Allowance for credit losses
Bank of America Allowance for credit losses decreased by 0.4% to $13.15B in Q1 2026 compared to the prior quarter. Year-over-year, this metric declined by 0.8%, from $13.26B to $13.15B. Over 5 years (FY 2020 to FY 2025), Allowance for credit losses shows a downward trend with a -6.8% CAGR. This is a positive signal — lower values indicate better performance for this metric.
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
| 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 | $12.39B | $12.10B | $11.97B | $12.30B | $12.68B | $12.51B | $12.95B | $13.29B | $13.34B | $13.21B | $13.24B | $13.25B | $13.24B | $13.26B | $13.29B | $13.25B | $13.20B | $13.15B |
| QoQ Change | — | -2.3% | -1.1% | +2.7% | +3.1% | -1.3% | +3.5% | +2.6% | +0.4% | -1.0% | +0.2% | +0.1% | -0.1% | +0.1% | +0.3% | -0.3% | -0.4% | -0.4% |
| YoY Change | — | — | — | — | +2.4% | +3.4% | +8.2% | +8.0% | +5.2% | +5.6% | +2.2% | -0.3% | -0.8% | +0.3% | +0.4% | +0.0% | -0.3% | -0.8% |
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 $13.15B in Q1 2026.
- How has Bank of America's allowance for credit losses changed year-over-year?
- Bank of America's allowance for credit losses decreased by 0.8% year-over-year, from $13.26B to $13.15B.
- 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 -6.8% compound annual growth rate (CAGR), from $18.80B to $13.20B.
- What does allowance for credit losses mean?
- The reserve set aside to cover potential losses from loans that may not be repaid.