Bank of America beats earnings on consumer loan growth and trading

  • Growth in consumer loans helped Bank of America beat its first-quarter earnings estimates.
  • Consumer strength was also reflected in deposit growth, with average deposits rising 13% to $2 trillion.
  • “Organic growth combined with good expense management delivered operating leverage for the third consecutive quarter,” said BofA CEO Brian Moynihan.

Bank of America was able to count on the continued strength of consumption to lift its first-quarter results, which beat analysts’ estimates.

The bank said it benefited from a combination of strong loan growth, deposit growth, market


and expense management during the quarter.

“Continued organic growth combined with good expense management resulted in increased operating leverage for the third consecutive quarter,” said Bank of America CEO Brian Moynihan.

Here are the key numbers:

Revenue: $23.2 billion, versus analyst estimates of $23.1 billion
Earnings per share: $0.80, versus analyst estimates of $0.75
Provision for credit losses: $30 million, increased by $1.9 billion

The banks

retail banking

The division saw record deposit balances rise 14% to over $1 trillion, while average deposits jumped 13% to $2 trillion. In its small business banking unit, the bank had record deposit balances up 21% to $172 billion.

In its global markets division, the bank saw sales and trading revenue fall 7% to $4.7 billion, with the bulk of it being accounted for by its fixed income, currencies and commodities businesses. . Bank of America said it suffered zero days of trading losses in the quarter.

Bank of America’s wealth management division also generated additional growth for the business, with assets under management up 7% to $1.6 trillion. This is despite a mid-single-digit decline in the stock and bond markets during the first quarter.

Bank of America isn’t the only bank to report better-than-expected first-quarter earnings. Goldman Sachs, Morgan Stanley, JPMorgan and Citigroup all saw strong banking and trading activity despite continued uncertainty over rising inflation, rising interest rates and Russia’s invasion of Ukraine.

Bank of America shares rose more than 1% in Monday’s trading session.


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