Bank of America Corp. on Monday reported a smaller-than-expected 9 percent drop in quarterly profit, as its interest income was bolstered by rising interest rates that offset a slump in investment banking.
The U.S. Federal Reserve’s aggressive move to tighten monetary policy this year to tame inflation has boosted the amount that banks can earn from charging interest on loans to consumers and businesses.
BofA holds a large base of consumer deposits, compared with its main rivals, making it more sensitive to any changes in interest rates.
Its net interest income jumped 24 percent in the third quarter, joining JPMorgan Chase & Co. Citigroup Inc., and Wells Fargo & Co., which also reported higher net interest income in the same period….