Bank profits soar, helped by merger frenzy, fewer bad loans

The Associated Press

NEW YORK (AP) — Four of the largest U.S. banks said their profits grew by double-digits last quarter, as a healthier U.S. economy has allowed banks to have fewer bad loans and charge-offs. The results for Citigroup, Bank of America, Wells Fargo and Morgan Stanley saw all four benefitted from various one-time boosts to their profits. The only headwind facing the big Wall Street banks appears to be low interest rates, which have put some pressure on banks’ abilities to grow their profits. Some of them, like Bank of America, are making up for it by lending significantly more than they did in the early months of the pandemic, a sign of confidence in the U.S. economy.