Data Snacks, Member Exclusive

Data Snack: Banks’ Q2 earnings reports reveal losses in corporate lending

  • Six of the top US banks have so far revealed corporate lending losses in their recent earnings reports, amounting to $1.32 billion altogether.
  • The numbers paint a foreboding picture of what’s happening in the market right now.
close

Email a Friend

Data Snack: Banks’ Q2 earnings reports reveal losses in corporate lending

Six of the big US banks recently published their Q2 earnings reports, exposing some surprising numbers regarding corporate lending.

Bank of America, Morgan Stanley, JPMorgan Chase, Goldman Sachs, Citigroup, and Wells Fargo all reported losses in the corporate lending space – with Bank of America reporting the biggest loss at $320 million.

Altogether, these banks' corporate loan losses totaled $1.32 billion.

The update marks quite a shift in tone compared to early this year, when demand for business lending was at a high, according to the Fed's quarterly Senior Loan Officer Opinion Survey in January.

The sudden change has left banks in an awkward situation, where they’ve bulked up their corporate lending game in response to a vibrant market earlier this year, but aren’t able to actually reap any benefits. Banks still currently have around $80 billion worth of deals to offload.

It looks like these lenders are taking steps to offset the situation. Bank of America's chief financial officer Alastair Borthwick said the bank has no more deals in the pipeline to underwrite, and JPMorgan Chase has been reducing market share since last year.

Still, the losses may signify a serious downturn in the market – with investors shying away from investing and businesses shying away from business-ing. 

The overall atmosphere feels in line with 'the party’s over folks, time to go home', leaving banks all dressed up with nowhere to go.

0 comments on “Data Snack: Banks’ Q2 earnings reports reveal losses in corporate lending”

10-Q, Member Exclusive

Guilty or not guilty: Deutsche Bank is ready to pay $75 million in Epstein settlement

  • Deutsche Bank hasn’t come clean about its involvement with the Epstein crime. However, the bank addressed the situation by saying that it has strengthened and invested in its anti-financial crime controls.
  • Upstart is up almost 80% in 2023 so far. The news of multiple funding agreements being worked on by the company rebounded the stock nearly 47% in a week.
Sara Khairi | May 22, 2023
Banking, Lending, Member Exclusive

Unlicensed lending, misleading practices, and legal actions: Is SoLo Funds in trouble?

  • Attorney General for the District of Columbia and the California DFPI have penalized SoLo Funds for breaching a number of consumer protection laws.
  • The DFPI also issued a consent order for the Black-owned firm, which is raising eyebrows and more questions.
Sara Khairi | May 17, 2023
10-Q, Member Exclusive

Robinhood’s losses override revenue, PayPal’s stock dips, while Dave delivers more than expected in Q1

  • Everything investors need to know about Robinhood, PayPal, and Dave’s Q1 2023 earnings.
  • Some important fintech stocks are on the path to recovery, while others crashed on Q1 earnings.
Sara Khairi | May 15, 2023
10-Q, Member Exclusive

PacWest nearing collapse comes hard on the heels of the First Republic crash

  • The bank crisis is nowhere near the end -- what's next for First Republic, PacWest, and bank stocks at large?
  • MoneyLion stock has gained 34% in the past week ahead of its upcoming Q1 2023 financial results.
Sara Khairi | May 08, 2023
10-Q, Member Exclusive

Visa vs. Mastercard: Who had a stronger quarter?

  • Quarterly results of both payment leaders are out, indicating resilient consumer spending throughout the period.
  • MoneyLion has approved a 1-for-30 reverse stock split of MoneyLion’s Class A common stock.
Sara Khairi | May 01, 2023
More Articles