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Bank of America posts better-than-expected jump in quarterly earnings

Bank of America's first quarter profits were supported by loan growth and investment banking fees
Bank of America
Bank of America has seen the pace of loan growth ease after the Fed hiked interest rates

Bank of America Corp. (NYSE:BAC) has delivered a better-than-expected jump in first quarter earnings, bolstered by record mergers and acquisitions.

Net income for the first three months of the year gained 44% to US$4.35bn while earnings per share was up 46% to 41 cents, compared to analysts’ estimates of 35 cents.  

Revenue gained about 7% to US$22.45bn, beating market forecasts of US$21.61bn, as the company achieved its best-ever M&A and investment banking fees.

BofA was also supported by an increase in loans but the pace of growth eased as the Federal Reserve hiked interest rates in March and December.

The bank’s earnings come after JPMorgan Chase & Co (NYSE:JPM) and Citigroup Inc (NYSE:C) reported quarterly results last week with a sharp rise in profits that exceeded forecasts. Goldman Sachs Group Inc (NYSE:GS) posted an 80% surge in profit today but fell short of expectations.

READ: Goldman Sachs shares slide as trading business takes a hit

Shares in BofA dipped 0.70% to US$22.65 in early US trading. 

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