Bank of America’s profit rose in the first quarter, as market volatility boosted its trading fees, lifting the shares of the bank up 1.9% before the open.
Market volatility fueled by uncertainty around U.S. President Donald Trump’s tariff decision helped BofA rake in 9% higher trading revenue, helped by a 17% jump in equities trading.
Rivals JPMorgan Chase and Goldman Sachs have also reported stronger performance from their trading businesses.
Rate cuts by the Federal Reserve last year had helped improve sentiment among borrowers, benefiting banks such as BofA, which had forecast record net interest income in 2025 before Trump unveiled the new tariffs.
Net interest income (NII) — the difference between what banks earn on loans and pay out on deposits — grew 3% to $14.4 billion.
“Though we potentially face a changing economy in the future, we believe the disciplined investments we have made for high-quality growth, our diverse set of businesses, and the team’s relentless focus on Responsible Growth will remain a source of strength,” CEO Brian Moynihan said in a statement
Still, fears sparked by the tariffs have alarmed investment bankers globally, prompting dealmakers who were once bullish on Trump’s policies to adopt to a wait-and-watch approach.
In the first three months of 2025, U.S. M&A activity fell 13%, according to data from Dealogic.
BofA’s investment banking fees fell 3% to $1.5 billion in the first quarter.
Earnings were $7.4 billion, or 90 cents per share, in the quarter ended March 31, the lender said on Tuesday. That compares with $6.7 billion, or 76 cents per share, a year earlier.
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