TOKYO, April 16, 2018 /PRNewswire/ - Kangyo Yokohama Securities has recently highlighted Bank of America's net profit as they recorded double-digit growth in the first three months of the year despite the negative effect of tax items.
Kangyo Yokohama Securities research and analysis department noticed that in the second-largest listed US bank by assets, net profit rose the most in seven years, having recorded a jump by 30 per cent year-over-year.
The first quarter's bottom-line figure came in at a record $6.91 billion, the latest sign that the banking giant has put its post-crisis malaise behind it.
"Like all the major banks, the stronger-than-expected metrics in Jan-March quarter were disrupted by large gains in interest rates and lower taxes, which helped offset a drop in bond trading revenues," said Charles Roth, Head of Corporate Trading at Kangyo Yokohama Securities.
Overall, revenue rose 10.8 per cent to 62 cents. On an underlying basis, revenue grew by 5.4%, supported by the organic growth of improved activity in rates and currencies, the lender said.
Kangyo Yokohama Securities Analysts had expected the lender to post a net profit of 59 cents.
Bank of America noted that net interest income will probably climb $2 billion in the second quarter, less than the $2.1 billion it previously projected.
"One area of weakness was fixed income, commodities and currencies unit, where its market share has shrunk 13 per cent amid stiff competition," added Fujimura Toki, Head of Research at Kangyo Yokohama Securities.
A positive first quarter for banking stocks as the US economy strengthens.
SOURCE Kangyo Yokohama Securities