Macro Takeaways From the WFC, JPM Reports This Morning

Wells Fargo:

• Average loans higher by 6% Y/Y, driven by higher commercial and residential real estate loans and credit cards.
• Average deposits down 7% Y/Y reflecting consumer deposit outflows as customers continued to migrate to higher yielding alternatives as well as continued consumer spending
• Home lending revenues down 42% Y/Y on lower originations.
• Mortgage loan originations down to $5.6bln in Q1 from $24.1bln a year previously.

JP Morgan:

• Average loans up 5% Y/Y, average deposits down 4% Y/Y and down 3% Q/Q.
• Flags deposit repricing, consumer behaviour and competitive dynamics as a significant source of uncertainty
• Dimon: US economy continues to be on generally healthy footing. Banking industry turmoil adds to risks, but situation is distinct from 2008 in that it involves far fewer players, with fewer issues that need to be resolved. Financial conditions will likely tighten, but we do not know if this will slow consumer spending.