Bank of America profit rises on trading boom

Bank of America reported higher first-quarter profit, driven by a surge in trading activity and a strong rebound in investment banking fees.

The bank posted net income of $8.6 billion, or $1.11 per share, for the three months ended March 31, up from $7.4 billion, or 89 cents per share, a year earlier, News.Az reports, citing Reuters.

The results come as volatile global markets boosted client trading activity, helping the bank’s sales and trading revenue rise 13% to $6.4 billion.

At the same time, a revival in mergers and acquisitions significantly lifted advisory income. Investment banking fees climbed 21% to $1.8 billion, exceeding the bank’s earlier expectations.

Market conditions in early 2026 have been mixed. While equities initially rallied on interest rate cuts and strong corporate earnings, sentiment later weakened due to a more hawkish stance from the Federal Reserve, concerns over an artificial intelligence valuation bubble, and geopolitical tensions.

Despite the uncertainty, dealmaking remained strong. Global M&A activity exceeded $1.2 trillion in the first quarter, with several mega-deals—particularly in the technology sector—driving advisory demand.

Bank of America played key roles in multiple major transactions, reinforcing its position in investment banking during a period of heightened market activity.

CEO Brian Moynihan said the bank continues to monitor risks but pointed to solid consumer spending and stable asset quality as signs of resilience in the U.S. economy.

Other major lenders, including JPMorgan Chase and Wells Fargo, have also reported strong results supported by trading and dealmaking.

However, banking stocks have lagged the broader market so far this year, reflecting ongoing uncertainty in the economic outlook.

News.Az 

By Aysel Mammadzada