3 trends emerge for cus­tomers from J.P. Mor­gan re­port

The Arizona Republic - - America’s Markets - Adam Shell

Any­one with an ATM card, check­ing ac­count or in­ter­est­bear­ing CD was lis­ten­ing for some­thing pos­i­tive when JPMor­gan Chase, the No. 1 U.S. bank by de­posits, an­nounced earn­ings.

For the most part, ac­count hold­ers prob­a­bly liked what the bank’s chief fi­nan­cial of­fi­cer, Mar­i­anne Lake, had to say Thurs­day.

The bank made $6.7 bil­lion in the third quar­ter, which topped Wall Street ex­pec­ta­tions. The main sto­ry­line was up­beat: Peo­ple on Main Street are do­ing well and are still fill­ing out ap­pli­ca­tions for mort­gages and us­ing their credit cards re­spon­si­bly.

But the things Lake told Wall Street an­a­lysts in a con­fer­ence call were the real money quotes: ►Cyb★r theft fears fail to ma­te­ri­al­ize: The high-pro­file hack at credit-re­port­ing firm Equifax didn’t, um, break the bank. Fears of cy­ber thieves us­ing data to file for loans us­ing stolen per­sonal data didn’t ma­te­ri­al­ize in any mea­sur­able way — at least not yet. In fact, Lake said, “As a prac­ti­cal mat­ter we are not see­ing a sig­nif­i­cant in­crease in fraud.” Nor, she said, did the cy­ber theft

of per­sonal data of more than 145 million Amer­i­cans from Equifax hurt its loan busi­ness, say­ing, “We saw no mea­sur­able im­pact.” ►G★t used to puny in­ter­est:

There have been three short­term in­ter­est rate hikes from the Fed­eral Re­serve since De­cem­ber, boost­ing the Fed’s key rate to a range of 1% to 1.25%. Even so, Lake said cus­tomers shouldn’t ex­pect in­ter­est paid on pass­book sav­ings, check­ing ac­counts or CDs to rise much. There has been “very lit­tle or any move­ment in repric­ing of con­sumer ac­counts,” she said. But that could change if

the Fed, as it has sig­naled to mar­kets, hikes rates again in De­cem­ber and three or four more times next year. The na­tional av­er­age in­ter­est paid on sav­ings ac­counts is a skimpy 0.09%, ac­cord­ing to BankRate.com. ►H★alt●y state of con­sumers: CEO Jamie Di­mon said in the bank’s earn­ings re­port the U.S. con­sumer “re­mains healthy, thanks to solid wage growth.” Lake backed up her boss’ claim, not­ing strength in the home-loan busi­ness: “Our con­sumer mort­gage busi­ness re­mains strong and is per­form­ing well.”


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