Bank of America CEO predicts income boost from higher rates
11:22 pm Monday, September 12th, 2022
NEW YORK (Reuters) – Bank of America Corp expects a “big bump” in the income it earns from rising interest rates, its chief executive officer told investors at a conference on Monday.
“We’re going to get a big bump in NII,” Brian Moynihan said, referring to net interest income, a closely watched measure of how much money banks make from lending. “We’ll grow revenue faster.”
Bank of America, the nation’s second-biggest lender, stands to benefit from rising interest rates because it can charge more for customer loans. The Federal Reserve has delivered back-to-back 75-basis-point rate hikes, and contracts in futures markets tied to Fed expectations predict a third increase of that magnitude.
(Reporting by Lananh Nguyen and Saeed Azhar; additional reporting from Manya Saini; editing by Chris Reese)
