Economics
Wells Fargo Sets Aside the Most for Loan Losses in a Decade
- Net income plunges 89% as bank posts $4 billion in provisions
- Bank joins JPMorgan in setting aside billions for loan losses
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Wells Fargo & Co.’s credit costs surged in the first quarter, previewing a tough year at the helm for new Chief Executive Officer Charlie Scharf as the coronavirus pandemic brings the U.S. economy to a virtual standstill.
The firm set aside $4 billion in loan-loss provisions in the first quarter, almost five times what it allocated a year ago and the most in a decade. That contributed to an 89% drop in net income.