JPMorgan, Bank of America Show 9%-10% Spending Growth as Q2 Charge-Off Rates Improve
Updated
Updated · The Motley Fool · Jul 22
JPMorgan, Bank of America Show 9%-10% Spending Growth as Q2 Charge-Off Rates Improve
3 articles · Updated · The Motley Fool · Jul 22
Summary
JPMorgan and Bank of America said Q2 consumer spending stayed strong across income bands, challenging the idea that lower-income households are broadly cracking under inflation.
Credit data supported that view: JPMorgan’s net charge-off rate fell to 3.34% from 3.47% in Q1, while Bank of America’s card charge-off rate eased to 3.55% from 3.64%.
Card and debit purchase volumes also rose—up 10% at JPMorgan and 9% at Bank of America—as executives cited a still-stable labor market, roughly 4.2% unemployment and higher tax refunds.
Banks still flagged pockets of strain from wages lagging inflation, even as Bank of America’s wealth unit showed affluent clients remain especially strong, with balances up 12% to a record $4.9 trillion.
That resilience matters beyond bank earnings: with delinquencies contained and confidence in lending intact, consumer spending could keep supporting U.S. growth in the second half of 2026.