Bank of America has followed Wall Street rival JPMorgan with sharp gains in trading revenue thanks to market swings provoked by the coronavirus pandemic, but a huge increase in cash reserves put aside for potential credit losses shows how banks are gearing up for the full impact of the crisis on the wider economy. 

The bank posted net profits of $4bn, a 43% decline on the same period last year and below analyst estimates, as the bank increased its reserves to $4.8bn to help deal with the impact of the Covid-19 crisis — including a fresh $3.6bn held against potential loan losses.