Bank of America profit beats estimates as healthy economy fuels loan growth

New York — Bank of America beat estimates for quarterly profit on Wednesday, as the loan book of the US’s second-largest lender benefited from a healthy economy.

Bank of America, however, bucked that trend and reported a three basis-point increase on the year in its interest margin to 2.44% for the second quarter, though the metric fell seven points from the first quarter.“When long-term interest rates fall, we see more people pay off their mortgages and that translates into more mortgage-backed securities being redeemed and that forces us to write off some premiums,” he said.

Expenses during the quarter were up slightly as the bank invested more in its consumer, commercial and wealth management businesses.

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