Bank of America earnings reveal resilient consumer spending amid tariff concerns

Despite tariff jitters and a choppy market, Bank of America’s latest earnings report from April 15 suggests that American consumers continue to power ahead.

In the game: The bank noted a 4% increase in combined credit and debit card spending for the first quarter compared to a year earlier, supported by healthy deposit growth. CEO Brian Moynihan said customers "are still solidly in the game," pointing to a surge in digital payments such as Zelle and underscoring that net charge-offs stayed flat from the previous quarter.

Early-year growth: CFO Alastair Borthwick explained in a press call that consumer banking deposits climbed from $928 billion last August to $972 billion. He added that the bank saw better-than-expected deposit growth to begin the year, with only modest increases in net charge-offs. Meanwhile, small business sentiment has turned cautious, according to Moynihan, as owners grapple with whether to pass along higher costs or delay investments until tariff policy becomes clearer.

Muted tariff impact: In separate remarks to Benzinga, Moynihan highlighted how trade tensions have not yet weighed significantly on overall consumer spending. He did, however, acknowledge an undercurrent of concern on the commercial side of the bank’s operations, especially among clients unsure how new tariffs might reshape their growth plans.

The banks agree: A similar sentiment emerged when Citigroup and JPMorgan Chase both reported spending gains in their own first-quarter updates. According to the Wall Street Journal, corporate activity is somewhat subdued, with companies stockpiling supplies and holding off on major expansions until clarity around policy and pricing emerges. For now, bankers caution that it is too soon to predict whether sustained tariffs might eventually slow consumers’ willingness to spend.