JPMorgan Chase is minting money as the US economy races back from the pandemic.
(JPM) growth was driven in part by $3 billion of net reserve releases that underscore the bank’s confidence in the economic recovery.
CEO Jamie Dimon said consumer and corporate balance sheets remain “exceptionally strong as the economic outlook continues to improve.” He pointed to a sharp decline in bad loans as evidence of the “increasingly healthy condition of our customers and clients.”
Consumers are spending aggressively. JPMorgan said combined debit and credit card spending surged 45% in the second quarter from a year earlier. Spending is now 22% above 2019 levels.
Dimon pointed to “accelerating growth” across all categories, including travel and entertainment, which surpassed 2019 levels by 13%.