Despite Tariff Turmoil, Bank Of America CEO Says Consumer Is 'Continuing To Spend' (UPDATED)

Editor’s Note: The article has been updated to include additional content.

On Tuesday, Bank of America Corp BAC reported a first-quarter fiscal 2025 net income of $7.4 billion (versus $6.7 billion a year ago) and EPS of $0.90, beating the analyst consensus estimate of $0.81.

Revenue, net of interest expense, increased 6.0% year over year to $27.37 billion, beating the analyst consensus estimate of $26.99 billion. This was driven by noninterest income growth across all segments and higher net interest income (NII).

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Segment Net income: Consumer Banking clocked $2.53 billion versus $2.66 billion Y/Y, Global Wealth and Investment Management was $1.007 billion versus $1.005 billion Y/Y, Global Banking was $1.91 billion versus $1.99 billion Y/Y, and Global Markets was $1.94 billion versus $1.79 billion Y/Y.

Investment banking fees declined by 3% to $1.5 billion.

Net interest income was $14.44 billion (+3.0% Y/Y), driven by Global Markets activity and fixed-rate asset repricing.

Noninterest income was $12.92 billion (+9.6% Y/Y). Provision for credit losses grew 12.2 Y/Y to $1.48 billion.

The efficiency ratio for the quarter was 64.59%, compared to 66.36% Y/Y. The bank reported a CET1 ratio of 11.8%, compared to 11.9% a year ago. The book value per share of $36.39 improved by 8%.

The average loan and lease balance was $1.09 trillion (+4.0% Y/Y). Average deposits are up 3% Y/Y to $1.96 trillion. Bank of America added ~1.0 million credit card accounts during the quarter.

Bank of America CEO and Chairman Brian Moynihan said, "Our business clients have been performing well; and consumers have shown resilience, continuing to spend and maintaining healthy credit quality. Though we potentially face a changing economy in the future, we believe the disciplined investments we have made for high-quality growth, our diverse set of businesses, and the team's relentless focus on Responsible Growth will remain a source of strength."

Outlook: Bank of America reiterated a fourth-quarter net interest income of ~$15.5 billion – $15.7 billion.

Bank of America stock has lost over 17% year-to-date. In March, at least five Wall Street firms reduced their price forecasts for the stock.

Last week, the U.S. financial sector got some relief after President Donald Trump announced a 90-day suspension of tariffs on countries that have not retaliated against U.S. trade actions. The financial sector is a high beta, as it tends to outperform when markets are bullish and underperform during risk-off conditions.

However, Ray Dalio of Bridgewater Associates expressed concerns about a potential recession despite Trump pausing reciprocal tariffs.

Price Action: BAC stock is up 4.02% at $38.14 at the last check on Tuesday.

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