Defaults on credit card loans have emerged as an area of concern for U.S. banks in recent months, and third-quarter results from JPMorgan Chase and Citigroup — the nation’s two largest credit card issuers — suggest that there is more trouble ahead.

Both banks reported a sharp increase in credit-card related losses in the quarter when compared with the same period last year and both boosted their loan-loss reserves in anticipation of more weakness in their card portfolios. With household debt now at an all-time high, investors appear to be bracing for more defaults and, potentially, lower overall profits.

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