Bank of America Corporation (NYSE: $BAC) has posted strong earnings for Q1 fiscal 2025. The lender reported net earnings of $7.4 billion, or $0.90 per share. This beat the Zacks Consensus Estimate of $0.81 by 11.11%. Earnings rose from $0.83 per share a year earlier.
Total revenue reached $27.37 billion, up from $25.82 billion last year. This also surpassed the Zacks estimate by 1.89%. Bank of America has exceeded analyst expectations for earnings and revenue in each of the past four quarters.
Business Highlights
Bank of America serves about 69 million clients across the U.S. It has 3,700 financial centers and roughly 15,000 ATMs. Its digital platform has nearly 58 million verified users. The bank operates in over 35 countries.
Interest income grew 3% to $14.4 billion. Lower deposit costs supported this rise. The bank expects Q4 NII to be between $15.5 and $15.7 billion. For the full year, BofA anticipates a 6% to 7% increase in net interest income.
The trading division delivered strong results. Equities trading revenue grew 17% to $2.2 billion. Fixed income, currencies, and commodities brought in $3.5 billion, up 5%. This lifted markets revenue to its highest level in over 10 years.
Investment banking fees declined to $1.5 billion from $1.7 billion last quarter. This was also a 3% drop year over year. Despite the fall, BofA reported a strong deal pipeline.
The bank set aside $1.5 billion for credit losses, up from $1.3 billion a year earlier. Job cuts followed, affecting 1% of its workforce. Its total headcount dropped to 212,732 in March from 213,193 the previous quarter.
Market Reaction
Shares rose 4.28% to $38.24 as of 11:20 a.m. EDT. Despite this jump, BAC stock has dropped 16.6% year-to-date. This compares to the S&P 500’s 8.1% decline over the same period.
Technical Analysis
The daily chart shows a key support zone at around $34. After falling sharply into this range, the stock bounced with strong volume. This rebound suggests buyers are active around this level.
On the next potential path, BAC may face short-term resistance at $43. If it clears this zone, the next major level lies at $48.08 previous high reached in Nov 2024. A breakout above that could fuel a larger rally.
The pattern suggests a possible pullback before moving higher. That is, if it faces resistance at the $43 level. Traders may wait for a retest of the $34 support zone before entering long positions. At the same time, and break and retest of the $43 level would also offer buying opportunities.
Is It the Right Time to Buy?
BAC has beaten earnings estimates four quarters in a row. Its trading division posted record revenue. Net interest income is expected to keep rising.
However, the stock is still down 16.6% this year. Uncertainty from new tariffs has also slowed M&A activity. The Zacks Rank #3 (Hold) suggests the stock could perform in line with the market short term.
The technical setup shows strength but also points to resistance ahead. Watch how the stock reacts near $43 and if it holds the $34 support zone.
The consensus EPS estimate for the next quarter is $0.91. Full-year estimates sit at $3.65 in earnings on $107.97 billion in revenue. Future stock moves will depend on earnings outlooks and revisions.
Over the past 52 weeks, BAC has traded in a range between $30.45 and $48.08, highlighting the volatility seen in the broader financial sector. Also, the Bank of America remains one of the top global banking institutions as the Q1 results reflect solid fundamentals despite market headwinds.
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