Full Breakdown
Bank Earnings Indicate Consumer Resilience in 2026
7/22/2026, 9:09:56 PM
Core Findings from Q2 Results
In the most recent earnings season, JPMorgan Chase and Bank of America released second-quarter results that suggest the U.S. consumer is holding up across income levels. Both banks reported lower charge-off rates and higher card-spending volumes, signaling continued credit performance despite lingering inflation concerns.
Credit Metrics and Spending Data
- JPMorgan’s net charge-off rate fell to 3.34%, an improvement from the prior quarter, allowing the bank to cut its full-year charge-off forecast to 3.2%.
- Bank of America’s credit-card charge-off rate declined to 3.55%, down from 3.82% a year earlier and 3.64% in the previous quarter.
- Combined debit and credit card sales at JPMorgan rose 10% year-over-year, while Bank of America saw a 9% increase.
- Bank of America’s global wealth and investment management division reported client balances up 12% year-over-year to an all-time high of $4.9 trillion, generating record revenue of $6.9 billion, a 16% rise.
These figures align with the banks’ observation that delinquencies are decreasing while spending remains strong.
Executive Commentary on Consumer Health
Bank of America CFO Alastair Borthwick highlighted rising average deposit balances and quarterly spending gains, attributing the trend to a stable labor market with unemployment near 4.2% and low new-jobless claims.
Marianne Lake, CEO of JPMorgan’s consumer and community banking division, cautioned that a “small group” still experiences wages that lag inflation, underscoring pockets of vulnerability despite overall resilience.
Implications for the Economy
Bank executives argue that the observed consumer strength should support continued credit extension, which in turn can sustain spending and bolster economic growth into the second half of 2026. While banks remain watchful of inflation and isolated wage pressures, the prevailing view is that a relatively low unemployment rate and improving credit metrics provide a favorable backdrop for further expansion.
