Bank of America profit rises as trading shines

[WASHINGTON] Bank of America’s profit rose in the first quarter, as volatility in the global markets lifted trading activity.

Global equity markets entered 2026 on a bullish trajectory, buoyed by year-end momentum from interest rate cuts across the world in late 2025 and robust corporate earnings.

However, that optimism soon evaporated, as a hawkish policy shift from the Federal Reserve, mounting fears of an artificial intelligence valuation bubble, and escalating US involvement in Middle East tensions pressured markets.

The volatility sparked an intensified market rotation, with investors fleeing high-growth tech shares in favour of defensive value sectors.

Volatile markets tend to benefit investment banks, as trading desks generate higher revenue from increased client activity. Bank of America’s sales and trading revenue rose 13 per cent to US$6.4 billion in the first quarter.

JPMorgan Chase reported its first-quarter profit on Tuesday that beat analysts’ estimates, also helped by a strong show in trading and dealmaking.

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Bank of America shares rose 1.5 per cent in trading before the bell.

JPMorgan, Bank of America and Wells Fargo are all trading in red so far in 2026, underperforming the broader S&P 500 index, which was up about 1.8 per cent as of last close.

The bank reported a net income of US$8.6 billion, or US$1.11 per share, in the three months ended March 31, compared with US$7.4 billion, or 89 US cents per share, in the year earlier. REUTERS