Bank of America reported net income of $2.0 billion for the first quarter of 2011, compared with $3.2 billion in the year-ago period and a net loss of $1.2 billion in the fourth quarter of 2010.

The bank said results for the most recent quarter were positively affected by lower credit costs, gains from equity investments, and higher asset management fees and investment banking fees.

First quarter provision charges of $3.8 billion were down from $9.8 billion or 61% compared to the same quarter in 2010 as net charge-offs fell for the fourth consecutive quarter. The allowance for loan and lease losses to annualized net charge-off coverage ratio improved in the first quarter to 1.63 times compared to 1.07 times in the first quarter in 2010. Nonperforming loans, leases and foreclosed properties were $31.6 billion at March 31,2011, down from $35.9 billion at the end of the same quarter in 2010.

“Strong growth in deposit balances and positive contributions from five of our six businesses reflect the steady improvement in the broader economy,” said chief executive officer Brian Moynihan. “Our customer-focused strategy is working well, and we also benefited from improved credit quality.
“While still soft, the economy is healing; we see retail spending up versus the year-ago period and continued declines in bankruptcy filings and delinquency rates.”

To read the Bank of America news release:
click here.