Bank of America reported better than expected earnings on Monday as the second-largest US lender capitalised on higher interest rates and a lending rebound.

The Charlotte-based bank, the last of the US megabanks to report earnings, was the only big lender to announce an increase in revenue for the first three months of the year. Total revenue rose 2 per cent to $23.2bn driven by a 13 per cent jump in net interest income as loans grew 8 per cent and the bank aggressively deployed cash to buy fixed-income securities. That was broadly in line with analysts’ expectations for $23.1bn.

“Going forward, and with the forward curve expectation of rising interest rates, we anticipate realising more of the benefit of our deposit franchise,” chief financial officer Alastair Borthwick said in a statement.