Driven by intense market volatility, Bank of America’s (BAC) commodities trading revenue surged 60% in the first quarter, pushing its large-scale securities business to an all-time high. Financial reports show that the bank’s quarterly revenue grew 7% year-on-year to $30.3 billion, exceeding market expectations; earnings per share rose 25% year-on-year to $1.1, also beating forecasts. Net interest income stood at $15.7 billion, a 9% increase year-on-year, primarily due to higher net interest income related to global market activities, rising deposit and loan balances, and the repricing of fixed-rate assets.
Oil and Precious Metals Volatility Become Key Drivers
Dennis Manelski and Sofiane Zuberi, co-heads of the bank’s global markets business, stated that the growth was largely driven by price volatility in oil and precious metals, particularly gold. Manelski noted that activity in these two asset classes was unusually intense in the first quarter, largely fueled by headline news. Following attacks on Iran by the United States and Israel earlier this year, global oil markets were thrown into turmoil, with the Strait of Hormuz—a critical route for oil and gas transport—effectively closed, and the conflict also damaging infrastructure in the Middle East. In precious metals, gold prices briefly surged to a record high of over $5,400 per ounce, then plunged sharply during a metal market crash in late January, partially recovered, and fell again due to the impact of the Iran war, ending the first quarter up 8.1%.
International Business and Asian Markets Shine
According to executives, the international business was another major contributor to the sharp increase in trading revenue, growing 23% year-on-year in the quarter and accounting for 45% of the sales and trading division’s total activity. Zuberi added that the firm’s prime brokerage and Asia-Pacific equities businesses also posted quarterly records. He stated that the company is well-positioned in Asia, particularly North Asia, to help clients execute transactions. Chief Financial Officer Alastair Borthwick revealed during an earnings call that equity trading volume grew 30% in the first three months, driven by increased client activity and expanded capital investment to fuel business growth. The bank has witnessed more client financing activities, especially in Asia, with strong performance also seen in derivatives trading.
Persistent Volatility and Sustained Investment
Since former U.S. President Donald Trump announced a series of tariffs on global trading partners last year, market volatility has recurred repeatedly, continuing into 2026 due to chaos from the Iran war and concerns over artificial intelligence and private credit. Sharp volatility benefits Wall Street trading operations, and Bank of America’s markets division has now posted year-on-year growth for 16 consecutive quarters, with equity traders recording a single-quarter historical record. To remain competitive, the bank continues to increase capital, recruit talent, and expand headcount. After Jim DeMare, former head of the markets division, was promoted to co-president of the bank in September last year, Manelski and Zuberi were appointed as co-heads. Manelski noted that the ongoing conflict in the Middle East has significantly altered the investment landscape, and the duration of the war will have a profound impact on investors’ future positioning and their views on the global economy.