Bank of America is gaining ground after earnings

bank of america time squareA couple embraces in front of a Bank of America sign on a building in Times Square in New York.REUTERS/Lucas Jackson

Shares of Bank of America were up roughly 1% in early trading Monday after the firm reported earnings that beat analysts expectations, continuing a trend of stellar financial earnings in the first quarter.

The Charlotte-based bank said it earned an adjusted $0.62 per share on revenue of $23.2 billion in the first quarter. Analysts polled by Bloomberg had expected earnings of $0.59 and revenue of $23 billion.

"Our responsible growth model continues to deliver consistent results. Strong client activity, coupled with a growing global economy and solid U.S. consumer activity, led to record quarterly earnings," CEO Brian Moynihan said in a press release. "We continue to invest in new capabilities in our mobile banking app, the expansion and renovation of our financial centers, and the hiring of additional client relationship professionals. We believe these investments, and our focus on operational excellence, will drive sustainable growth over time."

Consumer banking led the way for the US's third-largest bank by assets, with average deposits rising 3% to an all-time high of $1.3 trillion.

The bank also said its effective tax rate dropped to 9%, thanks to the newly enacted tax law.

Bank of America rivals JPMorgan, Citigroup, and Wells Fargo, posted earnings on Friday that also surpassed Wall Street expectations thanks to tax cuts and rising interest rates.

Shares of Bank of America have gained just 0.7% since the beginning of 2018.

Bank of America stock price earnings

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