April 18 Reuters Bank of America Corp39;s firstquarter profit beat analysts39; estimates as it collected hefty interest payments from customers, while its bond traders had their best quarter in a decade.

Rival banking giants JPMorgan Chase and Co and Citigroup Inc also reaped windfalls from higher interest payments in the first quarter, while setting aside billions of dollars to prepare for a worsening economy.

Results were strong despite a challenging economic environment with market and banking sector volatility, Bank of America Chief Financial Officer Alastair Borthwick said on Tuesday.

The company39;s shares were down marginally in choppy trading, erasing earlier gains.

The collapse of two U.S. lenders in March shook the industry and exacerbated concerns about a looming recession. The crisis battered bank stocks and prompted spooked depositors to move their cash to larger institutions.

Our research team continues to predict a shallow recession that will occur beginning in the third quarter of 2023 … if we look at our consumer behavior, payments by consumer continue to drive the U.S. economy, BofA Chief Executive Brian Moynihan said, reiterating an earlier view.

The secondlargest U.S. lender reported a profit of 94 cents in the three months ended March 31, compared with estimates of 82 cents per share, according to Refinitiv IBES data.

Bank of America had a strong Q1 as higher interest rates continued to boost its net interest margin despite rising…