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A woman passes a Bank of America office branch, in New York. Mark Lennihan/The Associated Press Bank of America BAC-N topped estimates for first-quarter profit as interest income grew and volatile markets helped its stock traders rake in a record haul. As markets whipsawed around U.
S. President Donald Trump’s tariff policies, BofA brought in 9 per cent higher trading revenue, mirroring trends seen at rivals. “Though we potentially face a changing economy in the future, we believe the disciplined investments we have made for high-quality growth, our diverse set of businesses and the team’s relentless focus on Responsible Growth will remain a source of strength,” CEO Brian Moynihan said in a statement.
Equities trading jumped 17 per cent to a record $2.2-billion, while fixed income, currencies and commodities jumped 5 per cent to $3.5-billion.
“As we’ve seen with other banks, trading results were the star of the show,” said Stephen Biggar, banking analyst at Argus Research. “Still, a collapse in M&A and IPO deal volume could doom a 2025 recovery if tariff turmoil is not resolved soon.” Rivals JPMorgan Chase JPM-N and Goldman Sachs GS-N have also reported stronger performance from their trading businesses.
BofA’s earnings were $7.4-billion, or 90 cents per share, in the quarter ended March 31, it said on Tuesday. That compares with $6.
7-billion, or 76 cents per share, a year earlier. Analysts were expecting a profit of 82 cents per share, according to estimates compiled by LSEG. The second largest U.
S. lender’s net interest income (NII) – the difference between what it earns on loans and pays out on deposits – grew 3 per cent to $14.4-billion, partially helped by lower deposit costs.
It maintained its NII forecast of $15.5-billion to $15.7-billion for the fourth quarter.
Interest-rate cuts last year had helped improve sentiment among borrowers, benefiting banks such as BofA, which had forecast record net interest income in 2025 before Trump unveiled the new tariffs. Shares rose 1.6 per cent to $37.
25 before the bell. They have fallen 12.4 per cent since the tariffs were unveiled earlier this month.
Fears sparked by the tariffs have alarmed investment bankers globally, prompting dealmakers who were once bullish on Trump’s policies to adopt to a wait-and-watch approach. BofA’s investment banking fees fell 3 per cent to $1.5-billion in the first quarter.
In the first three months of 2025, U.S. M&A activity fell 13 per cent, according to data from Dealogic.
Provisions for credit losses were $1.5-billion, higher than $1.3-billion from a year earlier.
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