Bank of America profit rises as it cashes in on higher interest rates
Timilehin Adejumobi
1 min read
Bank of America Corp’s (BAC.N) profit rose in the first quarter as it earned more from customers’ interest payments while the Federal Reserve raised borrowing costs.
Rival banking giants JPMorgan Chase and Co (JPM.N) and Citigroup Inc (C.N) 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 company’s shares were up 3% in premarket trading following the results.
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.
Deposits at BofA fell 2% to $1.05 trillion in the first quarter, compared with the fourth quarter.
The company’s investment banking fees fell 20% to $1.2 billion.
This report’s information was first seen on REUTERS; to read more, click this link.
