Bank of America doubles profits after releasing bad loan reserves

Bank of America Corp. said Thursday that its profits had doubled in the first three months of the year.

The Charlotte, NC-based lender, earned $ 8.05 billion in its first quarter. That compares with $ 4.01 billion a year earlier, when banks hit their earnings hard to take on a rainy reserve at the start of the pandemic.

The bank earned 86 cents a share and predicted the 66 cents in a FactSet poll among analysts.

The earnings of the largest banks reflect the increased optimism about an economic recovery. JPMorgan Chase & Co. and Wells Fargo & Co. said on Wednesday that they had both released money they had soaked away last year to cover widespread defaults.

Bank of America said it had released $ 2.7 billion from its reserves, which made the profit. The cost is lower than a year earlier.

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