BofA's profit rises on higher interest rates, loan growth
(Reuters) - Bank of America (BAC.N) reported a 34 percent rise in first-quarter profit on Monday as it benefited from higher interest rates and loan growth.
The second-largest U.S. bank by assets said net income attributable to shareholders rose to a record $6.49 billion in the three months ended March 31 from $4.84 billion a year earlier. Earnings per share rose to 62 cents from 45 cents.
Analysts on average had expected 59 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 about 4 percent to $23.28 billion.
In the bank’s biggest business - consumer banking - revenue rose 9 percent to $9.03 billion, helped by strong deposit and loan growth.
“Strong client activity, coupled with a growing global economy and solid U.S. consumer activity, led to record quarterly earnings,” Chief Executive Brian Moynihan said in a statement.
Higher interest rates helped BofA charge more for loans while keeping deposit rates low. The lender relies heavily on higher interest rates to maximize profits as it has a large stock of deposits and rate-sensitive mortgage securities.
Reporting by Sweta Singh in Bengaluru and Elizabeth Dilts in New York; Editing by Saumyadeb Chakrabarty