By: Aaron Wall, CFA
Partner, Portfolio Manager
Q3 earnings season is underway, kicking off, as always, with the major banks. Their reports are important because they also include key statistics about the underlying economy, such as consumer spending, and provide a window into lending. Let’s take a look at the numbers.
Q3 Bank Earnings: US Consumer Remains Resilient
Across the major banks for Q3, consumer spending remained resilient, outpacing lending. Morningstar noted that “average card loans grew 5% at Bank of America, 7% at JPMorgan, 9% for Citi’s general-purpose portfolio, and 5% at Wells Fargo against 8%–13% spend growth, so spend looks income-funded rather than credit-funded.”These two statistics, among many others, help to highlight the overall economy’s resilience, which has been the leading story so far in 2026.
The banks also pointed out, unsurprisingly, that the path of interest rates may complicate matters as we close out 2026.
So far, so good on the earnings front, and we can’t wait to dive into more detail as the rest of the S&P 500 issues their reports over the coming weeks.
What Do Rising Yields Mean For Investors?
This week, the Investment Committee released its Q4 Market Outlook Webinar. During the discussion, we highlighted the performance of major markets and the economy during the third quarter, analyzed the unsettling environment of relatively unchanged equity markets amid rising interest rates, and reviewed how we’re reflecting these developments in our portfolio management.It’s a great opportunity to hear how we are interpreting these shifting markets at a firm level, and we welcome any additional questions or feedback that you may have after watching the webinar.
