NEW YORK–The nation’s biggest credit card issuers are reporting strong spending volume by cardholders, but are also increasing their reserves to cover future losses. 

Earnings reports for credit card companies have remained strong as consumers borrowed, spent, and opened credit cards more so than the year prior, according to Fortune.

“The consumer continues to be resilient and discerning in their spend,” Citigroup’s chief financial officer Mark Mason said during the company’s quarterly earning call, Fortune reported. 

But Mason also emphasized a revised consumer sentiment. 

“We’ve seen a shift towards essentials and away from travel and entertainment,” Mason said. 

Elevated Balances

Fortune reported that JPMorganChase reported a 7% increase in credit- and debit-card spending year-over-year, but noted people were carrying elevated credit-card balances, while Bank of America said it has seen a 4% bump in credit- and debit-card spending from a year earlier coupled by a decline in late payments from loan holders over the previous quarter. 

“Despite positive growth, major credit card companies are preparing for an economic downturn and delinquencies are already rising to their highest level in five years,” Fortune reported. 

Adding to Reserves

The report noted that as JPMorgan holds the risk of a recession at 60%, the bank added to its reserves in case of any future losses by increasing its allowance for credit losses (ACL) by $973 million, bringing its net reserve total to $27.6 billion.

The company has also allocated $3.3 billion into its loan loss provisions— a 73% increase from the $1.9 billion issued to combat unpaid loans from a year prior.

Citi said it has boosted its total reserves by $1 billion in the first quarter, from $21.8 billion to $22.8 billion.