US Banks Write Off $5.6 Billion in Bad Loans Amid Rising Credit Card Debt
- JPMorgan Chase reported $2.3 billion in net charge-offs for Q1.
- Citigroup posted $2.2 billion in net credit losses during the same period.
- Wells Fargo’s net charge-offs reached $1.106 billion in Q1.
- US consumer credit card debt hit a record high of $1.083 trillion as of April 2026.
Despite these significant losses, JPMorgan Chase CEO Jamie Dimon emphasized the resilience of the US economy, citing ongoing consumer spending and fiscal stimulus as positive factors. However, he acknowledged various risks including geopolitical tensions and market volatility that could impact economic stability.
The combined write-offs from these banks underscore the challenges posed by increasing credit card debt and economic uncertainties. As consumers continue to borrow more, financial institutions are preparing for potential future losses.
