According to Bank of America CEO Brian Moynihan, consumers remain financially resilient despite high inflation and concerns that a recession is imminent. “Analysts might wonder whether the talk of inflation, recession and other factors could [result] in a slower spending growth,” Moynihan said Monday during a conference call to discuss third-quarter results that topped analysts’ expectations. “We just don’t see [that] here at Bank of America.” Moynihan said that the bank’s customers continue to use their credit cards and other payment methods freely, with 10% more transactions in September and the first half of October than a year ago. While price inflation accounts for some of that, the number of transactions rose by 6%.

According to Moynihan, customers’ account balances remain higher than before the Coronavirus pandemic struck in early 2020, which indicates they are in a good position to continue spending. According to a Bank of America chart, this was particularly true for those with the smallest balances, which were five times higher than before the pandemic. Moynihan concluded that consumer credit remains pristine, with late-payment metrics well below pre-2020 averages, indicating that customers have little difficulty repaying their debts. “We’re just now seeing [a] gradual move off these lows in early stage delinquencies; late-stage delinquencies are still 40% below pre-pandemic,”