Bank of America Chairman and CEO Brian Thomas Moynihan testifies during a Wall Street oversight hearing by the Senate Banking, Housing, and Urban Affairs committee on Capitol Hill in Washington, DC, December 6, 2023.
Saul Loeb | AFP | Getty Images
Bank of America on Tuesday reported first-quarter earnings that topped analysts’ estimates for profit and revenue on better-than-expected interest income and investment banking.
Here’s what the company reported:
- Earnings: 83 cents a share adjusted, vs. 76 cents LSEG estimate
- Revenue: $25.98 billion, vs. expected $25.46 billion
The bank said profit fell 18% to $6.67 billion, or 76 cents a share; excluding a $700 million FDIC assessment, profit was 83 cents a share. Revenue slipped 1.6% to $25.98 billion as net interest income declined from a year earlier.
Net interest income, or the difference in between what the company earns from loans and investments and what it pays customers for their deposits, was $14.19 billion, topping the $13.93 billion StreetAccount estimate.
Investment banking revenue jumped 35% to $1.57 billion, exceeding the $1.36 billion estimate and following a similar rise at rivals including Goldman Sachs and JPMorgan Chase. It’s also considerably higher than the guidance given by Bank of America CFO Alastair Borthwick, who told analysts last month to expect investment banking revenue to rise by 10% to 15% from a year earlier.
Analysts will also be focused on the bank’s net interest income, which has been declining in recent quarters as funding costs have climbed along with the rise in interest rates.
This story is developing. Please check back for updates.
