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Key Takeaways
- Bank of America on Tuesday posted better-than-expected first-quarter results.
- During the three months, adjusted net income of $7.2 billion, or 83 cents per share, was well above expectations.
- The country’s second-largest bank reported net interest income that beat expectations, while rivals JPMorgan and Wells Fargo missed estimates in the metric.
Bank of America (BAC) on Tuesday posted better-than-expected first-quarter results, including net interest income, a key profitability metric that has dogged its peers in the past week.
During the three months, Bank of America reported adjusted net income of $7.2 billion, or 83 cents a share, well above expectations from consensus projections compiled by Visible Alpha. Revenue for the first quarter, net of interest expenses, fell 2% to $25.8 billion.
The country’s second-largest bank reported net interest income (NII)—which measures the profitability of lending versus the amount paid out to depositors and account holders—of $14.03 billion compared with $13.81 billion that analysts projected. Last week, NII for rivals JPMorgan Chase (JPM) and Wells Fargo (WFC) missed estimates.
Additionally, higher-for-longer interest rates are putting more pressure on NII as they dull the appetite for loans, as evidenced by shrinking loan balances at some of the banks that have already reported Q1 earnings.
Bank of America shares were little changed in premarket trading.