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Credit Loss Provisions

All articles tagged with #credit loss provisions

finance2 years ago•1 min saved

"Capital One's Profits Decline Due to Increased Credit Loss Provisions and FDIC Charge"

Capital One Financial's fourth-quarter profit dropped by 43% due to increased provisions for credit losses and a charge related to replenishing the FDIC deposit insurance fund. The company's net interest income climbed 4% to $7.52 billion, but its net income fell to $706 million. The results reflect the impact of high borrowing costs and the threat facing consumers due to elevated interest rates, with the Federal Reserve potentially needing to keep rates higher for longer.

via Yahoo Finance|

#capital-one #credit-loss-provisions #fdic-charge

finance2 years ago•3 min saved

Red Flag Looms Over Positive Bank Stock Earnings

Big bank stocks, including JPMorgan Chase, Wells Fargo, Citigroup, Morgan Stanley, and Bank of America, have largely beaten expectations for their second-quarter earnings, driven by higher net interest income due to higher interest rates. However, the banks also showed caution by increasing their provisions for credit losses, particularly in commercial real estate. Analysts believe this is a prudent risk management strategy in anticipation of potential defaults and late payments as interest rates continue to rise. Overall, the results indicate that the health of the banking system is better than feared, but the performance of regional banks in this environment remains to be seen.

via Investor's Business Daily|

#big-banks #commercial-real-estate #credit-loss-provisions

finance2 years ago•1 min saved

Truist Financial's Q1 earnings show mixed results.

Truist Financial Corp reported a Q1 profit that missed Wall Street estimates as it set aside $502 million in provisions for credit losses due to increased economic uncertainty. Average deposits in the first quarter came in at $408.5 billion, down 1.2% from the previous quarter, as customers chased higher-rate alternatives after the banking crisis in March shook faith in the industry's stability. Truist earned $1.05 per share in the first quarter ended March 31, missing estimates of $1.14 per share.

via Yahoo Finance|

#credit-loss-provisions #deposits #earnings