Wall Street banks point to resilient US consumer as loan growth picks up

Rising credit card balances are typically a boon for large banks because they generate outsized interest income and fee revenue, making cards one of the industry's most profitable lending businesses. They can, however, also be an early sign of pressure on household budgets.

JPMorgan JPM.N CFO Jeremy Barnum outlined in the company's earnings call on Tuesday that spending had remained robust across income segments, while delinquencies came in lower than expectations.

Despite some consumers' reliance on credit to manage higher living costs, banks have said employment levels and household balance sheets have generally remained healthy.

U.S. job growth slowed sharply in June, with nonfarm payrolls increasing by 57,000 jobs, well below expectations for a 110,000 rise. Employment gains, however, averaged 111,000 per month in the second quarter, far more than the 34,000 during the same period last year.