tyb
U.S. bank profits plunge 70% on coronavirus loss provisioning
U.S. bank profits fell by 69.6% to $18.5 billion in the first quarter of 2020 from the year prior as banks felt the economic impact of the novel coronavirus pandemic, according to data from a banking regulator.
The Federal Deposit Insurance Corporation reported that “deteriorating economic activity” caused lenders to write off delinquent debt and set aside billions of dollars to guard against future losses. Over half of all banks reported a profit decline, and 7.3% of lenders were unprofitable. The new report, the first government survey of the industry since the pandemic shut down large parts of the economy, shows banks set aside $38.8 billion to cover potential loan losses in the future, up nearly 280% from the year prior. The amount of loans banks charged off as delinquent was up nearly 15%, driven by an 87% increase in charge-offs for commercial and industrial loans.
The amount of non-current loans rose 7.3% from the previous quarter, the biggest increase since 2010.
Despite the setbacks, FDIC Chairman Jelena McWilliams said banks had been able to effectively serve clients in the downturn, and were a “source of strength for the economy.” “The FDIC was born out of a crisis, and we now find ourselves in the midst of another unprecedented period,” she told reporters.
As many investors cashed out of the stock market, banks saw a $1.2 trillion, or 8.5%, spike in deposits from the previous quarter. Loan balances also jumped as companies tapped credit lines with banks, led by a 15.4% increase in commercial and industrial loans.
The total number of “problem banks” monitored by the FDIC increased for the first time since 2011, growing from 51 to 54 firms in the first quarter.
and you have to have reeeeeally BIG problems to even get on this list….because they don't even want you to know that banking could have some "issues".
https://www.reuters.com/article/us-usa-fdic-results/u-s-bank-profits-plunge-70-on-coronavirus-loss-provisioning-idUSKBN23N2GT
chek't
Japan's exports fall most since 2009 as virus hits US shipments
Japan's exports fell in May at the fastest pace since the 2009 global financial crisis as U.S.-bound car shipments plunged, bolstering expectations for a deep contraction in the world's third-largest economy this quarter. Weak global demand for cars and slowing business spending could drag on Japan's export-led economy, even as China-bound trade shows signs of picking up and U.S. and European economies reopen.
The trade data came a day after the Bank of Japan increased its support through lending schemes for struggling businesses to $1 trillion.
Ministry of Finance (MOF) data out Wednesday showed Japan's exports fell 28.3% in the year to May, worse than a 26.1% decrease expected by economists in a Reuters poll.
That followed a 21.9% decline in April and marked the biggest annual drop since September 2009. U.S.-bound exports - Japan's key market – halved to mark the biggest annual drop since March 2009, due to more than 70% declines in shipments of cars and car parts, the trade data showed.
Exports to China, Japan's largest trading partner, fell 1.9% in the year to May, a smaller drop than the prior month's 4% annual decline.
Shipments to Asia, which account for more than half of Japanese exports, declined 12%, and exports to the European Union also fell 33.8%.
Japan's economy slipped into recession for the first time in 4-1/2 years in the first quarter and is on course for its deepest postwar slump as the pandemic ravages businesses and consumers.
Analysts warn of an even bleaker picture for the current quarter as consumption crumbled after the government requested citizens to stay home and businesses to close. Overall imports fell 26.2% in the year to May, versus the median estimate for a 20.4% decrease, posting the biggest drop since October 2009.
As a result, the trade balance came to a deficit of 833.4 billion yen ($7.77 billion), versus the median estimate for a 1.07 trillion yen shortfall.
https://asia.nikkei.com/Economy/Trade/Japan-s-exports-fall-most-since-2009-as-virus-hits-US-shipments