BofA Raises Forecast for Interest Income as Profit Climbs 43%
- CEO Brian Moynihan cuts expenses more than analysts expected
- Fixed-income revenue of $1.96 billion falls short of forecasts
Bank of America Profit Surges 43% in Fourth-Quarter
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Bank of America Corp. boosted its forecast for interest income after reporting that fourth-quarter profit rose 43 percent on improvements in credit quality and continued cost-cutting.
Net interest income is expected to increase by about $600 million in the first quarter, Chief Financial Officer Paul Donofrio said Friday on conference call with analysts, helped by the Federal Reserve’s quarter-point rate hike in December. The Charlotte, North Carolina-based lender said revenue from interest-related products rose 6.3 percent to $10.3 billion in the fourth quarter.