Provision for Credit Loss It is earnings season and I want you to look into annual report of bank of America and Citigroup. Using the last five years of Bank of America and Citigroup annual report, let us discuss the impact of loan loss provision on earnings per share. Please pay attention to provision for credit loss for both banks, Both banks overbooked profit by taking smaller provision for loan losses, but one bank overbooked Profit more than the other. calculate and graph provision of credit losses over total assets. Financial institutions legally can massage the earnings per share by taking smaller provision for anticipated credit losses over the next quarterly reporting period. Regulator allows the financial institution to set aside 1.25 percent of core capital as provision for loan losses. Which bank overbooked profit? You can answer this question by looking at the ratio of credit provision over total assets. Write a brief evaluation.