Wells Fargo’s reported its first quarterly loss since since 2008 on Tuesday, with its loan-loss provisions rising sharply due to the fallout of the coronavirus pandemic.
The bank lost $2.4 billion in the second quarter, or $0.66 per share, vs. profits of $6.2 billion, or $1.30 per share, a year ago and $653 million, or $0.01 per share, in the first quarter.
Wells Fargo set aside $9.57 billion in Q2 for potential loan losses, more the doubling the $3.83 billion it put aside in the prior quarter.
Its total revenues were $17.8 billion in Q2, up slightly from $17.7 billion in Q1, but down from $21.6 billion in the year-ago quarter.
Meanwhile, JPMorgan said it had set aside $10.47 billion for credit losses in Q2, higher than its $8.6 billion in loan-loss provisions from early 2009. It reported quarterly profits of $4.69 billion on adjusted revenues of $33.82 billion.