On Monday, the Bank of America Corp. reported that the first-quarter profit has rose continuing the trend of better than expected earnings from the biggest bank of nation.
The Quarterly profit of N.C. based bank at Charlotte was $6.92 billion compared to $5.34 billion last year. The analysts had expected 59 cents per share earning which rose to 62 cents per share.
The revenue of the first quarter of the bank run by Chairman and Chief Executive, Brian Moynihan rose from $22.25 billion to $23.125 in a year. The analysts had however expected $23.06.
The shares of the Bank of America rises nearly 1% in 2018 and remained unchanged at $29.80 in pre market trading.
Basically, the first quarter of the year helps the investors to see and fathom that how much the recent tax bill is favoring the bank. The biggest benefits for the banking industry were the low rate of tax of corporate sector. The lower rate has resulted in the rise of the bank’s earnings this year.
Good amount of earnings are also expected from the perk up in interest rates. The rising rates are beneficiary for the banks because they turn into profit on the difference between what they pay on deposits and the rate collected by them on loans.
Another, strong point for banks is the ‘big Wall Street ‘ presence as in case of Bank of America. After a series of number of bad quarters with disappointing revenue of trade, prices savings for market in the first quarter of this year. This means that ‘Wall Street’s’ trading desks are leading to report one of their best quarter period in years.
Although no one had expected a new peak in trading like the ones which occurred back in 2009. Before the financial crisis, both big Wall Street Banks that have reported results, Friday showed rising trading revenue , with JP Morgan Cheese& Co. at 13% like leading the way and Citigroup Inc. have also got 1% increase.