JPMorgan Chase, Bank of America, Wells Fargo and Citigroup Set Aside Billions for Credit Losses
JPMorgan Chase, Bank of America, Wells Fargo and Citigroup are collectively setting aside tens of billions of dollars to cover potential credit losses as economic uncertainty grows.
The four largest banks in the US by total assets are collectively allocating $34.87 billion in credit loss provisions for the 2025 financial year, according to new numbers from S&P Global.
In the first quarter, JPMorgan Chase set aside a higher-than-estimated provision for credit losses amid the rise in global macroeconomic uncertainty.
The bank allocated $3.31 billion for Q1, which is $556 million above the consensus estimate.
For the fiscal year, JPMorgan leads all banks with the highest provisions for credit losses at $12.87 billion.
Citigroup comes second in the estimated provisions for credit losses reaching $10.69 billion for the 2025 financial year.
Bank of America is expected to set aside $6.37 billion in provisions for credit losses for the year.
And S&P Global estimates Wells Fargo will set aside $4.93 billion for 2025.
Aside from JPMorgan Chase, many banks have set aside lower-than-expected credit provisions despite the uncertainty.
Although the lenders are displaying confidence in their customers’ ability to pay their bills, Piper Sandler analyst R. Scott Siefers says lenders are not offering much clarity on where things are headed, noting it’s not clear that banks’ softened revenue forecasts are “enough to address what may be coming.”
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