Divergent Credit Loss Trends Hit Global Banking Reserves
HSBC expanded its expected credit loss allowance while Bank of America and UBS saw reserves contract.
HSBC Holdings (HSBC) expanded its allowance for expected credit losses to $12.0bn. This figure represents an increase of $0.8bn compared with 31 December 2025, a movement that included write-offs of $0.7bn and favorable foreign exchange movements of $0.1bn.
Other global players moved in the opposite direction. Bank of America (BAC) reduced its allowance for credit losses by $71 million from December 31, 2025.
This adjustment brought the Bank of America reserve level to $14.3 billion as of March 31, 2026.
UBS Group (UBS) also realized a reduction in its reserves.
Stage 3 for UBS reflected a small net release during the quarter. The bank attributed this result to a repayment recorded across both the Investment Bank and Non-core and Legacy segments.
These shifting reserve levels highlight a fragmented credit outlook across the major global lenders.
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