Provision for Credit Losses
Operating ExpensesBank of America Provision for Credit Losses increased by 1.0% to $1.31B in Q4 2025 compared to the prior quarter. Year-over-year, this metric declined by 9.9%, from $1.45B to $1.31B. Over 4 years (FY 2021 to FY 2025), Provision for Credit Losses shows an upward trend with a 5.4% CAGR. This is a positive signal — lower values indicate better performance for this metric.
Analysis
StatementIncome Statement
SectionOperating Expenses
CategoryRisk
SignalLower is better
VolatilityVolatile
First reportedQ1 2015
Last reportedQ3 2025
How to read this metric
An increase signals management's expectation of deteriorating credit quality or economic headwinds, while a decrease suggests improving credit conditions.
Detailed definition
An expense charged to the income statement to maintain the allowance for loan and lease losses at a level management dee...
Peer comparison
Standard risk metric for all lending institutions; highly comparable across the banking industry.
Metric ID:
is_provision_for_credit_lossesHistorical Data
19 periods
| 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 | -$1.62B | -$624.00M | -$489.00M | $30.00M | $523.00M | $898.00M | $1.09B | $931.00M | $1.13B | $1.23B | $1.10B | $1.32B | $1.51B | $1.54B | $1.45B | $1.48B | $1.59B | $1.30B | $1.31B |
| QoQ Change | — | +61.5% | +21.6% | +106.1% | >999% | +71.7% | +21.6% | -14.7% | +20.8% | +9.7% | -10.5% | +19.5% | +14.3% | +2.3% | -5.8% | +1.9% | +7.6% | -18.7% | +1.0% |
| YoY Change | — | — | — | — | +132.3% | +243.9% | +323.3% | >999% | +115.1% | +37.4% | +1.1% | +41.7% | +34.0% | +25.0% | +31.5% | +12.2% | +5.6% | -16.0% | -9.9% |
Range-$1.62B – $1.59B
CAGR-4.7%
Avg YoY Growth+265.4%
Median YoY Growth+34.0%
Provision for Credit Losses at Other Companies
Frequently Asked Questions
- What is Bank of America's provision for credit losses?
- Bank of America (BAC) reported provision for credit losses of $1.31B in Q4 2025.
- How has Bank of America's provision for credit losses changed year-over-year?
- Bank of America's provision for credit losses decreased by 9.9% year-over-year, from $1.45B to $1.31B.
- What is the long-term trend for Bank of America's provision for credit losses?
- Over 4 years (2021 to 2025), Bank of America's provision for credit losses has grown at a 5.4% compound annual growth rate (CAGR), from -$4.59B to $5.68B.
- What does provision for credit losses mean?
- The amount of money set aside to cover potential losses from loans that may not be repaid.