Reuters
2 min read
NEW YORK (Reuters) -JPMorgan Chase said on Monday it was estimating the card services net charge-off rate, or the percentage of credit card debt the bank believes will not be repaid, to be between 3.6% and 3.9% for 2026.
That is higher than the 3.6% net charge-off rate the bank is expecting for 2025.
The update comes ahead of the largest U.S. lender's investor day, where shareholders and analysts will be keen to learn how it is navigating the disruption posed by tariffs.
Although trade negotiations have helped ease some jitters, corporate executives remain wary about the economic outlook, with JPMorgan CEO Jamie Dimon warning last week that a recession could not be ruled out.
Dimon could also be asked to share his views on the widening fiscal deficits in the U.S., especially after Moody's downgraded the country's sovereign credit rating on Friday due to concerns about its $36 trillion debt pile.
He has consistently expressed worries that the deficits were not sustainable and could pose serious risks to the health of the U.S. economy.
JPMorgan maintained its 2025 forecast for expenses and net interest income - the difference between what banks pay customers on deposits and earn as interest on loans.
Several top executives are set to join Dimon later in the day to outline the bank's strategy during the investor presentation.
While investors are not expecting a surprise succession announcement, they do expect that the company will showcase potential successors.
Dimon, 69, has run JPMorgan for more than 19 years, outlasting many other CEOs. He had said at last year's investor day that the succession timeline was "not five years anymore."
Troy Rohrbaugh and Doug Petno, the co-CEOs of JPMorgan's commercial and investment bank, are candidates for the top job. Marianne Lake, CEO of consumer and community banking, and Mary Erdoes, CEO of asset and wealth management, are also in the running.
The bank's shares were down 0.8% in premarket hours.
(Reporting by Nupur Anand in New York and Niket Nishant in Bengaluru; Editing by Anil D'Silva)
