NEW YORK (AP) — Bank of America is reporting that its first-quarter profits jumped by 30 percent from a year earlier as the company benefited from the new tax law as well as higher interest rates.
The consumer banking giant earned $6.92 billion, or 62 cents per share, up from $5.34 billion, or 45 cents a share, from the same period a year ago. Analysts had been expecting a per-share profit of 59 cents, according to FactSet.
Like its competitors JPMorgan Chase and Citigroup, Bank of America reported a sharp drop in its tax bill Monday, which helped boost profits. While the Charlotte, North Carolina, bank's pretax income rose by roughly $1 billion, the amount it paid in taxes fell by roughly $500 million in the quarter.