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New York, July 16, 2018 (AFP) -Bank of America reported a jump in second-quarter earnings Monday, boosted by higher interest rates, increased lending and lower US tax expenses.
Currently the second biggest US bank by assets after JPMorgan Chase, Bank of America reported net income of $6.5 billion, up 36.3 percent from the year-ago period.
Revenues were $22.6 billion, down one percent.
Higher interest rates have been a source of profit growth in the sector by permitting banks to charge more for loans.
Analysts say over time, this benefit will erode once banks are pressured to raise interest payments to depositors.
Other positive points in the second quarter included an increase in overall loans, as well as higher revenues in key equity and fixed income trading divisions.
Like other large banks, earnings were also lifted by much lower tax expenses after the US cut its tax rate last December.
"Solid operating leverage and client activity drove earnings higher this quarter,"said Bank of America chief executive Brian Moynihan."Responsible growth continued to deliver as a driver for every area of the country."
Earnings translated into 63 cents per share, six cents above analyst expectations.
Shares rose 0.5 percent to $28.70 in pre-market trading.
jmb/ska
