Major US banks led by JPMorgan Chase, Citigroup, and Wells Fargo reported $5.6 billion in first-quarter loan losses as consumer credit stress intensifies. Simultaneously, credit card debt reached a record high of $1.083 trillion, indicating heightened reliance on borrowing. JPMorgan CEO Jamie Dimon acknowledged the robust economy but pointed to accumulating global and fiscal risks.
US banks reported billions in loan losses for Q1 2026, revealing growing pressure on consumers. This occurred as credit card debt climbed to a new record high.
JPMorgan Chase recorded $2.3 billion in net charge-offs while Citigroup faced $2.2 billion in net credit losses. Wells Fargo incurred $1.1 billion in net charge-offs during the same period.
Provisions for credit losses at these institutions were similarly elevated, signaling expectations of further defaults. JPMorgan’s total credit cost was $2.5 billion, largely driven by these consumer losses.
JPMorgan CEO Jamie Dimon noted the U.S. economy remains healthy with robust consumer spending and business health. “He then highlights some aspects that keep the U.S. economy on track, which include government spending, deregulation, investments in artificial intelligence, and decisions by the Federal Reserve Bank,” the reports stated.
Dimon also cautioned about accumulating risk factors, including global tensions, energy costs, and large budget deficits. He stated these factors should be taken seriously by US banks, despite the current economic strength.
Data from the Fed revealed revolving credit held by commercial banks reached $1.083 trillion. This new high point underscores increased consumer reliance on borrowing amid rising loan losses.
