Bank of America sees 45% slump in profits during first quarter as the company set aside $3.6 billion for loan loss reserves because of the coronavirus pandemic.
The bank posted profit of $4.01 billion, or 40 cents a share, compared with the 46 cent estimate of analysts surveyed by Refinitiv.
Revenue of $22.8 billion essentially matched expectations, and trading results exceeded expectations by more than $500 million.
The pandemic caused sharp drops in profit at three of Bank of America’s four main divisions.
The lender’s giant consumer banking business saw profit lower by 45% to $1.79 billion on higher loan loss reserves and lower interest income. Wealth management profit fell 17% to $866 million and global banking profit was nearly wiped out as the company built larger reserves for commercial loan losses.
