Friday marks the start of earnings season.
And, as always, every three months, big banks get a glimpse into the state of consumer spending and the continuation of the great digital shift that has helped power banking across online and in-person channels. can.
On Friday (April 12th), you’ll see a report similar to the following: JP Morgan, wells fargo and city. And next week american bank Weigh it.
Consumer spending in focus
Debit and credit card spending soared in the December quarter, with the holiday shopping season providing a boost to consumers’ tendency to use their cards at checkout and online to make purchases.
For example, JP Morgan reports: Results at the end of the year Debit and credit spending increased 7% to $441 billion, and card loans increased 14% to $202 billion.
As Wells Fargocredit card spending is 15% increase over the yearMeanwhile, debit card spending increased by 1%.
Citi’s results showed that Card-based loans are 13% increase compared to previous yearcard spending increased by 5%.
Bank of America said: As mentioned in the earnings report, P2P transaction volume through Zelle increased 25% to $101 billion. Total credit and debit spending was $228 billion, up 3% from the previous year.
So far, credit metrics and delinquencies are trending toward normalization and pre-pandemic levels.
Card-related net charge-offs were 2.8%, up from 1.6% last year, and management expects net charge-offs to be below 3.5% this year, according to JPMorgan’s supplement.
Is digital momentum not slowing down?
The shift toward expanding banking operations online will likely be highlighted in earnings releases and financial documents.
JP Morgan isIn the most recent quarter, Active Mobile customers grew 8% year-over-year to 53.8 million.
Wells Fargo CEO charles scharf He said his bank added 1.6 million mobile customers during the year and saw an 11% increase in mobile logins.
Bank of America announced that it has more than 46 million active digital users, an increase of 4.5% year over year.
According to the company’s data, digital “sales” as a percentage of total sales was 49%. Active users and interactions with Erica, Bank of America’s virtual assistant, increased by 12.1% to 18.5 million and 16% to 170 million, respectively.
We still don’t know where and how consumers spend their time and money.
PYMNTS Intelligence Data; The study of paycheck-to-paycheck economics found that about 60% of consumers are barely making ends meet or struggling to make ends meet. Nearly half of consumers with annual incomes of $100,000 or more say they live paycheck to paycheck.
Data shows that for consumers across income brackets, housing costs (29%), groceries and household expenses (20%), and regular and personal expenses (21%) absorb the majority of their monthly income. He said there may be little money left to spend. For discretionary spending.
As JP Morgan CFO Jeremy Burnham “Consumers are spending more than they’re taking in,” he said on a recent earnings call with analysts, adding that “as we enter the new year in a world where consumers spend less, their spending behavior… “It remains to be seen how this will be adjusted,” he added. Cash buffers are not as comfortable as they used to be. ”
