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Bank of America 1Q Earnings Shine; $25 Billion Share Buyback Announced

Published 04/15/2021, 06:07 AM
Updated 04/15/2021, 06:13 AM
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Investing.com - Bank of America (NYSE:BAC) continued the theme of standout first-quarter earnings in the banking sector, reporting blowout numbers as well as plans for a $25 billion share buyback early Thursday.

Bank of America announced earnings per share of $0.86, more than double last year's figure, on revenue of $22.82 billion. Analysts has expected EPS of $0.66 on revenue of $22.13 billion. The company's bottom line was boosted by the release of $2.7 billion in reserves set aside to cover bad loans during the peak of last year's pandemic.

"Our team produced exceptional results this quarter: record or near-record levels of deposits, investment flows, investment banking revenue, digital users and client engagement. Meanwhile, brand loyalty, customer satisfaction and employee engagement reached new highs," said CEO Brian Moynihan. "While low interest rates continued to challenge revenue, credit costs improved and we believe that progress in the health crisis and the economy point to an accelerating recovery."

Wells Fargo (NYSE:WFC) and JPMorgan Chase (NYSE:JPM) also reported results that beat on both top and bottom lines on Wednesday, while Goldman Sachs (NYSE:GS) was the standout performer, boosted by record investment banking revenue and a jump in trading revenue. Citigroup (NYSE:C) is also scheduled to release first-quarter results before the open Thursday. 

Bank of America stock climbed 1.8% premarket, and are now up over 30% from the beginning of the year.

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