Wells Fargo Increases Loan Loss Provisions

Wells Fargo shared that they set aside $4 billion in loan-loss provisions in Q1 2020, a number five times that of what the bank had allocated the year prior; according to American Banker, this contributed to an 89% drop in net income from the same quarter in 2019; the loan loss provisions take into account an accounting rule which required banks to recognize potential losses more quickly; many are watching bank earnings closely to get a feeling for the impact of the coronavirus on the economy; Wells Fargo, like many banks is offering grace periods to those with mortgages and is also working to help their employees during these challenging times. American Banker

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