(Adds details on results, background)
April 18 (Reuters) - Bank of America Corp's profit rose in the first quarter as it earned more from
customers' interest payments while the Federal Reserve raised
borrowing costs.
The company's net income applicable to common shareholders
rose to $7.66 billion, or 94 cents per share, for the three
months ended March 31, the second-largest U.S. lender reported
on Tuesday. That compares with $6.6 billion, or 80 cents per
share, a year earlier.
Rival banking giants JPMorgan Chase and Co and
Citigroup Inc also reaped windfalls from higher interest
payments in the first quarter, while setting aside billions of
dollars to prepare for a worsening economy.
Bank of America's net interest income, which reflects how
much money the bank makes from charging interest to customers,
rose 25% to $14.4 billion in the quarter.
The banking industry was rocked by the failures of two U.S.
lenders in March. The collapses battered bank stocks and
prompted spooked depositors to move their cash to larger
institutions.
(Reporting by Manya Saini and Niket Nishant in Bengaluru and
Saeed Azhar in New York; Additional reporting by Siddarth S;
Editing by Lananh Nguyen and Shounak Dasgupta)
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