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  • Frank Tian

Q3 '22: Strong Sales Pulled Card Balance Back

Top 4 US banks had another strong quarter with credit card purchases, which pulled the credit balance finally back to the level 3 years ago.


For full-service banks, this illustrates the advantage of a diversified business model - the credit card engine fires up when mortgage and trading are muted.



Two key metrics at the top 4 US banks:


🟩 Credit card sales in Q3 ‘22 up 37% vs. Q3 ‘19.


Consumers opened up their wallets to enjoy the summer, despite lower confidence with high inflation.


🟦 Credit card balances in Q3 ‘22 on par with Q3 ‘19.


Consumers’ excess savings suppressed card balances during the pandemic.


Now the financial cushion is gradually declining as policies shift to post-pandemic challenges.


The positive signal - the job market is still strong. The latest unemployment rate is only 3.5% with 10 million jobs open.

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