Bank of America's Profits Surge on Strong Interest Income and Investment Banking

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Source: Reuters
Bank of America's Profits Surge on Strong Interest Income and Investment Banking
Photo: Reuters
TL;DR Summary

Bank of America's second-quarter profit increased by nearly 20% due to higher earnings from customers' loan payments and a stronger performance in its investment banking business. The bank reported a 7% rise in investment banking fees, contrasting with its peers who have been affected by a lack of dealmaking. Bank of America, along with JPMorgan Chase and Wells Fargo, benefited from higher interest rates charged to clients as the Federal Reserve raised borrowing costs. However, the bank is facing challenges in its commercial real estate lending business due to higher financing costs and the shift towards remote work.

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