The bank that touches the most American households just reported, and the numbers say consumers are still spending. Bank of America posted $8.6 billion in Q1 profit - up 17% from a year ago - on $30.3 billion in revenue, as earnings per share hit $1.11 and beat the $1.01 consensus. CEO Brian Moynihan called the economy "resilient and productive."
Consumer Banking pulled in $3.06 billion in profit, up from $2.53 billion last year - a number that matters because Bank of America is the closest thing to a Main Street barometer among the big banks. Its consumer division shows how real people are borrowing, saving, and spending. Net interest income - the money the bank earns from loans and deposits - grew 9% to $15.9 billion, helped by higher balances and rising yields on assets.
Every business segment grew. Trading revenue got a boost from war-driven market swings, investment banking fees climbed, and asset management brought in more revenue as clients moved money into fee-based accounts. The bank's efficiency ratio improved to about 61%, meaning expenses rose more slowly than revenue.
Worth noting: Moynihan's "healthy" consumer call stands out because it clashes with the anxiety showing up in consumer confidence surveys. If the biggest retail bank in America says its customers are still spending, that carries weight - at least for now.
