Bank of America sees 6% card spending rise, forecasts 13% EPS growth
Bank of America reported a 6% increase in combined card spending and lower credit provisions in Q1, contributing to industry-wide profit growth of 12% to $47.3 billion. Strategists led by Savita Subramanian forecast 13% EPS growth and set an S&P 500 7,100 target despite over 10% P/E multiple compression since 2025.
1. Q1 Consumer Spending and Credit Trends
In the first quarter, Bank of America reported a 6% increase in combined debit and credit card spending alongside a decline in 90-day card delinquencies and lower credit provisions compared to Q1 last year, demonstrating resilient consumer demand and stable asset quality.
2. Market Regime Outlook and Valuation
In a strategist note, Bank of America forecasts 13% EPS growth for 2026 and sets an S&P 500 7,100 target, highlighting over 10% P/E multiple compression since 2025 and advising sector positioning shifts due to valuation pressures.