Bank of America reported Monday better-than-expected results for the first quarter of the year, driven by strong loan growth and lower taxes.
Here’s how the bank fared compared to Wall Street expectations:
—Earnings: 62 cents per share vs. 59 cents expected by Thomson Reuters
—Revenue: $23.1 billion vs. $23.059 billion forecast
—Net interest income: $11.6 billion vs. $11.69 billion forecast by StreetAccount
—Fixed income trading revenue: $2.5 billion vs. 2.92 billion forecast.
Bank of America said loans in its business segments grew by 5 percent to $864 billion on a year-over-year basis.
“Our responsible growth model continues to deliver consistent results,” CEO Brian Moynihan said in a statement. “Strong client activity, coupled with a growing global economy and solid U.S. consumer activity, led to record quarterly earnings.”
Bank of America also said revenue for its consumer banking business climbed 9 percent to $864 billion, driven by a 13 percent spike in net interest income in the segment.
Revenue for equities trading rose 38 percent $1.5 billion, helping offset a 13 percent decline in fixed income trading. Equities trading likely got a boost from an uptick in stock-market volatility last quarter as investors fretted over inflationary and political concerns.
Bank of America added that legislation passed last year helped drive its effective tax rate down by 9 percentage points.
“I thought they were pretty good results,” Jeff Harte, analyst at Sandler O’Neill, told CNBC’s “Squawk Box” on Monday. “Net net, I think we’re seeing progress where we need to see progress and B of A should keep chugging along higher, in my opinion.”
The company’s stock rose 1 percent in the premarket. Bank of America shares are up about 1 percent for the year, outperforming rival Citigroup, which is down 4.6 percent in 2018.