Bank of America's earnings in the first quarter beat expectations due to strong interest income and investment banking. Despite an overall revenue dip, the bank's net interest income exceeded estimates. However, its deposits and loans remained flat. While investment banking revenue surged, the bank anticipates a decline in net interest income in the second quarter. The stock's decline is attributed more to rising interest rates than the earnings report.
Goldman Sachs' first-quarter results exceeded expectations, driven by a surge in trading and investment banking revenue. Fixed income and equities trading, as well as fees from debt and equity underwriting, all increased significantly. The bank's asset and wealth management division saw solid growth, although it slightly missed expectations. Goldman remains heavily reliant on Wall Street activities for revenue, but its emphasis on asset and wealth management is a key area for future growth.
Wells Fargo outperformed Wall Street estimates for its first-quarter earnings and revenue. The decline in its net interest income was offset by an increase in non-interest income. CEO Charlie Scharf highlighted the bank's progress in diversifying its financial performance. The bank also made significant share repurchases, contributing to a year-to-date stock gain of over 15%.
