BofA Struggles With Tepid Loan Income as Consumers Shun Debt
- Shares slump the most in eight months after NII disappoints
- Pandemic relief programs keep consumers flush with cash
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Bank of America Corp. struggled to build back its lending income in the second quarter as consumers, flush with cash from government stimulus programs, avoided taking on new borrowings. Shares tumbled the most in eight months.
Loans and leases in the consumer banking unit fell 12% from a year earlier. Net interest income, on a fully taxable equivalent basis, was $10.3 billion last quarter, the bank said Wednesday. That metric -- revenue from customer-loan payments minus what the company pays depositors -- was less than analysts’ estimated $10.5 billion.