The country's fourth-largest bank by assets on Tuesday posted its first quarterly loss in more than a decade, slashed its dividend by more than expected and put aside close to $10 billion in anticipation of a wave of loan defaults.
The San Francisco-based bank reported a net loss of $2.4 billion, or 66 cents a share, for the second quarter, vs. income of $6.2 billion, or $1.30 a share, in the comparable year-earlier quarter. Analysts polled by FactSet had been looking for a loss of 16 cents a share.
Revenue came in at $17.8 billion, down from $21.6 billion in the second quarter of 2019.
It also said it set aside $6.03 billion for potential loan losses in its commercial banking unit and another $3.38 billion for potential losses in its consumer-bank unit in preparation for what it anticipates will be a wave of loan defaults.
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