• Fed: Banks reported higher losses than in 2023 stress test as bank balance sheets are riskier and expenses are higher.
• US Federal Reserve stress test shows large US banks are well positioned to weather severe recession and stay above minimum capital requirements.
• Fed: Thirty-one large US banks reported nearly $685 billion in losses under 2024 Fed stress test, but capital remained well above regulatory minimums.
• Fed: Bank corporate credit portfolios have become riskier as banks downgrade loans, driving higher test losses.
• Fed: Higher expenses and lower fee income also contributed to steeper stress test losses.
• Fed: Increases in bank credit card balances and higher delinquency rates drove greater hypothetical losses.
• Fed: Charles Schwab, Bank of New York Mellon, JPMorgan Chase, and Morgan Stanley among strongest performing banks.
• Fed: BMO, Citizens Financial, and HSBC saw lowest capital ratios under stress test.
• Banks permitted to report capital plans to investors beginning Friday afternoon after US market close: Fed official.