BofA profit beats estimates as it cashes in on higher interest rates

from higher interest payments in the first quarter, while setting aside billions of dollars to prepare for a worsening economy.

"Results were strong despite a challenging economic environment with market and banking sector volatility," Bank of America Chief Financial Officer Alastair Borthwick said on Tuesday.The collapse of two U.S. lenders in March shook the industry and exacerbated concerns about a looming recession.

Deposits at the company fell 2% to $1.05 trillion in the first quarter, compared with the fourth quarter, as customers who were unsatisfied with the deposit rates offered by lenders moved their cash into money market funds to chase greater yields.Traders in fixed income, currencies and commodities stayed in high demand, bringing in $3.5 billion in revenue for BofA, up 27% from a year earlier.

Economists expect the U.S. economy to slow in the second half of the year as the Federal Reserve raises interest rates to tame inflation, prompting BofA to build $124 million in reserves in the first quarter, compared with a release of $362 million last year. Still, combined debit and credit cards spending was resilient, rising 6% in the quarter, BofA reported.Bank of America's net interest income, which reflects how much money the bank makes from charging interest to customers, rose 25% to $14.4 billion in the quarter.

Bofa Deez Nuts!

Maybe because BOA pays you 0.01% leaving your money parked there, while they reinvest it for a healthy profit. Interest free loan for them. Other large banks are giving you 3-4%.

thank goodness!

Stress level at Bank of America is 50% greater than in the financial industry:

BoA collecting on the spread between .01% interest rate they pay their account holders and the 4.50% paper they buy from the Federal Government. Pure profit.

'The collapse of two U.S. lenders in March shook the industry and exacerbated concerns about a looming recession.' Really? Two regional banks acted stupidly and it shook the industry? So much drama.

Bofa deeznutz

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