Discontinued — last reported Q4 '23
Allowance for credit losses
Non-Current AssetsBank of America Allowance for credit losses decreased by 76.2% to $3.42B in Q4 2025 compared to the prior quarter. Year-over-year, this metric declined by 1.4%, from $3.46B to $3.42B. Over 5 years (FY 2020 to FY 2025), Allowance for credit losses shows a downward trend with a -6.2% CAGR. This is a positive signal — lower values indicate better performance for this metric.
Analysis
How to read this metric
An increase suggests management expects higher future defaults or a worsening economic environment, while a decrease suggests improved credit quality.
Detailed definition
This is a contra-asset account representing the bank's estimate of the portion of its loan portfolio that will not be co...
Peer comparison
A standard regulatory and accounting requirement for all lending institutions to reflect credit risk.
bank_allowance_for_credit_lossesHistorical Data
| Q2 '21 | Q3 '21 | Q4 '21 | Q1 '22 | Q2 '22 | Q3 '22 | Q4 '22 | Q1 '23 | Q2 '23 | Q3 '23 | Q4 '23 | Q1 '24 | Q2 '24 | Q3 '24 | Q4 '24 | Q1 '25 | Q2 '25 | Q3 '25 | Q4 '25 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Value | $1.69B | $1.54B | $3.10B | $1.38B | $1.46B | $1.52B | $3.50B | $12.51B | $12.95B | $14.64B | $3.52B | $13.21B | $13.24B | $14.35B | $3.46B | $13.26B | $13.29B | $14.36B | $3.42B |
| QoQ Change | — | -8.8% | +101.4% | -55.5% | +5.9% | +3.7% | +131.2% | +257.2% | +3.5% | +13.1% | -76.0% | +275.6% | +0.2% | +8.4% | -75.9% | +282.8% | +0.3% | +8.1% | -76.2% |
| YoY Change | — | — | — | — | -13.4% | -1.5% | +13.1% | +807.5% | +786.4% | +866.3% | +0.4% | +5.6% | +2.2% | -2.0% | -1.6% | +0.3% | +0.4% | +0.1% | -1.4% |
| % of Net loans | 0.2% | 0.2% | 0.3% | 0.1% | 0.1% | 0.1% | 0.3% | 1.2% | 1.2% | 1.4% | 0.3% | 1.3% | 1.3% | 1.4% | 0.3% | 1.2% | 1.2% | 1.2% | 0.3% |
| Share Change | — | -0.0pp | +0.2pp | -0.2pp | +0.0pp | +0.0pp | +0.2pp | +0.9pp | +0.0pp | +0.2pp | -1.1pp | +0.9pp | -0.0pp | +0.1pp | -1.0pp | +0.9pp | -0.0pp | +0.1pp | -1.0pp |
Allowance for credit losses at Other Companies
Frequently Asked Questions
- What is Bank of America's allowance for credit losses?
- Bank of America (BAC) reported allowance for credit losses of $3.42B in Q4 2025.
- How has Bank of America's allowance for credit losses changed year-over-year?
- Bank of America's allowance for credit losses decreased by 1.4% year-over-year, from $3.46B to $3.42B.
- What is the long-term trend for Bank of America's allowance for credit losses?
- Over 5 years (2020 to 2025), Bank of America's allowance for credit losses has grown at a -6.2% compound annual growth rate (CAGR), from $4.70B to $3.42B.
- What does allowance for credit losses mean?
- The amount of money set aside to cover potential losses from loans that may not be repaid.