Here's what to expect when banks report -5-
From the estimates, analysts seem to expect a cooling of reserving activity for the third quarter:
Bank Estimated provision for LLR -- Q1, 2023 Provision for LLR -- Q2, 2023 Provision for LLR -- Q1, 2023 Provision for LLR -- Q4, 2022 Provision for LLR -- Q3, 2022
JPMorgan Chase & Co. $2,395 $2,899 $2,275 $2,288 $1,537
Bank of America Corp. $1,288 $1,125 $931 $1,092 $898
Citigroup Inc. $1,970 $1,757 $1,720 $1,773 $1,338
Wells Fargo & Co. $1,350 $1,713 $1,207 $957 $784
Goldman Sachs Group Inc. $584 $615 -$171 $972 $515
Morgan Stanley $88 $161 $234 $87 $35
U.S. Bancorp $504 $821 $427 $1,192 $362
PNC Financial Services Group Inc. $288 $146 $235 $408 $241
Truist Financial Corp. $520 $538 $502 $467 $234
Charles Schwab Corp. N/A N/A N/A N/A N/A
Capital One Financial Corp. $2,504 $2,490 $2,795 $2,416 $1,669
State Street Corp. $6 -$18 $44 $10 $0
American Express Co. $1,161 $1,198 $1,055 $1,027 $778
Citizens Financial Group Inc. $188 $176 $168 $132 $123
First Citizens BancShares Inc. Class A $148 $151 $783 $79 $60
M&T Bank Corp. $162 $150 $120 $90 $115
Fifth Third Bancorp $174 $177 $164 $180 $158
Ally Financial Inc. $524 $427 $446 $490 $438
KeyCorp $122 $167 $139 $265 $109
Huntington Bancshares Inc. $107 $92 $85 $91 $106
Source: FactSet
According to the FDIC, the annualized pace of net charge-offs (loan losses less recoveries) to average loans increased to 0.48% during the second quarter from 0.41% the previous quarter and 0.23% in the year-earlier quarter.
Noncurrent loans (those past due 90 days or more, or those for which a bank doesn't expect to collect interest or principal) made up 0.76% of total loans as of June 30, up slightly from 0.75% at the end of March and also at the end of June 2022.
Here's an FDIC chart showing the movement of loan quality and net charge-off from 2008 through the second quarter:
Noninterest income
The largest banks have broader business lines that can help them maintain earnings power even if the interest-rate environment is unfavorable. Noninterest income includes investment banking and trading revenue, as well as well as asset-management and custody fees. Here are available estimates and actuals for the largest 20 U.S. banks' noninterest income, in millions:
Bank Estimated noninterest income -- Q3, 2023 Noninterest income -- Q2, 2023 Noninterest income -- Q1, 2023 Noninterest income -- Q4, 2022 Noninterest income -- Q3, 2022 JPMorgan Chase & Co. $17,521 $19,657 $19,253 $14,153 $15,570 Bank of America Corp. $11,016 $11,563 $13,409 $10,787 $10,111 Citigroup Inc. $5,871 $5,483 $8,185 $5,308 $8,330 Wells Fargo & Co. $7,277 $8,307 $9,471 $30,054 $4,035 Goldman Sachs Group Inc. $9,583 $9,760 $10,522 $11,119 $8,933 Morgan Stanley $11,283 $11,482 $12,310 $10,670 $10,524 U.S. Bancorp $2,759 $2,647 $2,368 $2,139 $2,669 PNC Financial Services Group Inc. $1,940 $1,829 $2,037 $2,318 $1,757 Truist Financial Corp. $2,190 $2,355 $2,220 $2,229 $2,177 Charles Schwab Corp. N/A N/A N/A N/A N/A Capital One Financial Corp. $1,908 $1,886 $1,846 $1,777 $1,788 State Street Corp. $2,348 $2,228 $2,102 $2,105 $2,092 American Express Co. $12,163 $11,949 $11,298 $11,418 $10,978 Citizens Financial Group Inc. $522 $566 $490 $621 $501 First Citizens BancShares Inc. Class A $436 $599 $431 $425 $430 M&T Bank Corp. $559 $805 $570 $682 $623 Fifth Third Bancorp $725 $697 $647 $824 $668 Ally Financial Inc. #N/A $465 $456 $469 $296 KeyCorp $625 $592 $575 $649 $640 Huntington Bancshares Inc. $484 $450 $476 $499 $495
(MORE TO FOLLOW) Dow Jones Newswires
10-13-23 0522ET
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