This article is from the source 'bbc' and was first published or seen on . It will not be checked again for changes.

You can find the current article at its original source at http://news.bbc.co.uk/go/rss/-/1/hi/business/8008158.stm

The article has changed 4 times. There is an RSS feed of changes available.

Version 0 Version 1
New buys boost Bank of America New buys boost Bank of America
(30 minutes later)
The largest US bank, Bank of America, has seen its first quarter net income soar to $4.2bn(£2.9bn) from $1.2bn during the same period in 2008. Bank of America saw net income soar to $4.2bn (£2.9bn) in the first three months of 2009 from $1.2bn a year earlier, beating analysts expectations.
Its acquisition of Merrill Lynch contributed $3.7bn in net income and its purchase of lender Countrywide boosted its mortgage business. But its results were inflated by its purchases of Merrill Lynch, which added $3.7bn in net income, and Countrywide, which boosted its mortgage arm.
However, it also had to set aside $13.38bn to cover credit losses, up from the fourth-quarter's $8.54bn. And the biggest US bank also had to set aside $13.38bn to cover credit losses, up from the fourth quarter's $8.54bn.
As a result, its shares fell 8.1% in pre-opening trading. Its shares fell 12.5% to $9.28 in the first hour of Wall Street trading.
We understand that we continue to face extremely difficult challenges Ken LewisChief executive, Bank of America Check Bank of America shares
Analysts said the fall followed investors looking beyond the bank's profit to the continuing concerns about the impact of the financial crisis on the banking system.
'Healthy number''Healthy number'
"We continue to face extremely difficult challenges, primarily from deteriorating credit quality driven by weakness in the economy and growing unemployment," said chief executive Kenneth Lewis. Bank of America has received $45bn in government funds as part of the Treasury Department's $700bn financial rescue package.
But Bank of America also said that Countrywide and Merrill Lynch had contributed "outstanding performances". "We understand that we continue to face extremely difficult challenges," said Bank of America's chief executive Ken Lewis.
Analyst Michael Holland of Holland and Company in New York said the headline figure, which covered the three months to to 31 March, was "a really really healthy number given where expectations were just a few months ago". Mr Lewis has been under intense pressure over the purchase of Merrill - which was approved before shareholders learned of huge losses at the investment bank, and before billions of dollars worth of bonuses were paid to Merrill employees.
Bank of America also said that Countrywide and Merrill had contributed "outstanding performances".
Analyst Michael Holland of Holland and Company in New York said the headline figure was "a really really healthy number given where expectations were just a few months ago".
Improving reportsImproving reports
The results beat analysts' forecasts and add to signs that the banking sector might be improving.The results beat analysts' forecasts and add to signs that the banking sector might be improving.
Last week rival Citigroup reported its first quarterly net profit in nearly two years.Last week rival Citigroup reported its first quarterly net profit in nearly two years.
Citi's results came soon after positive earnings reports from Wells Fargo, Goldman Sachs and JP Morgan.Citi's results came soon after positive earnings reports from Wells Fargo, Goldman Sachs and JP Morgan.
In January Bank of America was granted $20bn in fresh US government aid and $118bn worth of guarantees against bad assets.In January Bank of America was granted $20bn in fresh US government aid and $118bn worth of guarantees against bad assets.
It has so far received a total $45bn in government funds as part of the Treasury's $700bn financial rescue package.
It has also benefitted from selling shares it held in China Construction Bank.It has also benefitted from selling shares it held in China Construction Bank.