
- Earnings: 83 cents a share adjusted, vs. 76 cents anticipated, in keeping with LSEG
- Revenue: $25.98 billion, vs. anticipated $25.46 billion
The financial institution stated revenue fell 18% to $6.67 billion, or 76 cents a share; excluding a $700 million FDIC evaluation, revenue was 83 cents a share. Revenue slipped 1.6% to $25.98 billion as web curiosity revenue declined from a 12 months earlier.
Shares of the financial institution climbed 2.2% in premarket buying and selling.
Net curiosity revenue, or the distinction between what the corporate earns from loans and investments and what it pays prospects for his or her deposits, was $14.19 billion, topping the $13.93 billion StreetAccount estimate.
The financial institution’s curiosity revenue was a “slight positive surprise,” although it is unclear if this implies the metric will enhance sooner than anticipated, Wells Fargo analyst Mike Mayo stated Tuesday in a analysis word.
Analysts will seemingly ask Bank of America administration for extra steering on its NII, which has been declining in current quarters as funding prices have climbed together with the rise in rates of interest.
Investment banking income jumped 35% to $1.57 billion, exceeding the $1.36 billion estimate and following an identical rise at rivals together with Goldman Sachs and JPMorgan Chase.
It’s additionally significantly increased than the steering given by Bank of America CFO Alastair Borthwick, who informed analysts final month to anticipate funding banking income to rise by 10% to fifteen% from a 12 months earlier.
The financial institution’s buying and selling operations additionally edged out expectations. Fixed revenue income fell 3.6% to $3.31 billion, barely beating the $3.24 billion estimate, and equities income rose 15% to $1.87 billion, in contrast with the $1.84 billion estimate.
This story is growing. Please verify again for updates.
https://www.cnbc.com/2024/04/16/bank-of-america-bac-earnings-q1-2024.html
