Bank of America (BAC) and Citigroup (C) reported first quarter increases in profits and revenue driven by robust trading results, becoming the latest big banks to benefit from the market volatility triggered by the start of President Trump’s tariff rollout in February and March.
Bank of America CEO Brian Moynihan acknowledged in a statement Tuesday that “we potentially face a changing economy in the future” — a nod to the uncertainties ahead as some of Trump’s more aggressive tariffs are still in question — but he also told analysts the bank’s research team doesn’t see a recession happening in 2025.
US consumers, according to the bank’s data, keep “pushing money into the economy” and the lender’s business clients “remain profitable, liquid and have strong results.”
“We continue to watch for signs the environment [is] actually changing,” Moynihan added.
Citigroup CEO Jane Fraser also nodded to Trump’s trade war in her Tuesday earnings statement, noting that “when all is said and done, and longstanding trade imbalances and other structural shifts are behind us, the U.S. will still be the world’s leading economy, and the dollar will remain the reserve currency.”
At Bank of America, total sales and trading revenue for the country’s second-largest bank rose 9% from the year-ago period to $5.66 billion, its highest quarterly haul in more than a decade. Bank of America’s revenue just from trading equities was up 17% to $2.2 billion, its highest ever for one quarter.
Citigroup’s sales and trading revenue rose 12% from the year-ago period to $6 billion, with Citi also notching its highest quarter ever for equity trading.
JPMorgan Chase (JPM), Goldman Sachs (GS), and Morgan Stanley (MS) also reported jumps in trading amid market volatility during the first quarter. Together, the big five banks on Wall Street pulled in nearly $37 billion on that front.
At the same time, some banks showed a slight pullback in investment banking, as companies became more cautious about new deals amid the uncertainties surrounding Trump’s trade policies. Those fees at Bank of America fell 3% from the year-ago period to $1.52 billion.
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However, Citigroup reported that its investment banking fees rose 13.6% from the year-ago period to $1.1 billion. Its total profits and revenue also rose from a year ago to $4 billion and $21.6 billion, exceeding analyst expectations.
Total profits for Bank of America were $7.4 billion. That figure was 11% higher than a year ago and exceeded what analysts expected.
