Bank of America's (BAC) total revenue in the first quarter of this year increased by 1.75% year over year to $23.2b. The bank's net income declined 12.35% to $7.1b compared to the same quarter last year. Meanwhile, the bank's diluted earnings per share (EPS) fell 6.98% year on year to $0.80 per share. But, the company has outperformed consensus EPS projections four times in the last four quarters.
Deposits increased by $240b, or 13%, year over year to $2t. Loan and lease balances increased by $70b, or 8% to $978b. Loans increased by $89b, excluding the Paycheck Protection Program.
Why it matters
Strong loan growth and benefits from rising long-end interest rates drove revenue and net interest income for Bank of America in the first quarter, according to the bank. But the bank’s stock has dropped 15.6% since the start of the year, compared to a -7.8% drop for the S&P 500.
