BAS September 2022 Presentations

Provisions Decimated Earnings During the Financial Crisis

All Commercial Banks in the U.S.

1.00%

Net Income/ Average Assets

0.80%

0.60%

0.40%

0.20%

Provisions/ Average Assets

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Impact of AQ Issues on Earnings

Nonearning Assets (nonaccrual loans, OREO)

Provisions

Collection Expenses (legal fees, staffing)

Earnings can be affected by excessive or inadequately managed credit risk that may result in loan losses. “ ” ‐ FFIEC Uniform Financial Institution Rating System

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