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Bank results so far show that private credit woes remain contained, with executives offering words of calm for nervous investors.

First, there are no big red flags in the aggregate credit loss provisions from the four big banks that have reported so far, including Wells Fargo. The measure, where stress typically starts to show, is tracking higher for some lenders -- for instance, Goldman attributed the increase to “growth and impairments related to wholesale loans,” yet the overall number remains very modest compared to peers.

Citi’s worse-than-expected provisions were tied to US consumer card losses and a firmwide reserves build amid the uncertain macro environment, but its measure is only the highest since 2Q 2025. That has also been offset by JPMorgan’s lower-than-estimated provisions.
Taken altogether, the combined bad debt forecast tally is so far smaller than feared for the quarter and more modest than it was during the same period last year.

Banks went further to disclose at least $100 billion of specific exposure to private-credit firms, with Citi saying that it’s had zero losses over the life of the portfolio. Its executives noted on the call that the bank has strong protections in place, including a prudent approach to reserves, which it continues to constantly stress test.

For his part, JPMorgan CEO Dimon said he’s “not particularly worried” about private credit after the bank disclosed a $50 billion exposure. Goldman CEO David Solomon also defended the industry on Monday.

The remarks and moderate credit provisions so far should give investors some comfort that strains from private credit remain limited so far -- something that other parts of the credit market have been signaling as well.

Today's show features:

Herman Chan, Bloomberg Intelligence Senior Analyst, US Banks & Joe Hegener, Asterozoa Capital CIO & Founder on Bank Earnings
Alli McCartney, Alignment Partners at UBS Managing Director of Wealth Management on latest market reaction
Adam Farrar Bloomberg Economics Senior Geoeconomics Analyst for Asia-Pacific on US's Blockade on Iran
Sid Philip, Bloomberg News Chief Correspondent for Global Aviation on United CEO Pitched Trump on Possible Tie-Up with American Airlines

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