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Bank of America profit rises on higher rates, lower costs

The lender's large stock of deposits and rate-sensitive mortgage securities make it well placed to benefit from rate rises

Dan Freed & Nikhil Subba | Reuters 

Bank of America (BofA) beat expectations with a 15 per cent rise in third-quarter profit on Friday as the second-largest US lender kept a tight leash on costs and benefited from higher interest rates. Chief Executive Brian Moynihan’s years-long effort to streamline the bank’s sprawling operations and keep its costs in check are finally bearing fruit as the Federal Reserve raises borrowing costs. The lender’s large stock of deposits and rate-sensitive mortgage securities make it especially well placed to benefit from rate rises. Its third-quarter earnings ...

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First Published: Sat, October 14 2017. 01:15 IST
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