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J.P. Morgan chief Jamie Dimon praised the strength of the U.S. consumer following the largest U.S. bank’s strong quarterly earnings.
“We continue to see positive momentum with the U.S. consumer – healthy confidence levels, solid job creation and rising wages – which are reflected in our Consumer & Community Banking results,” Dimon said in the company’s quarterly earnings release. “Double-digit growth in credit card sales and merchant processing volumes reflected healthy consumer spending and drove 8% growth in credit card loans, while mortgage and auto originations showed solid improvement, and we continued to attract new deposits, up 3%.”
J.P. Morgan reported better-than-expected second-quarter results before the bell Tuesday, largely attributed to strong consumer spending. The bank posted earnings per share of $2.82 on revenue of $29.57 billion. Wall Street expected earnings per share of $2.50 on revenue of $28.9 billion, according to Refinitiv. The shares traded lower slightly on a worse-than-expected net interest income forecast.
Double digit growth in credit card sales and merchant processing further demonstrated that U.S. consumer spending is healthy. Credit card sales volume rose 11% this quarter and merchant processing volume increased 12%, the bank said.