Bank of America's 1Q profits fall 18% on higher expenses, charge-offs

Bank of America said its first-quarter profits fell 18%, as the bank dealt with higher expenses due to the impact of higher interest rates. But the results beat analysts’ estimates. Bank of America has been dealing with the effects of higher interest rates on its loan and investment portfolio for the past year. The bank bought a sizable number of bonds during the pandemic when rates were low, and those bonds have lost value as interest rates have risen. The bank is also paying more on deposits, which has caused its profits to be squeezed slightly.