Bank of America (BAC) reported a 10% increase in Q3 profits due to increased interest income and strong Wall Street performance.

The bank’s earnings and revenue increased by 3% and net interest income rose by 4% YoY.

However, investors are concerned about the bank’s investment portfolio due to the high-interest rate environment.

BAC has invested heavily in longer-term Treasurys and mortgage bonds during the pandemic, which lost value due to the Federal Reserve’s rate hikes.

As of June 30, the bank had over $109 billion in debt securities paper losses, rising to $136 billion by Q3.

Bank of America’s CFO cautioned against a new investment banking boom.