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Bank of America Shares Tumble on Forecast for Lower Lending Income

Bradley Keoun

shares tumbled Tuesday after the second-biggest U.S. bank said lending income this year would be lower than Wall Street analysts projected as the economy slows and the Federal Reserve halts its three-year campaign to boost official interest rates. Net interest income -- what the bank collects on mortgages, credit cards and business loans minus what it pays out on deposits -- will grow by about 3% this year, the Charlotte-based bank's executives told analysts on a conference call. Last year, Bank of America's lending income increased by about 6%.