Bank of America returns to profit

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Bank of America has reported a return to profit for the first three months of the year.

It posted a net income of $3.4bn (£2.3bn) for the first quarter, compared to a loss a year ago, when it was hit by litigation costs.

A 55% increase in mortgage loans and a rise in profit at its global banking division helped drive the increase.

Chief executive Brian Moynihan said the bank saw "continued encouraging signs in customer and client activity".

"This should bode well for the near-term economic outlook," he added.

However, some of the bank's divisions saw revenues fall, with income from its loan portfolio lower than the same period last year due to low interest rates.

Profits at its consumer bank, its biggest division, were flat which the bank blamed on lower returns from credit cards.

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