NEW YORK—Two major banks are signaling they are concerned that rising card delinquencies are coming.
Banks have enjoyed years of declining losses from fewer consumers defaulting on debts post-recession. However, delinquencies across many loan types have shown signs of moving upward this year.
As CUToday.info reported, Americans had $1.021 trillion in outstanding revolving credit in June 2017, beating the previous record in April 2008, when consumers had a collective $1.02 trillion in outstanding credit revolving credit.
Now a report by Bloomberg indicates that JPMorgan Chase & Co. and Citigroup Inc. appear to be bracing for tougher times.
Shares of the banks fell recently after the banks boosted their reserves for consumer-loan losses by the largest amount 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,” Bloomberg said.