INSUBCONTINENT EXCLUSIVE:
Bank of America Corp missed revenue expectations in the first quarter but its earnings still beat forecasts as the bank chopped its expenses
and expanded its loan book.
The company, the second-biggest US bank by assets, followed rival domestic lenders by struggling to generate
pre-market trading.
Lower market volatility and its negative impact on trading held bank capital markets revenue at US banks during the
exception, increasing revenue and beating earnings expectations while seeing its expenses rise as it invests in new technology.
Bank of
expectations of $23.3 billion.
The bank saw 3 per cent growth in consumer loans and 4 per cent growth in loans to businesses in the first
quarter, allowing it to capture more revenue from higher US interest rates
hikes in 2018, while a strong job market has also kept bad loans in check and borrowing healthy
The bank relies heavily on higher interest rates to maximize profits as it has a large deposit pool and rate-sensitive mortgage
securities.
Net interest income - the difference between what a lender earns on loans and pays on deposits - rose 5 per cent to $12.38
Average deposits also rose nearly 5 per cent to $1.36 trillion
Changes in the US tax code and concerns about a trade war spurred more trading a year ago.
Overall trading revenue declined 17 per cent
Equities trading revenue fell 22 per cent and fixed-income trading revenue slipped 8 per cent.
Advisory fees at the bank stayed flat,
indicating the bank is missing out on the MA boom lifting rival investment banks
On Monday, Goldman Sachs Group Inc reported a 51 per cent surge in advisory fees.
