(Reuters) – Bank of America reported a drop in quarterly profit on Tuesday due to a slowdown in its retail banking division and a decline in interest paid by its customers.
BofA’s net interest income – income from loans after deducting the cost of deposits – fell 3% to $14 billion (13.17 billion euros) in the quarter, due to the rising deposit costs and modest loan growth.
The U.S. bank reported a profit of $6.7 billion, or 76 cents per share, for the quarter ending March 31, compared with $8.2 billion, or 94 cents per share, a year earlier.
Bank of America’s investment banking and wealth management revenue rose, partially offsetting lower interest payments.
Fees at the investment bank jumped 35% to $1.6 billion.
Revenues in this segment also rose at rivals JPMorgan Chase and Citigroup during the first quarter, fueled by gains in debt and capital markets.
(Reporting by Mehnaz Yasmin in Bangalore and Saeed Azhar in New York; Dimitri Rhodes, editing by Blandine Hénault)
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