Bank of America CEO predicts income boost from higher rates By Reuters

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© Reuters. FILE PHOTO: A Bank of America logo is seen in New York City, New York, U.S. January 10, 2017. REUTERS/Stephanie Keith/File Photo

NEW YORK (Reuters) – Bank of America Corp (NYSE:) expects a “big bump” in the income it earns from rising interest rates, its chief executive officer told investors at a conference on Monday.

“We’re going to get a big bump in NII,” Brian Moynihan said, referring to net interest income, a closely watched measure of how much money banks make from lending. “We’ll grow revenue faster.”

Bank of America, the nation’s second-biggest lender, stands to benefit from rising interest rates because it can charge more for customer loans. The Federal Reserve has delivered back-to-back 75-basis-point rate hikes, and contracts in futures markets tied to Fed expectations predict a third increase of that magnitude.

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By Reuters