Bank of America Earnings: No Major Surprises, Although Net Interest Income Outlook Remains Murky

Wide-moat-rated Bank of America reported decent first-quarter results, showing that the bank’s deposit base and funding costs are tracking roughly as would have been expected, even before the Silicon Valley Bank implosion. The bank does not provide full-year net interest income, or NII, guidance, but guidance for the second quarter was roughly in line with previous expectations, with NII expected to decline by roughly 2% sequentially. If rate cuts occur during the second half of 2023, we would expect NII to grind even lower in the third and fourth quarters.