Three of America’s largest banks are writing off a combined $5.6 billion in bad loans in the first quarter as US credit card debt climbs to a new record high.
According to first-quarter earnings reports, JPMorgan Chase recorded $2.3 billion in net charge-offs, Citigroup posted $2.2 billion of net credit losses, and Wells Fargo reported $1.106 billion of net charge-offs in the first three months of 2026.
JPMorgan said firmwide credit costs totaled $2.5 billion, including the $2.3 billion in net charge-offs while Citigroup said its U.S. Personal Banking business recorded a $2.1 billion provision for credit losses, including $1.742 billion of net credit losses in U.S. branded cards and retail services. Other Citi businesses also added to the company’s total net credit losses.
Despite the bad loans, JPMorgan Chase CEO Jamie Dimon says the US economy is remaining resilient.
“The U.S. economy remained resilient in the quarter, with consumers still earning and spending and businesses still healthy. Several tailwinds are supporting this resiliency, including increased fiscal stimulus, the benefits of deregulation, AI-driven capital investment and the Fed’s asset purchases.
At the same time, there is an increasingly complex set of risks – such as geopolitical tensions and wars, energy price volatility, trade uncertainty, large global fiscal deficits and elevated asset prices.
While we cannot predict how these risks and uncertainties will ultimately play out, they are significant and they reinforce why we prepare the Firm for a wide range of environments.”
Wells Fargo said its $1.106 billion in net charge-offs came as its provision for credit losses reached $1.135 billion.
Furthermore, data from the U.S. Federal Reserve shows consumer credit card and other revolving loans at all commercial banks hit $1.083 trillion for the week ending April 1, 2026, up from $1.080 trillion a week earlier, marking a new high.
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