Good morning. Business leaders are working to manage volatility and an evolving economic environment, as the goalpost keeps moving on policies.

Bank of America (BofA) CFO Alastair Borthwick offered some insight into what the bank is hearing from its commercial clients—concerns over trade policy and recent market turmoil have grown. “What our clients are telling us is they're looking for certainty,” Borthwick said during a media call on Tuesday. BofA’s commercial clients range from small businesses to middle-market and large corporations.

They’re seeking clarity, not just around trade policy, but also the tax package and regulatory reform. “Every day provides a little more information” and also “a little bit more in the way of certainty for people,” he said.

He added: “It's a slow-growth environment. That's what we continue to try and support our clients through.”

CFOs certainly are grappling with tariff uncertainty. Some are taking actions such as devising alternative-sourcing plans, stockpiling greater inventory, and creating financial buffers.

However, BofA's research team at this point doesn't believe we'll see a recession, Borthwick said. And clients continue to show "encouraging signs." Employment remains healthy, and consumers have proven resilient, he said.

For its Q1, Bank of America reported on Tuesday net income of $7.4 billion and earnings per share of 90 cents, up from 76 cents the same time last year. Revenue growth was 6%. It was driven by net interest income (NII), which was up 3% from the prior year, reaching $14.6 billion, partially helped by lower deposit costs. NII is the difference between what the bank earns on loans and investments and pays out on its liabilities, including deposits.

BofA maintained its guidance that NII will reach $15.5 to $15.7 billion in the fourth quarter and achieve 6% to 7% year-over-year growth for 2025, Borthwick said. This goes against the grain of what’s becoming more common this earnings season—some companies are pulling guidance due to tariff tumult.

“We run our business to withstand volatility over the short and the long term and through our responsible growth strategy,” Borthwick said on the media call. BofA is prepared to manage through any potential downturn in the economy, he said.

An analyst asked during BofA’s Q1 earnings call on Tuesday if there will be any potential impacts from the U.S. stock market losing trillions in wealth following the announcement of the Trump administration's sweeping tariff policy.

The real risk in any bank's balance sheet is going to be its credit posture, CEO Brian Moynihan said on the call. Even if there is “a very slight recession…we should fare well in that,” he said.

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No one has a crystal ball to perfectly predict the future, Moynihan said. BofA is positioning itself for every outcome, he said. “But we don't want people to lose sight of the strong performance of this company and our team in the first quarter of 2025,” Moynihan said.

SherylEstrada
[email protected]

This story was originally featured on Fortune.com

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