Bank of America traders get boost from market volatility

Bank of America traders get boost from market volatility

Banking















Bloomberg

Bank of America Corp (BofA) joined Wall Street rivals in capitalising on market volatility while also benefiting from an increase in lending.

The company’s trading operation posted $4.72 billion in revenue, down just 7.1% from a year earlier after analysts expected a 16% decline. The best results were in the equities business, which posted a 9.5% gain, the Charlotte, North Carolina-based company said in a statement.

Traders across the US finance industry had a better-than-expected first quarter as Russia’s invasion of Ukraine compounded volatility already simmering on inflation concerns and a lingering pandemic. Goldman Sachs Group Inc. and Morgan Stanley posted surprise increases in trading revenue last week, while Citigroup Inc. and JPMorgan Chase & Co. also surpassed analysts’ expectations for quarterly

results.

Bank of America shares rise 0.9% to $37.89 in early New York trading. They’ve declined 5.8% in the past 12 months, compared with a 5.6% decrease for the KBW Bank Index.

Net interest income rises 13% to $11.6 billion. The company’s loan balances rise to $993.1 billion at the end of the first quarter, up 10% from a year earlier and more than analysts’ estimates of $986.4