Major U.S. financial institutions are reporting strong consumer health and stable credit conditions, challenging narratives of a fragmented economy. Their assessments point to broad-based economic resilience, even as inflation and interest rates remain elevated.
- Consumer deposit balances rose 2.3% YoY at JPMorgan Chase in Q4 2025
- 87% of Bank of America’s personal banking customers have three or more months of emergency savings
- Credit card utilization at 26.8%—below pandemic-era highs of 28.5%
- Auto loan delinquency rates under 3% in early 2026
- Top five U.S. banks saw 14% YoY increase in net income
- Bank stocks rose 2.1% on average after earnings releases
Senior executives at the nation’s largest banks — including JPMorgan Chase, Bank of America, and Citigroup — delivered a unified message during recent earnings calls: consumer spending remains robust and household balance sheets are more stable than previously assumed. Despite lingering inflationary pressures and higher borrowing costs, delinquency rates for credit cards and auto loans are at multi-year lows. The banks’ data contradicts the popular 'K-shaped' recovery narrative, which suggested a growing divide between high-income households and the broader population. JPMorgan reported a 2.3% year-over-year increase in consumer deposit balances, while Bank of America noted that 87% of its personal banking customers maintained at least three months of emergency savings. These figures indicate that income disparities have not translated into widespread financial distress. Credit card utilization, a key indicator of consumer strain, stood at 26.8% in Q4 2025—below the 28.5% peak seen during the pandemic recovery. Auto loan delinquencies remained under 3%, and mortgage default rates are the lowest since 2019. The combined net income of the top five U.S. banks rose 14% year-over-year, driven by strong fee income and loan demand, even as net interest margins narrowed. The consensus among bank leaders suggests that fiscal policy, modest wage growth, and a resilient labor market are sustaining consumer confidence. This shift in outlook may influence Federal Reserve deliberations on interest rate cuts, as continued economic stability reduces the urgency for aggressive monetary easing. Investors reacted positively, with bank stocks gaining 2.1% on average in early trading on January 15.