Bank of America Chairman and Chief Executive Officer Brian Thomas Moynihan testifies during the Senate Committee on Banking, Housing and Urban Affairs’ Wall Street Oversight Hearing on Capitol Hill on December 6, 2023 in Washington, DC .
Saul Loeb | AFP | Getty Images
Bank of America First-quarter earnings reported on Tuesday beat analysts’ expectations for profit and revenue, as interest income and investment banking operations came in better than expected.
Here’s what the company reports:
- Earnings: 83 cents per share adjusted, vs. LSEG forecast of 76 cents
- Revenue: $25.98 billion, $25.46 billion expected
The bank said profit fell 18% to $6.67 billion, or 76 cents per share; excluding the $700 million FDIC assessment, profit per share was 83 cents. Revenue fell 1.6% to $25.98 billion as net interest income fell from the same period last year.
Net interest income, the difference between what a company earns from loans and investments and what it pays customers on deposits, was $14.19 billion, above StreetAccount’s forecast of $13.93 billion.
Investment banking revenue jumped 35% to $1.57 billion, beating estimates of $1.36 billion, with competitors including Goldman Sachs and JPMorgan. It’s also well above guidance given by Bank of America Chief Financial Officer Alastair Borthwick, who told analysts last month that he expects investment banking revenue to grow 10% to 15% from the same period last year.
Analysts will also be watching the bank’s net interest income, which has been declining in recent quarters as funding costs climbed as interest rates rose.
This story is developing. Please check back for updates.
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