Bank of America CEO Brian Moynihan on the US economy: 'More durable than expected'

Yahoo Finance ^ | July 14, 2026 | Ines Ferré

[lasereye]

Bank of America (BAC) CEO Brian Moynihan said the US economy was strong and that consumers remained resilient as the company reported a jump in its second-quarter profit on Tuesday.

"The U.S. economy has proved more durable than expected, supported by the strong consumer, ongoing AI-driven investments across the board, and easing energy costs," Moynihan said during the bank's post earnings conference call.

Bank of America stock rose 2% in morning trading after the bank's profit jumped 27% last quarter to $9.1 bilion, with net income growth across every business segment. The results came as investors look for signs on how well consumer spending has held up amid higher gas prices due to the Iran war.

"We continue to see strong consumer spending," Moynihan added later in the call.

Earnings per share jumped 34% year-over-year, driven by commercial loan growth beyond artificial intelligence.

"Whether it's business banking, the commercial bank, or the corporate bank, they're all contributing. It's very broad-based loan growth at this point," said Alastair Borthwick, CFO of BofA.

Bank of America's net interest income, the profit made from loans minus interest paid to depositors, hit $16 billion, topping the Bloomberg consensus estimate of $15.92 billion.

The results echoed those of Wells Fargo (WFC), which also exceeded analysts' expectations for its second quarter earnings, boosted by a 13% year-over-year increase in revenue from its wealth management and investment banking businesses.

Consumer banking and lending revenue grew 6% year-over year, as did commercial banking revenue.

"We are clearly benefitting from the broad-based economic strength we see in the US, but the investments we are making and our improved operating discipline also drove strong momentum in our key business metrics across all operating segments," CEO Charlie Scharf said in the statement.

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TOPICS: Business/Economy
KEYWORDS: economy

[lasereye]

Maybe the Fed doesn't need to cut interest rates after all. President Trump wants them to do that.

I think at some point the Fed will need to cut. The Fed Funds rate here is quite a bit higher than the equivalent at almost every other central bank.

[griswold3]

M2 has increased. 2020 (Covid) 24%
2021 Inflation Reduction Act 13.1%
The May 2026 growth of 5.6% is the highest annual increase since February 2021, when M2 rose 26.8% in a single year

[proxy_user]

M2 can increase because the Treasury is selling a lot of 4-week bills, which money market funds buy. The holders of money market funds think they are holding cash, but from the Treasury’s point of view it’s debt.

[9422WMR]

A pox on Wells Fargo and Bank of ‘merica.
I despise both.
You put money in their accounts and they pay you nothing. They require an appointment to see a banker. They are not customer friendly. They act like they are disappointed you are bothering them.
And don’t get me started on the apps they use…

[Vaduz]

Didn’t BOA get busted for tapping into customers accounts?.

[LS]

See my substack today (free) “More Durable than Expected” on the history of inflation and why economists still don’t get it.