Bank of America’s first-quarter profit rises on trading strength
Bank of America’s first-quarter profit surged as market volatility bolstered its trading fees, sending the bank’s shares up by 1.9% before the market opened. The increase in trading revenue was fueled by the uncertainty surrounding U.S. President Donald Trump’s tariff decision, which led to a 9% rise in trading revenue, with equities trading jumping by 17%.
The bank’s performance was in line with its rivals JPMorgan Chase and Goldman Sachs, who also reported strong results from their trading businesses. The Federal Reserve’s rate cuts last year had a positive impact on borrower sentiment, benefiting banks like BofA, which had anticipated record net interest income in 2025 before the tariff announcement.
Net interest income (NII), which represents the difference between what banks earn on loans and pay out on deposits, grew by 3% to $14.4 billion. CEO Brian Moynihan expressed confidence in the bank’s ability to navigate the changing economic landscape, citing disciplined investments for high-quality growth and a diverse set of businesses as sources of strength.
However, concerns arising from the tariffs have rattled investment bankers globally, leading dealmakers to adopt a cautious stance. U.S. M&A activity saw a 13% decline in the first quarter of 2025, according to data from Dealogic. BofA’s investment banking fees also dipped by 3% to $1.5 billion during the same period.
The bank reported earnings of $7.4 billion, or 90 cents per share, for the quarter ending March 31, compared to $6.7 billion, or 76 cents per share, in the previous year. Despite the challenges posed by the tariffs, BofA remains optimistic about its prospects, emphasizing its commitment to Responsible Growth and a diversified business model.
In summary, Bank of America’s strong performance in the first quarter was driven by market volatility and improved borrower sentiment. While challenges persist due to the tariffs, the bank’s strategic investments and focus on Responsible Growth continue to position it for success in the evolving economic landscape.
(Source: Reuters – Reporting by Pritam Biswas and Niket Nishant in Bengaluru and Saeed Azhar in New York; Editing by Lananh Nguyen and Arun Koyyur)
