Wall Street banks have been energized by increased market activity prompted by the so-called "Trump trade" with the sector rallying since the election on hopes of simpler regulations and tax cuts under President Donald Trump's administration.
"This quarter shows the value of our businesses as rates begin to rise and as we experience increased capital markets activity," said BofA Chief Executive Brian Moynihan on a call with analysts on Tuesday.
"This franchise can grow and all the more so in a rising rate environment; better revenue growth, visible operating leverage and manageable credit cost increases will drive realization of franchise potential," wrote Credit Suisse analyst Susan Katzke in a report published Tuesday.
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