Bank of America Beats Profit Estimates as Interest Rates Climb

Bank of America Beats Profit Estimates as Interest Rates Climb
A customer uses an ATM at a Bank of America branch in Boston on Oct. 11, 2017. Brian Snyder/Reuters
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Bank of America Corp. on Monday reported a smaller-than-expected 9 percent drop in quarterly profit, as its interest income was bolstered by rising interest rates that offset a slump in investment banking.

The U.S. Federal Reserve’s aggressive move to tighten monetary policy this year to tame inflation has boosted the amount that banks can earn from charging interest on loans to consumers and businesses.