Financial institution of America CEO Brian Moynihan says U.S. shopper spending ‘very robust’ in February

U.S. customers are spending more cash whereas additionally rising financial savings in a optimistic signal for the financial system, in accordance with Financial institution of America CEO Brian Moynihan.

Moynihan instructed CNBC’s Jim Cramer on Wednesday that spending on Financial institution of America playing cards has jumped by as a lot as 20% from final yr.

“Whenever you have a look at the core spending ranges of customers, they proceed to be very robust,” Moynihan mentioned. “January’s up almost 15 to twenty% [from a year earlier]; we’re seeing that proceed into February.”

Financial institution of America is the second-biggest U.S. financial institution by belongings, after solely JPMorgan Chase. Its relationships with U.S. households, small companies and companies give Moynihan a novel view into the well being of the financial system.

Whereas there was concern that shopper checking account balances would plunge after authorities stimulus packages ended, that hasn’t been the case but, Moynihan mentioned. As a substitute, balances have risen for the “final six or seven months,” in accordance with the CEO.

“The second factor is that customers have more cash of their account,” Moynihan mentioned. “So within the month of January their accounts grew once more, particularly for customers that carry decrease balances.”

Moynihan mentioned that his financial institution was poised to generate extra earnings in a rising price atmosphere. The Federal Reserve is anticipated to begin climbing its benchmark price subsequent month.

The wide-ranging interview lined the financial institution’s know-how investments. As of final month, Financial institution of America had 16 million lively Zelle customers, and final yr Zelle transactions exceeded paper checks for the primary time.

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