Bank of America saw profit and revenue rise in the first quarter while they slumped at Goldman Sachs in the first quarter of 2023.
Q1 2023 has been a challenging period for the banking industry and the markets.
Goldman saw roughly $3.1 billion in profits in the quarter ending March 31, down from $3.83 billion a year ago.
Its investment banking revenue was down 26%, as new deals slowed, and advisory fees were down 27%.
Revenues from fixed-income trading also fell.
In contrast, Bank of America reported earnings of $8.2 billion which were up 15% from the first quarter of 2022.
Bank of America was propped by its net interest income, which is the difference between what a bank earns on its loans and pays out on its deposits.
The Federal Reserve’s aggressive rise in interest rates over the past year boosted this measure of income for Bank of America, allowing it to charge more for its loans.
Bank of America’s net interest income was up 25% compared to the year-ago quarter.
Bank of America’s net interest income stayed roughly the same from the fourth quarter, dropping by just $233 million.