JPMorgan Chase Braces for Higher Credit Card Debt Losses
JPMorgan Chase estimates a rise in credit card net charge-off rates to between 3.6% and 3.9% for 2026, up from 3.6% projected for 2025. Amid economic uncertainties, CEO Jamie Dimon highlighted potential recession risks. Investors await insights on the bank's response to tariffs and a slowing economy.
JPMorgan Chase announced on Monday an increase in its forecasted net charge-off rate for credit card services, anticipating it to be between 3.6% and 3.9% for 2026. This projection exceeds the 3.6% expected for 2025, signaling caution amid economic uncertainties.
Corporate caution is evident, as JPMorgan CEO Jamie Dimon recently suggested that a recession could still be a possibility. Economic challenges, including U.S. tariffs and slowing growth, present significant concerns for the banking giant.
During its investor day, all eyes will be on how JPMorgan plans to navigate these economic hurdles. Despite uncertainties, the bank maintains its 2025 projections for spending and net interest income, demonstrating a stable outlook in certain areas.
(With inputs from agencies.)
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