NEW YORK—The largest U.S. banks are facing a growing consumer debt.
Credit card losses are outpacing auto and home loans at a rate not seen in at least a decade, a new report reveals.
“The question is whether banks' plastic problem is an outlier or an omen. The four largest U.S. banks had almost $4 billion in charge-offs from credit cards last quarter, and just $656 million from all other consumer lending,” Bloomberg said.
That's the biggest gap since at least 2009. Card charge-offs now make up more than 80% of total consumer credit costs, up from 67% three years ago, the news outlet said.
“While the card losses are noteworthy, they're not enough to drag down what's been an otherwise a stellar run of profits at the top lenders,” noted Bloomberg.