Bank of America earns $2.83B in first quarter

CHARLOTTE, N.C. (AP) — Bank of America said today its first-quarter earnings rose 0.7 percent to $2.83 billion as strong trading revenue helped the bank offset continuing losses on consumer loans.

The bank reported a $2.1 billion loss in its home mortgage business, but said its other consumer loan businesses were showing signs of healing.

Bank of America's results after payment of preferred stock dividends are up slightly from $2.81 billion a year ago.

They surpassed expectations and provided further evidence that the banking industry and the economy are recovering. JPMorgan Chase & Co. on Wednesday also reported improvements in its consumer-loan business, and said continuing credit losses were offset by income from trading.

Bank of America set aside $9.8 billion to covered soured loans during the quarter, down 3 percent from $10.1 billion the previous quarter. A year earlier, it had set aside $13.4 billion. Many analysts predict loan losses should peak some time in the first half of 2010.