NEW YORK—JPMorgan Chase recently reported a double-digit percentage gain in outstanding credit card balances, but clarified the increase is as not a sign of trouble and is simply an indicator of normal trends.
The bank said the balance increases are the result of the effects of the COVID-19 pandemic continue to fade, MarketWatch said.
No ‘Deterioration’
“JPMorgan Chase executives summed up the state of consumer credit quality as ‘normalization not deterioration,’ although a mix of factors continue to cloud their economic outlook, as part of the bank’s stronger-than-expected second-quarter results,” MarketWatch explained. “The comment reflects the ability of the bank’s customers to continue to pay back their debts at expected levels, and that credit quality is not getting any worse at the moment:
Card outstandings rose 18% as a result of “revolved normalization” as well as new account growth, MarketWatch noted.