JPMorgan Reports Bounce in Credit and Debit Sales on ‘Healthy' Consumer Spending

Consumer Spending and Deposit Trends - Consumer spending remained healthy, with increased credit and debit card use, and deposit account balances were drawn down [1] - Credit and debit card sales volume in the consumer/community banking segment increased by 8% year on year to $477.6 billion, with card services sales volume surging to $335.1 billion from $307.2 billion last year [3] - Deposits in the consumer/community banking segment were just over $1 trillion, down 4% year on year [3] - Consumer balances have stabilized, and there has been growth in consumer checking deposits, although overall deposits were down year on year [6] Mobile Banking Growth - Active mobile customers increased by 7% to 57.8 million in the latest quarter, continuing the growth trend seen over several quarters [4] Future Expectations and Loan Growth - The company expects growth in revolving loans tied to cards and modestly higher deposit balances in the current year [5] - The net charge-off rate on the cards business is expected to be around 3.6% [5] - Card loan growth will be healthy but below the 12% pace seen in 2024, as tailwinds from revolving normalization are largely behind us [6] Regulatory Environment and Business Sentiment - The company seeks a coherent, rational, and holistically assessed regulatory framework that allows banks to support the economy without being reflexively anti-bank [8] - There has been improvement in business sentiment, and balance sheets at small businesses are healthy [8] Financial Performance and Market Reaction - Shares were up roughly 1% in intraday trading on Wednesday [7]