{"id":263,"date":"2025-07-15T20:48:36","date_gmt":"2025-07-15T20:48:36","guid":{"rendered":"https:\/\/www.worldpumpnews.com\/?p=263"},"modified":"2025-07-15T20:48:36","modified_gmt":"2025-07-15T20:48:36","slug":"us-banks-say-consumers-are-healthy-despite-economic-uncertainty","status":"publish","type":"post","link":"https:\/\/www.worldpumpnews.com\/?p=263","title":{"rendered":"US banks say consumers are \u2018healthy\u2019 despite economic uncertainty"},"content":{"rendered":"<p><\/p>\n<div>\n<p>Stay informed with free updates<\/p>\n<p class=\"article__content-sign-up-topic-description o3-type-body-base\"><span>Simply sign up to the <!-- -->US banks<!-- --> myFT Digest &#8212; delivered directly to your inbox.<\/span><\/p>\n<p><iframe class=\"article__content-sign-up-iframe close\" scrolling=\"no\" id=\"signUpIframe\" data-prev-url=\"\/register\/in-article-sign-up?ft-content-uuid=ab2122c0-9784-49ec-9a07-32e696654411&amp;concept-id=456d01ad-ea50-4aa7-8d7f-b9737216d453\"><\/iframe><\/div>\n<div id=\"article-body\">\n<p>JPMorgan Chase and Citigroup struck an upbeat tone on the strength of US consumers, underscoring how the world\u2019s biggest economy has remained resilient despite the effects of Donald Trump\u2019s tariffs. <\/p>\n<p>The duo of Wall Street banks said there were signs that Americans\u2019 financial footing was solid even as they contend with persistently elevated prices, high interest rates and broader economic uncertainty. <\/p>\n<p>\u201cThe strength of the US economy, driven by the American entrepreneur and a healthy consumer, has certainly been exceeding expectations of late,\u201d said Citi chief executive Jane Fraser. <\/p>\n<p>Fraser still cautioned that Citi was not \u201cdropping our guard as we begin the second half of the year\u201d, noting \u201cwe expect to see goods prices to start ticking up over the summer as tariffs take effect, and we have seen pauses in [capital spending] and hiring amongst our client base\u201d.<\/p>\n<p>Jeremy Barnum, JPMorgan\u2019s chief financial officer, echoed that sentiment, noting that the biggest US bank by assets continued \u201cto struggle to see signs of weakness\u201d in US consumer credit. <\/p>\n<p>Wells Fargo CFO Michael Santomassimo similarly said on Tuesday that clients \u201chave been able to manage through what\u2019s happened so far pretty effectively\u201d.<\/p>\n<figure class=\"n-content-image n-content-image--full\" data-component=\"image-set\"><picture><source media=\"(min-width: 700px)\" srcset=\"https:\/\/www.ft.com\/__origami\/service\/image\/v2\/images\/raw\/ftcms%3Ae018d627-d7b3-4290-b454-0ce66ea2efb4?source=next-article&amp;fit=scale-down&amp;quality=highest&amp;width=700&amp;dpr=1 1x,https:\/\/www.ft.com\/__origami\/service\/image\/v2\/images\/raw\/ftcms%3Ae018d627-d7b3-4290-b454-0ce66ea2efb4?source=next-article&amp;fit=scale-down&amp;quality=highest&amp;width=700&amp;dpr=2 2x,https:\/\/www.ft.com\/__origami\/service\/image\/v2\/images\/raw\/ftcms%3Ae018d627-d7b3-4290-b454-0ce66ea2efb4?source=next-article&amp;fit=scale-down&amp;quality=highest&amp;width=700&amp;dpr=3 3x,https:\/\/www.ft.com\/__origami\/service\/image\/v2\/images\/raw\/ftcms%3Ae018d627-d7b3-4290-b454-0ce66ea2efb4?source=next-article&amp;fit=scale-down&amp;quality=highest&amp;width=700&amp;dpr=4 4x,https:\/\/www.ft.com\/__origami\/service\/image\/v2\/images\/raw\/ftcms%3Ae018d627-d7b3-4290-b454-0ce66ea2efb4?source=next-article&amp;fit=scale-down&amp;quality=highest&amp;width=700&amp;dpr=5 5x\" width=\"3500\" height=\"2500\"\/><source media=\"(max-width: 490px)\" srcset=\"https:\/\/www.ft.com\/__origami\/service\/image\/v2\/images\/raw\/ftcms%3A89617a0d-bc1d-4489-bad8-36f4d3c24ea3?source=next-article&amp;fit=scale-down&amp;quality=highest&amp;width=490&amp;dpr=1 1x,https:\/\/www.ft.com\/__origami\/service\/image\/v2\/images\/raw\/ftcms%3A89617a0d-bc1d-4489-bad8-36f4d3c24ea3?source=next-article&amp;fit=scale-down&amp;quality=highest&amp;width=490&amp;dpr=2 2x,https:\/\/www.ft.com\/__origami\/service\/image\/v2\/images\/raw\/ftcms%3A89617a0d-bc1d-4489-bad8-36f4d3c24ea3?source=next-article&amp;fit=scale-down&amp;quality=highest&amp;width=490&amp;dpr=3 3x\" width=\"1500\" height=\"2000\"\/><img decoding=\"async\" src=\"https:\/\/www.ft.com\/__origami\/service\/image\/v2\/images\/raw\/https%3A%2F%2Fd6c748xw2pzm8.cloudfront.net%2Fprod%2F3553d830-6184-11f0-acc2-d151c7b76c1b-standard.png?source=next-article&amp;fit=scale-down&amp;quality=highest&amp;width=700&amp;dpr=1\" alt=\"Line chart of $bn showing Trading revenues remain elevated while investement banking shows signs of recovery\" data-image-type=\"graphic\" width=\"3500\" height=\"2500\" loading=\"lazy\"\/><\/picture><\/figure>\n<p>The broadly sanguine outlook comes after a volatile few months for financial markets. Trump\u2019s April 2 announcement of sweeping tariffs on trading partners ignited a steep sell-off in US stocks and prompted worries over the potential the US would slip into a recession. Measures of consumer sentiment also darkened markedly. <\/p>\n<p>Markets have steadied since then, with the S&amp;P 500 reaching a new record high, as the US president has backed down from some of his most serious tariff threats. Still, a report on Tuesday on consumer prices showed tariffs were beginning to push inflation higher. <\/p>\n<p>The tumult prompted by Trump\u2019s policies has generally been a boon to banks\u2019 Wall Street divisions, which have taken advantage of vigorous activity in markets, including stocks, bonds, currencies and commodities. <\/p>\n<p>Fraser noted that \u201cvolatility is going to, I suspect, be a feature not a bug of the new world order and we will benefit from that\u201d.<\/p>\n<p>Citi\u2019s trading revenues jumped 16 per cent in the second quarter from the same period in 2024 to $5.9bn, while JPMorgan\u2019s rose 15 per cent to $8.9bn<\/p>\n<p>The same market tumult had stunted investment banking but JPMorgan chief Jamie Dimon said the business had \u201cgained momentum as market sentiment improved\u201d. <\/p>\n<p>Citi CFO Mark Mason said investment banking activity had recovered to where it was at the start of the quarter, before deals were put on hold in the wake of April\u2019s tariff announcements.<\/p>\n<p>Citi\u2019s investment banking fees rose 13 per cent in the second quarter, while JPMorgan\u2019s climbed 7 per cent. <\/p>\n<p>Citi\u2019s profits jumped almost 25 per cent as the bank posted revenue growth across its main divisions, including trading, investment banking and wealth management. <\/p>\n<aside aria-labelledby=\"aside-label\" class=\"n-content-recommended--single-story n-content-recommended--inset\" data-component=\"recommended\">\n<p class=\"n-content-recommended__title o3-type-body-highlight\">Recommended<\/p>\n<div class=\"o-teaser o-teaser--article o-teaser--small o-teaser--stacked o-teaser--has-image js-teaser\" data-id=\"8a6a41f8-e40d-45d8-8b20-203039f9181f\">\n<div class=\"o-teaser__image-container js-teaser-image-container\">\n<div class=\"o-teaser__image-placeholder\" style=\"aspect-ratio:2493\/1402\"><img decoding=\"async\" class=\"o-teaser__image\" src=\"https:\/\/www.ft.com\/__origami\/service\/image\/v2\/images\/raw\/https%3A%2F%2Fwww.ft.com%2F__origami%2Fservice%2Fimage%2Fv2%2Fimages%2Fraw%2Fhttps%253A%252F%252Fd1e00ek4ebabms.cloudfront.net%252Fproduction%252F3183d348-090a-4a27-919a-a0afab627c7d.jpg%3Fsource%3Dnext-article%26fit%3Dscale-down%26quality%3Dhighest%26width%3D700%26dpr%3D1?source=next&amp;fit=scale-down&amp;dpr=2&amp;width=240\" alt=\"BNY and Northern Trust logos with bank image and chart\"\/><\/div>\n<\/div>\n<\/div>\n<\/aside>\n<p>Return on tangible common equity \u2014 a closely watched profitability measure \u2014 rose to 8.7 per cent from 7.2 per cent in the same quarter in 2024. Fraser is seeking to boost the metric to 10-11 per cent by the end of next year.<\/p>\n<p>Citi\u2019s shares jumped 3.7 per cent on Tuesday, to close at their highest level since 2008. <\/p>\n<p>JPMorgan\u2019s net income fell to $15bn in the second quarter, down 17 per cent. Last year it benefited from a roughly $8bn one-off gain from its stake in Visa. The group\u2019s shares closed 0.7 per cent lower. <\/p>\n<\/div>\n<p>#banks #consumers #healthy #economic #uncertainty<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Stay informed with free updates Simply sign up to the US banks myFT Digest &#8212; delivered directly to your inbox. JPMorgan Chase and Citigroup struck an upbeat tone on the strength of US consumers, underscoring how the world\u2019s biggest economy has remained resilient despite the effects of Donald Trump\u2019s tariffs. The duo of Wall Street [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":264,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[415,424,426,425,427],"class_list":{"0":"post-263","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-business","8":"tag-banks","9":"tag-consumers","10":"tag-economic","11":"tag-healthy","12":"tag-uncertainty"},"_links":{"self":[{"href":"https:\/\/www.worldpumpnews.com\/index.php?rest_route=\/wp\/v2\/posts\/263","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.worldpumpnews.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.worldpumpnews.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.worldpumpnews.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.worldpumpnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=263"}],"version-history":[{"count":0,"href":"https:\/\/www.worldpumpnews.com\/index.php?rest_route=\/wp\/v2\/posts\/263\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.worldpumpnews.com\/index.php?rest_route=\/wp\/v2\/media\/264"}],"wp:attachment":[{"href":"https:\/\/www.worldpumpnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=263"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.worldpumpnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=263"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.worldpumpnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=263"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}