U.S. Consumers Are Holding Up Well as Rates Rise, Bank of America’s Moynihan Says
2022.04.20 20:06
© Bloomberg. Brian Moynihan Photographer: Simon Dawson/Bloomberg
(Bloomberg) — The U.S. consumer is holding up well as inflation rises and interest rates climb, Bank of America Corp (NYSE:BAC). Chief Executive Officer Brian Moynihan said.
“There is a lot of dry powder on the consumer side,” Moynihan said in a Bloomberg TV interview Wednesday with David Westin.
Customers of the bank spent 13% more from their accounts in March than a year earlier, the CEO said, adding that the figure for April so far is up 18%. Spending is rising for travel, entertainment and food, he said.
His comments come after the Charlotte, North Carolina-based bank reported first-quarter results that beat analysts’ estimates. Earnings were driven by a record quarter for the equities-trading business and an increase in loan balances. Moynihan said Wednesday that he “feels good” about loan growth at the company.
The largest U.S. banks saw spending on credit cards surge in the first three months of the year as customers began traveling and dining out again after pandemic lockdowns.
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