Bank of America (BAC) earnings Q1 2021

Brian Moynihan, CEO, Bank of America

Scott Mlyn | CNBC

Bank of America reported Thursday revenue that topped Wall Street estimates on booming funding banking and buying and selling outcomes, in addition to the discharge of loan-loss reserves as fewer shoppers have been anticipated to default on money owed.

The financial institution posted first-quarter revenue of $8.1 billion, or 86 cents a share, exceeding the 66 cents a share anticipated by analysts surveyed by Refinitiv. The firm produced $22.9 billion in income, edging out the $22.1 billion estimate.

Bank of America individually introduced a $25 billion inventory repurchase program; the inventory gained 1.2% in early buying and selling.

“While low interest rates continued to challenge revenue, credit costs improved and we believe that progress in the health crisis and the economy point to an accelerating recovery,” CEO Brian Moynihan stated within the launch.

Like different banking rivals, Bank of America noticed a big profit from the bettering U.S. financial outlook in current months: It launched $2.7 billion in reserves for mortgage losses within the quarter. Last 12 months, the agency put aside $11.3 billion for credit score losses, when the trade believed {that a} wave of defaults tied to the coronavirus pandemic was coming.

Instead, authorities stimulus packages seem to have prevented most of the dreaded losses, and banks have begun to launch extra of their reserves this quarter.

Like JPMorgan and Goldman, the financial institution additionally noticed a lift from its buying and selling operations. Fixed revenue buying and selling income jumped 22% to $3.3 billion, exceeding analysts’ estimate by roughly $660 million. Equities income rose 10% to $1.8 billion, about $170 million greater than anticipated.

The agency’s Wall Street bankers have been busy as effectively: The agency posted a 62% enhance in funding banking charges to $2.2 billion, nearly $400 million greater than analysts had anticipated, fueled by a 218% surge in fairness underwriting charges to $900 million.

On Wednesday, JPMorgan Chase and Wells Fargo every posted outcomes that exceeded analysts’ expectations on reserve releases, whereas Goldman Sachs beat estimates on robust advisory and buying and selling outcomes.

Shares of Bank of America have climbed 32% this 12 months, exceeding the 26% achieve of the KBW Bank Index.

Here are the numbers:

  • Earnings: 86 cents a share, vs. 66 cents a share anticipated by analysts polled by Refinitiv.
  • Revenue: $22.9 billion, vs. $22.1 billion anticipated.

This story is growing. Please verify again for updates.

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