Bank of America’s profit increased by 12% in the fourth quarter of last year as consumer spending rose and credit card delinquencies decreased. The bank reported a 6% increase in card spending and a lower delinquency rate of 1.27%. CEO Alastair Borthwick believes consumers are in good shape despite economic challenges.

JPMorgan CEO Jamie Dimon commented that consumers are still spending and businesses are healthy, but warned of geopolitical risks. The bank reported higher credit card spending and a lower delinquency rate. President Trump proposed a 10% cap on credit card interest rates, raising concerns about reduced access to credit for consumers.

Bank of America reported fourth-quarter earnings of $7.6 billion, exceeding analysts’ expectations. Full-year profit reached $30.51 billion, a 13% increase from the previous year. Total revenue for the quarter was $28.37 billion, with net interest income up 10% to $15.8 billion. Provision for credit losses decreased to $1.3 billion.

The bank’s sales and trading revenue from the markets division increased by 10% to $4.52 billion, with investment banking fees also rising to $1.67 billion. Bank of America remains optimistic about economic growth this year, reflecting positive trends in consumer spending and credit card usage.

Read more at Yahoo Finance: Bank of America’s Profit Climbs as Consumer Spending Rises