Bank of America and Goldman Sachs report first quarter earnings

The second largest bank in the US, Bank of America, reported first quarter profits that exceeded estimates. Another banking giant, Goldman Sachs, reported profits that fell but were above estimates. Bank of America’s first quarter profits rose from $7.66 billion to $8.16 billion, with earnings per share of 94 cents, compared to expectations of 82 cents. The company’s revenues increased by 13 percent compared to the previous year, reaching $26.26 billion. Due to the impact of rising interest rates, foreign exchange, fixed income instruments and commodity transactions increased by 30 percent in the first quarter to $3.4 billion. This also contributed to the company’s profits exceeding estimates. The bank’s net interest income increased by 25 percent in the first 3 months, reaching $14.4 billion. Analysts’ expectations were for a 24 percent increase. Goldman’s profits fell short of estimates for the first quarter of US-based Goldman Sachs. In the first quarter, the bank's net income fell 18 percent to $3.23 billion. Earnings per share were $8.79, compared to $8.21. Net income fell 5 percent to $12.22 billion, compared to $12.8 billion. Net interest income fell 1.78 billion, below estimates of $2.18 billion. Investment banking income fell 26 percent to $1.58 billion, compared to $1.54 billion. The collapse of two banks in the U.S. in March shook the markets. The bankruptcies caused a sharp decline in bank stocks and the transfer of deposits to larger banks.