Bank of America first-quarter profit surges by 40%
Fuelled by adding employees — for the first time since 2011 — and stronger trading revenue, the bank’s fixed-income trading revenue rises to $2.93bn
New York — Bank of America posted a 40% surge in first-quarter profit, fuelled by stronger trading revenue, and added employees, for the first time in more than five years as CEO Brian Moynihan expressed optimism about the US economy. Fixed-income trading revenue rose 29% to $2.93bn, the second-biggest US bank said in a statement on Tuesday, beating analysts’ $2.6bn average estimate. Equity trading revenue was also better than expected, climbing 7.4% to $1.1bn. "The US economy continues to show consumer and business optimism, and our results reflect that," Moynihan said in the statement. Bank of America added 549 employees in the quarter, the first increase since the third quarter of 2011. Last week, JPMorgan Chase and Citigroup also reported robust first-quarter revenue from bond trading. JPMorgan, the largest US bank by assets, posted a 17% gain in fixed-income trading revenue, while Citigroup generated the most revenue from that business in three years. That contrasts with Goldma...
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