trending Market Intelligence /marketintelligence/en/news-insights/trending/r4uRSPoyduq61ZKL8cXOhQ2 content
Log in to other products

Login to Market Intelligence Platform


Looking for more?

Contact Us

Request a Demo

You're one step closer to unlocking our suite of comprehensive and robust tools.

Fill out the form so we can connect you to the right person.

If your company has a current subscription with S&P Global Market Intelligence, you can register as a new user for access to the platform(s) covered by your license at Market Intelligence platform or S&P Capital IQ.

  • First Name*
  • Last Name*
  • Business Email *
  • Phone *
  • Company Name *
  • City *
  • We generated a verification code for you

  • Enter verification Code here*

* Required

Thank you for your interest in S&P Global Market Intelligence! We noticed you've identified yourself as a student. Through existing partnerships with academic institutions around the globe, it's likely you already have access to our resources. Please contact your professors, library, or administrative staff to receive your student login.

At this time we are unable to offer free trials or product demonstrations directly to students. If you discover that our solutions are not available to you, we encourage you to advocate at your university for a best-in-class learning experience that will help you long after you've completed your degree. We apologize for any inconvenience this may cause.

In This List

Banks over $50B refine CECL estimates

Street Talk - Ep. 64: Coronavirus jumpstarts digital adoption

Street Talk Podcast

Street Talk - Ep. 63: Deal talks continue amid bank M&A freeze, setting up for strong Q4

Street Talk Podcast

Street Talk - Ep. 62: 'Brutal' outlook for oil demand offers banks in oil patch no relief

Amid Q1 APAC Fintech Funding Slump, Payment Companies Drove Investments

Banks over $50B refine CECL estimates

Every U.S. bank holding company with more than $50 billion in assets has disclosed how a new accounting standard will impact loan loss reserves, a review of regulatory filings shows.

Several of the nation's largest banks have provided multiple disclosures over the last year on the effect of the current expected credit loss, or CECL, accounting standard. The vast majority of banks project a significant increase in loan loss reserves to comply with the standard.

Most of the banks with multiple disclosures have reiterated their initial estimates or narrowed an estimate range in the latest disclosures. Bank of America Corp. was an exception, meaningfully changing its estimate. In the bank's most recent disclosure, executives predicted an increase of "up to approximately 30%" in the bank's allowance for credit losses. Three months earlier, management projected a reserve build of "up to 20%." The bank attributed the jump to refinements in its model and to certain loan sales.

SNL Image

JPMorgan Chase & Co. has stuck to its forecast of a $4 billion to $6 billion build in its allowance. That would represent a 30% to 45% increase from the bank's third-quarter 2019 loan loss reserve total. Citigroup Inc. also stuck to its range of an expected 20% to 30% build in its credit loss reserves.

A handful of banks are projecting decreases to loss allowances rather than increases. Wells Fargo & Co. expects to record a reserve release of $1.4 billion, changed slightly from from an initial projection of a release of $1.5 billion.

Some banks have narrowed their estimate ranges as the implementation date approaches. For example, PNC Financial Services Group Inc. pegged its expected impact as a 20% increase in the bank's most recent disclosure, compared to an earlier range of 15% to 25%. Similarly, Regions Financial Corp. expects CECL adoption will require an increase of $500 million to $600 million in its allowance for credit losses, tightened from a previous disclosure for a $400 million to $600 million increase.

SNL Image