Bank of America’s profits doubles after it releases bad loan reserves

Bank of America Corp. said Thursday that her earnings doubled in the first three months of the year.

The Charlotte, NC-based lender posted a profit of $ 8.05 billion in the first quarter. That compared to $ 4.01 billion a year earlier, when banks took a big hit to their revenues to begin building reserves for rainy days at the start of the pandemic.

The bank earned 86 cents a share, beating the 66 cents predicted in a FactSet analyst survey.

The earnings of the largest banks reflected heightened optimism about an economic recovery. JPMorgan Chase & Co. and Wells Fargo & Co. said Wednesday that they both released money they put away last year to cover widespread loan defaults.

Bank of America said it released $ 2.7 billion of its reserves, boosting net income. Write-offs were lower than a year earlier.

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