INTEREST INCOME DROP
No rates haul for Bank of America
New York — Bank of America’s expected bonanza from rising interest rates has stalled. The lender, viewed as the most sensitive to rate changes among US banks, reported a surprise drop in net interest income in the second quarter, after a 7% jump in the first three months of the year. Its two largest rivals — JPMorgan Chase and Wells Fargo — posted increases in the quarter. CEO Brian Moynihan has been trying to lower investors’ expectations in recent months after earlier predicting income derived from lending and holding securities would soar once the US Federal Reserve (Fed) started hiking interest rates. Even with the decline in interest income, second-quarter profit climbed from a year earlier as credit quality improved and trading was stronger than expected, the bank said on Tuesday in a statement. "The quarter was messy," UBS Group analysts led by Saul Martinez wrote in a note to investors. "We see the results as mixed, with NII [net interest income] underperforming, markets res...
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