Kangyo Yokohama Securities Comments on Bank of America's Double Digit Growth

TOKYO, April 16, 2018 /PRNewswire/ - Kangyo Yokohama Securities has recently highlighted Bank of America's net profit as they recorded double-digit growth in the first three months of the ‎year despite the negative effect of tax items.‎

Kangyo Yokohama Securities research and analysis department noticed that in the second-largest listed US bank by assets, net profit rose the most in seven ‎years, having recorded a jump by 30 per cent year-over-year.

The first quarter's bottom-line figure ‎came in at a record $6.91 billion, the latest sign that the banking giant has put its post-crisis ‎malaise behind it.‎

"Like all the major banks, the stronger-than-expected metrics in Jan-March quarter were ‎disrupted by large gains in interest rates and lower taxes, which helped offset a drop in bond ‎trading ‎revenues," said Charles Roth, Head of Corporate Trading at Kangyo Yokohama Securities.

Overall, revenue rose 10.8 per cent to 62 cents. On an underlying basis, revenue grew by 5.4%, ‎supported by the organic growth of improved activity in rates and currencies, the lender said. ‎

Kangyo Yokohama Securities Analysts had expected the lender to post a net profit of ‎59 cents‎.

Bank of America noted that net interest income will probably climb $2 billion in the ‎second quarter, less than the $2.1 billion it previously projected. ‎

"One area of weakness was fixed income, commodities and currencies unit, where its ‎market share has shrunk 13 per cent amid stiff competition," added Fujimura Toki, Head of Research at Kangyo Yokohama Securities.

A positive first quarter for banking stocks as the US economy strengthens.

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SOURCE Kangyo Yokohama Securities