- With the stock market remains volatile In the aftermath of the “Liberation Day” definitions called by President Donald Trump, consumer spending was not greatly affected, at least not yet. During the quarterly profit calls, credit card companies provided strong expectations regarding spending on consumers, but many of them took measures to reduce losses amid a possible economic shrinkage.
President Donald Trump’s commercial policies also contributed Stock market disordersThe repercussions of the so -called “Editing DayThe definitions have not yet reached the quarterly financial reports of the country’s largest lenders, as spending patterns often appear on consumers.
The profit reports for credit card companies remained strong, as consumers borrowed, spending them and opened credit cards more than the previous year.
“The consumer is still flexible and distinguished in his spending,” said Citigram’s financial director Mason, Mark Mason, during the company. Chamber call calls Last week. Mason also emphasized the revised consumer feelings.
“We have seen a shift towards the basics and away from travel and entertainment,” Masson said.
Jpmorgan Chase A 7 % increase in credit card and discount on an annual basis, but they noticed that people were holding high credit card assets. In addition, Bank of America A 4 % bump in credit spending and decision of the previous year, as well as a decrease in the late payments of loan holders during the previous quarter.
Despite the positive growth, the main credit card companies are preparing for economic shrinkage, and the jewel has already rises to its highest level in five years.
“The focus is now on the future, which is unusually confirmed,” said Jeremy Barnum, president of JPMorgan Chase Finance, during the latest focus. Profit call On April 11.
Since JPMorgan holds a 60 % risk of recession, the bank added to Florying day boxes In the event of any future losses by increasing its credit losses by $ 973 million, amounting to its total net reserves to 27.6 billion dollars. ACL acts as a temporary store to cover these losses if customers do not pay their credit card bills.
In addition, the company allocated $ 3.3 billion in loan loss provisions – an increase of 73 % over $ 1.9 billion issued to combat unpaid loans from a previous year. JPMorgan also maintains $ 1.5 trillion of securities and marketing securities.
Jpmorgan did not immediately respond to wealth Request to comment.
In addition to Jpmorgan, Citi maintains security in the event of an economic shrinkage. The bank increased the cost of credit by more than 15 % from the previous year to $ 2.7 billion.
In addition, Citi has strengthened its total reserves at $ 1 billion in the first quarter, from 21.8 billion dollars to 22.8 billion dollars, in search of security if the US economy went south. The bank also maintains strong liquidity and capital position with cash levels of up to $ 960 billion.
City is no longer immediately wealth Request to comment.
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