1Q25 Revenue: $27.37B, +6.0% YoY, beat estimates by $460M
1Q25 GAAP EPS: $0.90, beat estimates by $0.08
FY25 Guidance: Maintained its earlier NII forecast, saying it would hit $15.5 billion to $15.7 billion by the fourth quarter.
Comment: Bank of America delivered a strong first-quarter results, surpassing analyst expectations with net income of US$7.4bn, or US$0.90 per share, compared to US$6.7bn, or US$0.76 per share, a year earlier. This beat the consensus estimate of US$0.82. The outperformance was driven by solid growth in net interest income (NII), which rose 3% YoY to US$14.4bn, supported by lower deposit costs and broad-based balance sheet expansion. Equities trading revenue surged 17% to a record US$2.2bn, while fixed income, currencies, and commodities (FICC) revenue rose 5% to US$3.5bn, pushing total markets revenue to its highest level in more than a decade. However, investment banking activity remained subdued, with fees falling 3% YoY to US$1.5bn amid continued market uncertainty driven by tariffs and weaker M&A and IPO volume. Credit provisions increased to US$1.5bn, up from US$1.3bn the previous year, as the bank proactively built reserves in case of rising unemployment. Workforce reductions were implemented, with headcount dipping slightly to 212,732 following targeted cuts in investment banking and global markets. Looking ahead, its management reaffirmed its full-year NII growth target of 6% to 7%, projecting NII to reach US$15.5bn to US$15.7bn by the fourth quarter. While tariffs and policy-related volatility may continue to weigh on investment banking sentiment, the bank is well-positioned to benefit from sustained trading strength alongside resilient consumer trends. Should macroeconomic conditions stabilize and tariff pressures ease, a rebound in corporate activity could support a stronger second half of the year. 2Q25recommended trading range: $35 to $41. Positive Outlook.
1Q25 Revenue: $21.6B, +3.0% YoY, beat estimates by $310M
1Q25 GAAP EPS: $1.96, beat estimates by $0.12
FY25 Guidance: Expect revenue of $83.1B to $84.1B, with expectations of net interest income (excluding markets) rising by 2-3%. The company targets a full-year expense slightly below $53.4B and aims for a ROTCE of 10%-11% by 2026.
Share repurchase: Bought back $1.75B in shares in the first quarter, higher than the $1.5B expected, and plans to buy back a similar volume in the second quarter
Comment: Citigroup reported strong first-quarter 2025 earnings, beating Wall Street estimates as its net income rose 21% YoY to US$4.1bn, or US$1.96 per share, surpassing expectations of US$1.85. This performance was driven by robust trading revenue, with equities trading up 23%, aided by volatile markets and increased client activity around tariff concerns and AI developments. Investment banking revenue rose 12%, led by M&A advisory, though management noted a slowdown in client activity heading into the second quarter. Citigroup’s return on tangible common equity (ROTCE) reached 9%, moving closer to its 10%-11% target for 2026. The bank maintained its full-year revenue guidance of US$83.1bn to US$84.1bn and projected a modest 2%-3% rise in net interest income (excluding markets), while expenses are expected to come in slightly below US$53.4bn. Citi repurchased US$1.75bn in shares during the quarter and plans a similar buyback in Q2. Looking ahead, Citigroup continues to navigate a complex macroeconomic environment shaped by U.S. tariff policies, inflation concerns, and regulatory pressures. While heightened uncertainty may continue to weigh on deal-making and loan demand in the near term, Citi’s diversified business model, growing wealth management and advancements in AI integration position it for longer-term resilience. With strong momentum in trading and steady execution across its core divisions, we anticipate that Citi will reach its profitability goals for the year. 2Q25recommended trading range: $60 to $70. Positive Outlook.
1Q25 Revenue: $21.9B, +2.3% YoY, beat estimates by $330M
1Q25 Non-GAAP EPS: $2.77, beat estimates by $0.19
FY25 Guidance: Expect operational sales growth for the full year to be in the range of 3.3% to 4.3% sales or $91.6B to $92.4B, up from its previous forecast of $90.9B to $91.7B. Excluding the impact from acquisitions and divestitures, maintain its adjusted operational sales growth to range between 2% to 3% compared to 2024. The company also anticipates about $400M in tariffs, primarily relating to med tech.
Dividend distribution: Declared $1.30/share quarterly dividend, 4.8% increase from prior dividend of $1.24, payable 10 June; for shareholders of record 27 May.
Comment: Johnson & Johnson reported better-than-expected first-quarter earnings, driven by robust pharmaceutical sales, particularly in oncology. The company delivered adjusted earnings of US$2.77 per share on US$21.89bn in revenue, both beating Wall Street expectations. The company raised its 2025 sales guidance to US$91.6bn-US$92.4bn, incorporating the expected approval of Caplyta, a schizophrenia drug, and projecting US$3bn-US$3.5bn in annual sales from Spravato by 2028. However, it maintained its profit forecast, factoring in around US$400mn in tariff-related costs, particularly in its medical device segment, and dilution from its US$14.6bn acquisition of Intra-Cellular Therapies. Its CEO emphasized that tariffs could disrupt pharmaceutical supply chains and advocated for favorable tax policies to support U.S. manufacturing. The company also announced a 25% increase in planned U.S. investment, surpassing US$55bn over the next four years. Despite short-term headwinds from global tariffs and ongoing macroeconomic uncertainty, we believe that Johnson & Johnson remains well-positioned for long-term growth through continued investment in expanding its neuroscience portfolio, integrating recent acquisitions, and leveraging its increased U.S. manufacturing footprint. 2Q25recommended trading range: $150 to $160. Positive Outlook.
1Q25 Revenue: $13.2B, +5.3% YoY, beat estimates by $20M
1Q25 Non-GAAP EPS: $0.91, beat estimates by $0.17
2Q25 Guidance: Maintained expectations issued in January for adjusted EPS of $11.50 to $13.50, but said that in a recession, it would expect to earn between $7 per share and $9 per share on an adjusted basis.
Comment: United Airlines Holdings delivered a strong performance, posting its best first-quarter financial results since 2021 despite broader economic uncertainties. The company maintained a positive outlook, expecting resilient earnings for both 2Q25 and full-year 2025, supported by stable advance bookings over the past two weeks. However, softening U.S. consumer sentiment—now approaching a three-year low—amid rising recession fears and uncertainty surrounding potential policy shifts under President Trump could pose demand challenges. In response to weaker domestic travel trends, United plans to reduce flight capacity starting this summer, with a roughly 4% cut in domestic operations beginning in the third quarter. Meanwhile, demand for higher-priced international travel remains strong, helping to balance the shift in consumer behavior. 2Q25recommended trading range: $60 to $80. Positive Outlook.
1Q25 Revenue: $1.43B, +19.2% YoY, beat estimates by $20M
1Q25 GAAP EPS: $1.88, miss estimates by $0.05
2Q25 Guidance: No guidance provided.
1Q25 Dividend: Declared $0.32/share quarterly dividend, 28% increase from prior dividend of $0.25; forward yield 0.74%; payable 13 June; for shareholders of record 30 May.
Stock split: The company also announced a 4-for-1 stock split. Shareholders on record as of June 16, 2025, will receive three additional shares for each share held, with new shares distributed after market close on June 17, and trading at the adjusted price starting June 18.
Comment: Interactive Brokers delivered mixed results for the quarter, but key metrics underscored strong underlying momentum. Total accounts grew 32% year-over-year, driven by the addition of 279,000 new accounts, with international markets leading the charge. The growth was supported by continued interest in options and futures trading. Management highlighted the resilience of the firm’s business model, noting that “Interactive Brokers does not need upmarkets to generate revenue,” as client activity remained robust despite market volatility. The company also reported healthy client inflows, particularly from international investors, who continue to show strong interest in U.S. assets despite geopolitical uncertainties. Client equity rose 23% year-over-year to $573.5 billion, while client credit balances increased 19% to $125.2 billion. Looking ahead, Interactive Brokers plans to broaden its cryptocurrency offerings and introduce new international products, including Canadian First Home Savings Accounts and NIFTY 50 index futures in Singapore. 2Q25recommended trading range: $150 to $180. Positive Outlook.
