July 14 Reuters Some of the largest U.S. banks got a profit boost from higher interest rates and pointed to early signs of recovery in investment banking, but warned of stress among consumers and that losses would increase in commercial real estate.

In their earnings on Friday, JPMorgan Chase JPM.N and Wells Fargo WFC.N reported sharp increases in net interest income, which measures the difference between what banks earn on loans and pay out on deposits, that drove up profits.

Citigroup, meanwhile, said profit tumbled 36 in the second quarter as weakness in the bank39;s trading business blunted gains from its personal banking and wealth management.

There was a muted response from investors. JPM39;s shares rose 0.5, Wells39; shares were flat, while Citi fell 2.

U.S. consumers still have a healthy balance sheet, the banks said, but warned spending was slowing and there had been a modest deterioration in some consumer debt.

The U.S. economy continues to be resilient, JPMorgan Chief Executive Jamie Dimon said. But he added that consumers are slowly using up their cash buffers.

On a conference call, the largest U.S. bank39;s chief financial officer, Jeremy Barnum, said loan growth demand is muted apart from cards and auto segments. The CFO added that the bank was seeing green shoots in trading and investment banking but it was too early to call a trend.

There have been growing worries around the health of the U.S. economy against a backdrop of aggressive interest rate…