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Stock Markets March 10, 2026

Bank of America Posts At Least 7% Rise in Q1 Net Interest Income; Sector Highlights From RBC Conference

BofA reports gains across fee and trading lines while other lenders discuss tax refund expectations and large-scale AI plans for customer service

By Maya Rios BAC SYF
Bank of America Posts At Least 7% Rise in Q1 Net Interest Income; Sector Highlights From RBC Conference
BAC SYF

Bank of America said first-quarter net interest income rose at least 7% year-over-year, with wealth management fees up by double digits and investment banking and markets revenue showing solid increases, according to remarks at an RBC conference. Separately, Synchrony Financial flagged anticipated larger tax refunds, and Citizens Bank detailed plans to automate half of customer calls with AI agents.

Key Points

  • Bank of America reported first-quarter net interest income up at least 7% year-over-year and noted double-digit increases in wealth management fees.
  • Investment banking revenue rose 10% and markets revenue grew in the low double-digits, per Bank of America remarks at the RBC conference.
  • Synchrony Financial expects tax refunds to increase by $500 to $1,000; Citizens Bank plans to have AI agents handle 50% of customer calls.

Bank of America reported that its first-quarter net interest income increased by at least 7% compared with the same period a year earlier, according to comments made by the bank's co-president, Athanasia, at an RBC conference on Tuesday. The executive detailed additional revenue trends for the quarter, highlighting broad-based strength across several business lines.

Athanasia said wealth management fees rose by double digits in the quarter, contributing to fee income growth. Investment banking revenue expanded by 10% during the period, while markets revenue climbed in the low double-digits, the executive said. Bank of America also observed that consumer spending on entertainment and travel was higher than in the prior year, a trend the bank noted in its conference remarks.

Executives from other financial firms participating at the same RBC conference offered updates relevant to their businesses. Synchrony Financial's Chief Financial Officer, Brian Wenzel, said the company expects tax refunds to increase by between $500 and $1,000, remarks delivered during the conference.

Citizens Bank representatives outlined plans to introduce artificial intelligence agents into their call operations. According to President Coughlin speaking at the event, the bank intends to deploy AI agents to handle 50% of customer calls. Citizens' executives concluded their remarks at the RBC conference after presenting that plan.

These comments from multiple institutions at the RBC conference provide a snapshot of revenue dynamics, consumer behavior, and operational strategies being discussed by large lenders and financial-services firms during the most recent reporting window.

Conference takeaways

  • Bank of America signaled at least a 7% year-over-year increase in first-quarter net interest income, with fee and trading lines also contributing to growth.
  • Synchrony Financial expects a material increase in tax refunds, quantified by its CFO as $500 to $1,000.
  • Citizens Bank plans to use AI agents for half of customer call volume, according to its president.

Risks

  • Uncertainty around consumer spending patterns - Bank of America noted higher spending on entertainment and travel year-over-year, a trend that could shift and affect fee and transaction-related revenue (impacts consumer discretionary and banking sectors).
  • Execution risk in technology deployment - Citizens Bank's plan to deploy AI agents to handle 50% of customer calls entails operational and implementation uncertainty (impacts banking operations and customer service functions).
  • Forecast variability for tax refunds - Synchrony Financial's expectation of increased tax refunds by $500 to $1,000 introduces uncertainty for consumer liquidity assumptions that can affect lending and payments volumes (impacts consumer finance and payments sectors).

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