Bank of America joins big bank peers in reporting rising profits, calls US economy 'resilient'
Bank of America (BAC) said on Wednesday that profits leaped 17% from a year ago.
The country’s second-largest bank reported profits rose to $8.6 billion, or $1.11 per share, exceeding the $1.01 per share that analysts forecast. Net revenue rose 7% to $30.3 billion compared to $28.2 billion in the first quarter of 2025.
Investment banking and trading revenue rose 21% and 13%, respectively.
Bank of America CEO Brian Moynihan said in a statement that, during the first quarter, his bank “saw healthy client activity, including solid consumer spending and stable asset quality, indicating a resilient American economy.”
“We remain watchful of evolving risks,” Moynihan added.
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Bank of America stock rose about 1% ahead of Wednesday’s open.
The Charlotte-based bank’s results underscore how the country’s biggest banks saw earnings growth in the first quarter amid significant Wall Street activity and a sturdy US economy, despite the period’s volatile markets bouts.
The nation’s three other largest banks, JPMorgan Chase (JPM), Wells Fargo (WFC), and Citigroup (C), also reported year-over-year profit increases in the first quarter that beat analyst expectations. Altogether, these four banks reported profits of $36.12 billion, a 17% increase from the previous year.
Trading desks, a big contributor to the profit boost at big banks, often benefit from volatility, though chaotic markets can spook clients, particularly in dealmaking. At Bank of America, revenue from both Wall Street divisions ratcheted higher in the quarter, with the bank reporting a record in quarterly equity trading revenue.
Fees from Bank of America’s investment banking unit rose to $1.8 billion, driven by a 45% jump in M&A advisory fees.
Total sales and trading revenue rose to $6.4 billion, driven by a 30% year-over-year increase in revenue from its stock trading operations. However, the bank’s fixed-income trading unit fell short of Wall Street’s estimates, rising only slightly from the year-ago quarter.
Bank of America’s Main street operations also appeared robust.
It reported that combined debit and credit card spending from its US customers rose 7% versus the first quarter of 2025. The bank took lower consumer charge-offs in the quarter compared to the year ago period “due largely to credit card seasonality,” according to a presentation.
Bank of America’s rate of credit card delinquencies over 90-days, a leading indicator of future consumer credit quality, declined to 1.30% compared with 1.34% in the first quarter of 2025.
“While we’re navigating many dynamics now from geopolitics to rates to credit, our data continues to tell us that the American consumer and American industry remain resilient,” Bank of America CFO Alastair Borthwick said in a call with reporters on Wednesday.
Along with the onset of the war in Iran, which sent energy prices surging, banks have been scrutinized over recent weeks for their exposure to the private credit industry. Bank of America said in a investor presentation on Wednesday that it has $20 billion in loans to the private credit industry.
David Hollerith covers the financial sector, ranging from the country’s biggest banks to regional lenders, private equity firms, and the cryptocurrency space.
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