Allowance for credit losses
Bank of America Allowance for credit losses decreased by 0.5% to $14.31B in Q1 2026 compared to the prior quarter. Year-over-year, this metric declined by 0.4%, from $14.37B to $14.31B. Over 5 years (FY 2020 to FY 2025), Allowance for credit losses shows a downward trend with a -7.0% 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 outlook, while a decrease suggests improved credit quality or a more optimistic outlook.
Detailed definition
This is a contra-asset account representing the management's estimate of the amount of credit losses expected to be incu...
Peer comparison
Comparable to CECL (Current Expected Credit Loss) reserves at other US financial institutions.
other_financing_receivable_excluding_accrued_interest_an_f5bdddHistorical 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 | $13.84B | $13.48B | $13.43B | $13.82B | $14.22B | $13.95B | $14.34B | $14.64B | $14.55B | $14.37B | $14.34B | $14.35B | $14.34B | $14.37B | $14.43B | $14.36B | $14.38B | $14.31B |
| QoQ Change | — | -2.6% | -0.4% | +2.9% | +2.9% | -1.9% | +2.8% | +2.1% | -0.6% | -1.2% | -0.2% | +0.1% | -0.1% | +0.2% | +0.5% | -0.5% | +0.1% | -0.5% |
| YoY Change | — | — | — | — | +2.7% | +3.5% | +6.7% | +6.0% | +2.3% | +3.0% | +0.0% | -2.0% | -1.5% | -0.0% | +0.6% | +0.1% | +0.3% | -0.4% |
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 $14.31B 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 0.4% year-over-year, from $14.37B to $14.31B.
- 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 -7.0% compound annual growth rate (CAGR), from $20.68B to $14.38B.
- What does allowance for credit losses mean?
- The reserve set aside to cover expected losses from loans that may not be repaid.