BANK of America's first quarter results came in significantly stronger than market expectations yesterday.

Revenue climbed to $26.3bn (£21.1bn) from $23.2bn last year, helping its net income to climb to $8.2bn with a diluted EPS of $0.94, higher than market expectations.

Both of Bank of America's largest divisions, consumer banking and global banking, saw the benefits of higher interest rates. Profit in consumer banking climbed four per cent while global banking saw a 48 per cent increase despite falling investment banking fees.

Finance chief Alastair Borthwick said the results reflected "strong net interest income improvement coupled with one of our best quarters of sales and trading".

However, average deposits at Bank of America slipped to $1.89bn from $1.93bn at the end of last year.

Deposits are in focus across US lenders as 2023 has seen a flood of funds coming into higher-yielding money market funds, a trend only accelerated by the collapse of Silicon Valley Bank last month.

(c) 2023 City A.M., source Newspaper