Bank of America’s Quarterly Net Income Hits $7.1 Billion

Bank of America released its financial results for the first quarter of 2022 today and reported better-than-expected earnings per share (EPS) of $0.80. Net income came in at $7.1 billion. Consumer banking generated a net income of $3 billion, which was driven by strong growth in the number of new clients.

Net income related to Global Markets reached $1.6 billion in Q1 of 2022. Sales and Trading revenue took a hit of nearly 7% in the recent quarter. Fixed Income Currencies and Commodities (FICC) revenue reached $2.7 billion and Equities revenue touched $2.0 billion.

Bank of America’s Global Wealth Management and Investment Management saw a net income of $1.1 billion. Merrill Wealth Management added nearly 6,900 new households.

“We achieved solid first-quarter results earning $7.1 billion, continuing the momentum from record net income in 2021. Year over year, we grew loans by $70 billion and deposits by $240 billion. Our teammates supported our clients while managing the impact of the pandemic, the war in Ukraine, and an evolving rate environment. Our strong first quarter client activity drove results that allow us to deliver for shareholders while continuing to invest in our people, businesses and communities,” the Chair and CEO of BOA, Brian Moynihan said.

Global Markets

Bank of America saw a challenging environment in its Global Markets division during the first quarter of 2022 as net income decreased by almost $459 million. Revenue came in at $5.3 billion, which is down by approximately 15% compared to the same period last year.

“Asset quality continued to remain strong with net charge-offs about half of the year-ago quarter amount. Our balance sheet remained strong with $170 billion of regulatory capital and a CET1 ratio nearly 90 bps above our current minimum requirements. Capital strength allowed us to grow loans, weather the worst bond market in 40 years, support communities and return more than $4 billion back to shareholders,” Alastair Borthwick, the CFO of Bank of America, said.