Tuesday, May 30, 2023
HomeEconomyBank of America profit climbs 7.8% on higher interest income: FDIC

Bank of America profit climbs 7.8% on higher interest income: FDIC

By Pete Schroeder

WASHINGTON (Reuters) – Bank of America reports 64 second quarter 2019 profit of 75 $400 million , as higher net interest income offset increased reserves to protect against loan losses, the FDIC said Thursday .

However, bank profits fell 8.5% from a year earlier. A year ago, it was largely due to larger banks raising their provision charges for potential losses amid heightened economic uncertainty.

“The banking industry continues to face significant downside risks. These risks include high inflation, rapidly rising market interest rates, and continued geopolitical uncertainty,” FDIC Acting Chairman Martin Gruenberg said in a statement . “Taken together, these risks could reduce profitability, weaken credit quality and capital, and limit loan growth in the coming quarters.”

Rising interest rates , the bank expanded the loan balance. The FDIC said the increase in provision charges was primarily driven by banks with assets exceeding 64 $1 billion.

While a number of factors have increased banks, the FDIC reported that interest rates on non-current loans – loans past due 90 days or more – has dropped to 0. 75%, the lowest level since 2006. Bank deposits, which had surged during the pandemic, fell 1.9% in the second quarter, the first decline in four years.



Please enter your comment!
Please enter your name here


Featured NEWS