Three of America’s largest banks will write off a combined $5.6 billion in bad loans in the first quarter, as U.S. credit card debt soars to a new record.
According to first-quarter earnings reports, JPMorgan Chase says included $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 said companywide credit costs totaled $2.5 billion, including the $2.3 billion in net charge-offs, while Citigroup said the U.S. Personal Banking business recorded a $2.1 billion provision for credit losses, including $1.742 billion in net credit losses across U.S. branded cards and retail services. Other Citi businesses also contributed to the company’s total net credit losses.
Despite the bad loans, JPMorgan Chase CEO Jamie Dimon says the U.S. economy remains resilient.
“The U.S. economy remained resilient this quarter, with consumers still earning and spending and businesses still healthy. Several tailwinds support this resilience, including increased fiscal stimulus, the benefits of deregulation, AI-powered 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 budget deficits and high asset prices.
While we cannot predict how these risks and uncertainties will ultimately materialize, they are significant and reinforce why we are preparing the company for a wide range of environments.”
Wells Fargo said the net charge-offs of $1.106 billion came as the provision for credit losses amounted to $1.135 billion.
Further data from the US Federal Reserve shows Consumer credit cards and other revolving loans across all commercial banks reached $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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Generated image: Midjourney