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Bank of America back in the black

BANK of America has posted better than expected net earnings of $2.8bn (£1.8bn) in the first quarter of 2010.

The largest US bank returned to profit after losing $194m in the fourth quarter.

However, the profit is 24 per cent lower than for the same period a year ago.

The bank said record sales and trading activity at it's investment bank – including acquisition Merrill Lynch – had fuelled the latest results.

BoA also said it was having to put aside less money for losses on bad loans.

Five of the company's six business units were profitable over the period, the company said.

Chief Executive Officer Brian Moynihan said: "With each day that passes, the 2010 story appears to be one of continuing credit recovery, and our results reflect a gradually improving economy.”