Proactive Investors - Run By Investors For Investors

Bank of America reports strong Q1 results on deposit and loan growth

The bank's earnings per share came to 62 US cents per share in Q1 on US$6.92bn in net income
Picture of a Bank of America storefront
Last week, JPMorgan & Chase and Citigroup also reported robust quarterly results

Bank of America Corp. (NYSE:BAC) joined other big US banks in reporting impressive results in the first quarter, which surpassed the expectations of Wall Street analysts.

The bank, which is based in Charlotte, North Carolina, said its earnings per share came to US$0.62 per share in the first quarter on US$6.92bn in net income, which beat the expectations of analysts who had predicted that the bank would earn US$59 per share or US$6.3bn. Revenue jumped 3.7% from the year-ago period to US$23bn, up from US$22bn.

Opening more branches

A bright spot for the bank was its performance from trading stock as its equity revenues soared 38% to US$1.52bn from the same period a year ago. Its revenue from overall trading rose slightly to US$4.05bn, up from US$4.03bn in the year-ago quarter.

The bank’s consumer banking group also drove up its profits, with revenues from the division rising 9% from the year-ago period to US$9bn, thanks to robust growth in deposits and loans.

The bank said it is looking to widen its reach and bolster the consumer side of its business even further by opening branches in Cleveland, Columbus, Denver, Lexington, Pittsburgh, Minneapolis-St. Paul and Salt Lake City.

A weak spot was its fixed-income revenue, which slumped 13% to US$2.54bn.

Last week, JPMorgan & Chase (NYSE:JPM) and Citigroup (NYSE:C) also reported robust quarterly results on the back of rising interest rates.

In pre-market trade, Bank of America shares inched up by 0.87% to US$30.06.

View full BAC profile View Profile

Bank of America Timeline

Related Articles

cryptocurrency tokens
October 02 2018
Since launching its advisory service arm last year, the company has already helped raise over US$500mln in token sales
APQ
November 20 2018
The dividend remains well covered by economic income in the portfolio.
Ethereum
June 19 2018
If ICOs provide an investment product that pensions funds, investment banks and others understand, that is when huge sums of money will enter this space

© Proactive Investors 2018

Proactive Investors Limited, trading as “Proactiveinvestors United Kingdom”, is Authorised and regulated by the Financial Conduct Authority.
Registered in England with Company Registration number 05639690. Group VAT registration number 872070825 FCA Registration number 559082. You can contact us here.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use