FICC Revenue at Bank of America Falls 6% in Q1 2024
Bank of America has reported a 6% year-over-year drop in fixed income, currencies, and commodities \(FICC\) revenue in the first quarter of 2024. The bank’s FICC revenue decreased to $3.2 billion, driven by a weaker trading environment in macro products, although trading in mortgages improved. However, the bank also saw a 14% increase in equities revenue, which amounted to $1.9 billion, thanks to strong trading performance in derivatives.
Overall, Bank of America’s Global Markets segment reported net income of $1.7 billion in the first quarter, with net income of $1.8 billion excluding net DVA. The segment’s revenue for the quarter reached $5.9 billion, a 5% increase from the year-ago quarter, driven by higher investment banking fees and sales and trading revenue. Noninterest expense also rose by 4% to $3.5 billion, driven by investments in the business, including technology.
Brian Moynihan, the Chair and CEO of Bank of America, commented on the bank’s strong performance in the first quarter. He highlighted the addition of new clients and deepening relationships, as well as the growth in consumer checking accounts. Moynihan also noted the record revenue generated by the Wealth Management team and the rebound in investment banking. He emphasized the strong earnings and expense management that position the bank to continue driving market-leading positions across its businesses.
Bank of America reported net income of $6.7 billion, or $0.76 per diluted share, across all segments in the first quarter of 2024, compared to $8.2 billion, or $0.94 per diluted share, in the same period last year. The bank’s revenue, net of interest expense, decreased by $440 million, or 2%, to $25.8 billion, primarily due to lower net interest income \(NII\) despite higher investment banking and asset management fees, as well as sales and trading revenue. NII decreased by 3% to $14.0 billion, driven by higher deposit costs that outweighed higher asset yields and modest loan growth.
Despite the drop in FICC revenue, Bank of America’s overall performance in the first quarter of 2024 demonstrates its ability to navigate challenging market conditions and continue delivering strong results. The bank’s focus on client relationships and investment in technology and business expansion contribute to its market-leading positions and drive future growth.