BofA Joins Rival Banks in Setting Aside Billions for Loan Losses
- First-quarter profit drops 45% on $4.76 billion provision
- Shares decline as credit costs were the highest since 2010
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Bank of America Corp. followed two big rivals in setting aside billions of dollars for loans likely to sour amid an almost total U.S. economic shutdown.
Profit plunged 45% as the company allocated $4.76 billion for loan losses, the most since 2010, as businesses and households reel from the coronavirus pandemic. The bank joins competitors JPMorgan Chase & Co. and Wells Fargo & Co., which posted their highest provisions in a decade Tuesday. Citigroup Inc. made a similar move Wednesday.