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This content was published on April 16, 2018 14:40 April 16, 2018 – 14:40
(Reuters) – Bank of America reported a 34 percent rise in first-quarter earnings on Monday, surpassing Wall Street estimates, benefiting from higher interest rates and growth in loans and deposits.
The revenues of the second largest US bank by assets increased in three of its four main businesses. In its consumer banking, its largest unit, turnover rose by 9 percent.
Higher interest rates helped BofA charge more for its loans, while keeping its deposit rates low. The lender relies heavily on high interest rates to maximize your profits, as it has a large deposit balance and mortgage values sensitive to rates.
A 1 percent drop in spending also helped boost the bank’s results, amid the efforts of its chief executive, Brian Moynihan, to cut costs.
The bank’s shares were stable in the first market transactions. The titles have gained 33 percent in the past 12 months, but fell about 3 percent on Friday.
“Strong customer activity coupled with global economic growth and strong consumer activity in the United States led to quarterly earnings,” Moynihan said in a statement.
The net profit attributable to shareholders increased to 6,490 million dollars in the three months ended March 31, from the 4,840 million dollars reported in the same period of the previous year.
Earnings per share increased from 45 cents to 62 cents. On average, analysts were expecting a profit of 59 cents per share, according to a survey by Thomson Reuters I / B / E / S. It was not immediately clear if the figures reported were comparable.
(Report by Sweta Singh in Bengaluru and Elizabeth Dilts in New York, edited in Spanish by Marion Giraldo and Rodrigo Charme)
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