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Net profits of Bank of America (NYSE: BAC) fell by 12%, even as revenue jumped by 2%, rising slightly above analysts’ expectations.
Revenue for the first quarter came to $23.23 billion, up 2% from a year ago. Analysts had expected revenue of $23.13 billion.
Its profits, however, fell 12% to $7.1 billion in the first quarter from a year earlier, Bank of America said on Monday in its press statement.
After two years of negligible economic growth, 2022 was supposed to be a year of economic recovery. Instead, Russia’s invasion of Ukraine upended the global economy’s recovery from the pandemic, throwing financial markets into a tizzy.
The smaller profits, couldn’t stop the consumers and businesses from remaining financially healthy. An increasing number of loans, combined with higher interest rates, raised the profit for banks.
Total loans and leases grew 10%, and loans to consumers increased 6%.
Bank of America’s net interest income, which includes the money it makes on loans, rose 13% from a year earlier to $11.57 billion.
Despite the cheery note, the Bank’s investment banking fees fell 33% from a year earlier to $1.53 billion. The drop occurred due to a slowdown in deal-making.
In comparison to the fourth quarter, the investment-banking revenue helped boost Bank of America’s profit 28%.
The bank’s share price rose by 3.4% after the results were announced.
Inputs from Bank of America
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