JPMorgan, Wells Fargo Earnings: Credit Card Defaults Fell
Credit card defaults fell at both JPMorgan Chase and Wells Fargo in the third quarter of 2026, with a smaller share of card debt written off as unpaid than a year earlier at each bank, according to results both filed on October 13. Wells Fargo still set aside 51% more money for bad loans, and by our math 92% of that increase came from a safety cushion it had cut a year ago and topped up slightly this time, while the debt it actually wrote off as lost rose by only $29 million.
The numbers behind the headlines
On this page
The third quarter results in brief
Both banks earned more than a year earlier. JPMorgan Chase reported third quarter 2026 net income of $15.3 billion, or $5.57 a share, against $5.07 a year before, on revenue of $50.2 billion, up 8%, according to its earnings release filed with the SEC. Wells Fargo reported net income of $6.0 billion, or $1.87 a share, up 13%, on revenue of $21.9 billion, up 2%, in its own release, which it labels preliminary until its quarterly report.
These are two of the largest US banks by assets. In the Federal Reserve’s ranking of US commercial banks by assets, with data as of June 30, 2026, JPMorgan Chase Bank is first and Wells Fargo Bank is fourth, behind Bank of America and Citibank. Between them, the two banks held about $309 billion of credit card loans on average in the quarter (JPMorgan $250.1 billion, Wells Fargo $58.9 billion, per each bank’s supplement), which is why their card numbers are worth reading closely. Their customers are not every American borrower, and neither bank breaks its results down by income, so what follows describes these two loan books.
The figure that stands out is the provision for credit losses, which is the money a bank charges against its profit each quarter to cover loans that may not be repaid. JPMorgan’s fell 19% to $2.74 billion. Wells Fargo’s rose 51% to $1.03 billion. Read one way, that is two big banks reaching opposite verdicts on American borrowers. That reading does not hold up once the provision is split into its two parts, which tell a different story from the headline percentages.
In this article a credit card default means a card balance the bank has written off as unpaid, which is what the banks call a charge-off. Net charge-offs subtract what the bank later recovers, and the charge-off rate is that amount, annualized, as a share of the bank’s card loans. Both companies’ filings are on their StockTitan pages for JPMorgan and Wells Fargo.
One bank set aside less, the other more
A provision has two pieces, and splitting them shows that Wells Fargo’s increase came almost entirely from its reserve, while JPMorgan’s decline came from both pieces. One is net charge-offs, the loans a bank actually writes off as lost in the quarter, minus what it recovers. The other is the change in the allowance, the reserve a bank keeps for losses it expects over the life of its loans. A bank adds to that reserve when it lends more or expects a weaker economy, and it releases some when it expects the opposite, and both moves pass through the provision.
At Wells Fargo, the provision rose by $348 million, from $681 million to $1,029 million. Net charge-offs rose by just $29 million, to $983 million from $954 million. The other $319 million came from the reserve: a year ago Wells Fargo released $273 million from its allowance, which lowered that quarter’s provision, and this quarter it added $46 million, according to the company’s earnings table. So $319 million of the $348 million increase, or 92%, is the swing from a release to a small build, and the 51% says more about where the reserve stood a year ago than about how many borrowers stopped paying.
Show the data
| Category | Change |
|---|---|
| JPMorgan, net charge-offs | -$389M |
| JPMorgan, reserve build | -$271M |
| Wells Fargo, net charge-offs | +$29M |
| Wells Fargo, reserve change | +$319M |
JPMorgan’s 19% drop works the same way in reverse. Its provision fell by $660 million. Net charge-offs were $389 million lower at $2.2 billion, which the bank says was “driven by Wholesale”, the business that lends to companies and institutions, and its reserve build was $271 million smaller, $539 million against $810 million a year earlier, according to its release. In JPMorgan’s consumer bank, charge-offs were $1.98 billion against $1.96 billion a year before, which the bank calls “relatively flat”. The consumer side’s lower provision came almost entirely from a smaller reserve build, $50 million this quarter against $575 million a year earlier.
Reading a provision. A higher provision can mean more bad loans, more lending, or a gloomier forecast, and a lower one can mean the reverse. The banks disclose both parts in their own tables, so the split above uses only their figures, and anyone can redo it by subtracting net charge-offs from the provision.
Are Americans falling behind on credit cards?
Fewer of their card balances went bad than a year earlier, while late payments were mixed. The share of card balances written off fell at both banks. JPMorgan’s card net charge-off rate, the annualized share of card loans written off in the quarter, was 2.91%, against 3.15% a year earlier and 3.34% in the second quarter, according to its financial supplement. At Wells Fargo the rate was 3.73%, against 4.02% a year earlier and 4.18% in the second quarter, per its quarterly supplement. The two rates are not directly comparable with each other, since each bank lends to its own mix of customers, so the chart compares each bank with itself.
Show the data
| Category | JPMorgan | Wells Fargo |
|---|---|---|
| Q3 25 | 3.15% | 4.02% |
| Q4 25 | 3.14% | 3.97% |
| Q1 26 | 3.47% | 4.21% |
| Q2 26 | 3.34% | 4.18% |
| Q3 26 | 2.91% | 3.73% |
The dollars tell the same story. Together, the two banks wrote off $2.39 billion of card debt in the quarter (JPMorgan $1.83 billion, Wells Fargo $554 million), down from $2.43 billion a year earlier, while their average card balances grew by about 6%, from $290.8 billion to $309.0 billion. People were borrowing more on their cards, and a smaller share of what they owed went bad.
Late payments, which often show up before write-offs, give a more mixed picture. JPMorgan’s share of card balances 30 or more days past due was 1.97% at the end of September, down from 2.14% a year earlier. Wells Fargo’s was 2.69%, essentially level with 2.68% a year earlier. Both rose from June, when they stood at 1.91% and 2.58%. The more serious measure, balances 90 or more days late, was 0.96% at JPMorgan against 1.07% a year earlier, and 1.34% at Wells Fargo, the same as a year earlier and as in June.
JPMorgan’s card reserve also fell relative to its card loans. Its card allowance was $15.56 billion at the end of September, almost exactly where it was a year earlier, while its card loans grew 7% to $252.7 billion. That puts the allowance at 6.16% of card loans, down from 6.61% a year earlier, which is consistent with lower expected losses per dollar lent, though the bank does not say so. By our calculation, holding last year’s ratio against today’s card book would have meant an allowance of about $1.13 billion more. An allowance is a forecast of losses over the life of the loans, so the lower ratio is the bank’s own estimate and could move back up if its outlook changes.
Pending card deal. JPMorgan set up a separate $2.2 billion reserve in the fourth quarter of 2025 for its agreement to buy the Apple credit card portfolio, according to its supplement. That reserve sits under lending-related commitments, so it is not part of the card allowance or the coverage ratio above.
The new reserves went to business and car loans
The money both banks added to reserves this quarter went to loans that grew fast, mostly loans to companies at JPMorgan, and business and car loans at Wells Fargo. Wells Fargo said its provision reflected “a higher allowance for commercial and industrial loans and auto loans driven by higher loan balances, partially offset by a lower allowance for commercial real estate loans.” Its Commercial Banking unit, which serves private, family owned and some public companies, booked a $240 million provision against $39 million a year earlier, which the bank attributes “largely” to “an increase in the allowance for loan losses due to loan growth”. That unit’s average loans grew 10%.
At JPMorgan the shift is just as visible. Its Commercial & Investment Bank booked a $663 million provision, which the bank says was “predominantly driven by net lending activity and changes in the credit quality of certain exposures”, and that included a $452 million reserve build against $242 million a year earlier, while the consumer bank built only $50 million. The bank does not say which exposures, and the release gives no industry detail.
Car loans at Wells Fargo show the clearest worsening among the consumer figures compared here. Its auto charge-offs were $84 million in the quarter, against $50 million a year earlier, an annualized rate of 0.57% against 0.45%. The bank has also been growing that book quickly, with average auto loans of $58.3 billion, 32% more than a year earlier, and originations up 15%, per its supplement. One possible contributor is age, since new loans tend to produce few losses in their first months and more as they season. The filings do not separate that effect from changes in borrowers, lending standards or recoveries.
Wells Fargo’s auto reserve rose to 1.72% of auto loans from 1.56%, the only consumer category in its table where the reserve per dollar went up, while the share of its auto loans 30 or more days late, 1.39%, was lower than the 1.54% of a year earlier.
Show the data
| Category | Value |
|---|---|
| Q3 2025 | $50M |
| Q4 2025 | $60M |
| Q1 2026 | $63M |
| Q2 2026 | $54M |
| Q3 2026 | $84M |
JPMorgan’s car loans show none of that. Its auto charge-off rate was 0.41%, against 0.46% a year earlier, and 0.96% of its auto loans were 30 or more days late, against 1.17%. Its auto reserve was unchanged at $587 million. Put side by side, the consumer lines at the two banks look like this.
| Q3 2025 | Q3 2026 | |
|---|---|---|
| JPMorgan card, charge-off rate | 3.15% | 2.91% |
| JPMorgan card, 30+ days late | 2.14% | 1.97% |
| JPMorgan auto, charge-off rate | 0.46% | 0.41% |
| Wells Fargo card, charge-off rate | 4.02% | 3.73% |
| Wells Fargo card, 30+ days late | 2.68% | 2.69% |
| Wells Fargo auto, charge-off rate | 0.45% | 0.57% |
| Wells Fargo auto, 30+ days late | 1.54% | 1.39% |
Dimon and Scharf on the economy
Wells Fargo’s Charlie Scharf described customers in good shape, JPMorgan’s Jamie Dimon described an economy still carried by business investment and consumer spending, and both named rates and inflation among the risks. Scharf was direct about households: “While economic uncertainty exists and consumer sentiment remains mixed, our data shows that our consumer and business customers are doing well. Consumers are spending more, loan delinquencies are low, and deposit and investment balances have grown.” He added that “higher interest rates, higher oil prices and persistent inflation create risks to the economy”, and that in his view positive forces such as AI infrastructure investment, high employment and wage growth “continue to outweigh the risks.”
Dimon wrote in JPMorgan’s release that the U.S. economy “continued to be fueled by strong business investment and ongoing consumer spending.” He then listed what he sees moving “under the surface”: “large fiscal deficits, sticky inflation, elevated asset prices, rising interest rates and geopolitical conditions.” He concluded that these forces “may be manageable, but we remain prepared for a wide range of outcomes.”
The rising rates both men mention are recent. The Federal Reserve raised its target range for the federal funds rate by a quarter point to 3.75% to 4% on September 16, 2026, saying “inflation remains elevated” (our coverage of that rate decision and of the minutes that followed has the detail). That hike came two weeks before the quarter these results cover ended, so any strain it puts on borrowers, through higher borrowing costs or slower hiring, would show up in later quarters, if at all. The September card and auto figures above describe borrowers before that change had much time to work.
The spending side backs up what both men said about consumers. JPMorgan’s debit and credit card sales volume rose 10% from a year earlier, and Wells Fargo’s credit card purchase volume rose to $45.0 billion from $40.3 billion, about 12%. Part of that growth is higher prices (our coverage of the latest inflation report has the figures), so more card spending shows that people are still spending and does not by itself prove they are better off.
Signs that borrowers are starting to struggle
The signs that would turn this story are already in the tables these banks publish every quarter, which makes them easy to follow. An early sign is often the share of card balances 30 or more days late, which rose at both banks from June to September, so a sustained rise over the next quarters, especially in the 90 day measure, would add to the concern. Charge-offs often follow delinquencies with a lag, so card charge-off rates rising above the same quarter a year earlier, after the declines reported this time, would add weight to it.
The reserve is the other signal. So far, Wells Fargo attributes its additions to higher loan balances, and JPMorgan its business-loan provision to lending activity and to changes in the credit quality of certain exposures, which it does not quantify. A reserve build that a bank attributes to a weaker economic outlook, or a card allowance at JPMorgan that rises faster than its card loans, could suggest the banks themselves expect more losses per dollar. At Wells Fargo, auto charge-offs are the line to watch, because they have already risen and the book is still growing quickly.
Two more reports will fill in the picture soon. The banks’ quarterly reports on Form 10-Q will carry fuller credit tables when they are filed, and the earnings calls both banks hold on October 13 may add management’s view on consumers by income group, which neither release gives.
How we did the math
Every figure here comes from the two banks’ Form 8-K filings of October 13, 2026, and their exhibits on SEC EDGAR, except the bank ranking (Federal Reserve) and the rate decision (Federal Reserve). All comparisons are third quarter 2026 against third quarter 2025 unless a sentence says otherwise, and all are calendar quarters, which are also both banks’ fiscal quarters.
The provision split subtracts each part as the banks print it. Wells Fargo: provision $1,029 million minus $681 million equals $348 million; net charge-offs $983 million minus $954 million equals $29 million; change in the allowance $46 million minus negative $273 million equals $319 million; $319 million divided by $348 million is 91.7%, rounded to 92%. JPMorgan: provision $2,743 million minus $3,403 million equals negative $660 million, made of net charge-offs $2,204 million minus $2,593 million, or negative $389 million, and the net reserve build $539 million minus $810 million, or negative $271 million.
The JPMorgan card coverage ratio divides the Card Services allowance for loan losses by period-end Card Services loans: $15,563 million over $252,684 million is 6.16% at September 30, 2026, and $15,558 million over $235,491 million is 6.61% a year earlier. Applying the exact year-earlier ratio, $15,558 million divided by $235,491 million, to $252,684 million gives about $16,694 million, which is $1.13 billion above the actual allowance. Combined card charge-offs add JPMorgan’s Card Services net charge-offs to Wells Fargo’s credit card net loan charge-offs, and combined balances add JPMorgan’s Card Services average loans ($250,117 million, $234,412 million a year earlier) to Wells Fargo’s company-wide average credit card loans ($58,911 million, $56,420 million), the same scopes as the charge-offs.
Frequently asked questions
Why did Wells Fargo’s provision for credit losses go up 51%?
Mostly because of its reserve. A year ago Wells Fargo released $273 million from its allowance for loan losses, which lowered that quarter’s provision, and in the third quarter of 2026 it added $46 million, mainly for growing business and car loans. Net charge-offs, the losses actually written off, rose only $29 million.
Are credit card delinquencies rising in 2026?
At JPMorgan Chase and Wells Fargo the picture at the end of September 2026 was mixed: 1.97% of JPMorgan’s card balances were 30 or more days late against 2.14% a year earlier, and 2.69% of Wells Fargo’s against 2.68%, essentially level. Both rose from June.
What is a provision for credit losses?
It is the amount a bank charges against its earnings in a quarter to cover loans that may not be repaid. It equals the loans written off in the quarter, net of recoveries, plus any change in the reserve the bank holds for future losses, so it can rise even when losses do not.
What did Jamie Dimon say about the economy in October 2026?
In JPMorgan’s third quarter release he wrote that the U.S. economy “continued to be fueled by strong business investment and ongoing consumer spending,” while “large fiscal deficits, sticky inflation, elevated asset prices, rising interest rates and geopolitical conditions continue to shift under the surface.”
Where can I read the JPMorgan and Wells Fargo filings on StockTitan?
StockTitan publishes both third quarter 8-K filings with an AI summary on the JPMorgan filing page and the Wells Fargo filing page, and each bank’s history is on its JPMorgan financials and Wells Fargo financials pages.
Sources
- StockTitan: JPMorgan Chase Form 8-K, October 13, 2026
- StockTitan: Wells Fargo Form 8-K, October 13, 2026
- StockTitan: JPMorgan Chase overview and financials
- StockTitan: Wells Fargo overview and financials
- StockTitan: stock return calculator
- StockTitan: the Fed’s September 16, 2026 rate hike
- JPMorgan Chase, third quarter 2026 earnings release (Form 8-K, Exhibit 99.1)
- JPMorgan Chase, third quarter 2026 earnings release financial supplement (Exhibit 99.2)
- Wells Fargo, third quarter 2026 news release (Form 8-K, Exhibit 99.1)
- Wells Fargo, third quarter 2026 quarterly supplement (Exhibit 99.2)
- Federal Reserve, U.S. Domestically Chartered Commercial Banks ranked by consolidated assets, data as of June 30, 2026
- Federal Reserve, FOMC statement, September 16, 2026
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