Business Standard

BofA beats Q3 profit estimates on gains from higher interest rates

The second-largest US bank's consumer business reported a 12% jump in revenue, helped by higher balances and a rise in interest rates and a 9% jump in combined credit and debit card spend

Photo: Shutterstock

Photo: Shutterstock

Bank of America Corp on Monday reported a smaller-than-feared 9% drop in quarterly profit, as its interest income was bolstered by a string of rate hikes that helped offset weakness in its investment banking division.
The U.S. Federal Reserve's aggressive move to tighten monetary policy this year in the face of stubborn inflation has given banks more room to raise their prime lending rates, sparking a revival in their interest income, which for years was stagnant due to near-zero rates.
"BofA benefited from a higher interest rate environment in both the yields on the newly issued loans and just the

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First Published: Oct 17 2022 | 8:08 PM IST

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