UBS Global Wealth Management portfolio manager Angie Newman provided an analysis of market reactions amid ongoing trade tensions and advised clients and investors accordingly. Bank of America (BofA) exceeded profit expectations for the first quarter, attributed to increased interest income and dynamic markets that benefited its stock trading operations. This resulted in a 9% rise in trading revenue as markets fluctuated in response to U.S. President Donald Trump’s tariff policies, similar to trends at competing firms.
Bank of America CEO Brian Moynihan expressed confidence in the company’s strong future, citing disciplined investments, business diversity, and a commitment to responsible growth as key strengths. Equities trading experienced a 17% jump, reaching a record $2.2 billion. Meanwhile, the trading of fixed income, currencies, and commodities grew by 5% to $3.5 billion.
According to Chief Financial Officer Alastair Borthwick, the results were supported by a moderately growing economy despite client concerns over trade policy and market volatility. Borthwick added that the research team does not anticipate a recession, with encouraging signs from clients, healthy employment rates, and resilient consumer behavior. Competitors JPMorgan Chase and Goldman Sachs also reported strong trading performances.
Bank of America’s earnings reached $7.4 billion, or 90 cents per share, during the quarter ending March 31, surpassing the $6.7 billion, or 76 cents per share, reported in the previous year. Analysts had predicted a profit of 82 cents per share, according to LSEG estimates.
Despite strong trading results, analyst Stephen Biggar from Argus Research cautioned that a decline in mergers and acquisitions (M&A) and initial public offerings (IPO) could challenge a recovery in 2025 if tariff issues are not resolved. Bank of America’s net interest income (NII) grew by 3% to $14.4 billion, aided by lower deposit costs. The bank maintained its NII forecast of $15.5 billion to $15.7 billion for the fourth quarter. Shares increased by 1.6% to $37.25 before trading began, although they had dropped 12.4% since the announcement of the tariffs earlier in the month.
The new tariffs have raised concerns among global investment bankers, causing previous supporters of Trump’s policies to adopt a cautious stance. BofA’s investment banking fees fell 3% to $1.5 billion in the first quarter, and U.S. M&A activity decreased by 13% in the first three months of 2025, according to Dealogic data. Provisions for credit losses rose to $1.5 billion from $1.3 billion a year earlier.
