What took place
As of 110 p.m. ET on Friday, Bank of America shares ( BAC 3.36 %) were rising by about 2.9 %. The share price had increased by up to 4.6 % in the morning. Stocks have decreased by about 11 % date to date.
On Friday, the market was generally low. The Dow Jones Industrial Average was down 220 points(- 0.7 %), the S & ampP 500 fell 25 points( 0.6 %), and the Nasdaq Composite dropped 108 points ( 10.9 %) at 110 p.m. ET.
Now what?
Due in large part to a good earnings report from JPMorgan Chase, Bank of America's's rival megabank, the bank overcame the general downward trend.
Investors were eagerly awaiting the performance of this predictor banks share in the tumultuous very quarter. This bank was the first major bank to record earnings following the March financial meltdown. In addition to exceeding earnings and revenue projections, JPMorgan also achieved record revenue of$ 38.3 billion, up 25 % year over year, thanks to a 49 % increase in net interest income during the quarter.
Despite a 56 % increase in provisions for credit losses, overall net income increased by 15 % year over year to$ 2.6 billion, or$ 4.10 per share. Additionally, from 16 % in the first quarter of 2022, the return on common tangible equity increased to 23 %.
For JPMorgan Chase, average loans were up 6 % while average deposits were down 8 %. Additionally, its liquidity indicator, the common equity Tier 1 ratio, rose to 13.8 %, far exceeding the 12.5 % threshold set by regulations.
Investors were undoubtedly given confidence by JPMorgan Chase's's numbers that the major banks were able to survive the current banking crises. Bank of America increased on Friday as a result.
Just what?
A statement from researchers at RBC Capital regarding the sluggish commercial real estate market was another encouraging progress for B of A. The top 20 banks should be able to manage it, according to the RBI, as their competition publicity is getting smaller. The top 20 banks' average exposure to the commercial real estate market, according to RBI, was 11.2 %, down from 12.2 % the previous year and below the industry average of 18 %.
When Bank of America reports first-quarter earnings on April 18, we'll'll learn a lot more about how it fared during the banking crisis.
