The profits of the American banks declined by 69.6% to reach $ 18.5 billion in the first quarter of 2020 compared to the same period last year; In light of the repercussions of the pandemic Corona Virus.
According to Arabiya Net, the Deposit Insurance Corporation said that the deterioration of economic activity had caused banks to write off bad debts and allocate billions of dollars to cover future losses. >
More than half of the US banks reported a decline in profits, while 7.3% of banks reported no profits.
The new report, the first government survey of the banking sector since the pandemic, shows that banks set aside $ 38.8 billion to cover potential loan losses in the future, an increase of about 280% from the quarter. The first of the previous year.
With many investors taking profit-taking sales in the stock market, American banks saw a jump of $ 1.2 trillion, or 8.5%, in deposits in the first quarter, compared to Previous three months.
