With $4.24 billion profit, is Bank of America out of the woods?

Filed under: Earnings reports, Bank of America (BAC)

With apologies to Buffalo Springfield, there's something happening here. What it is ain't exactly clear. But if Bank of America (NYSE: BAC) first quarter numbers are sustainable, then it may not be long before the government is out of the business of bailing out banks. That's because Bank of America reported a $4.24 billion profit -- its 44 cents earning per share was 40 cents a share more than the 4 cents a share the average analyst expected.

How did Bank of America achieve this feat? Like its peers, the bank benefited from gains on home refinancing -- on April 9 President Obama said that refinancings rose about 88% in the last month -- and trading. But don't get too excited because Bank of America expects more credit problems, which is why it added $6.4 billion to its loan loss reserves.

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With $4.24 billion profit, is Bank of America out of the woods? originally appeared on BloggingStocks on Mon, 20 Apr 2009 08:30:00 EST. Please see our terms for use of feeds.

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