Bank of America Reports $7.4 Billion Profit Amid Consumer Spending Trends

Despite a notable drop in U.S. consumer confidence due to tariff uncertainty and a volatile stock market, Americans continue to spend robustly, as reflected in both retail data and major bank earnings. Bank of America reported a strong first quarter for 2025, with net income rising to $7.4 billion and revenue increasing by 6% year-over-year, driven by growth in both net interest and noninterest income. Consumer spending at Bank of America grew at a healthy pace, with credit and debit transactions up 4% and digital engagement rising, as digital sales comprised 65% of total sales. CEO Brian Moynihan emphasized that consumers remain resilient and credit quality healthy, even as the bank's analysts lower growth forecasts and brace for potential recession risks. The broader retail sector also showed growth in March, especially among auto dealers who saw a 9.2% sales increase ahead of new tariffs. Despite ongoing economic concerns, these data points suggest that consumer activity continues to underpin economic growth.