Marketplace Morning Report Big banks post big earnings, but lending is more muted
Oct 15, 2025
Big banks report impressive quarterly earnings, but lending is struggling as consumers hesitate to incur debt amid high interest rates. While wealthy households are increasing discretionary spending, lower-income consumers face financial strain. A major cryptocurrency scam linked to the Prince Group is unveiled, alongside significant Bitcoin seizures by the DOJ. Meanwhile, Broadway is grappling with escalating production costs and potential labor disputes. The economy shows resilience despite trade uncertainties, with insights from experts on the future impact of AI.
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Revenue Up, Lending Lagging
- Big banks posted strong revenue driven largely by investment banking and trading.
- Traditional lending growth was weaker despite higher overall profits.
Borrowing Hesitancy Across Sectors
- Businesses are reluctant to take on new debt amid rate and tariff uncertainty.
- Consumers also avoid mortgages and HELOCs because high interest rates make borrowing unattractive.
Cards Rise As Discretionary Spending Rebounds
- Credit-card loan volumes have risen as consumer spending rebounds, notably on travel and discretionary items.
- Higher-income households are driving much of that spending because portfolio gains boost confidence.