Three of the largest U.S. banks wrote off a total of $5.6 billion in bad loans in the first quarter of the year as U.S. credit card debt rose to a new record high.
According to JPMorgan Chase’s first quarter earnings reports registered $2.3 billion in net debits, Citigroup recorded $2.2 billion in net credit losses, and Wells Fargo reported $1.106 billion in net debits in the first three months of 2026.
JP Morgan said company-wide credit costs amounted to $2.5 billion, including $2.3 billion in net discounts, while Citigroup He said Its U.S. personal banking business recorded $2.1 billion in provisions for credit losses, including $1.742 billion of net credit losses on U.S. branded cards and retail services. Other Citi companies also added to the company’s total net credit losses.
Despite the bad loans, Jamie Dimon, CEO of JPMorgan Chase, says the US economy remains resilient.
“The U.S. economy remained resilient this quarter, with consumers still earning and spending and businesses remaining healthy. Several tailwinds support this resilience, 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 rising asset prices.
While we cannot predict how these risks and uncertainties will ultimately develop, they are important and reinforce why we prepare the company for a wide range of environments.
Wells Fargo He said Net discounts of $1.106 billion came with provisions for credit losses reaching $1.135 billion.
Moreover, data from the US Federal Reserve He appears Consumer credit cards and other revolving loans at all commercial banks reached $1.083 trillion for the week ending April 1, 2026, up from $1.080 trillion the week before, a new high.
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