Bank Of America Earnings Jump 51% In Q1; Stock Setting Up – Investor's Business Daily

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Bank of America (BAC) on Monday reported better-than-expected first-quarter earnings.

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Estimates: A 44% jump in earnings per share to 59 cents, on revenue of $22.907 billion, up 3%.

Results: EPS jumped 51% to 62 cents a share. Adjusted revenue rose nearly 4% to $23.1 billion.

Core lending climbed 5% in Q1, with deposits up 3% and credit card charge-offs lower. Trading revenue rose 3%, including a 38% spike in equity trading revenue and a 13% drop in fixed-income trading revenue.

Return on equity was 10.8%, BofA’s first double-digit ROE in seven years.

Stock: Shares of Bank of America climbed 0.4% to 29.93 on the stock market today.

Bank of America has formed a flat base with a 33.15 buy point, but shares are trading below their 50-day line. BofA hit resistance at that level support area on Friday, reversing lower to close down 2.8% to 29.80.

JPMorgan Chase (JPM) and Citigroup (C) fell 0.1% on Monday. Wells Fargo (WFC) dipped 0.2%.

Bank Earnings Flood

JPMorgan, Citigroup and Wells Fargo reported first-quarter earnings on Friday. Shares initially rose but quickly reversed lower for significant losses. The reasons weren’t entirely clear. Wall Street may have already anticipated the bump that banks were getting from a stronger economy, lower taxes and higher interest rates.

JPMorgan CFO Marianne Lake also said Friday that it was still too early to gauge whether President Trump’s tax law would bring more loan growth, even though the bank remains upbeat on the law’s potential impact eventually.

Goldman Sachs (GS) reports Tuesday, and Morgan Stanley (MS) is due Wednesday.

The investment banking giants should see improved trading revenue, as JPMorgan, Citigroup and now BofA reported surges in stock trading amid the recent spike in market volatility.

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