(Reuters) – Bank of America Corp joined other big U.S. banks in reporting a drop in third-quarter profit on Monday as it set aside funds to cover soured loans from a potential deterioration in the U.S. economy.
The second-largest U.S. bank added $378 million to its loan-loss reserves as it braces for a weakening economy. That compares with a release of $1.1 billion a year earlier.
The U.S. Federal Reserve’s aggressive monetary policy actions to tamp down inflation have sparked fears that the economy could slip into a recession as funding tightens due to higher interest rates.
Net profit applicable to common shareholders was $6.6 billion, or 81 cents a share, for the quarter ended Sept. 30, compared with $7.3 billion, or 85 cents a share, a year earlier.
(Reporting by Mehnaz Yasmin and Manya Saini in Bengaluru and Saeed Azhar and Lananh Nguyen in New York; Editing by Anil D’Silva)
