Systemic US banks drew down credit reserves in Q4

Wall Street’s largest banks added near $2 billion to their fourth-quarter earnings by releasing reserves held to protect against future credit losses. Still, over 2020 as a whole they collectively set aside $64.6 billion of income as provisions for credit losses (PCLs), triple the 2019 amount.

JP Morgan reversed $1.9 billion of PCL in Q4, a sum that helped it to its highest-ever quarterly profit. However, the release paled in comparison to the $19.4 billion of PCL taken over the preceding three

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