13 Mar 2009

Bank of America profitable in January, February

8:15 am on 13 March 2009

Bank of America says it was profitable in January and February and should be able to ride out the recession without more help from the United States government.

Chief executive Kenneth Lewis said on Thursday the bank - the largest in the US - will make money for all of 2009.

He forecast Bank of America could make $US50 billion in 2009 before taxes, credit losses and writedowns, and would likely post a net profit.

Chief executives Citigroup Inc and JPMorgan Chase also say their banks are in the black this year.

Bank of America obtained $US45 billion from the US Treasury Department's troubled asset relief programme, including $US20 billion in January to help it absorb Merrill Lynch & Co.

Mr Lewis praised government efforts to revive banks, but agreed with Federal Reserve Chairman Ben Bernanke that full takeovers are the wrong way to go.

He said Nntionalization "would be a nightmare" and "send shudders" through investors.

It would also give a "false impression that all banks are insolvent."