Bank of America Always Expected a Big Year From Its Loan Business. Now, It Might Be Even Better
After two years of an ultra-low interest rate environment, Bank of America (NYSE: BAC) had high hopes for its lending business coming into the year.
Not only did America's second-largest bank by assets believe business activity might finally pick up, but it also expected the Federal Reserve to raise interest rates to combat some of the highest levels of inflation seen in decades.
The Fed has not only raised rates, but it's raised them aggressively, much more so than anyone would have likely imagined when the year began. This could enable Bank of America's loan and securities business to perform even better than management initially thought. Let me explain.
Source Fool.com