Bank of America (NYSE:BAC) has reported a first-quarter profit that easily beat analyst estimates.
The second largest U.S. lender released $2.7 billion U.S. from its reserves during the first quarter that it had set aside to cover potential COVID-19 loan losses, betting on the economic recovery as more people get vaccinated and businesses return to normal.
Bank of America also reported a 12% fall in consumer banking revenue to $8.1 billion U.S. in the quarter ended March 31. Appetite for new loans waned during the pandemic as customers spent less and saved more and companies relied on capital markets for funds rather than banks.
Net income applicable to common shareholders rose to $7.56 billion U.S., or 86 cents U.S. per share, in the first quarter from $3.54 billion U.S., or 40 cents U.S. per share, a year earlier, Bank of America said.
Analysts had expected a profit of 66 cents U.S. per share, according to data from Refinitiv.
In its earnings release, Bank of America said it expects the U.S. economy to log its best performance in 37 years during 2021 due to the government’s $1.9 trillion U.S. pandemic relief package and increased vaccinations against COVID-19.
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