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America’s Leading Banks Report Strong Financial Positions, Driven By Consumer Confidence & Economic Expansion
WASHINGTON – CBA President and CEO Richard Hunt today released the following statement after many of the nation’s leading financial institutions reported strong Q2 financial positions last week, highlighted by consumer spending returning to pre-pandemic levels as well as an anticipated rise in consumer borrowing:
“During the worst of the pandemic-related economic shutdown, America’s leading banks stepped up to support their customers and communities in times of need. This commitment sustained our economy, allowing for the continued economic resurgence we see today. These earnings reiterate the strength of the nation’s largest banks who finance the American Dream for consumers and small businesses in cities and towns across the country. While there are still challenges ahead, it is clear the American consumer is poised to drive spending and growth for the foreseeable future.”
At the same time, last week, Federal Reserve Chairman Jerome Powell testified before Congress saying:
“They (America’s leading banks) managed to get through the recent pandemic, the acute phase of it and the recovery and did their jobs. By and large, our financial institutions are well-capitalized. […] The financial system is strong and the banks are strong."
Here’s a look at what the CEOs of America’s leading banks said last week.
Commenting on the state of the economy, U.S. Bank President and CEO Andrew Cecere stated:
“One year ago, we were at the beginning stages of a pandemic-driven economic downturn, which had no precedent. […] We believe we are well positioned to benefit from what many expect to be the strongest economic growth this country has seen in decades as we capture the potential of increased consumer and business spending across all of our business lines.”
In addition to reporting quarterly earnings, Wells Fargo President and CEO Charlie Scharf reflected on how his bank supported consumers during the pandemic:
“While we're focused on improving our execution and results, we know that supporting our customers and communities will continue to be an important part of our mission. The work we did through the pandemic was meaningful and necessary to help those most in need, especially consumers and small businesses, but there remains much more to do.”
Truist Financial Chairman and CEO Kelly King highlighted Truist’s commitment to fulfill its mission in meaningful ways across its communities:
“In the quarter, we released our inaugural supplier diversity report, which reflects a $1 billion impact for last year, significantly expanded our partnership with Operation HOPE to help provide more education, insights and tools to help more people build better lives, and contributed a combined $200 million to the Truist Foundation and the Truist Charitable Fund to further support the important work of organizations across our diverse markets."
Speaking on the improved economic conditions American consumers are experiencing, JPMorgan Chase Chairman and CEO Jamie Dimon said:
“If you look at today, today, everything we talk about loans being down is the consumer is -- the positive prime. The consumer, their house value is up, their stock rises up, their incomes are up, their savings are up, their confidence are up. […] And they're ready to go.”
PNC’s Chairman and CEO Bill Demchak provided an update on the rollout of their new product, “low cash mode,” aimed at providing consumers more transparency and choice, while protecting access to overdraft products should they need it:
“Since announcing the product in April, we've delivered over 10 million low cash mode alerts and have seen strong engagement with the experiences. It helps to address a major frustration for many of our customers across the industry. Over time, we expect it to drive significant growth in new and existing customer relationships as we execute our national expansion strategy.”
Bank of America Chairman and CEO Brian Moynihan spoke on the impact of economic reopening’s on their bottom line:
“We delivered solid earnings and returned more capital to shareholders during the quarter as we moved to a more open economy. Our team continued to do a great job serving clients, as shown by the increased levels of client activity across all of our businesses. Consumer spending has significantly surpassed prepandemic levels, deposit growth is strong, and loan levels have begun to grow."
Citi CEO Jane Fraser spoke on the influence of growing consumer confidence:
“We continue to benefit from an improving macro environment, as evidenced by another significant release of our allowances for credit losses. Indeed, the pace of the macro recovery is exceeding earlier expectations across the globe and with it comes growing consumer and corporate confidence.”
At CBA’s Washington Forum in April, policymakers recognized the strength of the American banking system and the role banks have played in supporting consumers and small businesses through COVID-19. This commitment has served as a foundation for the economic growth the nation is experiencing today.
FDIC Chairman Jelena McWilliams: “The banks have been remarkably resilient throughout the financial crisis [caused by the pandemic]. I would say that if you take anything away from the last year and the financial crisis, it is that the financial system, the banking system itself has been really resilient with ample liquidity and capital to handle the stress as it did. And if anything, we came out on the other side of that problem, which is almost too much money poured into the banks.”
Former Acting Comptroller of the Currency Blake Paulson: “The performance you’ve seen out of banks over the last year during this pandemic is proof that when you start a downturn with a strong banking system, both the economy does better and the banks do better. […] Maintaining a strong, safe and sound banking system is crucial not only to the banks themselves, but the economy.”
To read CBA’s statement on the FDIC’s Quarterly Banking Profile released in May, click HERE.
To read CBA’s statement on the June White House meeting with the nation’s leading regulators, click HERE.
About the Consumer Bankers Association:
The Consumer Bankers Association represents America’s leading retail banks. We promote policies to create a stronger industry and economy. Established in 1919, CBA’s corporate member institutions account for 1.7 million jobs in America, extend roughly $4 trillion in consumer loans and provide $275 billion in small business loans annually. Follow us on Twitter @consumerbankers.