5 Key Takeaways from Q2 Bank Earnings Season
An eventful second-quarter earnings season is now in the books for banks, with many beating consensus estimates. The second quarter featured a particularly bleak three-month period of the coronavirus pandemic that included a large chunk of time spent sheltering in place for many states in the U.S. There is still a good deal of uncertainty about how much banks will struggle before the pandemic ends, which is why the sector is lagging behind the general market. But here are five big takeaways from this recent earnings season.
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The second quarter was one of the worst economic quarters of the 21st century, yet banks are still not seeing a significant rise in charge-offs (debt unlikely to be collected). JPMorgan Chase's (NYSE: JPM) net charge-offs as a percentage of total loans was 0.64%, up just two basis points (0.02%) from the linked quarter and four basis points from the second quarter of 2019 . Wells Fargo (NYSE: WFC) saw its net charge-offs increase 64% year over year, but it still only makes up 0.46% of total loans. Wells Fargo was also one of the worst-performing banks in the quarter, reporting a $2.4 billion loss .
Source Fool.com
