Bank of America Faces Profit Decline Amid Competitive Interest Rates

Bank of America saw a drop in its third-quarter profit, primarily due to competitive interest rates affecting net interest income. Despite this, CEO Brian Moynihan highlighted gains in investment banking and sales. The bank also increased provisions for credit losses as higher rates pressure borrowers.

Bank of America reported a decline in third-quarter profit as customer interest payment income diminished amidst a competitive landscape for deposits.

CEO Brian Moynihan noted that the bank's earnings were still "solid," showing improvements in investment banking and sales despite a 3% drop in net interest income.

Shares rose while credit loss provisions increased, as the financial institution navigated higher interest rates and the potential for loan defaults.

(With inputs from agencies.)