April 18 (Reuters) - Bank of America reported a 44 percent rise in quarterly profit as higher interest rates bulked up earnings from loans and an increase in trading boosted revenue.
The second-largest U.S. bank said net income attributable to shareholders rose to $4.35 billion in the three months ended March 31 from $3.02 billion a year earlier.
Earnings per share rose to 41 cents per share from 28 per share. (bit.ly/2px3E6G)
Analysts on average had expected earnings of 35 cents per share, according to Thomson Reuters I/B/E/S. It was not immediately clear if the reported figures were comparable.
Total revenue, net of interest expense, rose 7 percent to $22.25 billion.
Big U.S. banks have been vitalized by increased market activity prompted by the so-called “Trump trade”. They have also benefited from higher interest rates, which the U.S. Federal Reserve has indicated will be raised again this year.
Bank of America relies heavily on higher interest rates to maximize profits as it has a large stock of deposits and rate-sensitive mortgage securities.
JPMorgan Chase and Citigroup last week also reported better-than-expected quarterly profit, driven by increased trading activity. (Reporting by Nikhil Subba in Bengaluru and Dan Freed in New York; Editing by Saumyadeb Chakrabarty)