Largest US Banks Expect Billions in Loan Losses, Profits Plunge

A number of of the biggest U.S. banks have put aside billions of in reserves as they count on huge losses from mortgage defaults, sending their earnings nosediving. Wells Fargo’s first-quarter earnings fell a whopping 90% whereas JPMorgan Chase’s revenue dropped 70%. Financial institution of America, Citigroup, Goldman Sachs, and Morgan Stanley additionally noticed their earnings plunge.

Flood of Unhealthy Loans Anticipated, Profits Plunge for Wells Fargo and JPMorgan

U.S. banks launched their Q1 2020 outcomes final week as recession looms and the worldwide pandemic intensifies. Wells Fargo, one of many largest banks in the nation, put aside a $three.1 billion reserve to cowl mortgage losses anticipated throughout this unprecedented financial disaster. The financial institution then reported a significant earnings decline, with revenue plunging 89% to $653 million for the quarter. Its earnings per share fell from $1.20 from the earlier yr to only one cent. CEO Charlie Scharf…

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