The top 4 US banks had another solid quarter with credit cards.
This is the advantage of the diversified business model at full-service banks:
The credit card engine continues to fire while mortgage and trading are muted.
🟩 Credit Card Sales
Q1 ‘23 vs. Q3 ‘19: +31%
Q1 ‘23 vs. Q1 ‘22: +9.2%
📍 Consumers continued to shop at a pace faster than inflation, despite the current tech recession.
📍 Consumers confidence has gradually rebounded from the low in mid-2022.
🟦 Credit Card Balances
Q1 ‘23 vs. Q3 ‘19: +7%
Q1 ‘23 vs. Q1 ‘22: +17.7%
📍 As the financial cushion built in pandemic begins to decline, consumers put balance back on their cards.
📍 In the backdrop is the strong job market - latest unemployment rate is still 3.5% with ~10 million jobs open.
What do you think the Q2 numbers will be?
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