Bank of America profit bruised as low interest rate weighs on



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Bank of America profit bruised as low interest rate weighs on

On Wednesday, the 15th of January 2020, the New York City lender and financial services provider, Bank of America Corp. revealed its quarterly earnings’ report for Q4, 2019, which had fallen short of analysts’ expectation amid a multi-year low interest rate following three Fed rate cuts last years and heaved the NY-based lender’s shares’ prices down as much as 2.22 per cent to $34.54 per share in the pre-market trading, however, paring some of its earlier losses, Bank of American Corp.’s stocks ended the day 1.81 per cent lower to $34.67 a share.

More importantly, Bank of America Corp.’s Q4, 2019, earnings’ result came forth a couple of days after the United States’ largest lender, JPMorgan Chase & Co. had scored an all-time-high annual profit following a high-tide in bond trading, however, unfortunately the Bank of America Corp.

failed to share the same fortune as low interest rates kept a lid on the NY lender’s earnings, a trend which would likely to keep hurting smaller US lender throughout the year. On top of that, the lender’s net interest margin that measures how profitable a bank could become from a single borrowing, fell to 2.35 per cent from 2.52 per cent a year earlier, the New York City-based lender’s net revenue fell marginally to $22.35 billion.