Bank of America CEO Says Consumer Continues To Spend And Maintain Healthy Credit Quality, Sticks To Annual Outlook

On Tuesday, Bank of America Corp (NYSE:BAC) reported a first-quarter fiscal 2025 net income of $7.4 cardinal (versus $6.7 cardinal a twelvemonth ago) and EPS of $0.90, beating the analyst statement estimation of $0.81.

Revenue, nett of involvement expense, accrued 6.0% twelvemonth implicit twelvemonth to $27.37 billion, beating the analyst statement estimation of $26.99 billion. This was driven by noninterest income maturation crossed each segments and higher nett involvement income (NII).

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Segment Net income: Consumer Banking clocked $2.53 cardinal versus $2.66 cardinal Y/Y, Global Wealth and Investment Management was $1.007 cardinal versus $1.005 cardinal Y/Y, Global Banking was $1.91 cardinal versus $1.99 cardinal Y/Y, and Global Markets was $1.94 cardinal versus $1.79 cardinal Y/Y.

Investment banking fees declined by 3% to $1.5 billion.

Net involvement income was $14.44 cardinal (+3.0% Y/Y), driven by Global Markets enactment and fixed-rate plus repricing.

Noninterest income was $12.92 cardinal (+9.6% Y/Y). Provision for recognition losses grew 12.2 Y/Y to $1.48 billion.

The ratio ratio for the 4th was 64.59%, compared to 66.36% Y/Y. The slope reported a CET1 ratio of 11.8%, compared to 11.9% a twelvemonth ago. The publication worth per stock of $36.39 improved by 8%.

The mean indebtedness and lease equilibrium was $1.09 trillion (+4.0% Y/Y). Average deposits are up 3% Y/Y to $1.96 trillion. Bank of America added ~1.0 cardinal recognition paper accounts during the quarter.

Outlook: Bank of America reiterated a fourth-quarter nett involvement income of ~$15.5 billion—$15.7 billion.

Bank of America banal mislaid implicit 17% year-to-date. At slightest 5 Wall Street firms reduced their terms targets connected the banal successful March.

Last week, the U.S. fiscal assemblage got immoderate alleviation aft President Donald Trump announced a 90-day suspension of tariffs on countries that person not retaliated against U.S. commercialized actions. The fiscal assemblage is simply a precocious beta, arsenic it tends to outperform erstwhile markets are bullish and underperform during risk-off conditions.

However, Ray Dalio of Bridgewater Associates expressed concerns astir a imaginable recession contempt Trump pausing reciprocal tariffs.

Price Action: BAC banal is up 2.13% astatine $37.45 premarket astatine the past cheque Tuesday.

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