Bank of America reported a big drop in second-quarter profits Thursday due to large provisions set aside for potential loan defaults amid the downturn in the wake of the coronavirus.

Results for BofA, the second biggest US bank by assets after JPMorgan Chase, followed a similar template as that of rivals from earlier in the week in which the effects of a likely hit from loan nonpayments from households and businesses were offset somewhat by strong performance in financial trading.

Net income fell 54 percent to $3.3 billion as revenues dipped 3.3 percent to $22.3 billion.

Profits were hit by $5.1 billion in credit losses, including $4.0 billion added to reserves for bad loans.

Bank Of America reported a drop in earnings due to large reserves for bad loans, offset somewhat by strong trading results
Bank Of America reported a drop in earnings due to large reserves for bad loans, offset somewhat by strong trading results GETTY IMAGES NORTH AMERICA / SCOTT OLSON

Chief Executive Brian Moynihan described the stretch just after much of the US economy shut down due to the coronavirus as "the most tumultuous period since the Great Depression," according to a statement.

"Strong capital markets results provided an important counterbalance to the COVID-19-related impacts on our Consumer business, and our industry-leading digital capabilities allowed us to support clients amid difficult working conditions," he said.

Earnings in global markets jumped 81 percent to $1.9 billion.

Shares fell 3.6 percent to $23.74 in pre-market trading.

Coronavirus