US Banks Report Profit Boost Despite Consumer Caution
Major US banks, including JPMorgan, Wells Fargo, and Citigroup, reported increased profits due to higher interest rates, despite signs of a slowing economy and cautious consumer behavior. The banks noted that consumers were depleting savings and experiencing rising losses on credit cards and other debts. While delinquency levels were still low compared to historical levels, banks set aside more money to cover souring loans. Additionally, banks expressed concerns about proposed capital rules that could impact lending and cause them to exit certain products. Despite these challenges, the banks generally reported higher net interest income, but cautioned that the current levels may not be sustainable.