CHARLOTTE, N.C. – Bank of America Corp. on Tuesday reported a first-quarter profit of $7.4 billion, an increase from $6.6 billion posted a year ago.
Earnings per diluted share were 90 cents, an increase from 76 cents the year prior.
The results topped Wall Street expectations. The average estimate of nine analysts surveyed by Zacks Investment Research was for earnings of 81 cents per share.
The nation's second-largest bank posted revenue net of interest expense of $27.37 billion, a 6% increase year over year, driven by noninterest income growth across all segments and higher net interest income. This result also topped Wall Street forecasts. Six analysts surveyed by Zacks expected $26.86 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," said Bank of America Chairman and CEO Brian Moynihan.
The bank’s total assets in the first quarter were $969.3 billion, an increase from $895.4 billion reported a year ago.
Total deposits for the quarter which ended March 31 were $1.98 trillion, an increase from $1.94 trillion in 2024.
“We grew average deposits for the seventh consecutive quarter to nearly $2 trillion. Asset quality remained stable reflecting years of responsible lending, while our strong capital and liquidity levels allowed us to support our clients’ growth and return $6.5 billion to shareholders,” said Bank of America Chief Financial Officer Alastair Borthwick. “We run our business in a manner intended to withstand volatility for the long-term. And through our capabilities, relationships and financial flexibility, we believe we are well-positioned to continue delivering for our clients and shareholders.”
Net interest income increased 2.92% year over year to $14.4 billion on lower deposit costs, higher NII related to Global Markets activity and fixed-rate asset repricing, partially offset by the impacts of lower interest rates and one less day of interest accrual.
Provision for credit losses of $1.5 billion was flat compared to the first quarter of 2024.
Noninterest expense was up 3% at $17.8 billion, driven primarily by higher revenue-related expenses and investments in people, technology, operations and brand, partially offset by the absence of the $700 million FDIC special assessment expense made in the first quarter of 2024.
Also on Tuesday, A federal judge has ordered Bank of America to pay more than $540 million to resolve long-running litigation from a U.S. regulator that alleged the company underpaid mandatory assessments for deposit insurance.
The order, reached March 31 and published publicly on Monday, arrives over eight years after the Federal Deposit Insurance Corporation sued Bank of America in 2017.
“We are pleased the judge has ruled and have reserves reflecting the decision,” Bank of America said in a statement to The Associated Press. The FDIC declined to comment when reached Tuesday.
Back in 2017, the FDIC accused Bank of America of refusing to pay over $500 million in assessments — a figure it later expanded to $1.12 billion — alleging that the banking giant failed to honor a 2011 regulatory rule and “unjustly enriched itself” at the FDIC’s expense.
The Bank of America later filed a motion to dismiss in part, strongly denying it acted with an intent to evade such payments. It also argued that some of quarters the FDIC targeted for assessments fell outside the statue of limitations.
After a yearslong legal battle, U.S. District Judge Loren L. AliKhan in Washington, D.C. partially granted and denied motions for both Bank of America and the FDIC. She said that the nearly $540.3 million payment from Bank of America would cover its underpaid assessments spanning from the second quarter of 2013 through the end of 2014's fiscal year, plus interest — but ruled that the FDIC waited too long to sue over earlier claims.
Formed in 1933 during the Great Depression, the FDIC is one of several banking system regulators today. The agency is
best known for running the nation’s deposit insurance program, which insures Americans’ deposits up to $250,000 in case their bank fails.
Bank of America is the second-largest bank in the U.S. behind JPMorgan Chase, according to Bankrate.
(Material from The Associated Press was used in this report.)
(UPDATE: Adds Bank of America ordered to pay $540 million in long-running lawsuit from the FDIC in 14th, 15th, 16th, 17th and 18th pragraphs.)
Matthew McNulty is a PBN staff writer. He can be reached at McNulty@PBN.com or on X at @MattMcNultyNYC.
