Bank of America profits fall 20 percent, hurt by low rates


NEW YORK (AP) — Bank of America’s earnings fell 20 percent in the second quarter as historically low interest rates make it less profitable to make loans.

The Charlotte, North Carolina-based banking giant earned $3.87 billion, or 36 cents per share, before dividends to preferred shareholders. That’s down from $4.8 billion, or 43 cents per share, in the same period a year earlier.

The results beat analysts’ expectations. Analysts polled by FactSet expected the bank to earn 33 cents per share.

Revenue fell to $20.4 billion from $21.96 billion.

Bank of America’s stock edged up 0.5 percent in pre-market trading.

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