Bank of America (NYSE:BAC) Q1 earnings net exceeded consensus estimate Interest income increased and loan and deposit growth continued.
“Net interest income increased $1.4 billion from the year-ago quarter, supported by strong loan and deposit growth,” said Chief Financial Officer Alastair Borthwick. Going forward, and with expectations of rising interest rates up the forward curve, we expect to reap more of the benefits of our deposit business.
Q1 EPS of $0.80 vs a median analyst estimate of $0.74, up from $0.82 in Q4 2021 and $0.82 in the same quarter last year.
The company said it has no significant direct exposure to Russia. It has around $700 million in lending and counterparty risk, much of which is loans. All of these loans were downgraded and reported as reservable in Q1 with increased allowance coverage.
Average loan and lease balances for the quarter increased 8% year over year to $978 billion. Average deposits rose 13% to $2.0 trillion.
First quarter net interest income of $11.6 billion increased from $11.4 billion in Q4 2021 and $10.2 billion in Q1 2021.
Noninterest income of $11.7 billion in Q1 versus $10.7 billion in Q4 and $12.6 billion in Q1 2021.
Provision for credit losses was $30 million, including a net release of $362 million from a benefit of $489 million in the previous quarter and a benefit of $1.86 billion in the same quarter last year.
Consumer banking revenue of $8.81 billion decreased from $8.91 billion in Q4 and increased from $8.07 billion in Q1 2021, while net income declined from $2.98 billion in Q4. US$ increased compared to US$3.12 billion in Q4 and US$2.68 billion in Q1 2021.
Global Wealth and Investment Management total revenue of $5.48 billion compared to $5.40 billion in the fourth quarter of 2021 and $4.97 billion in the same quarter last year; Net income of $1.13 billion versus $1.23 billion in Q4 and $883 million in Q1 2021.
Global Banking total revenue of $5.19 decreased from $5.91 billion in the previous quarter and increased from $4.63 billion in the first quarter of 2021; Net income of $1.72 billion compared to $2.67 billion in the fourth quarter and $2.17 billion in the same quarter last year.
Global Markets total revenue of $5.29 billion compared to $3.82 billion in Q4 and $6.20 billion in Q1 2021; Net income excluding net DVA was $1.54 billion compared to $667 million in the previous quarter and $2.06 billion in the year-ago quarter.
conference Advancement at 8:30 p.m. ET.
Previously, Bank of America GAAP EPS of $0.80 beats $0.05, revenue of $23.2 billion surpasses $110 million