Bank of America beats, has record quarter in investment banking (BAC)

Bank of America delivered earnings per share of $0.41 on revenue of $22.2 billion in the first three months of 2017.That's ahead of analyst expectations.Bank of America had been expected to report earnings per share of $0.35 on revenue of $21.65 billion, according to Bloomberg.The better-than-expected performance was built on an increase in net interest income, withthe bank reporting an increase in loans and deposits, and a strong performance in the investment bank."Each of our businesses reported higher revenue and earnings this quarter, and each recorded solid operating leverage," Paul Donofrio, chief financial officer, said in a statement. "We grew loans and deposits, while remaining within our risk framework. We also did a good job managing expenses."Here are the key numbers:Net income increased 40% to $4.9 billion.EPS increased 46% to $0.41.Revenues increased 7% to $22.2 billion.In consumer banking, loans increased $18 billion, while deposits were up by $64 billion. Net interest income increased 5% to $11.1 billion, driven by the increase in loans and the benefitof higher rates.Noninterest income increased 9% to $11.2 billion meanwhile, with the bank reporting strong trading results and a record quarter for investment banking fees. The bank reported record revenue of $5 billion in global banking, record firmwide investment banking revenues, and record M&A fees.Sales and trading revenues were $3.9 billion, including an accounting adjustment of $130 million. Excluding this adjustment, sales and trading revenues were up 23%, with fixed income revenues up 29%.The bank follows in the footsteps of JPMorgan, Citigroup and Wells Fargo, which reported last week. All three reported earnings ahead of estimates.Goldman Sachs will report earnings later Tuesday morning.Join the conversation about this storyNOW WATCH: These are the watches worn by some of the most powerful men in finance
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