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Such techniques serve to minimize the cost of holding reserves, releasing reserve units for other purposes when they are not likely to be needed to provide balancing services to wind and load.
Citigroup and JPMorgan also announced reserve releases of about $1 billion each.
"We do not look at reserve releases as earnings," he said.
In this case, of the $2.5 billion profit in the second quarter, $1.9 billion came from reserve releases.
A turtle reserve releases baby turtles into the wild here in winter; in summer they return to lay their eggs.
Let's not pretend the company is trying to pull the wool over anyone's eyes with reserve releases".
"Absent significant deterioration in the economy, we expect future reserve releases," said Mike Loughlin, the bank's chief risk officer.
Without the special items, Bank of America would have earned about $2.7 billion, which includes $1.7 billion in reserve releases as credit losses eased.
Now we are seeing strong reserve releases, regulatory headwinds have subsided, and UK motor rates are rising again.
Profit was also bolstered by so-called reserve releases, when the bank reverses earlier charges for possible credit losses and adds the savings to the bottom line.
The oil price fell immediately after the announcement of a reserve release, but it soon rallied and then stayed put roughly where it had been before the intervention.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com