JPMorgan Says Spending Holds Up as Banks Fight Harder for Deposits

In its latest quarterly results, released Tuesday (April 14), JPMorgan reported $16.5 billion in net income on $50.5 billion in revenue, with loans climbing to $1.5 trillion and average deposits reaching $2.6 trillion. The numbers are holding steady, but the bank is navigating two tracks at once: a consumer that keeps spending and a credit environment that management believes will become more demanding.

CEO Jamie Dimon spent the morning explaining why steady doesn’t mean safe.

Private Credit Risks In Focus

Not surprisingly, private credit risks and opportunities were front and center. Dimon described private credit as large but contained, placing it alongside other credit markets at roughly $1.7 trillion.

“I don’t think it’s systemic,” Dimon said, emphasizing that even in a downturn, the scale of private credit limits broader contagion. “You have to have very large losses in private credit before … banks are going to get hit,” he said.

But against a larger backdrop, Dimon contended, “when there’s a credit cycle, losses will be worse than people expect,” he said, pointing to underwriting drift across markets and the likelihood that stress will emerge unevenly across sectors.

Consumer Spending Holds, With Limits

Within Consumer and Community Banking, the data remains steady. Earnings materials accompanying the conference call indicated that card sales volumes rose 9% year over year, supported by higher revolving balances. Management said spending patterns, delinquencies and cash buffers show little deviation from recent trends. The data shows that card services net charge-off rates were 3.47%, down from 3.58% a year ago.

CFO Jeremy Barnum characterized the consumer as stable but not immune to macro forces. “It all looks consistent with prior trends and fundamentally healthy,” he said, while noting that the strength of the labor market remains the central support for credit performance.

He added that spending has continued to grow modestly above last year’s pace, supported in part by seasonal factors such as tax refunds, which have provided additional liquidity for households.

Energy costs have risen, but management noted they account for a relatively small share of overall household spending.

Deposits Grow as Competition Persists

Deposits increased during the quarter, but management made clear that the underlying dynamics remain competitive.

“There’s tons of competition out there for money,” Barnum said, describing how customers actively move funds across checking accounts, money market funds and other products to optimize returns.  Growth in accounts continues to support the franchise, but balances per account remain sensitive to rate-driven flows. Management maintained expectations for modest deposit growth, with yield-seeking behavior still influencing where funds reside.

AI Tools Reshape Liquidity

The discussion around AI focused on how customers manage their finances. JPMorgan is testing tools that allow clients to shift balances between accounts and investments with less effort, giving them a clearer view of cash positions across products.

Barnum said the tools are in early stages and aimed at a limited client segment. The CFO described the current rollout as narrow and early. “It’s understandable that this has gotten attention because it has sort of AI in it,” he told analysts, adding that “the right way to think of it is sort of as an experiment right now.”

The implication is that deposits will remain mobile. Dimon acknowledged that improved tools can tighten competition for balances. “It may squeeze some margin somewhere and create more competition somewhere,” he stated.

Commentary on the call addressed stablecoins within the context of payments and infrastructure rather than as a separate line of business. Barnum pointed to ongoing work around tokenized deposits and programmable payments, particularly in wholesale banking.

As JPMorgan expands its use of AI and digital payments infrastructure, management acknowledged that operational and technology risks remain part of the landscape.

In discussing broader operational risk frameworks, Dimon criticized regulatory approaches that rely on static models rather than real-world exposure. He argued that firms should focus on managing actual operational vulnerabilities rather than theoretical constructs.

JPMorgan shares were flat in early trading on Tuesday.