Bank of America Corp (NYSE: BAC) is up 5.0% in the stock market on Monday after the Wall Street bank reported market-beating results for its fiscal first quarter.
What Bank of America Q1 earnings report tells us
Earnings sunk to $7.1 billion versus the year-ago figure of $8.1 billion.Per-share earnings came in at 80 cents, a decline from last year’s 86 cents.Revenue was up 1.80% YoY to $23.2 billion in the first quarter.FactSet consensus was for 75 cents of EPS on $23.1 billion in revenue.Net loan charge-offs dropped 52%, as per the earnings press release.Released $362 million of reserves in the recent financial quarter.Credit loss provisions stood at $30 million versus $468 million expected.
Net interest income jumped 13% in Q1 to $11.60 billion. Last month, Mike Mayo reiterated BAC a “top pick” and said it could be a $66 stock.
Other notable figures and CFO’s remarks
Other notable figures in the earnings report include a $2.65 billion in fixed income revenue – roughly in line with estimates. Equities revenue registered at $2.0 billion; well ahead of expectations.
Investment banking fees tanked 35% in Q1 to miss forecasts. In the earnings press release, CFO Alastair Borthwick said:
Q1 results were strong despite challenging markets and volatility, which reflect the value of our Responsible Growth Strategy. Going forward, and with the forward curve expectation of rising interest rates, we anticipate realising more of the benefit of our deposit franchise.
The post Bank of America Q1 results: CFO sees continued strength ahead appeared first on Invezz.