Allowance for credit losses
Wells Fargo & Company Allowance for credit losses increased by 0.3% to $14.37B in Q1 2026 compared to the prior quarter. Year-over-year, this metric declined by 1.2%, from $14.55B to $14.37B. Over 5 years (FY 2020 to FY 2025), Allowance for credit losses shows a downward trend with a -6.2% CAGR. This increase may warrant attention — for this metric, lower values are generally preferred.
Analysis
How to read this metric
An increase suggests higher expected defaults or a more conservative risk assessment, while a decrease suggests improved borrower creditworthiness.
Detailed definition
A contra-asset account representing the estimated amount of uncollectible loans and receivables within the company's len...
Peer comparison
Standard for financial institutions; peers with higher-risk loan portfolios will typically maintain higher allowance ratios.
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 | Q1 '26 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Value | $16.39B | $14.71B | $13.79B | $12.68B | $12.88B | $13.23B | $13.61B | $13.71B | $14.79B | $15.06B | $15.09B | $14.86B | $14.79B | $14.74B | $14.64B | $14.55B | $14.57B | $14.31B | $14.34B | $14.37B |
| QoQ Change | — | -10.3% | -6.2% | -8.0% | +1.6% | +2.6% | +2.9% | +0.7% | +7.9% | +1.9% | +0.2% | -1.5% | -0.5% | -0.3% | -0.7% | -0.6% | +0.1% | -1.8% | +0.2% | +0.3% |
| YoY Change | — | — | — | — | -21.4% | -10.1% | -1.3% | +8.1% | +14.8% | +13.9% | +10.9% | +8.4% | +0.0% | -2.2% | -3.0% | -2.1% | -1.5% | -2.9% | -2.0% | -1.2% |
| % of Net loans | 2.0% | 1.7% | 1.6% | 1.4% | 1.4% | 1.4% | 1.4% | 1.5% | 1.6% | 1.6% | 1.6% | 1.6% | 1.6% | 1.6% | 1.6% | 1.6% | 1.6% | 1.5% | 1.5% | 1.4% |
| Share Change | — | -0.2pp | -0.2pp | -0.2pp | -0.0pp | +0.0pp | +0.0pp | +0.0pp | +0.1pp | +0.0pp | +0.0pp | -0.0pp | +0.0pp | +0.0pp | -0.0pp | -0.0pp | -0.0pp | -0.1pp | -0.1pp | -0.0pp |
Allowance for credit losses at Other Companies
Frequently Asked Questions
- What is Wells Fargo & Company's allowance for credit losses?
- Wells Fargo & Company (WFC) reported allowance for credit losses of $14.37B in Q1 2026.
- How has Wells Fargo & Company's allowance for credit losses changed year-over-year?
- Wells Fargo & Company's allowance for credit losses decreased by 1.2% year-over-year, from $14.55B to $14.37B.
- What is the long-term trend for Wells Fargo & Company's allowance for credit losses?
- Over 5 years (2020 to 2025), Wells Fargo & Company's allowance for credit losses has grown at a -6.2% compound annual growth rate (CAGR), from $19.71B to $14.34B.
- What does allowance for credit losses mean?
- The reserve set aside to cover potential losses from loans that may not be repaid.