Angie Newman, UBS Global Wealth Management Manager, discusses market responses amid trade tensions and advises clients and investors.
Bank of America surpassed its first-quarter earnings estimates as interest income rose and volatile markets helped equity traders emerge at record distances.
As the market lashes out around US President Donald Trump’s tariff policies, Bofa has generated 9% high trading revenue, reflecting the trends seen in rivals.
“We may face future economic changes, but we believe that the disciplined investments we have made for high quality growth, our diverse set of businesses and our merciless focus on responsible growth continue to be a source of strength,” CEO Brian Moynihan said in a statement.
CEOs of major banks consider Trump’s tariffs: “Substantial turbulence”
Bank of America Chairman and CEO Brian Moynihan will speak during “Mornings With Maria” at Fox Business Network Studios. (Photo: John Lamparski / Getty Images / Getty Images)
Stock trading increased 17% to a record $2.2 billion, while bonds, currencies and commodities jumped from 5% to $3.5 billion.
ticker security last change change %BAC BANK OF AMAICHCORP. 38.01+1.30+3.54%
“These results were maintained by a medium-sized economy and clients’ concerns about trade policy and recent market turmoil,” Chief Financial Officer Alastair Borthwick said in a call with reporters.
“Even so, our research team at this point doesn’t think we’ll see a recession and our clients continue to show signs of encouragement. Employment is clearly healthy and consumers are proven to be resilient.”
Rivals JP Morgan Chase and Goldman Sachs also report stronger performances from the trading business.
Goldman Sachs’ profits jump as traders make profits
Jamie Dimon, CEO of JPMorgan Chase. (Al Drago/Bloomberg via Getty Images)
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“The outcome of the transaction was a star of the show, as we saw with other banks,” said Stephen Biggar, bank analyst at Argus Research.
“Even so, the collapse of M&A (mergers and acquisitions) and IPO (early public offerings) trading volumes could destroy the 2025 recovery if tariff disruptions are not resolved immediately.”
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BOFA’s revenue was $7.4 billion, or 90 cents per share, for the quarter ended March 31st. That’s comparable to $6.7 billion a year ago, or 76 cents per share.
Analysts were expecting a profit of 82 cents per share, according to estimates compiled by LSEG.
BOFA’s revenue was $7.4 billion, or 90 cents per share, for the quarter ended March 31st. (Smith Collection/Gad/Getty Images/Getty Images)
Maintain NII predictions
The second largest US lender’s net interest income (NII) – the difference between what you earn on loan and what you pay on deposits increased 3% to $14.4 billion, partially aiding in reducing deposit costs.
It maintained its NII forecast of between $15.5 billion and $15.7 billion in the fourth quarter. Interest cuts last year helped improve borrowers’ sentiment, benefiting banks such as BOFA, which had forecast record net interest income in 2025 before Trump announced new tariffs.
The shares rose 1.6% to $37.25 before the bell. They have fallen 12.4% since tariffs were announced earlier this month.
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The fear caused by tariffs has encouraged traders who are globally wary of investment bankers and once bullish on the policies they would adopt in Trump’s waiting approach.
BOFA investment banking fees fell 3% in the first quarter to $1.5 billion. According to data from Dealogic, in the first three months of 2025, US M&A activity fell by 13%.
The credit loss provision was $1.5 billion, exceeding $1.3 billion from the previous year.
