Big Banks aren't worried about you

• Consumers have been resilient, continuing to spend regardless of tariffs or inflation while paying off their debts, the banks said in their earnings reports.

Driving the news: Credit quality at JPMorgan Chase, Citigroup and Wells Fargo held up remarkably well, Gerard Cassidy, head of U.S. bank equity strategy at RBC Capital Markets, tells Axios.

• That's also a positive indicator for the other major banks set to report, like Bank of America, as well as the regional banks.

Between the lines: Decreased loan loss provisions indicate more confidence in consumer health.

• Provisions for loan losses came in better than expected across the board.
• Delinquencies were also down for credit cards across the big banks.
• Card spending year over year was up 7% at JPMorgan, and branded cards revenue for Citi increased 11% year over year.

What they're saying: "Consumer credit is excellent," Jeremy Barnum, JPMorgan's chief financial officer, said on the earnings call.

Be smart: That "healthy consumer credit picture" could, of course, change if the economy deteriorates, Cassidy tells Axios.

• But "nobody expects" an economic downturn severe enough to impact consumer credit in the next six to nine months, he says.

• That's the time period investors are most interested in getting clarity on during earnings calls.

Yes, but: There are signs under the hood that the macro outlook remains concerning for some.

• Citi increased its allowance for credit losses given "deterioration in the macroeconomic outlook," though that was expected by analysts.
• Consumer non-accrual loans increased 30% from the prior year for Citi, driven in large part by the California wildfires.

The bottom line: Banks aren't going to risk their own balance sheets to bail out consumers.

• If loan loss provisions are broadly down, it's for a reason: Banks see consumer resilience ahead.