Loan-loss provision charges nearly triple at Wells Fargo
Loss reserves for credit cards spike to 10.49% of outstanding loans
Wells Fargo put aside $9.6 billion to cover bad loans over the three months to end-June, up from $3.8 billion in Q1.
Of this amount, around $8.4 billion was to bolster loss reserves, known as allowance for credit losses (ACL), and the remainder to write off delinquent obligations.
Total ACL as of end-June stood at $20.4 billion, up from $12 billion in Q1 and $10.5 billion at end-2019. This is the equivalent of 2.19% of outstanding loans.
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