Three major US banks are collectively writing off $5.6 billion in bad loans in the first quarter as American credit card debt reaches a new high.
In the first quarter earnings reports, JPMorgan Chase recorded $2.3 billion in net charge-offs, Citigroup posted $2.2 billion in net credit losses, and Wells Fargo reported $1.106 billion in net charge-offs in the first three months of 2026.
JPMorgan’s firmwide credit costs totaled $2.5 billion, including the $2.3 billion in net charge-offs. Citigroup’s U.S. Personal Banking business recorded a $2.1 billion provision for credit losses, with $1.742 billion in net credit losses in U.S. branded cards and retail services. Other Citigroup businesses also contributed to the total net credit losses.
Despite the bad loans, JPMorgan Chase CEO Jamie Dimon remains optimistic about the resilience of the US economy.
“The U.S. economy remained resilient in the quarter, with consumers still earning and spending and businesses remaining healthy. Several factors are supporting this resiliency, including increased fiscal stimulus, deregulation benefits, AI-driven capital investment, and the Fed’s asset purchases.
However, there are also various risks such as geopolitical tensions, energy price volatility, trade uncertainty, fiscal deficits, and elevated asset prices. While we cannot predict the outcomes of these risks, they are significant and highlight the importance of preparing for different scenarios.”
Wells Fargo reported $1.106 billion in net charge-offs as its provision for credit losses reached $1.135 billion.
Additionally, data from the U.S. Federal Reserve shows that consumer credit card and revolving loans at commercial banks reached $1.083 trillion for the week ending April 1, 2026, marking a new high compared to the previous week.
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