Banks Log Negative Credit-Loss Provisions
Here's a look at what credit quality looked like at some major
financial firms for the first quarter as the Covid-19 pandemic
continues to weigh on consumers and businesses.
--JPM had a negative credit-loss provision of $4.16 billion,
compared with a negative provision of $1.89 billion in 4Q and a
provision of $8.29 billion in 1Q a year earlier.
--The company's nonaccrual loans to total loans was 0.96%. In
4Q, that measure was 1.04% and in 1Q a year ago, it was 0.63%.
--JPM's net charge-off rate for retained loans was 0.45%. It
rose from 0.44% in 4Q and fell from 0.62% in 1Q the comparable
--First Republic had a reversal of provision for credit losses
of $14.6 million. In 4Q, its provision was $35.1 million and in 1Q
a year earlier, it was $62.4 million.
--Net loan charge-offs to average total loans was 0% in the
quarter, the same as in 4Q and in 1Q a year earlier.
--Wells had a negative provision for credit losses of $1.05
billion. In 4Q, it had a negative provision of $179 million and in
1Q a year ago, its provision was $4.01 billion.
--Nonaccrual loans as a percentage of total loans was 0.93%,
compared with 0.98% in 4Q. In 1Q a year ago, they were 0.61%.
--Wells Fargo's net charge-off rate as a percentage of average
loans on an annualized basis was 0.24%. It dropped from 0.26% in 4Q
and from 0.38% in 1Q a year ago.
Write to Allison Prang at firstname.lastname@example.org
(END) Dow Jones Newswires
April 14, 2021 08:34 ET (12:34 GMT)
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