Wall Street giant Bank of America has reaped a windfall generated by American consumers and businesses taking on loans amid a booming economic recovery.
The American banking titan registered a 28 per cent rise in net income, climbing to $7bn in the final three months of last year, it announced today.
A strong economic rebound from the depths of the Covid-19 crisis across the pond has strengthened consumer and business confidence, lifting loan demand in the process.
Total loans at Bank of America swelled six per cent over the last year to over $979bn, up from $928bn in the same period last year.
Booming lending activity propelled the US bank’s net interest income 11 per cent to over $11bn in the final quarter of last year.
Brian Moynihan, Bank of America, said the bumper results “were driven by sChairman and CEO Brian Moynihan: trong organic growth, record levels of digital engagement, and an improving economy.”
However, Bank of America’s trading income dipped, extending a trend illustrated by other US banking titans.
Wall Street behemoths Goldman Sachs and JPMorgan both recently reported a cooling in revenue from their global markets arms, reflecting an easing in trading activity since the global economy started to recover from the pandemic.