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ByKenSweet The Associated Press PHOENIX 2016 is getting off to a lousy start for ma- jor U.S. banks. Energy loans are turning bad, low inter- est rates are making it hard to make profitable loans, and markets have been vol- atile. On the bright side, first- quarter results from banks, which started coming out this week, haven't been quite as bad as many ana- lysts feared. Banks are still the worst-performing in- dustry in the stock market so far this year, however. The financial component of the Standard & Poor's 500 index is down 3.5 percent. Also, several banks found out this week they have a new regulatory headache: The Federal Reserve and the Federal Deposit Insur- ance Corporation told five major lenders that their proposed plans for how they would be wound down in the event of another finan- cial crisis aren't up to snuff. They have until October to file new plans. Here's a look at how bank earnings are shaping up so far: Oiltroubles The billions of dollars in oil loans the big banks made during the commod- ities boom have become the latest set of troubled as- sets on their books. JPMor- gan Chase, Bank of Amer- ica and Wells Fargo all said they had to set aside more money to cover bad energy loans last quarter, and ex- pect to continue to do so as long as oil prices remain low. Wells Fargo has some of the riskiest exposure among the banks. The San Francisco-based bank has $40.7 billion in total oil and gas exposure, with roughly three quarters of those loans being in some of the hardest hit areas: extrac- tion companies, oil field ser- vice companies, and drill- ers who operate under con- tract. JPMorgan's oil exposure is bigger than Wells Fargo's, but the type of loans are mostly made to stronger, investment-grade compa- nies. The bank still had to set aside $719 million in the quarter to cover potential defaults. Combined with a drop in trading, the loans caused JPMorgan to report its first quarterly profit de- cline in roughly two years. The news out of BofA was just as bad. The Charlotte, North Carolina-based bank has roughly $21.8 billion in energy exposure, with roughly a third of that be- ing to high-risk oil field ser- vices and exploration com- panies. The company had to set aside $595 million in the quarter to cover souring en- ergy loans. That said, the problems with oil loans on these banks' balances are mi- croscopic compared to the problems they had with res- idential mortgages during the financial crisis. Finan- cial analysts expect the oil loans to hurt bank profits for the foreseeable future, but the damage will be rel- atively small. Too hot, too cold Banks with sizeable trad- ing desks — JPMorgan and BofA specifically — typi- cally like to see more vol- atile markets because it boosts trading volume and profits. But last quarter's wild markets did the op- posite. JPMorgan's markets and trading revenue fell 13 per- cent from a year earlier, hurt by stock, bond and its derivative trading op- erations. BofA suffered the same fate, with its sales and trading revenue falling 16 percent to $3.3 billion in the quarter. Next week investors will get results from Goldman Sachs and Morgan Stanley, who typically have some of the skilled traders in the industry. Investors will be looking to see if those banks struggled along with their bigger, more diverse competitors. Consumer is fine While oil companies may be going belly up and trad- ing operations are flat, the businesses most exposed to the U.S. consumer are doing just fine. JPMorgan's consumer banking division, its larg- est business by revenue and profit, saw net income rise 12 percent from a year earlier while revenue was up 4 percent year over year. The bank was able to grow deposits and loans in the quarter, while con- tinuing to cut expenses. Wells Fargo and BofA ex- panded their consumer loan portfolios sizably in the quarter. Meanwhile, metrics that show consumers struggling to pay their loans continue to decline. Bank of Amer- ica's net charge-off ra- tio, which is how much of their loans they believe are not recoverable, fell to 0.82 percent from 0.95 percent a year earlier. The number of consumer loans at BofA that are 30 days or more past due fell to $3.8 billion from $4.4 billion a year ear- lier. Regulators Another potential source of worry for the big banks was the announcement by the FDIC and Federal Re- serve that BofA, Wells and JPMorgan all failed their so-called living wills. The banks were required to sub- mit the plans outlining how they would reshape them- selves in the event of fail- ure. FINANCE Lowratesandtroubledloanssendbankprofitslower CHARLESKRUPA—THEASSOCIATEDPRESS A customer stops at a Bank of America ATM in Boston. 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