As bank earnings roll in, a mixed picture for loans

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JPMorgan Chase & Co, the largest U.S. bank and often heralded as a bellwether for the economy, on Wednesday reported an eye-popping increase in its profit for the first quarter.

FILE PHOTO: Alex Tovstanovsky, owner of used-car dealer Prestige Motor Works, checks on inventory with his general manager Ryan Caton in Naperville, Illinois, U.S. May 28, 2020. Picture taken May 28, 2020. REUTERS/Nick Carey/File Photo

Indeed, the bank credit picture as the first quarter ended was decidedly mixed, according to U.S. Federal Reserve data, with some indications that consumer credit demand is coming back to life but demand for bread-and-butter business loans remains lacking.The Fed’s most recent data on consumer credit overall dates from February, which saw the strongest growth - nearly $27.6 billion - in three years. At more than $4.

Since then, though, balances have ticked up by about $10 billion and are their highest since early December.Car loans have been a surprising source of strength during the pandemic. Even as consumers slashed credit card spending, they did shell out for big ticket items like cars and trucks. U.S. vehicle sales recovered quite quickly starting late last spring, and auto loans from U.S. banks are at a record high.It has been a very different picture for bread-and-butter business loans.

 

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