BofA Reports Strong Results Boosted By Record Equity Trading, Budgets 4 Rate Cuts

Bank of America and Citigroup reported Q1 earnings, echoing the pattern of strong equity trading revenue but weaker fixed income. Bank of America's equity trading surged, reaching record levels, while fixed income trading underperformed. BofA's earnings per share beat estimates, driven by strong revenue and net interest income. The bank's net interest income was substantial, and it projected four rate cuts this year. The bank's balance sheet, liquidity, and capital were in line with expectations. Loan loss reserves and credit losses remained stable, and both loans and deposits exceeded estimates. Non-interest expenses increased, with compensation expenses rising significantly. The Global Markets segment benefited from strong equity trading, while investment banking faced challenges. Analysts generally viewed the results positively, highlighting strong trading activity. BofA shares saw an increase in early trading after the positive earnings report.