- Consumer lending growth helped lift Bank of America to beat its first quarter earnings estimates.
- Consumer strength was also seen in deposit growth, with average deposits up 13% to $2.0 trillion.
- "Organic growth combined with good expense management drove operating leverage for the third consecutive quarter," BofA CEO Brian Moynihan said.
Bank of America was able to count on the continued strength of the consumer to lift its first-quarter earnings results, which beat analyst estimates.
The bank said it benefitted from a combination of strong loan growth, deposit growth, market volatility, and expense management during the quarter.
"Ongoing organic growth combined with good expense management drove operating leverage for the third consecutive quarter," Bank of America CEO Brian Moynihan said.
Here were 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 bank's consumer banking division saw record deposit balances grow 14% to more than $1 trillion, while average deposits jumped 13% to $2.0 trillion. In its small business banking unit, the bank counted 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 a bulk of that being represented by its fixed income, currencies, and commodities business. Bank of America said it experienced zero days of trading losses in the quarter.
Bank of America's wealth management division also delivered further growth for the company, with assets under management balances up 7% to $1.6 trillion. That's despite a mid-single digit decline in both the stock and bond market during the first quarter.
Bank of America isn't the only bank delivering better than expected earnings in the first quarter. Goldman Sachs, Morgan Stanley, JPMorgan, and Citigroup all saw strong banking and trading activity despite the ongoing uncertainty about rising inflation, higher interest rates, and Russia's invasion of Ukraine.
Shares of Bank of America were up more than 1% in Monday's trading session.
