Earnings season’s here, with JPMorgan among the most visible names reporting Friday morning (Jan. 12).
And the big bank’s metrics are showing evidence that consumer spending is still strong. But as management commentary on the call noted, spending may moderate as it outpaces any momentum in building up deposits. Credit losses are still in a projected range targeted in past earnings commentary.
Supplemental materials offered by the company alongside the earnings announcement reported that debit and credit spending was up 7% to $441 billion.
CFO Jeremy Barnum said that card loans were up 14% to $202 billion.
Credit costs were $2.2 billion, largely driven by net charge-offs, which were up $791 million year on year predominantly “due to continued normalization in card” credit metrics, said Barnum. The supplementals revealed that the card-related net charge off rate stood at 2.8%, up from 1.6% last year.
Average deposits were down 6% year on year, he continued, as “clients continue to opt for higher yielding alternatives.”
Looking ahead, he said, “we expect strong long growth in card to continue, but not at the same pace as 2023.”
JPMorgan expects the 2024 card net charge off rate to be below 3.5%, as average unemployment should be around 5.5% in the year ahead. “I think it’s uncontroversial that the economic outlook has evolved to include a significantly higher probability of a soft landing. That’s, I think, the consensus at this point,” said Barnum, who added that “consumers have been spending more than they’re taking in.”
It remains to be seen “how that spending behavior adjusts as we go into the new year in a world where their cash buffers are less comfortable than they were.”
In a nod to omnichannel efforts in banking, the CFO remarked that JPMorgan built 166 new branches and “we’re planning about a similar number this year,” as the company logged 2 million net new checking accounts and an 8% growth in active card accounts in the past year.
Asked on the call about technology investments, Barnum noted that investments are on the rise across the company, and that AI remains an area of promise, though “we’re JP Morgan Chase and we’re not going to be chasing shiny objects here in AI. We want to do this in an extremely disciplined way, very commercial and very linked to tangible outcomes.”
Active mobile customers were up 8% year on year to 53.8 million.
Investors sent the shares of the banking juggernaut up 1% in early morning trading on Friday.
As the calendar flips to March, college basketball fans are gearing up for another exhilarating NCAA tournament.
In the future, artificial intelligence and cutting-edge technology could change March Madness as we know it. Let’s break down how the digital revolution could transform the Big Dance.
AI is already being used to predict brackets. Gone are the days of agonizing over your picks based on team mascots or your alma mater’s colors. In 2025, AI-powered bracketology is the name of the game. Fans can use algorithms that crunch data points, from player statistics to historical upset probabilities, all at the click of a button.
But beware, bracket enthusiasts. While these AI tools promise to boost your chances of winning the office pool, they can’t account for the quintessential March Madness chaos. You know, the instance where AI can predict everything except the inevitable Cinderella story that ruins everyone’s bracket by the second round.
In a move that would be sure to ruffle some feathers, AI-generated commentary could be used for games. Digital play-by-play announcers would never need a bathroom break and potentially be able to recall obscure statistics from the 1957 tournament in an instant.
Can’t make it to the Final Four? Ten years from now, games might happen in a digital stadium, Forbes reported. With virtual reality (VR) technology, fans could experience the thrill of courtside seats from the comfort of their living rooms.
“AI-generated athletes, inspired by the procedural generation techniques of video game developers … could perform in virtual arenas, exhibiting strategies and plays conceived by advanced predictive algorithms,” Forbes reported.
Just be careful not to get too caught up in the moment with streaming. Wouldn’t want to have reports of fans attempting to rush the virtual court after buzzer-beaters have led to an uptick in living room injuries — especially when that flat screen falls over.
While human coaches still call the shots, AI assistants could one day be indispensable members of the coaching staff. In the next five years, these digital strategists could analyze opponent tendencies and more.
“Building on existing technologies … AI will provide coaches and players with intricate, multi-dimensional data patterns that dramatically enhance both offensive and defensive strategies,” Forbes reported. “These advanced algorithms will analyze vast datasets from numerous games to uncover hidden trends, strategic insights, and predictive cues about opponents’ potential moves.”
Say goodbye to controversial calls. Advanced computer vision systems could assist referees in making split-second decisions, from determining if a player’s toe was on the line for a three-pointer to detecting the slightest touch on a blocked shot.
The Hawk-Eye system is already used in tennis and cricket to help determine fouls, Viso.AI reported.
“This system uses a network of cameras to track the ball and then compares the trajectory of the ball to a virtual model of the playing surface,” the report said. “This system is accurate within a few millimeters, which is much more accurate than the human eye.”
As we dive into March Madness 2025, it’s clear that technology will change the way we experience the tournament. From AI-powered brackets to virtual reality arenas, the digital revolution is coming for basketball. But at its core, the magic of March Madness remains the thrill of competition, the joy of unexpected victories, and the heartbreak of last-second defeats.
So, whether you’re relying on an AI to pick your bracket this year, or screaming at a holographic referee in the future, remember to enjoy the ride. In the unpredictable world of college basketball, sometimes the best strategy is to embrace the madness — digital or otherwise.
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