Bank of America’s Profit Climbs as Consumer Spending Rises

Bank of America said its profit rose 12% in the fourth quarter of last year, as consumer spending climbed and delinquencies on credit cards edged lower.

The bank said spending on debit and credit cards rose 6%, while delinquencies of over 90 days on credit cards fell to 1.27% versus 1.35% a year ago.

“All of the metrics that we can see tell us the consumer remains resilient and is in great shape,” Alastair Borthwick, the bank’s chief financial officer, said on a call with reporters.

The country’s biggest banks are reporting their quarterly financial results this week, offering a snapshot of a U.S. economy that has been contending with President Trump’s tariffs, persistent inflation and weakening job prospects.

On Tuesday, JPMorgan CEO Jamie Dimon said consumers were still spending and that businesses remained healthy, though he warned of risks from geopolitical conditions. JPMorgan also reported higher spending on credit and debit cards, and a lower 90-day delinquency rate on credit cards.

As part of his recent moves to address Americans’ cost of living, Trump called for a one-year 10% cap on credit card interest rates. Industry groups have warned that the cap would result in a broad rollback of access to credit for consumers.

Borthwick declined to comment on the cap Wednesday. “We’re obviously supportive of what the administration is looking to do around affordability,” he said.

For the fourth quarter, Bank of America said it earned $7.6 billion, or 98 cents per share. Analysts expected earnings of 96 cents per share. Full-year profit was $30.51 billion, up 13% versus the previous year.

Total revenue for the fourth quarter rose to $28.37 billion, higher than analysts expected. Net interest income, a key profitability indicator, was up 10% to $15.8 billion.

Provisions for credit losses were $1.3 billion, down from the previous year.

Sales and trading revenue from the markets division was $4.52 billion, up 10% from a year ago. Investment banking fees also edged higher to $1.67 billion.

Write to Alexander Saeedy at [email protected]