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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:


๐ŸŸฉ Credit card sales in Q3 โ€˜22 up 37% vs. Q3 โ€˜19.


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


๐ŸŸฆ Credit card balances in Q3 โ€˜22 on par with Q3 โ€˜19.


Consumersโ€™ 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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The Economist recently published a piece to highlight the resilience of credit cards in developed economies. In the US, the credit card balance dropped as much as 16% during the pandemic*, but has mad

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