✎ Contributed by Ty Griffin
Bank of America and Citigroup have released their first-quarter earnings, both surpassing Wall Street expectations. The positive results were driven by robust trading activity, solid net interest income, and renewed client engagement across investment banking and markets divisions.
Bank of America (NYSE: BAC) reported earnings of $0.90 per share, exceeding the consensus estimate of $0.82. Net income rose to $7.4 billion, up from $6.7 billion in the same quarter last year. The bank saw higher net interest income from elevated interest rates and strong performance in its trading division, which helped offset weaker loan growth.
Citigroup (NYSE: C) delivered a solid quarter, posting a 12% increase in markets revenue to $6 billion. Equity trading revenue jumped 23%, reflecting increased client activity amid broader market volatility. CEO Jane Fraser cited the bank’s diversified global footprint and disciplined cost management as key drivers of growth.
Performance of Major Banks
- Bank of America Corp. (NYSE: BAC): Trading at $37.88, up $1.22 (3.33%) today.
- Citigroup Inc. (NYSE: C): Trading at $64.39, up $1.17 (1.85%) today.
- Goldman Sachs Group Inc. (NYSE: GS): Trading at $512.38, up $8.40 (1.67%) today.
- JPMorgan Chase & Co. (NYSE: JPM): Trading at $236.56, up $1.84 (0.78%) today.
- Morgan Stanley (NYSE: MS): Trading at $111.18, up $2.07 (1.90%) today.
Industry Impact
Earnings results from Bank of America and Citigroup follow a strong performance by Goldman Sachs (NYSE: GS), which earlier reported first-quarter earnings of $14.12 per share—well above estimates. Goldman benefited from a 27% increase in equities trading revenue, with CEO David Solomon noting strong execution across client businesses despite a challenging dealmaking environment. Fixed income and commodities trading also contributed to top-line strength.
The results paint a picture of resilience across the U.S. banking sector. Trading divisions at major banks saw renewed activity following a period of calm in late 2024, as clients adjusted portfolios in response to Federal Reserve policy shifts, inflation signals, and global trade developments. While investment banking fees remain lower year-over-year due to a still-muted M&A environment, the uptick in trading has provided a critical revenue buffer.
Conclusion
With several of the nation’s largest financial institutions beating earnings expectations, confidence in the banking sector appears to be stabilizing. Rising interest income and stronger-than-expected trading revenues are helping to offset headwinds from cautious corporate borrowing and slower deal pipelines. Investors will now turn to upcoming reports from Wells Fargo (NYSE: WFC) and Morgan Stanley to see whether this trend continues—and whether the financial sector can maintain momentum heading into midyear.
NOTE TO INVESTORS: IBN is a multifaceted financial news, content creation and publishing company utilized by both public and private companies to optimize investor awareness and recognition. For more information, please visit https://www.InvestorBrandNetwork.com
Please see full terms of use and disclaimers on the InvestorBrandNetwork website applicable to all content provided by IBN, wherever published or re-published: http://IBN.fm/Disclaimer
Corporate Communications
IBN
Austin, Texas
www.InvestorBrandNetwork.com
512.354.7000 Office
Editor@InvestorBrandNetwork.com
