The country’s largest banks by assets have allocated nearly $ 30 billion to cover losses related to COVID-19, a list of recently released plans shows.
The number includes the decision made by JP Morgan Chase, announced today and made by. was reported The Wall Street Journalto allocate $ 10.47 billion for COVID-19 losses.
To put the figure in context: A year ago JP MorganThe comparable provision for loan losses was $ 1.2 billion. The increase is $ 9.3 billion, or nearly eight times that.
In a statement posted on the bank’s website on Tuesday (July 14), the chairman and CEO said Jamie Dimon said: “Despite some positive macroeconomic data recently and significant and determined government action, we still face great uncertainties about the future of the economy. However, we are prepared for any eventuality as our fortress record allows us to be a port to stay in the region storm. “
Wells Fargo & Co. previously said it is allocating $ 10 billion to cover losses related to COVID-19. And Citigroup has set aside $ 8 billion, according to the Journal.
The Federal Reserve warned in mid-May that banks could suffer huge losses due to the economic consequences.
Bank analysts said The Wall Street Journal last week that the sector has become unpredictable in part due to the leniency program bankers are showing borrowers during the pandemic.
The impact of COVID-19 on banks at the local level is increasing in some areas. In one example, this is Orlando Business Journal reported Monday (July 13) that Bank of America had temporarily closed dozens of branches across the city due to the surge in the virus.