In the recent quarter, Bank of America reported a 25% increase in net interest income to $14.4 billion, which is the difference between the money it receives from lending money and the money it pays out to customers. Following the findings, the bank shares increased by more than 2% in premarket trading.
“Every business segment performed well as we grew client relationships and accounts organically and at a strong pace,” CEO Brian Moynihan stated in a statement. Our findings show how our company’s ten-year dedication to responsible expansion contributed to stability in times of economic change.
According to the bank, greater sales and trading revenue offset reduced service fees and losses in asset management and investment banking fees, resulting in a 1% gain in noninterest income to $11.8 billion.
“We produced operating leverage for the eighth consecutive quarter. We retained excellent liquidity and substantially improved our balance sheet, said Moynihan.
In the first quarter, Bank of America put aside $931 million for credit losses. Net charge-offs, according to the bank, remain below pre-pandemic levels.
The quarter’s sales and trading revenue increased by 7% to $5.1 billion. Trading in fixed income, currencies, and commodities brought in $3.4 billion in revenue, a 27% rise, compared to $1.6 billion from trading in stocks.