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Mint
5 days ago
- Business
- Mint
Large US banks say consumer finances are healthy despite tariffs
By Nupur Anand, Saeed Azhar and Tatiana Bautzer NEW YORK, - U.S. banking giants said consumers remained in good shape even after U.S. President Donald Trump's tariff policies roiled markets, but executives warned of potential weakness ahead. "The consumer basically seems to be fine," JPMorgan CFO Jeremy Barnum said in a call with analysts. The bank set aside $2.85 billion for credit losses in the second quarter, roughly 6.5% less than a year earlier. JPMorgan Chase, Citigroup and Wells Fargo posted second-quarter profits that beat analysts' forecasts, helped by a rebound in dealmaking and resilient consumer spending. "Consumers and businesses remain strong as unemployment remains low and inflation remains in check, credit card spending growth softened very slightly in the second quarter, but is still up year over year," Wells Fargo CEO Charlie Scharf told analysts. Higher-than-expected repayments in auto loans and credit cards prompted Wells Fargo to reduce its charge-offs, or debts that are unlikely to be recovered. The bank also reduced the amount of money set aside to cover potential loan losses. Still, executives also expressed concern about how consumers will weather the impact of higher tariffs on imported goods. U.S. consumer prices increased by the most in five months in June amid higher costs for some goods, suggesting tariffs were starting to have an impact on inflation, the Consumer Price Index showed on Tuesday. It increased 0.3% last month, in line with expectations. Citigroup anticipates spending will soften in the second half of the year, Chief Financial Officer Mark Mason told reporters. "Consumer health remains very strong," he said. "We do anticipate further consumer cooling in the second half as ... tariff effects play through." The bank's credit costs rose to $2.9 billion in the second quarter, mainly from net credit losses in U.S. credit cards. This article was generated from an automated news agency feed without modifications to text.
Yahoo
15-07-2025
- Business
- Yahoo
Large US banks say consumer finances are healthy despite tariffs
By Nupur Anand, Saeed Azhar and Tatiana Bautzer NEW YORK (Reuters) -U.S. banking giants said consumers remained in good shape even after U.S. President Donald Trump's tariff policies roiled markets, but executives warned of potential weakness ahead. "The consumer basically seems to be fine," JPMorgan CFO Jeremy Barnum said in a call with analysts. The bank set aside $2.85 billion for credit losses in the second quarter, roughly 6.5% less than a year earlier. JPMorgan Chase, Citigroup and Wells Fargo posted second-quarter profits that beat analysts' forecasts, helped by a rebound in dealmaking and resilient consumer spending. "Consumers and businesses remain strong as unemployment remains low and inflation remains in check, credit card spending growth softened very slightly in the second quarter, but is still up year over year," Wells Fargo CEO Charlie Scharf told analysts. Higher-than-expected repayments in auto loans and credit cards prompted Wells Fargo to reduce its charge-offs, or debts that are unlikely to be recovered. The bank also reduced the amount of money set aside to cover potential loan losses. Still, executives also expressed concern about how consumers will weather the impact of higher tariffs on imported goods. U.S. consumer prices increased by the most in five months in June amid higher costs for some goods, suggesting tariffs were starting to have an impact on inflation, the Consumer Price Index showed on Tuesday. It increased 0.3% last month, in line with expectations. Citigroup anticipates spending will soften in the second half of the year, CEO Mark Mason told reporters. "Consumer health remains very strong," he said. "We do anticipate further consumer (spending) cooling in the second half as ... tariff effects play through." The bank's credit costs rose to $2.9 billion in the second quarter, mainly from net credit losses in U.S. credit cards. Sign in to access your portfolio
Yahoo
15-07-2025
- Business
- Yahoo
Large US banks say consumer finances are healthy despite tariffs
By Nupur Anand, Saeed Azhar and Tatiana Bautzer NEW YORK (Reuters) -U.S. banking giants said consumers remained in good shape even after U.S. President Donald Trump's tariff policies roiled markets, but executives warned of potential weakness ahead. "The consumer basically seems to be fine," JPMorgan CFO Jeremy Barnum said in a call with analysts. The bank set aside $2.85 billion for credit losses in the second quarter, roughly 6.5% less than a year earlier. JPMorgan Chase, Citigroup and Wells Fargo posted second-quarter profits that beat analysts' forecasts, helped by a rebound in dealmaking and resilient consumer spending. "Consumers and businesses remain strong as unemployment remains low and inflation remains in check, credit card spending growth softened very slightly in the second quarter, but is still up year over year," Wells Fargo CEO Charlie Scharf told analysts. Higher-than-expected repayments in auto loans and credit cards prompted Wells Fargo to reduce its charge-offs, or debts that are unlikely to be recovered. The bank also reduced the amount of money set aside to cover potential loan losses. Still, executives also expressed concern about how consumers will weather the impact of higher tariffs on imported goods. U.S. consumer prices increased by the most in five months in June amid higher costs for some goods, suggesting tariffs were starting to have an impact on inflation, the Consumer Price Index showed on Tuesday. It increased 0.3% last month, in line with expectations. Citigroup anticipates spending will soften in the second half of the year, CEO Mark Mason told reporters. "Consumer health remains very strong," he said. "We do anticipate further consumer (spending) cooling in the second half as ... tariff effects play through." The bank's credit costs rose to $2.9 billion in the second quarter, mainly from net credit losses in U.S. credit cards.
Yahoo
15-07-2025
- Business
- Yahoo
JPMorgan profit beats on Wall Street rebound; raises interest income forecast
By Niket Nishant and Nupur Anand (Reuters) -JPMorgan Chase raised its net interest income forecast for 2025 after a strong performance in its investment banking and trading divisions helped it surpass profit expectations for the second quarter. The bank now expects about $95.5 billion of NII, or the difference between what it earns on loans and pays out on deposits, compared with an earlier estimate of nearly $94.5 billion. "The U.S. economy remained resilient," CEO Jamie Dimon said in a statement. "The finalization of tax reform and potential deregulation are positive for the economic outlook. However, significant risks persist - including from tariffs and trade uncertainty, worsening geopolitical conditions, high fiscal deficits and elevated asset prices." Market activity surged as investors seized opportunities and hedged risks in response to shifting U.S. tariff policies. The turmoil propelled JPMorgan's trading revenue 15% higher to $8.9 billion, driven by gains in both fixed income and equities. Investment banking fees also rose 7% to $2.5 billion, underpinned by a rise in mergers and acquisitions and debt underwriting. The pipeline for initial public offerings was also picking up, CFO Jeremy Barnum told reporters on a call, though concerns remain. Both trading and investment banking performed better than management's earlier guidance. In May, the bank had projected a mid-teens percentage drop in investment banking fees, while trading revenue was expected to grow by a mid-to-high single-digit percentage. A well-capitalized balance sheet helped JPMorgan grow revenue in multiple segments, said Brian Mulberry, senior client portfolio manager at Zacks Investment Management, adding that the NII forecast lift was an "impressive flex." Headcount fell by more than 1,300 employees to 317,160, but the bank's workforce remains the largest among its peers after a rapid expansion in recent quarters. JPMorgan has said it expects it to be flat in 2025. Excluding one-off costs, the lender earned $4.96 per share, compared with the $4.48 per share that analysts were expecting, according to estimates compiled by LSEG. Provision for credit losses was $2.85 billion, compared with $3.05 billion a year earlier. Shares were down 0.6% before the open. POLICY CLOUDS OUTLOOK Investors are closely scrutinizing banks' results and their executives' commentary this quarter to assess the impact of tariffs and the tax and spending bill signed into law by President Donald Trump earlier this month. The bill is estimated to add more than $3 trillion to U.S. debt over the next decade, sparking backlash from some Republicans and Trump allies like Elon Musk who have raised concerns about fiscal irresponsibility. However, while uncertainty has clouded the outlook, there were bright spots for lenders during the second quarter. JPMorgan was among 22 large banks that aced the Federal Reserve's stress tests, enabling it to boost its quarterly dividend and announce $50 billion in stock buybacks. The Fed also advanced a proposal to overhaul the "enhanced supplementary leverage ratio," which could lower the capital large global banks such as JPMorgan must hold against relatively low-risk assets. The bank's overall profit fell 17% in the second quarter, but the comparison was skewed because of a nearly $8 billion one-off gain it had recorded on a share exchange agreement with Visa last year.
Yahoo
15-05-2025
- Business
- Yahoo
U.S. finance CEOs challenged for leaving climate pacts by Democratic lawmakers
By Simon Jessop, Nupur Anand and Saeed Azhar NEW YORK/LONDON (Reuters) -Democratic lawmakers harshly criticized the chief executives of BlackRock, JPMorgan and other top finance companies for leaving several global coalitions devoted to combating climate change, urging them to uphold their previous commitments and policy targets designed to reduce greenhouse gas emissions. Against a backdrop of worsening extreme weather events and rising financial risks, the members of Congress said the bosses had "actively decided to cede leadership on combating climate change," a letter to the executives seen by Reuters showed. The letter, sent Thursday, also asks for records of their communications with the Trump administration regarding any plans to cut their work on environmental and social causes. "We are disappointed that your organization appears to be disregarding science and what's good for business, and instead yielding to political pressure for short-term political favor," it said. The chief executives of Morgan Stanley, Citigroup, Bank of America, Wells Fargo, Goldman Sachs, Northern Trust, Franklin Templeton, State Street, Invesco and Pimco, part of insurer Allianz, also received the letter, which was led by California Rep. Maxine Waters, the ranking Democrat on the House Financial Services Committee. Pimco, Wells Fargo, Bank of America, Goldman Sachs, Citi and JPMorgan have declined to comment, while the other companies and banks did not immediately return a request for comment. Each institution left either the Net Zero Banking Alliance, the Net Zero Asset Managers Initiative or Climate Action 100+, members of which had either committed to cutting emissions linked to the institution's activities or to engaging with investee companies over climate. When they left the groups, most of the institutions said they still pledged to reduce emissions but made no reference to the political pressure from some Republican politicians, who accused the companies of unfairly seeking to limit financing to the fossil fuel industry. Industry emissions from the burning of coal, gas and oil are the leading cause of man-made global warming and countries have agreed to try and reduce them, although the administration of President Donald Trump has recently pulled the U.S. out of the deal. As well as asking the CEOs to explain their decision to leave the groups, the letter asked them to confirm their intention to achieve their previously stated emissions-reduction goals and explain how they intended to do it. The letter also asked whether they would continue publishing their progress or explain why not; to detail existing targets and policies to cut emissions in line with the Paris Agreement on climate; and to commit not to weaken them. For the banks specifically, it asked them whether they still intend to set targets and policies on so-called "facilitated" greenhouse gas emissions, such as those linked to companies issuing bonds a bank underwrites. The letter also asked whether the banks would stick with the same timetable for emission reduction goals. And for all the companies, it asked them to detail communications with the Trump administration regarding cutting environmental, social and governance activities since Jan. 20, including any directives to freeze funds for climate-related federal programmes such as the Greenhouse Gas Reduction Fund. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
