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

U.S. customers are spending extra money whereas additionally rising financial savings in a constructive signal for the economic system, in line 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 12 months.

“If you have a look at the core spending ranges of customers, they proceed to be very robust,” Moynihan stated. “January’s up practically 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 property, after solely JPMorgan Chase. Its relationships with U.S. households, small companies and firms give Moynihan a novel view into the well being of the economic system.

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

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

Moynihan stated that his financial institution was poised to generate extra earnings in a rising fee atmosphere. The Federal Reserve is predicted to start out mountain climbing its benchmark fee subsequent month.

The wide-ranging interview lined the financial institution’s expertise investments. As of final month, Financial institution of America had 16 million lively Zelle customers, and final 12 months Zelle transactions exceeded paper checks for the primary time.

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