REUTERS |
April 15 (Reuters) – Bank of America Corp reported a jump in first-quarter profits on Thursday, helped by a reduction in the amount of its provisions to cover potential losses related to the COVID-19 pandemic.
America’s second-largest took over $2.7 billion in provisions and announced a $25 billion share buyback program, betting like most major U.S. banks on an acceleration in growth, fueled by a vaccine campaign very proactive in the United States.
Revenue from retail banking, however, fell 12% to $8.1 billion, hurt by lower demand for loans.
“While low interest rates have continued to weigh on earnings, borrowing costs have improved. We believe progress in health and the economy will translate into an accelerated recovery.” said Brian Moynihan, the bank’s CEO, in a statement.
Bank of America’s pretax and provision earnings, seen this quarter as a better indicator of real bank performance, came in at 68 cents a share, according to Refinitiv. Analysts had on average expected earnings of 66 cents per share.
Bank of America’s profit before tax and provisions was down 21% from a year earlier.
A result that contrasts with that of JPMorgan Chase & Co, which for its part announced an 18% increase in its profit before provisions in the first quarter. (Noor Zainab Hussain, French version Lucinda Langlands-Perry, edited by Jean-Michel Bélot)
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