Bank of America posts 1Q profit, surpasses Street

[April 20, 2009]  CHARLOTTE, N.C. (AP) -- Bank of America managed to avoid a loss in the first quarter, surpassing analysts' expectations and providing further evidence the banking sector might be improving.

The Charlotte, N.C.-based company says it earned $2.81 billion after paying preferred dividends, or 44 cents per share. Analysts expected profit of 4 cents per share.

However, Bank of America recorded a $13.4 billion loan-loss provision, proving that it is not immune from deteriorating credit quality and growing unemployment.

Bank of America's better-than-expected profit is the latest in a string of bank earnings that have beat expectations, including JPMorgan Chase and Citigroup.

Bank of America has received $45 billion in government funds as part of the Treasury Department's $700 billion financial rescue package.

[Associated Press; By IEVA M. AUGSTUMS]

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