Loan Loss Provision

Loan Loss Provision

A non-cash expense for banks to account for future losses on loan defaults. Banks assume that a certain percentage of loans will default or become slow-paying. Banks enter a percentage as an expense when calculating their pre-tax incomes. This guarantees a bank's solvency and capitalization if and when the defaults occur. The loan loss provision allocated each year increases with the riskiness of the loans a given bank makes. A bank making a small number of risky loans will have a low loan loss provision compared to a bank taking higher risks.
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Excluding the after tax impact of the negative loan loss provision, net income would have been USD4.
Results were driven by strong core business performance, effective asset and liability management and reduction in loan loss provision, the bank said in a statement.
Determinants of Signaling by Banks through Loan Loss Provision.
The bank holds a non-specific loan loss provision of RO40.
05 million in "other operating expenses," of which there were only $792,000 in all of 2000; and a loan loss provision of $798,000, almost five times the loan loss provision at mid-2000.
Suffolk increased its loan loss provision by more than three times the amount it had set aside a year earlier.
4bn, has said that it will record a special loan loss provision of USD25m during the third quarter of 2011, related to its USD76.
The loan loss provision for the quarter was raised to $586,000 from $291,000.
3 million in loan loss provision and $727,000 in provision for loss on real estate owned), compared to a total of $8.
Earnings Significantly Lower From Huron Valley State Bank Expansion and Loan Loss Provision
Loan loss provision was $3,219,000 for 1992 compared to $4,674,000 in 1991.
The company's profitability has remained strong, owing to a rapidly expanding asset base, tight non-interest cost control and historically low provisioning, but also challenged by narrowing margins, branch expansion, growing loan loss provision and the increasingly competitive environment.