Bank Of America CEO Brian Moynihan is interviewed by Jack Otter during “Barron’s Roundtable” at Fox Business Network Studios on January 9, 2020 in New York City.
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Follow Bank of America CEO Brian Moynihan.
Moynihan told CNBC’s Jim Cramer on Wednesday that spending on the Bank of America card is up 20% year over year.
“When you look at core consumer spending, they continue to be very strong,” Moynihan said. “January increased by nearly 15 to 20% [from a year earlier]; We see that continuing into February. “
Bank of America is the second largest bank in the United States by assets, behind only JPMorgan Chase. Its relationships with U.S. households, small businesses, and corporations give Moynihan a unique view of the health of the economy.
While there is concern that consumer bank account balances will shrink once the government’s stimulus programs end, that hasn’t happened yet, Moynihan said. Instead, the balance has increased over the “last six or seven months,” according to the CEO.
“The second thing is that consumers have more money in their accounts,” Moynihan said. “So in January their accounts grew again, especially for consumers with lower balances.”
Moynihan says his bank is poised to generate more income amid rising rates. The Federal Reserve is expected to begin raising its benchmark rate next month.
The interview was broad-based including the bank’s technology investments. As of last month, Bank of America had 16 million active Zelle users, and last year, Zelle transactions exceeded paper checks for the first time.
This story is evolving. Please check back for updates.
