The Bank of America has beaten analyst expectations with first quarter profits of $7.1bn (£5.4bn) amid strong loan book growth.
While net income tumbled 12 per cent year-on-year investors were treated to diluted earnings per share of $0.80 in the first quarter – beating Refinitiv estimates of $0.75.
The global investment giant netted revenues of $23.2bn in the first three months of the year, up by $1bn compared to the final quarter of 2021 and narrowly beating broker expectations of $23.1bn.
“First quarter results were strong despite challenging markets and volatility, which we believe reflect the value of our Responsible Growth strategy,” said Chief Financial Officer Alastair Borthwick.
“Net interest income increased by $1.4 billion versus the year-ago quarter supported by strong loan and deposit growth,” Borthwick added.
The Bank of America saw record revenue of $5.5bn in its Global Wealth and Investment Management division, with intake climbing by 10 per cent. Average loan balances climbed by $70bn in the first quarter to almost $1 trillion, the bank said.
The bank has set aside just $30m as a provision for credit losses, signalling a bullish outlook amongst leadership about its ability to weather market volatility. The approach marks a contrast from that of JP Morgan, which has set aside a credit losses provision of $1.46bn.
Bank of America shares have climbed four per cent today.