Bank of America reported net income of $7.4bn for the first quarter of 2025 (Q1 2025), an increase of 10.5% from $6.7bn in the same period a year earlier.
Diluted earnings per share (EPS) for the firm rose 18.4% to $0.9 in Q1 2025 ended 31 March 2025, up from $0.76 in Q1 2024.
Total revenue, net of interest expense, increased 6% year-on-year to $27.4bn, supported by higher net interest income and growth in noninterest income across all operating segments.
The bank’s net interest income rose to $14.4bn, reflecting gains from repricing of fixed-rate assets and growth in Global Markets activity.
Lower deposit costs also contributed. This was partly offset by lower interest rates and fewer accrual days in the quarter. Provision for credit losses increased to $1.5bn, from $1.3bn in the year-ago quarter, while net charge-offs remained flat at $1.5bn.
Noninterest expense totalled $17.8bn, a 3% rise from the prior year, largely due to investments in staffing, operations, and technology. Average deposits reached $1.96 trillion, up 3%, and average loans and leases grew 4% year-on-year to $1.09 trillion.
The consumer banking division reported net income of $2.5bn for the quarter, as revenue rose 3% to $10.5bn. Average loans increased to $315bn, and card spending across credit and debit products totalled $228bn, a 4% increase.
Bank of America recorded 250,000 new consumer current accounts, with 92% of its 38 million current accounts identified as primary accounts.
Digital banking usage continued to expand, with 49 million active digital users and four billion logins during the quarter. Digitally enabled sales accounted for 65% of total sales, the highest on record.
The bank also processed $130bn in peer-to-peer transactions via Zelle, a 23% increase from the prior year.
Global Wealth and Investment Management generated net income of $1bn. Revenue increased 8% to $6.0bn, mainly due to a 15% rise in asset management fees.
Client balances reached $4.2 trillion, with assets under management (AUM) at $1.9 trillion following $24bn in quarterly inflows.
Merrill, the wealth management division, added approximately 6,400 new households in the quarter, with 87% of its client base actively engaging through digital channels.
The Private Bank unit added nearly 280 new high-net-worth relationships and reported AUM of $400bn. Average deposits decreased 4% to $286bn, while average loans and leases increased 6% to $232bn.
The global banking division reported net income of $1.9bn. Total revenue remained flat at $6bn, as gains from treasury services and leveraged finance were offset by lower net interest income.
Investment banking fees for the wider corporation, excluding self-led deals, declined 3% to $1.5bn, despite the firm ranking third in total fees and gaining 23 basis points in market share.
Average deposits in the unit increased to $575bn, and average loans and leases grew to $379bn. Digital client engagement remained high, with 86% of relationship clients active on platforms, and mobile sign-ins rising 23% year-on-year.
Net income for the global markets segment reached $1.9bn. Total revenue rose 12% to $6.6bn, with sales and trading income increasing 11% to $5.7bn.
Equities revenue reached a record $2.2bn, up 17%, while revenue from fixed income, currencies and commodities grew 8% to $3.5bn.
Trading-related assets averaged $668bn. The unit reported an efficiency ratio of 58% and a return on average allocated capital of 16%. Value-at-risk for the period averaged $91m.
The bank maintained a stable credit profile, with the net charge-off ratio holding at 0.54% and total nonperforming loans rising marginally to $6.1bn. Allowance for loan and lease losses stood at $13.3bn, representing 1.20% of total outstanding balances.
Reserve levels reflected a net reserve build of $28m in Q1 2025 compared to a release of $14 million in the previous quarter. Commercial net charge-offs fell by $26m quarter-on-quarter, while consumer charge-offs increased slightly.
Bank of America’s common equity tier 1 capital totalled $201.2bn at the end of the quarter, with a CET1 ratio of 11.8% under the standardised approach. This remained above the regulatory minimum of 10.7%. Book value per share rose to $36.39, and tangible book value per share increased to $27.12.
Bank of America chair and CEO Brian Moynihan said: “We had a good first quarter, with earnings per share of $0.9 up from $0.76 last year. This reflected growth in net interest income and fee income, while sales and trading delivered its 12th consecutive quarter of year-over-year revenue growth.
“Our business clients have been performing well; and consumers have shown resilience, continuing to spend and maintaining healthy credit quality. 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.”
