The big ones US banks continue to lift the veil on the accounts of the first three months of the year. Today it is the turn of Bank of America e citigroup. In both cases, the results beat analysts' estimates, so much so that a few minutes after the opening of Wall Street, the first one flies by 5,94%, while the second one records a rise of 1%.
Bank of America's quarterly
Profits and revenues on the rise in the first quarter for Bank of America, whose results beat consensus, thanks in particular to the performance of trading activities on global markets.
In the first three months of the year, Bofa reported earnings of $7,4 billion, or $0,9 per share, compared to $6,7 billion, or $0,76, in the same period last year. Revenue increased by 25,8% from $27,4 billion to $6 billion. In both cases, the figures were above the forecast of the political consensus for earnings of $0,82 per share on revenue of $26,9 billion. Market volatility, fueled by uncertainty over U.S. President Donald Trump's decisions on tariffs, helped BofA achieve a 9% increase in Trading revenues, thanks to a 17% increase in equities trading.
Looking at the balance sheet data, the Cet 1 remained unchanged compared to the fourth quarter of 2024 (at 201 billion), with a ratio of 11,8% (above the 10,7% expected at regulatory level. The return on capital was 10,4%.
“We had a good first quarter. Although potentially in the future we will have to face a changing economy, we believe that the disciplined investments we have made, diversified businesses and continued focus on responsible growth will remain a strength,” said the CEO Brian Moynihan.
The first quarter numbers “reflected growth in net interest income and fee income, while sales and trading posted its twelfth consecutive quarter of year-over-year revenue growth. Our commercial customers performed well, and consumers showed resilience, continuing to spend and maintaining good credit quality,” added CEO Moynihan.
Citigroup's quarterly
In the first quarter Citigroup recorded a net profit of 4,1 billion dollars (+21%)), or $1,96 per share. Revenue was $21,6 billion (+3%). Excluding the impacts related to divestitures, revenue also increased by 3 percent.
Jane Fraser, CEO of Citigroup, “We delivered a solid quarter, characterized by continued momentum, positive operating leverage and improved returns in each of our five businesses. The service sector recorded its best first quarter turnover in the last ten years”. In particular, “the banking sector grew 12%, with mergers and acquisitions revenue nearly doubling from last year. Revenue from patrimonial sector increased 24%, with gains in all three client segments.” Quarter over quarter, he noted, “we are building on our track record of progress. We remain focused on executing our strategy, which is based on a diversified mix of businesses that will deliver results across a wide range of macroeconomic scenarios. When this is all over, and long-standing trade imbalances and other structural changes are behind us, the United States will still be the world’s largest economy and the dollar will remain the reserve currency. The depth of knowledge and breadth of expertise we bring to the many markets in which we operate is a differentiator in our commitment to helping clients navigate an uncertain environment,” Fraser concluded.
