Bank of America announced a rise in quarterly profits driven by strong trading performance, suggesting underlying resilience in the U.S. economy. The bank’s earnings report, released Tuesday, showed net income climbing 15% year-over-year to $7.8 billion, beating analyst expectations.
Chief Financial Officer Alastair Borthwick attributed the results to ‘diversified revenue streams and disciplined expense management’ in a statement. Analysts note the bank’s consumer banking and wealth management divisions also posted gains, though trading accounted for nearly 40% of revenue growth.
The report comes amid mixed economic signals. While GDP growth slowed to 1.1% last quarter, unemployment remains near historic lows at 3.5%. ‘This shows the economy still has underlying strength even as the Fed keeps raising rates,’ said Wells Fargo economist Sarah House.
Some experts caution that trading revenues can be volatile. ‘One quarter doesn’t make a trend,’ warned Goldman Sachs analyst Richard Ramsden. ‘We’ll need to see sustained performance across all business lines.’