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Financial Services

Bank of America beats profit estimates as trading, wealth income drive growth

Bank of America Corp (NYSE:BAC) reported a stronger-than-expected rise in first-quarter profit, as gains in equities trading, wealth management and lending offset weaker fixed-income results and continued pressure on interest income growth.

The US lender said net income rose 17% year-on-year to $8.6 billion in the first quarter of 2026, while earnings per share increased 25% to $1.11, topping analyst expectations of $1.01.

Revenue, net of interest expense, came in at $30.27 billion, above estimates of $29.9 billion and up 7% from a year earlier.

Net interest income rose 9% year-on-year to $15.75 billion, slightly ahead of expectations of $15.37 billion, supported by continued loan growth and stable deposit balances. However, momentum in the core lending engine showed signs of easing sequentially after a period of steady gains.

Average deposits increased 3% to $2.02 trillion, while average loans and leases rose 9% to $1.19 trillion.

Trading revenue was mixed across asset classes. Equities trading revenue, excluding debit valuation adjustments, jumped 30% year-on-year to $2.83 billion, beating expectations of $2.51 billion, supported by strong client activity and volatility.

In contrast, fixed income, currencies and commodities (FICC) trading revenue excluding DVA rose just 1% to $3.5 billion, falling short of estimates of $3.78 billion.

Across business segments, consumer banking revenue rose 5% to $11.05 billion, while global wealth and investment management increased 12% to $6.71 billion.

Global banking revenue rose 5% to $6.29 billion, and global markets revenue increased 8% to $7.11 billion.