The news: Bank of America’s revenues rose 11% YoY to $28.1 billion in its Q2 2025 earnings, outstripping analysts’ expectations at $27.5 billion, per CNBC.
Diving into the results:
- BofA added 1 million new credit card accounts in Q3.
- Combined credit and debit card spend increased 6% YoY to $245 billion.
- Credit card charge-off rate dropped to 3.46% from 3.48% a year ago.
- 30- and 90-day delinquency rates fell to 2.41% and 1.23% from 2.54% and 1.30%, respectively.
CEO Brian Moynihan attributed the bank’s performance to “strong organic growth” across its business during the bank’s earnings call. Moynihan also shouted out BofA’s 6% cash-back credit card sign-up bonus as a product that delivers “value we believe is unmatched elsewhere.”
Consumer health: BofA’s superprime consumer base has resilience despite economic uncertainty and tariffs. The issuer also reported 11.3 million consumers enrolled in its Preferred Rewards program, suggesting a hunger for comprehensive rewards across their attached credit cards and other financial products through BofA.
Our take: While consumers are demonstrating resilience, leaning into flexibility as the holiday season approaches could give issuers more loyalty from consumers who are skittish about holiday shopping.
0% interest holidays and card-linked buy now, pay later offers can help banks compete against fintechs offering similar promotions.
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