April 18 Bank of America reported a 44
percent rise in quarterly profit as higher interest rates bulked
up earnings from loans and an increase in trading boosted
The second-largest U.S. bank said net income attributable to
shareholders rose to $4.35 billion in the three months ended
March 31 from $3.02 billion a year earlier.
Earnings per share rose to 41 cents per share from 28 per
Analysts on average had expected earnings of 35 cents per
share, according to Thomson Reuters I/B/E/S. It was not
immediately clear if the reported figures were comparable.
Total revenue, net of interest expense, rose 7 percent to
Big U.S. banks have been vitalized by increased market
activity prompted by the so-called "Trump trade". They have also
benefited from higher interest rates, which the U.S. Federal
Reserve has indicated will be raised again this year.
Bank of America relies heavily on higher interest rates to
maximize profits as it has a large stock of deposits and
rate-sensitive mortgage securities.
JPMorgan Chase and Citigroup last week also
reported better-than-expected quarterly profit, driven by
increased trading activity.
(Reporting by Nikhil Subba in Bengaluru and Dan Freed in New
York; Editing by Saumyadeb Chakrabarty)