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JPMorgan, Citigroup Expect More Credit-Card Users to Default

  • Both banks increase reserves for consumer lending losses
  • ‘We’re not getting complacent,’ Citigroup’s finance chief says
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JPM, Citi Post Grim Trading Results

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Banks have enjoyed years of declining losses from fewer consumers defaulting on debts. They appear to be preparing for a turn.

Shares of JPMorgan Chase & Co. and Citigroup Inc. fell after the banks boosted their reserves for consumer-loan losses by the most in more than four years. Both lenders set aside money in the third quarter because they expected write-offs for credit-card lending to climb in periods ahead, with Citigroup saying the increase is coming faster than it had anticipated.