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Bank of America shares slump despite record profit after CFO cites slowing interest growth

April 16, 2019


Bank of America shares dropped Tuesday after executives said the lender’s net interest income growth was falling because of declining interest rates and a slowing U.S. economy.

Despite posting a record first-quarter profit driven by cost cuts and strength in the bank’s Main Street lending operations, shares of the company fell 2.7% at 10:09 a.m.

The stock decline steepened after Chief Financial Officer Paul Donofrio issued guidance on net interest income during a conference call with analysts. He said that NII grew 6% last year under more favorable conditions.

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