Skip to content
Subscriber Only
Markets

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
Video player cover image

JPM, Citi Post Grim Trading Results

Updated on

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.