(Reuters) – Bank of America’s profit rose in the second quarter as it earned more from customers’ loan payments, while its trading arm fared better than expected.
The lender, alongside rivals JPMorgan Chase and Wells Fargo, earned a windfall from charging clients higher interest rates as the Federal Reserve raised borrowing costs in an effort to rein in stubborn inflation.
Bank of America’s net interest income (NII) rose 14% to $14.2 billion in the second quarter.
American consumer finances have stayed resilient despite rising costs and higher interest rates.
Net income applicable to common shareholders rose to $7.10 billion, or 88 cents per diluted share, for the three months ended June 30, compared with $5.93 billion, or 73 cents per diluted share, a year earlier, the second largest U.S. bank reported on Tuesday.
(Reporting by Manya Saini in Bengaluru and Saeed Azhar in New York; Editing by Lananh Nguyen and Anil D’Silva)
