Bank of America sees net interest income stabilizing by end of the year: CEO

(Reuters) – Bank of America Corp Chief Executive Officer Brian Moynihan told investors on Tuesday that the worst pandemic-related revenue declines could soon be in the rear-view mirror.

Speaking at the Barclays Global Financial Services Conference, Moynihan said third quarter net interest income, a closely watched measure of how much money the bank makes from lending, is expected to fall by up to $700 million compared with prior guidance of a $200 million decline due to a drop off in loan demand. However, he predicted revenue will stabilize going into the end of the year.

“It looks like 3Q will be the bottom,” he said. “It’ll take another several quarters before it really starts growing again…But right now, it looks like this quarter could be the trough based on everything I see.”

(Reporting by Imani Moise)