Bank of America (BAC) reported very good first-quarter results that saw strong loan and deposit growth as well as an increase in net interest income. Bank of America also beat earnings consensus estimates. That being said, I think higher net interest income on the back of higher interest rates is already priced into Bank of America's shares at this point. Shares now sell for a sizable premium to accounting book value. Time to tread carefully.
Bank of America released a decent deck of financials on Monday when the Wall Street bank reported results for the first quarter of fiscal 2018. The bank saw its revenues grow 4 percent year-over-year to $23.1 billion which compares favorably to a consensus revenue forecast of $23.06 billion.
Bank of America's profits per share climbed to $0.62 in the first quarter compared to just $0.45 in the year-ago quarter, reflecting a year-over-year increase of 38 percent. The company also beat profit estimates: The consensus called for $0.59/share in profits for the bank's first quarter.
