BofA’s Q1 Shows the US Consumer Won’t Flinch, Card Volumes Up 7%

Bank of America’s first-quarter results, released Wednesday (April 15), show U.S. consumer spending holding steady against macro volatility, with more than $1 trillion in consumer flows moving through the bank’s payments ecosystem during the quarter.

“The U.S. consumer continues to spend through all these different platforms here at Bank of America,” Chief Executive Officer Brian Moynihan said on an earnings call, citing spending growth of roughly 5% into the first quarter.

That growth was broad based, spanning entertainment, travel, retail and services, with transaction volumes signaling that gains reflect both higher activity levels and, in some cases, higher prices. Gasoline spending rose 16% year over year in March, lifting growth across essential categories.

Moynihan connected the data to the wider economic picture, saying “the core activities economy continue to push along even with all the uncertainty that you’ve all written about.”

Growth Reflected Across Financial Results

That level of activity supported the bank’s quarterly performance. Revenue rose 7% year over year to $30.3 billion. The company’s stock was up about 1% in intraday trading on Wednesday.

Moynihan emphasized that growth was broad across the franchise, noting, “every segment grew revenue. Every segment grew earnings. Every segment grew average deposits and every segment grew loans.”

Average loans increased nearly 9% year over year, driven primarily by commercial portfolios, while deposits rose 3%, reflecting continued engagement from both consumer and business clients.

Consumer Lending Tracks Spending Patterns

Consumer loan balances increased about 4% year over year, including 3% growth in credit card balances. That growth aligns with spending patterns observed across the bank’s payments data, indicating that borrowing continues to support consumption while remaining measured relative to overall loan growth.

Within the consumer segment, combined credit and debit card purchase volumes reached approximately $245 billion for the quarter, up 7% from a year earlier, further illustrating the link between transaction activity and balance growth.

Credit Performance Remains Stable

Credit quality remained consistent with prior periods. Net charge-offs totaled $1.4 billion, with a loss rate of 48 basis points, lower than a year earlier and modestly higher than the previous quarter due to seasonal patterns in card balances.

Provision expense declined to $1.3 billion from $1.5 billion a year earlier. Moynihan described asset quality as “stable to modestly improved,” reflecting steady conditions across both consumer and commercial portfolios.

Nonperforming loans were flat sequentially, while criticized commercial exposure declined, indicating incremental improvement in certain portfolios without a broader shift in credit trends.

Digital Usage Continues to Expand

Customer engagement through digital channels continued to increase. The bank reported that 79% of households are digitally active, and 71% of sales are completed through digital channels, up from 65% a year earlier.

Moynihan linked that activity to operational changes within the bank, stating that “the application of technology, the process and the customer utilization of our technology has led us basically run the company 19 years later on less people.” The company’s materials indicated that Erica users were 21.3 million in the quarter, up from 19.9 million in the year ago period.  Zelle volumes reached $147 billion in the most recent period, up from $130 billion a year earlier in the first quarter of 2025.

Private Credit Positioning

Management addressed private credit exposure by emphasizing structure. Chief Financial Officer Alastair Borthwick said the bank’s exposure is positioned behind other capital layers, noting that “for losses to reach us, we believe operating company equity and a substantial portion of fund investor capital would need to be impaired.”