UPDATE: The following story, originally published at 7:10 a.m. on Tuesday, April 18, 2017, has been updated with executive comments and market performance.
Bank of America (BAC) posted higher quarterly profit than analysts estimated as bond-trading revenue surged during the early months of Donald Trump's presidency and investors sought to protect their wealth from turmoil in the European Union.
Profit of 41 cents a share in the three months through March compared with the 35-cent average estimate from analysts surveyed by Bloomberg. Net income climbed 40% to $4.9 billion, the Charlotte, N.C.-based lender said in a statement.
"Not many companies have the sources we have to help our clients drive the global economy," said CEO Brian Moynihan, who succeeded Ken Lewis in 2010 after the bank repaid a $45 billion financial-crisis bailout. "But with that, we understand responsibility comes with doing this, and we do it in a responsible way," he told analysts on an earnings call.
Revenue from trading bonds, currencies and interest-rate swaps surged 17% to $2.81 billion, a gain that was in line with Citigroup (C) , which posted an increase of 19%, and JPMorgan Chase, (JPM) which garnered 17% more than a year ago.
Credit Suisse Analyst Susan Roth Katzke had predicted fixed-income trading at the five biggest Wall Street firms might rise as much as 28% in the quarter before Goldman Sachs (GS) posted growth of 1% Tuesday that not only missed her estimated gain of 11% but lagged sharply behind rivals.