Bank of America reports 25 per cent rise in consumer banking revenue

Bank of America posted a 25 per cent revenue increase in its consumer banking division in the first three months of this year.

Net income across the whole business rose six per cent to $7.3bn in the first quarter of the year, driven by strong operating leverage, while diluted earnings per share increased 13 per cent to $0.70.

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Meanwhile, consumer banking revenue was up to $3.2bn and loans increased by five per cent to $697bn.

The US bank’s investment management arm saw income rise 14 per cent to $1bn, while revenue in the global banking business was £2bn, a two per cent increase.

“Our diverse business mix and commitment to responsible growth drove record quarterly earnings,” BoA chief executive Brian Moynihan said,

“Economic growth and consumer activity in the US continue to be solid, businesses of every size are borrowing and driving the economy, and asset quality is strong.

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“It was a challenging capital markets environment but our team and platform are optimised to serve clients and generate stable revenues across a range of market conditions over time.

“We reduced expenses by four per cent from the first quarter of 2018, contributing to the seventeenth consecutive quarter of positive operating leverage. We are well positioned for continued solid results the right way. And we are building on that.”