JPMorgan Chase, Citi and Wells Fargo Lose $5,606,000,000 to Bad Loans in Just Three Months
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.
Based on first-quarter earnings experiences, JPMorgan Chase recorded $2.3 billion in internet charge-offs, Citigroup posted $2.2 billion of internet credit score losses, and Wells Fargo reported $1.106 billion of internet 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 internet charge-offs whereas Citigroup said its U.S. Private Banking enterprise recorded a $2.1 billion provision for credit score losses, together with $1.742 billion of internet credit score losses in U.S. branded playing cards and retail providers. Different Citi companies additionally added to the corporate’s complete internet credit score losses.
Regardless of the dangerous loans, JPMorgan Chase CEO Jamie Dimon says the US economic system is remaining resilient.
“The U.S. economic system remained resilient within the quarter, with customers 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 identical time, there may be an more and more complicated set of dangers – reminiscent of geopolitical tensions and wars, power value volatility, commerce uncertainty, giant world fiscal deficits and elevated asset costs.
Whereas we can’t predict how these dangers and uncertainties will in the end play out, they’re important and so they reinforce why we put together the Agency for a variety of environments.”
Wells Fargo said its $1.106 billion in internet charge-offs got here as its provision for credit score losses reached $1.135 billion.
Moreover, information from the U.S. Federal Reserve shows shopper 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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