Top US banks set aside $6bn for credit losses in Q3
Quarterly provisions highest in two years
The US’s largest lenders took a combined $6 billion in loan-loss provisions in the third quarter, up 23% from Q2 and the most since Q3 2020, as inflation, energy prices and chaotic geopolitics cast a pall on corporate and retail exposures.
Of the nine banks analysed by Risk Quantum, JP Morgan set aside $1.5 billion in provisions for credit losses (PCLs), the most in absolute terms, marking a 40% quarter-on-quarter increase. PNC Bank’s charges for the period, at $241 million, were 569% higher
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