CHARLOTTE, N.C. (AP) — Bank of America says it is seeing rising credit costs, as it continues to wade through a challenging economic cycle.

At an investor conference in New York on Tuesday, Liam McGee, Bank of America’s president of global consumer and small business banking, said customers are feeling "significant economic pressure" as deflating home prices leaves little equity for consumers to borrow against.

The Charlotte-based company says it expects losses in its home equity portfolio to go higher in the near-term and projected future losses in that area that exceed the bank’s earlier range of 2 percent to 2.5 percent.

"It will be higher than 2.5 percent," McGee said. "I think we are doing all the right things to mitigate it and we will just have to manage through it."

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