US banks: Main Street does heavy lifting amid IPO drought
JPMorgan Chase, Wells Fargo, Citigroup and Morgan Stanley kicked off the third-quarter earnings season for Wall Street banks on Friday. The headline numbers made for worrying reading. A collapse in investment banking revenue and a ramp-up in loan loss reserve — the rainy day fund that banks set aside to cover potential loan losses — took a bite out of net income.
It was not all doom and gloom. Despite higher inflation and recession fears, the US consumer is still doing alright. Handling money for the masses remains a bright spot for America’s biggest banks.
At JPMorgan, Citi and Wells, credit card purchases grew 18 per cent, on average, and card loan balances rose 17 per cent. Net interest income at JPMorgan and Wells jumped by more than a third and by 18 per cent at Citi, amid the revival in loan demand and higher interest rates.
This story originally appeared on: Financial Times - Author:Tax Cognition
