Bank of America today reported a 34% rise in first-quarter profit, topping Wall Street estimates, as the lender benefited from higher interest rates and growth in loans and deposits. 

Revenue rose at three of Bank of America's four major businesses - the second biggest US bank by assets. 

In consumer banking, its biggest business, revenue increased 9% as higher interest rates helped the bank charge more for loans while keeping deposit rates low. 

Profit also got a boost from chief executive Officer Brian Moynihan's efforts to cut costs as well as lower tax expenses following President Donald Trump's sweeping overhaul of the US tax code. 

Bank of America shares gained 33% in the past 12 months, but fell about 3% along with other US banks on Friday. 

"Strong client activity, coupled with a growing global economy and solid U.S. consumer activity, led to record quarterly earnings," Moynihan said in a statement. 

Bank of America's net interest income rose 5% in the first quarter, pushing total revenue up 4% to $23.28 billion. 

The lender relies heavily on higher interest rates to maximise profits as it has a large stock of deposits and rate-sensitive mortgage securities. Total loans and leases rose 3%, while total deposits increased 4.4%. 

The only business to record a fall in revenue was global banking, hurt by lower investment banking fees. 

Non-interest expenses declined 1%, while income tax expenses fell about 26%. 

The bank's efficiency ratio, a closely watched measure of revenue divided by expenses, was 60% in the first quarter, down from 63% a year earlier. A low ratio indicates a bank is more efficient. 

Jefferies analysts said Bank of America results looked best among peers that have reported so far. 

The bank, however, underperformed in fixed income, currency and commodities (FICC) trading because of a decline in bond issuance from corporations, chief financial officer Paul Donofrio said on a call with journalists.

Less bond issuance can, in turn, affect credit trading in secondary markets. 

Trading revenue was up only 1%. Equities trading revenue, excluding items, rose 38%, while revenue from trading fixed income fell 13%. 

Bank of America's trading results mirrored those of rivals JPMorgan Chase & Co and Citigroup. 

Revenue from stock trading rose at both the banks, but weakness in bond trading crimped total trading revenue growth. 

The bank said that net income attributable to shareholders rose to $6.49 billion from $4.84 billion a year earlier. 

Earnings per share rose to 62 cents, beating the average analyst estimate of 59 cents, according to Thomson Reuters.