Bank of America Beats but Goldman’s Results Disappoint

Bank of America (BAC:US) reported better-than-expected Q1 results to send its shares higher on Tuesday.

The bank reported earnings per share of $0.94 on revenue of $26.39 billion, topping the analyst consensus for a profit per share of $0.82 on revenue of $25.13 billion. Net interest income (NII) soared 25% to $14.4 billion, which was expected given the environment of rising interest rates.

“Every business segment performed well as we grew client relationships and accounts organically and at a strong pace,” CEO Brian Moynihan said in a statement.

“Our results demonstrate how our company’s decade-long commitment to responsible growth helped to provide stability in changing economic environments.”

The strong earnings report comes after JPMorgan Chase (JPM:US), Wells Fargo (WFC:US), and Citigroup (C:US) also topped analyst expectations on Friday.

On the other hand, shares of the rival Goldman Sachs (GS:US) reported disappointing figures. Revenue came in at $12.22 billion, missing the $1.79 billion expected from analysts.

On a more positive note, EPS was $8.79 to top the $8.10 expected. However, earnings dropped 18% to $3.23 billion. The underperformance could have been expected given that Goldman generates the majority of its revenue from Wall Street brokering, with the stock market down in the last 18 months as the FED fights to cool down inflation.

Several Congress members reported trades involving these two banks in recent weeks. Most notably, Rep. Ro Khanna reported several transactions, including the $50,000 - $100,000 purchase of BAC shares on March 14, when the stock closed at $28.76.

On the other hand, Rep. David Trone reported the sale of GS shares on February 16.