Bank of America (NYSE: BAC) shares gained more than 3% intraday Tuesday after the company reported first-quarter results that were largely in line with expectations as tariff-induced market volatility contributed to a record high in equities trading revenue. However, the bank cautioned that the broader economic outlook may be shifting amid increased uncertainty surrounding U.S. trade policy.
Net interest income rose 3% year-over-year to $14.4 billion for the quarter, aligning with consensus estimates of $14.36 billion. Total revenue, net of interest expense, increased 6% to $27.4 billion, surpassing the $25.78 billion forecast.
The bank’s global markets unit posted equities trading revenue of $2.2 billion, up 17% from a year earlier and marking an all-time high. The performance reflects the latest in a series of strong trading results across Wall Street, driven in part by heightened market activity following tariff-related developments from the U.S. administration.
While Bank of America (NYSE: BAC) noted ongoing strength among business and consumer clients, executives acknowledged that the economic picture might be evolving. This comes as other major banks have warned of potential headwinds to growth and earnings from recently proposed tariffs and related geopolitical tensions.
The firm also highlighted improvements in its deposit base, with average deposits increasing for a seventh consecutive quarter to nearly $2 trillion. Meanwhile, a mix of lower deposit costs and fixed-rate asset repricing helped offset the impact of falling interest rates and fewer days of interest accrual in the quarter.
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David Kirakosyan is a seasoned financial journalist with nearly a decade of hands-on experience in covering the U.S. stock markets. Since 2016, he has written thousands of equity news articles, detailed market analyses, and investment insights for trusted platforms like Benzinga, Investing.com, and StreetInsider. David holds a Master of Science in Finance and is a Level 2 CFA® candidate, reflecting his deep commitment to financial expertise and ethical standards. His reporting combines real-world market experience with a strong academic foundation, helping readers make informed decisions backed by reliable information. Read Full Bio
