Catenaa, Tuesday, April 15, 2025- Bank of America reported 10% jump in profits in the first quarter with growth in interest income and gains from a volatile market.
The bank said its net income grew to $7.4 billion and earnings per share to $0.90 from $0.76 last year, while revenue was up by 6% year-over-year to $27.4 billion.
Bank of America said the year-over-year increase reflected the benefits of several factors, including lower deposit costs, higher net interest income related to global markets activity and fixed-rate asset repricing, partially offset by the impacts of lower interest rates and one less day of interest accrual.
Net interest income reached $14.4 Billion while equities revenue reached a new record of $2.2 billion, up by 17% from a year earlier.
Client balances with the bank was at $4.2 trillion by the end of March quarter, up 5% from 1Q24, driven by positive net client flows and higher market valuations
“We had a good first quarter, with Our business clients have been performing well; and consumers have shown resilience, continuing to spend and maintaining healthy credit quality, ” Chair and CEO of Bank of America, Brian Moynihan said.
He said though the bank potentially faces a changing economy in the future, it believes the disciplined investments it has made for high-quality growth, its diverse set of businesses, and the team’s relentless focus on responsible growth will remain a source of strength.
Book value per common share rose 8% to $36.39; tangible book value per common share rose 9% to $27.128.
Meanwhile , allowance for loan and lease losses of $13.3 billion represented 1.20% of total loans and leases.
Bank of America shares were up by over 5% in the first 30 minutes of market open on Tuesday following the release of quarterly earnings.
