Bank of America back in the black

BANK of America yesterday revealed it returned to profit in the first three months of 2010 as the sector's recovery gathers pace. The bank reported first-quarter net income of $3.2 billion (£2.1bn) against losses of $194 million in the final three months of 2009.

Its profit cheer follows better-than-expected figures from fellow Wall Street major JP Morgan Chase & Co this week, when the group posted a 54 per cent hike in profits. Bank of America, which bought fellow investment bank Merrill Lynch at the height of the financial crisis, said its result reflected "a gradually improving economy".

Chief executive Brian Moynihan said: "With each day, the 2010 story appears to be one of continuing credit recovery." Its better-than-expected profits came as strong trading revenue helped the bank offset losses on consumer loans.