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Regional Lenders See Credit-Loss Provisions Fall; Fifth Third Logs Benefit

By Allison Prang

 

Here is a look at credit quality at some of the country's banking companies for the fourth quarter as the Covid-19 pandemic continues to weigh on consumers and businesses.

 

TRUIST FINANCIAL:

--The provision for credit losses was $177M, down from $421M for 3Q.

--Nonperforming loans and leases as a percentage of loans and leases, including loans held for sale, were 0.44%. They increased from 0.4% in 3Q.

--Net charge-offs as a percentage of average loans and leases on an annualized basis were 0.27%, a drop from 0.42% in 3Q.

 

FIFTH THIRD:

--The company logged a benefit from credit losses of $13 million, compared with a $15 million benefit for 3Q.

--The company's NPL ratio was 0.77%. It declined from 0.8% in 3Q.

--Fifth Third's net charge-off ratio was 0.43%, up from 0.35% in 3Q.

 

KEY:

--The provision for credit losses was $20 million, down from $160 million in 3Q, Key said.

--Nonperforming loans as a percentage of portfolio loans at the end of the period ere 0.78%, Key said. For 3Q, they were 0.81%.

--Net loan charge-offs to average total loans were 0.53%. That metric increased from 0.49% in 3Q.

 

M&T BANK:

--M&T's provision for credit losses was $75 million, down from $150 million in 3Q.

--Nonaccrual loans as a percentage of outstanding loans were 1.92%. That rose from 1.26% in 3Q.

--Net charge-offs as a percentage of average loans on an annualized basis were 0.39%, up from 0.12% in 3Q.

 

Write to Allison Prang at allison.prang@wsj.com

 

(END) Dow Jones Newswires

January 21, 2021 08:34 ET (13:34 GMT)

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