Bank of America reported an 18 percent drop in profit for the first quarter of this year, as the company set aside more money to cover consumer credit card losses. 

The bank said profit fell to $6.67 billion, or 76 cents a share. 

Its net charge-offs – or debts that are unlikely to be recovered – rose to $1.5 billion in the first quarter, mainly from credit card losses. This is up from $807 million a year earlier. 

US lenders have cited resilient household finances as evidence that the economy remains on a solid footing, but cracks are starting to show for the lowest-income Americans, Reuters reported. 

While spending remains robust despite soaring borrowing costs, banks are preparing for more customers to miss payments. 

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