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Factbox-How big U.S. banks are managing bad loan reserves

Published 04/19/2023, 11:21 AM
Updated 04/19/2023, 11:28 AM
© Reuters. FILE PHOTO: A J.P. Morgan logo is seen outside the JPMorgan bank offices in Paris, France, January 27, 2023. REUTERS/Sarah Meyssonnier
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(Reuters) - U.S. banking heavyweights set aside billions of dollars in the first quarter to account for potential bad loans, as rising interest rates turn up the heat on borrowers who are just starting to see some relief from inflation.

Below is an outline of how banks have managed their reserves since 2020:

JPMorgan Chase & Co (NYSE:JPM)

Quarter Reserves/provisions Reserves/provisions built

released

Q1 2023 $2.3 billion

Q4 2022 $2.3 billion

Q3 2022 $1.5 billion

Q2 2022 $1.1 billion

Q1 2022 $1.5 billion

Q4 2021 $1.3 billion

Q3 2021 $1.5 billion

Q2 2021 $2.3 billion

Q1 2021 $4.2 billion

Q4 2020 $1.9 billion

Q3 2020 $611 million

Q2 2020 $10.5 billion

Q1 2020 $8.3 billion

Bank of America Corp (NYSE:BAC)

Quarter Reserves/provision Reserves/provisions built

s released

Q1 2023 $124 million

Q4 2022 $403 million

Q3 2022 $378 million

Q2 2022 $48 million

Q1 2022 $362 million

Q4 2021 $851 million

Q3 2021 $1.1 billion

Q2 2021 $2.2 billion

Q1 2021 $2.7 billion

Q4 2020 $828 million

Q3 2020 $417 million

Q2 2020 $4 billion

Q1 2020 $3.6 billion

Goldman Sachs Group Inc (NYSE:GS)

Quarter Reserves/provisions Reserves/provisions built

released

Q1 2023 $171 million

Q4 2022 $972 million

Q3 2022 $515 million

Q2 2022 $667 million

Q1 2022 $561 million

Q4 2021 $344 million

Q3 2021 $175 million

Q2 2021 $92 million

Q1 2021 $70 million

Q4 2020 $293 million

Q3 2020 $278 million

Q2 2020 $1.6 billion

Q1 2020 $937 million

Citigroup Inc (NYSE:C)

Quarter Reserves/provisio Reserves/provisions built

ns released

Q1 2023 $241 million

Q4 2022 $640 million

Q3 2022 $370 million

Q2 2022 $375 million

Q1 2022 $138 million

Q4 2021 $1.4 billion

Q3 2021 $1.2 billion

Q2 2021 $2.4 billion

Q1 2021 $3.9 billion

Q4 2020 $1.5 billion

Q3 2020 $436 million

Q2 2020 $5.9 billion

Q1 2020 $4.9 billion

Wells Fargo (NYSE:WFC) & Co

Quarter Reserves/provisio Reserves/provisions built

ns released

Q1 2023 $1.21 billion

Q4 2022 $957 million

Q3 2022 $784 million

Q2 2022 $580 million

Q1 2022 $787 million

Q4 2021 $452 million

Q3 2021 $1.4 billion

Q2 2021 $1.26 billion

Q1 2021 $1.05 billion

Q4 2020 $179 million

Q3 2020 $769 million

Q2 2020 $9.5 billion

Q1 2020 $4 billion

Morgan Stanley (NYSE:MS)

Quarter Reserves/provision Reserves/provisions built

s released

Q1 2023 $234 million

Q4 2022 $87 million

Q3 2022 $35 million

Q2 2022 $101 million

Q1 2022 $57 million

Q4 2021 $5 million

Q3 2021 $24 million

Q2 2021 $73 million

Q1 2021 $98 million

Q4 2020 $4 million

Q3 2020 $111 million

Q2 2020 $239 million

© Reuters. FILE PHOTO: A J.P. Morgan logo is seen outside the JPMorgan bank offices in Paris, France, January 27, 2023. REUTERS/Sarah Meyssonnier

Q1 2020 $407 million

Source: Company statements

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