(Reuters) – The big six U.S. banks face a tough second quarter earnings season due to a hit from increased loan loss reserves, as the pandemic recovery gives way to a possible recession.
Though consumer spending trends remain strong, the looming threat of a recession and soaring inflation are expected to test the strength of U.S. consumers and companies.
Below is an outline of how banks have managed their reserves since 2020, when the COVID-19 pandemic forced them to set aside billions of dollars to account for potential loan losses, most of which did not materalize thanks to government stimulus packages.
JPMorgan Chase & Co
Quarter Reserves/p Reserves/p
rovisions rovisions
released built
Q1 2022 $902
million
Q4 2021 $1.8 –
billion
Q3 2021 $2.1 –
billion
Q2 2021 $3 billion –
Q1 2021 $5.2 –
billion
Q4 2020 $2.9 –
billion
Q3 2020 $569 –
million
Q2 2020 – $8.9
billion
Q1 2020 – $6.8
billion
Bank of America Corp
Quarter Reserves/p Reserves/p
rovisions rovisions
released built
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
Quarter Reserves/p Reserves/p
rovisions rovisions
released built
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
Quarter Reserves/p Reserves/p
rovisions rovisions
released built
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 – $5.6
billion
Q1 2020 – $4.9
billion
Wells Fargo & Co
Quarter Reserves/p Reserves/p
rovisions rovisions
released built
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
Quarter Reserves/p Reserves/p
rovisions rovisions
released built
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
Q1 2020 – $407
million
(Reporting by Manya Saini and Niket Nishant in Bengaluru, editing by Deepa Babington)
