- The stock exchange remains volatile According to the so -called “liberation day” tariffs by President Donald Trump, consumer expenditure was at least not yet significantly influenced. During the quarterly winning certificate, credit card companies offered strong prospects in terms of consumer expenses, but many took measures to alleviate losses in the middle of a potential economic downturn.
How President Trump’s trade policy contributed to this Stock marketsThe Fallout of his so -called “Exemption dayThe tariffs still have the quarterly financial reports of the country’s largest lenders in which consumer expenditure patterns often appear first
The earnings reports for credit card companies remained strong when consumers borrowed and opened more than in the previous year.
“The consumer is still resilient and demanding in his editions” Quarterly call call Last week. Mason also emphasized a revised consumer mood.
“We saw a shift towards essential and of travel and entertainment,” said Mason.
JPmorgan Chase reported to an increase in credit and debit card expenses every year, but found that people had increased credit card credit. Additionally, Bank of America Sketched an increase in expenses for credit and debt cards of 4% from the previous year, coupled with a decline in the late payments of borrowers in the previous quarter.
Despite positive growth, large credit card companies are preparing for an economic downturn, and the highest level has already increased in five years.
“The focus is currently on the future, which is obviously uncertain” Income call on April 11th.
Since JPmorgan keeps the risk of a recession at 60%, the bank added to its Rainfall In the event of future losses by increasing credit losses (ACL) by $ 973 million, which increases the net density of $ 27.6 billion. The ACL serves as a buffer to cover these losses if customers do not pay their credit card invoices.
In addition, the company presented 3.3 billion US dollars for its loss of loans – an increase of 73% compared to $ 1.9 billion in order to combat unpaid loans from the previous year. JPMorgan also has 1.5 trillion dollars at cash and marketable securities.
JPmorgan did not react immediately Fortune’s Request for comment.
In addition to JPMorgan, Citi maintains security if an economic downturn takes place. The bank increased its loan costs by more than 15% to 2.7 billion US dollars compared to the previous year.
In addition, Citi increased its total reserves by $ 21.8 billion to $ 21.8 billion in the first quarter, which is looking for security when the US economy goes south. The bank also includes a strong liquidity and capital position, whereby cash levels reaching 960 billion US dollars.
Citi did not return immediately Fortune’s Request for comment.
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