Biggest US banks report bad debts worth $24.4 billion

A consortium of major United States banks is poised to register a substantial surge in nonperforming or delinquent loans — indebtedness linked to borrowers who have not made any payments for a minimum of 90 days.

Bloomberg analysts project that bad debts at the four largest American banks (JPMorgan Chase, Bank of America, Wells Fargo, and Citigroup) are anticipated to climb to $24.4 billion over the next three months, marking a significant escalation from nearly $6 billion at the conclusion of 2022.

Overall, the profits of the six leading banks — which include the aforementioned four, along with Goldman Sachs and Morgan Stanley — are forecasted to experience an average decline of 13% in the final quarter of 2023 on an annual basis.

This pronounced uptick in the value of bad loans poses a potential threat to the burgeoning optimism among investors regarding the prospects of these banks, reports Al-Anba daily.

Analysts’ predictions suggest a downturn in bank profits for the last quarter of the previous year due to the upswing in these nonperforming loans, coupled with the sustained impact of elevated interest rates, which has inflated the cost of deposits.

Read Today's News TODAY...
on our Telegram Channel
click here to join and receive all the latest updates

Back to top button