BofA beats profit estimates on higher interest income, loan growth | 2019-01-18 | daily-sun.com

BofA beats profit estimates on higher interest income, loan growth

    18 January, 2019 12:00 AM printer

NEW YORK: Bank of America Corp reported better-than-expected fourth-quarter profit as higher interest income and loan growth eclipsed declines in revenue from investment banking and bond trading, sending its shares up 3 per cent.

The second-biggest US lender’s results were underpinned by the central bank’s four rate hikes in 2018 and a strong job market that kept bad loans in check and borrowing healthy. The US Federal Reserve’s forecasts indicate two more rate hikes this year, report agencies.

BofA relies heavily on higher interest rates to maximize profits as it has a large deposit pool and rate-sensitive mortgage securities.

Loans to consumers rose 4 per cent, while those to businesses rose 2 per cent, the bank said.


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