Bank of America Corp (NYSE:BAC) shares gained almost 4% in early trade on Tuesday as it reported an 11% year-over-year surge in profit for the first quarter.
Profits increased to $7.4 billion or $0.90 per share, ahead of Street estimates of $0.81.
Revenue of $26.91 billion, up 6% year-over-year, beat estimates of $27.37 billion.
This was attributed to noninterest income growth across all segments and higher net interest income, which grew 3% from the year-ago quarter to $14.4 billion.
The bank also benefited from a surge in trading revenue, similar to other major US banks, as market volatility increased during the quarter.
Bank of America CEO Brian Moynihan highlighted the continued strength of both corporate and consumer clients, noting that consumers are maintaining healthy credit and spending levels.
“Though we potentially face a changing economy in the future, we believe the disciplined investments we have made for high-quality growth, our diverse set of businesses, and the team’s relentless focus on Responsible Growth will remain a source of strength,” Moynihan said.
Shares of Bank of America added 4.2% at about $38 shortly after US markets opened.