Bank of America Corp. (BAC) , the giant U.S. bank, said first-quarter profit surged 30% as taxes decreased following President Donald Trump's cuts in the corporate rate, while higher interest rates boosted lending revenue. 

Bank of America's net income rose to $6.9 billion from $5.3 billion a year earlier, according to a statement Monday from the Charlotte, North Carolina-based bank. Earnings per share climbed to 62 cents, beating the 59-cent average estimate of analysts in a survey by database provider FactSet.

Net interest income, or what the bank earns on loans and other assets minus what it pays out on deposits and other funding, rose 5% to $11.6 billion, "reflecting benefits from higher interest rates as well as loan and deposit growth," according to the statement. The corporate tax rate fell by 9 percentage points. 

"Strong client activity, coupled with a growing global economy and solid U.S. consumer activity, led to record quarterly earnings," CEO Brian Moynihan said in the statement. 

Wall Street firms have benefited from a resurgence in stock-market volatility as traders speculate over the pace of Federal Reserve interest-rate increases, U.S. trade tensions with China and the data-privacy scandal at Facebook Inc. (FB) . The CBOE Volatility Index, a key gauge of market volatility known as the "VIX," was 43% higher on average during the quarter.

Bank of America's stock-trading revenue surged 38% in the period, driven by higher client activity and a strong trading performance in derivatives. In the fixed-income trading unit, which includes bonds and foreign exchange, revenue fell by 13%.

The bank's profit growth still lagged that of its larger peer, JPMorgan Chase & Co. (JPM) , which said Friday that first-quarter profit jumped 35%, also driven by the tax cuts. At Citigroup Inc. (C)  , a rival Wall Street bank, profit climbed 13%.

San Francisco-based Wells Fargo & Co. (WFC) , struggling to recover from a series of regulatory penalties over allegedly aggressive sales practices, posted a 5.5% profit increase on a preliminary basis, noting that legal costs might have to be revised higher pending discussions with regulators over as much as $1 billion of new penalties related to auto insurance and mortgage-related violations.

Goldman Sachs Group Inc. (GS) and Morgan Stanley (MS) are scheduled to post results later this week.

Citigroup, Goldman Sachs, JPMorgan Chase and Facebook are holdings in Jim Cramer's Action Alerts PLUS Charitable Trust Portfolio. Want to be alerted before Cramer buys or sells the stocks? Learn more now.

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