Bank of America’s (BOA) consumer clients made $355 billion in total payments in January, a 17% spike compared to the same period last year, the second highest month of spending on record for the financial.
The figure marks a continuation of the rise in consumer spending seen in 2021. BOA customers made $3.8 trillion in total payments last year, an increase of 24% compared to pre-pandemic 2019.
The bank also had a record fourth quarter in 2021, with payments totalling over $1 trillion, an increase of 29% over 2019.
“Bank of America consumer clients continued their strong payment trends in January, following record levels in 2021,” said Mary Hines Droesch, head of consumer and small business products at BOA.
“Our clients’ checking and savings deposit balances were also up 15% year-over-year, growing across all levels of affluence. These trends bode well for the economy as we move further in 2022,” she added.
Elsewhere, the bank’s total credit and debt spending climbed to $65 billion in January, up 16% compared to January 2021, while spending on credit cards also spike 28% compared to the same period last year, as retail, food, and travel spending re-emerged following a period of suppression at the start of last year.
For lower income consumers, both credit and debit spending was up 7% compared to January 2021, while in higher income brackets, spending continued to grow and was up 23% in January 2022, versus January 2021.
According to BuyShares data published in October last year, US banks outperformed analyst predictions in the second quarter, thanks to consumer spending, with some sectors thriving beyond pre-Covid-19 levels.
Five of the largest American banks reported a combined $1.4 trillion market cap at the end of the period, despite loan losses during the pandemic.
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