Largest US Banks Grapple With Worst Write-Offs in Three Years
- Net interest income, new capital requirements also in focus
- Investment-banking revenue expected to drop on M&A slump
Worsening credit quality suggests banks may have to set aside more money to cover sour loans.
Photographer: Stephanie Keith/BloombergThis article is for subscribers only.
The biggest US banks are poised to write off more bad loans than they have since the early days of the pandemic as higher-for-longer interest rates and a potential economic downturn are putting borrowers in a bind.
JPMorgan Chase & Co., Citigroup Inc. and Wells Fargo & Co., which report third-quarter results Friday, will join Bank of America Corp. — which comes Tuesday — in posting roughly $5.3 billion in combined third-quarter net charge-offs, the highest for the group since the second quarter of 2020, according to data compiled by Bloomberg.