Three of America’s largest banks are writing off a mixed $5.6 billion in dangerous loans within the first quarter as US bank card debt climbs to a brand new report excessive.
In accordance with first-quarter earnings stories, JPMorgan Chase recorded $2.3 billion in web charge-offs, Citigroup posted $2.2 billion of web credit score losses, and Wells Fargo reported $1.106 billion of web charge-offs within the first three months of 2026.
JPMorgan mentioned firmwide credit score prices totaled $2.5 billion, together with the $2.3 billion in web charge-offs whereas Citigroup mentioned its U.S. Private Banking enterprise recorded a $2.1 billion provision for credit score losses, together with $1.742 billion of web credit score losses in U.S. branded playing cards and retail companies. Different Citi companies additionally added to the corporate’s complete web credit score losses.
Regardless of the dangerous loans, JPMorgan Chase CEO Jamie Dimon says the US financial system is remaining resilient.
“The U.S. financial system remained resilient within the quarter, with shoppers nonetheless incomes and spending and companies nonetheless wholesome. A number of tailwinds are supporting this resiliency, together with elevated fiscal stimulus, the advantages of deregulation, AI-driven capital funding and the Fed’s asset purchases.
On the similar time, there may be an more and more complicated set of dangers – akin to geopolitical tensions and wars, vitality value volatility, commerce uncertainty, massive world fiscal deficits and elevated asset costs.
Whereas we can not predict how these dangers and uncertainties will finally play out, they’re vital and so they reinforce why we put together the Agency for a variety of environments.”
Wells Fargo mentioned its $1.106 billion in web charge-offs got here as its provision for credit score losses reached $1.135 billion.
Moreover, knowledge from the U.S. Federal Reserve reveals client bank card and different revolving loans in any respect industrial banks hit $1.083 trillion for the week ending April 1, 2026, up from $1.080 trillion per week earlier, marking a brand new excessive.
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