How do you interpret commercial banking — provision for loan and lease losses?

An increase may signal deteriorating credit quality or portfolio growth, while a decrease suggests improved credit conditions or lower risk expectations.

How does commercial banking — provision for loan and lease losses compare across companies?

Standard credit risk metric for all lending institutions.

UMB Financial UMBF Commercial Banking — Provision For Loan And Lease Losses

Discontinued — last reported Q4 '19

Similar metrics at other companies

HBANCommercial Banking — Provision for loan and lease losses

-$34M-139%

FCNCACommercial Banking — Provision for Credit Losses

$14M-73.6%

WBSCommercial Banking — Provision for Credit Losses

$48.81M+19.0%

MTBCommercial Banking — Provision For Loan And Lease Losses

$74.25M+350%

CFGCommercial Banking — Provision expense (benefit) for loans and leases

$12M-88.1%

WBSCommercial Banking — Provision for Loan and Lease Losses

$34.5M+1,533%

Other financials

Income statement

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Revenue$739.2M+31.1%

Net income$261.4M+221%

EPS (diluted)$3.35+177%

Balance sheet

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Total debt$477.2M-27.1%

Total equity$7.8B+16.0%

Total assets$72.7B+4.8%

Cash flow

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Operating cash flow$361.3M-0.5%

CapEx$4.5M-48.8%

Free cash flow$356.8M+0.7%

Valuation

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Market cap$10.11B+16.9%

P/E11.5×-9.5×

P/S3.6×-1.2×

Profitability

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Net margin31.2%+8.2pp

FCF margin34.7%—

Returns & leverage

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Return on equity12.1%+3.8pp

Debt / equity0.1×0.0×

Where this comes from

Reported directly by UMB Financial in its filing.

Tagged under the XBRL concept us-gaap:ProvisionForLoanAndLeaseLosses.

The official record: UMB Financial’s 10-K, filed February 27, 2020, on SEC EDGAR. View the filing →

Questions, answered.

What does commercial banking — provision for loan and lease losses mean?: The amount of money the commercial banking segment sets aside to cover potential loan defaults.
How do you interpret commercial banking — provision for loan and lease losses?: An increase may signal deteriorating credit quality or portfolio growth, while a decrease suggests improved credit conditions or lower risk expectations.
How does commercial banking — provision for loan and lease losses compare across companies?: Standard credit risk metric for all lending institutions.