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A Tale of Two Consumers: JPMorgan Chase vs. Discover Financial's Credit Card Trends

A Tale of Two Consumers: JPMorgan Chase vs. Discover Financial's Credit Card Trends

Both JPMorgan Chase (NYSE: JPM) and Discover Financial Services (NYSE: DFS) are large credit card lenders that recently reported their fourth-quarter earnings results and provided early guidance for full-year 2023. JPMorgan Chase reported that it expects its credit card net charge-off (NCO) rate to jump from 1.47% at the end of 2022 to about 2.6% by the end of 2023. The NCO looks at credit card debt unlikely to be collected as a percentage of the total credit card loan portfolio.