Bank of America and Citigroup Report Strong Q1 on Trading Boom Amid Economic Uncertainty

Tariff-Driven Volatility Boosts Q1 Trading Profits at Major U.S. Banks

Bank of America and Citigroup delivered stronger-than-expected earnings in the first quarter, fueled by a surge in trading activity amid the market volatility sparked by President Trump’s early 2025 tariff measures.

Bank of America reported an 11% jump in profit, totaling $7.4 billion, with a 9% rise in total trading revenue to $5.66 billion—its best quarterly performance in over a decade. Equities trading alone rose 17% to $2.2 billion, a record high.

CEO Brian Moynihan credited resilient consumer spending and strong business liquidity but cautioned, “We potentially face a changing economy,” though the bank does not forecast a 2025 recession. Citigroup also saw robust results, with a 12% increase in trading revenue to $9 billion, including a record in equity trading. Rising 13.6% to $1.1 billion, investment banking income drove overall profit to $4 billion and revenue to $21.6 billion, both above Wall Street projections.

Although other significant banks like JPMorgan, Goldman Sachs, and Morgan Stanley profited from the trading boom as well, they noted less investment banking activity, indicating more general corporate caution in light of trade policy uncertainties.

Long-term confidence was voiced by Citigroup CEO Jane Fraser, who said that even after structural changes, "the U.S. will still be the world's leading economy.