new York Bank of America made surprisingly good first-quarter earnings thanks to its fast-growing consumer lending business. The surplus totaled $6.6 billion, around 13 percent lower than a year earlier, the second largest US bank announced on Monday.
This corresponds to earnings per share of 80 cents, while analysts had only expected 75 cents. “First quarter results were strong despite difficult markets and volatility,” said Chief Financial Officer Alastair Borthwick.
Business with consumers developed particularly well, growing by nine percent to $8.8 billion. In contrast, revenue from investment banking fell 35 percent to $1.5 billion. “Looking forward, and in anticipation of rising interest rates, we expect to be able to reap more of the benefits of our deposit business,” Borthwick said.