Bank of America CEO Brian Moynihan noted that consumers continue to show resilience in spending and maintaining quality credit, but acknowledged potential economic shifts due to tariff and policy uncertainties. Despite a reduction in GDP growth projections for 2025, the bank's research does not foresee a recession that year. In Q1 2025, BofA funded $4.5 billion in first-lien mortgages, indicating a year-over-year increase, alongside a strategic $8 billion mortgage portfolio purchase expected to enhance net interest income. The overall landscape shows declines in mortgage origination from other banks, highlighting competitive pressures.
Bank of America CEO Brian Moynihan stated that while consumers are currently resilient, the future economy remains uncertain due to tariffs and policy changes that could impact growth.
Moynihan emphasized the stability of consumers' spending and credit quality despite a projected decline in GDP growth for 2025, without anticipated rate cuts until 2026.
CFO Alastair Borthwick highlighted BofA's strategic $8 billion investment in high-quality residential mortgage portfolios, expecting significant annual net interest income from this move.
In Q1 2025, BofA saw a notable decline in funded first-lien mortgages, contrasting with a substantial year-over-year increase, indicating market volatility.
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