Bank of America Corp (NYSE:BAC) reported first-quarter results that exceeded Wall Street expectations, sending shares up more than 2% intraday Wednesday.
The bank posted adjusted earnings per share of $1.11, surpassing the consensus estimate of $1.01. Revenue totaled $30.3 billion, ahead of the $29.92 billion forecast and representing a 7% increase from $28.2 billion in the same period last year.
Net income rose 17% year over year to $8.6 billion, up from $7.4 billion. The revenue growth was supported by a 9% increase in net interest income to $15.7 billion, alongside double-digit growth in sales and trading revenue, investment banking fees, and asset management fees. Net interest income benefited from higher deposit and loan balances, repricing of fixed-rate assets, and increased activity in Global Markets, partially offset by lower interest rates.
The provision for credit losses declined to $1.3 billion from $1.5 billion in the prior-year quarter, while net charge-offs decreased to $1.4 billion from $1.5 billion. Noninterest expenses increased 4% to $18.5 billion, driven by higher revenue-related costs and continued investment in personnel and technology. The efficiency ratio improved by approximately 170 basis points to 61%, supported by operating leverage of 2.9%.
Average deposit balances rose 3% to $2.02 trillion, marking the 11th consecutive quarter of sequential growth. Average loans and leases increased 9% to $1.19 trillion, with expansion across all business segments.
