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U.S. banks report huge Q2 losses on soured loans: Financial Times

LONDON
2023-08-11 09:23

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LONDON, Aug. 10 (Xinhua) -- Banks in the United States reported 18.9-billion-U.S. dollar losses on soured loans in the second quarter, hitting the highest level in more than three years, The Financial Times reported on Wednesday.

It came as "lenders contend with rising defaults among credit card and commercial real estate borrowers," the British newspaper said.

More than half of recent losses, it said, came from credit card lending. U.S. consumers have about 1 trillion dollars in credit card loans on which banks lost 10.7 billion dollars.

Losses on loans tied to commercial real estate that was not occupied by its owner also reached the highest amount in more than a decade, the daily said.

Moody's cut the credit rating of several smaller lenders this week, citing increased pressure on profitability from higher rates at a time when the quality of loans are deteriorating.
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