Bank of America reported a steep drop in first-quarter earnings, joining other financial heavyweights in setting aside significant funds for bad loans in the wake of coronavirus shutdowns. (Alastair Pike)

New York (AFP) – Bank of America reported a steep drop in first-quarter earnings Wednesday, joining other financial heavyweights in setting aside significant funds for bad loans in the wake of coronavirus shutdowns.

The biggest US bank by assets after JPMorgan Chase, Bank of America set aside $4.8 billion for potential defaults, $3.6 billion of which was added in the first quarter.

Bank of America reported quarterly profits of $3.5 billion, down 48.4 percent from the year-ago period.

Revenues were down about one percent to $22.8 billion.

The results came after both JPMorgan Chase and Wells Fargo also set aside billions of dollars to cover loans from companies that have been especially harmed by the shutdowns to try to curb the spread of coronavirus.

Disclaimer: Validity of the above story is for 7 Days from original date of publishing. Source: AFP.