Bank of America shares gain after first-quarter results top expectations on higher rates

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Bank of America on Tuesday reported first-quarter earnings and revenue that topped expectations on the back of higher interest rates.

Here's what the bank did compared to Wall Street estimates according to Refinitiv:

The bank stock rose more than 2% in premarket trading following the results.

Bank of America said its net interest income, what it makes lending money minus what it pays out to customers, jumped 25% to $14.4 billion during the quarter thanks to rising rates.

«Every business segment performed well as we grew client relationships and accounts organically and at a strong pace,» CEO Brian Moynihan said in a statement. «Our results demonstrate how our company's decade-long commitment to responsible growth helped to provide stability in changing economic environments.»

Its noninterest income increased by just 1% to $11.8 billion as higher sales and trading revenue offset lower service charges and declines in asset management and investment banking fees, the bank said.

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