Bank of America Q2 profits drop as higher interest rates slow down lending

NEW YORK (AP) — Bank of America said its profits fell in the second quarter, as higher interest rates ate into BofA’s expenses, including its large consumer banking franchise.

But like Goldman Sachs, Bank of America saw a resurgence of activity in its investment banking division which helped make up for some of the weakness in other parts of the bank.

The Charlotte, North Carolina-based bank said Tuesday it earned a profit of $6.9 billion, compared with $7.4 billion in the same period a year earlier.