U.S. banks finally see upturn in credit-card borrowing

NEW YORK: Big U.S. banks including JPMorgan Chase & Co and Citigroup appear set for some earnings boost from a pick-up in the battered credit-card business, but a possible recession would pull consumers back and bring losses on outstanding loans.

Last week, JPMorgan Chairman and CEO Jamie Dimon warned of growing recession risks and braced investors for a likely “hurricane.”

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In steady economic times, cards are one of the most profitable businesses for banks, and analysts say a continued upturn in card borrowing would bring relief for banks.