Pandemic in five charts



One of the most striking stories of quarterly earnings for major US banks this year is loan loss provisions. The reserves that banks increased in the early days of the pandemic start to be released

Taken together, loan loss provisions at Bank of America, Citigroup, Goldman Sachs, JPMorgan, Morgan Stanley and Wells Fargo rose from $ 57.5 billion on January 1, 2020 to about $ 101 billion in six months. e. by 75%.

And there they peaked, remaining at the same level in the third quarter of the year.

The numbers were dominated by money center banks, and more than JPMorgan. Fully one third of the increase – about $ 14 billion – came from JPMorgan alone. The next largest entrants were Wells Fargo with 24% and Citi with 21%.

Since then, starting in the fourth quarter of 2020, but picking up momentum in the first half of 2021, much has been made from the fact that banks are releasing these reserves, which is no doubt made more possible by continued central bank stimulus and government support schemes. which are preventing the worst pandemic pain for businesses and households.


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