S&P predicts U.S. banks a year without profit

Economic impact of a pandemic coronavirus will completely destroy the profits of American banks in 2020. This option is provided in the worst scenario of development of events compiled by S&P Global Ratings.

the Agency estimated that under this option, 65 the creditors will receive an aggregate net loss of approximately $15 billion against profit in the amount of approximately $195 billion last year. “Extremely adverse scenario,” S&P assumes the distribution of the economic effect on all industries and the most dramatic in the history of the decline in consumer spending.

When implementing a less tragic scenario the impact of a pandemic will be limited to already affected at the moment sectors: tourism, entertainment industry. In this case the profit of credit organizations in 2020 will fall by about half to $100 billion, I believe S&P.

the Agency clarify that the stress scenarios are hypothetical. This is not the current expectations on economic performance, and only speculation about what could happen. The real effect is yet to assess problematic: too little data, say S&P.