Goldman Sachs and Bank of America released their latest quarterly earnings results before opening bell this morning. Goldman Sachs reported $5.15 per share in earnings on $8.03 billion in revenue, compared to the Wall Street estimates of $5.31 per share and $8.4 billion. In last year’s first quarter, the firm reported $2.68 per share in earnings and $6.34 billion in revenue.
Bank of America reported earnings of 41 cents per share on $22.2 billion in revenue, compared to the analyst estimates of 35 cents per share and $21.6 billion in revenue.
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Goldman Sachs’ investment banking revenue rose 16% year over year to $1.7 billion from $1.46 billion last year and beat the consensus estimate of $1.63 billion, while Institutional Client Services revenue fell 2% to $3.36 billion. FICC revenue ticked higher to $1.69 billion from $1.66 billion in the year-ago quarter, while analysts had been looking for $2.28 billion. Investing & Lending revenues surged to $1.46 billion, while Investment Management revenues rose 12% to $1.5 billion.
Goldman Sachs bumped up its quarterly dividend to 75 cents from 65 cents per share and added another 50 million shares to its share repurchase program.
Shares of Goldman Sachs ticked lower by as much as 3.32% to $218.75 in premarket trades.
Bank of America reported $11.1 billion in net interest income, which was in line with the consensus. Fixed income trading revenue came in at $2.9 billion, beating the consensus of $2.62 billion. Net charge-offs were $934 million, compared to the $964.2 million Wall Street was looking for.
Consumer banking revenue rose 5% year over year to $8.3 billion on the back of strong growth in deposits, although mortgage banking income ticked lower. Client balances rose 11% to $1.1 trillion, while average deposit balances grew 10% year over year to $57.4 billion. Global Wealth and Investment Management revenue rose 3% to $4.6 billion as loans and leases grew 7% to $9.3 billion and total client balances rose 5% to almost $2.6 trillion on the back of higher market valuations. Bank of America’s Global Banking revenue rose 11% to a record of $5 billion, while Global Markets revenue rose 19% to $4.7 billion.
Shares of Bank of America rose by as much as 1.1% to $23.06 in premarket trades this morning.