That could be inflationary but also gives-ĬRAMER: Well, you gave us some unbelievable travel, the travel restaurant spend, recovery. They now have about 12, $13,000 in their account, so they have more money and it's grown every month for the last year, more or less, and the last payment was a year ago and that's just because people are earning more and getting paid more and frankly, there's been a underspending because travel and other things have been hard and now it's going to open up and it'll keep doing it. For people who averaged between two and $5,000 average clear balance in their account, they now have, they average about $3,000.
They now have about 3,400 or 3,500 in the account. If you look in the consumer accounts so you take, talked yesterday about two cohorts, customers had 1 to $2,000 in their accounts pre-pandemic, average 1,400 or so. Now, what's driving that is the second part of it and what you mean by dry powder. So that's a trillion dollars almost in the quarter have grown at 13%. But importantly in the first couple of weeks in April, that number's moved back to 18% indicating faster spending in the consumers and people say well, it's due to inflation but gasoline expenditures are about 5% of 21% of what people spend in a Bank of America. So even there is inflationary part of pricing that's done so we showed that to the investors yesterday and showed it to the world yesterday. And by the way, there were 7% to 8% more transaction. In the first quarter in the month of March '22 versus March '21, the consumers fairly state it has been about 13% more than they did last year. MOYNIHAN: I think if you think about it, just a couple of facts. That can keep us out of recession, can't it? We do all that because we need those great talented group of people to serve our customers well and our brand score's now at the highest they've ever been which is a good thing.ĬRAMER: Now at the same time you have pretty good data on the strength of the consumer and I love the line dry powder.
BRIAN MONEYMONEY MONEY FULL
MOYNIHAN: Well, we have a great team but if you think about a company like ours where basically a very talented group of 200,000 plus people, a bunch of computers that they use to serve their customers well and their customers can use directly well and and buildings to house them so people are what our company is, and they're the ones that make the computers work and the other ones that do the great job for their customers so we pay them well and we started minimum, starting salaries now $22, full benefits, $10,000 tuition reimbursement, $275 a month per child for childcare credits for people to lower income levels, you know, healthcare that's well taken care of for lower income and higher income people pay more. That is not the line that you tell people. I mean, everyone's so gun shy because of Wall Street saying, wow, they're paying their people too much, I'm worried. Across the board, they do a great job.ĬRAMER: Well, unlike most people who say that, you're actually proud that your people are being paid more. But the reality is that sticky money and when we saw the repricing of the Fed last time all the way, you know, from the floor zero up to 2%, you know, you can see our pricing go through and even when that went on, we grew our deposit base 5% in the preceding 12 months so we can grow as Fed's rates rise because the team does a very good job of getting more customers and doing a great job for them and the digital capabilities, the branch capabilities, the wealth management, financial advisors and private bankers. People have a lot of money in their checking balance so we can talk about that because of the stimulus payments and everything and higher wages. 1.4 trillion of our $2 trillion is in that consumer base, about 40% of it's in checking.
MOYNIHAN: Yeah, we have a trillion foreign deposits for people for consumers like you and me, you know, from mass market consumers all the way up to wealthy consumers. This isn't jumping from one place to another, correct? Two hundred plus thousand new customers for the consumer business in the first quarter alone.ĬRAMER: What I think's incredible is because of your digital efforts and because of your customer service and who you guys are, this is sticky money. You saw, you know, we had a downdraft in investment banking fees, but you saw wealth management fees up nice and so we grew revenue, expenses were down, that creates operating leverage and that's off the organic growth engine that's delivering more accounts. And so year over year, you saw us grow our deposits 200, more than 200 billion, 240 billion. MOYNIHAN: Well, we have a great team and a great franchise and we have great customers who give us more business and tell their friends about us.
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