Banks Log Lower or Negative Provisions for Credit Losses

By Allison Prang

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:

TRUIST FINANCIAL:

--Truist's provision for credit losses was $48 million in the first quarter. In fourth quarter of last year, it was $177 million and in 1Q a year earlier it was $893 million.

--Nonperforming loans and leases as a percentage of loans and leases held for investment were 0.4%, lower than 0.44% in 4Q and higher than 0.32% in 1Q a year ago.

--Net charge-offs as a percentage of average loans and leases on an annualized basis was 0.33%. It rose from 0.27% in 4Q and fell from 0.36% in 1Q a year ago.

BANK OF AMERICA:

--The company had a negative provision for credit losses of $1.86 billion. In 4Q, its provision was $53 million and in 1Q a year ago, it was $4.76 billion.

--Nonperforming loans and leases to total loans and leases was 0.58%, from 0.54% in 4Q and from 0.39% the comparable 1Q a year ago.

--The net charge-off ratio was 0.37%. It narrowed from 0.38% in 4Q and from 0.46% in 1Q a year ago.

U.S. BANCORP:

--The provision for credit losses was negative $827 million, compared with a provision of $441 million in 4Q and $993 million in 1Q a year ago.

--The net charge-off ratio was 0.31%. It narrowed from 4Q's 0.58% and from 0.53% in 1Q a year ago.

CITIGROUP:

--Citigroup's provision for credit losses and for benefits and claims was negative $2.06 billion, compared with negative $46 million in 4Q and compared with a provision $6.96 billion in 1Q a year earlier.

--Nonaccrual loans as a percentage of total loans was 0.76%, compared with 0.84% in 4Q and 0.58% in 1Q a year ago.

Write to Allison Prang at [e-mail]

(END) Dow Jones Newswires

April 15, 2021 09:53 ET (13:53 GMT)

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