Bank of America Corp.'s stock traders posted a record quarter as the company reaped the benefits of volatile markets and net interest income topped analysts' estimates.
Revenue from equity trading rose 17% to $2.18 billion in the first three months of the year, the company said in a statement Tuesday. That helped Bank of America top analysts' estimates for per-share earnings. Trading of fixed income, currencies and commodities came in close to expectations, bringing in $3.46 billion.
The bank's sales and trading unit delivered its 12th consecutive quarter of year-over-year revenue growth, Chief Executive Officer Brian Moynihan said in the statement. "Our business clients have been performing well, and consumers have shown resilience, continuing to spend and maintaining healthy credit quality."
The second-largest U.S. bank said that net interest income, a key source of revenue for the company, rose 2.9% to $14.4 billion. Analysts had expected a 2.3% increase for NII, the revenue collected from loan payments minus what depositors are paid.
Bank of America's results offer another look at how the biggest U.S. banks fared in the early days of President Donald Trump's second term. Investors are also eager for details on the national economy from executives whose firms cater to large swaths of American consumers and businesses.
JPMorgan Chase and Goldman Sachs Group reported earnings that beat analysts' estimates, with executives pointing to a surge in trading activity boosting results. Both banks expect the momentum in trading to continue amid an uncertain macroeconomic backdrop.
Shares of Charlotte, North Carolina-based Bank of America, rose 2% to $37.40 in premarket trading. They've gained 2% in the 12 months through Monday, less than the 18% increase in the S&P 500 Financials Index.
