Baird Equity Analyzed Bank of America's Q3 Results

In a report published Wednesday, Baird Equity Research analyst David George analyzed

Q3 results. Bank of America reported 3Q13 EPS of $0.20 versus Baid estimate of $0.18, with spread income down 3% Q/Q at $10.5B. BAC also reported that ex-litigation and LAS expenses declined approximately $150M Q/Q to $13.1B. Baird stated that capital levels are solid as the tangible book value rose to $13.62 per share in Q2. George noted Bank of America's internal growth and acquisitions, with emphasis on the optimization of the company's cost structure. The analyst commented, "Management is executing its turnaround strategy by shrinking the balance sheet, cutting costs, and addressing tail risks, but patience will be required as it will take time for the company to rebuild earnings power. Phase 1 of Project New BAC is expected to generate $5B of savings (~18% of total consumer operating expenses) by the end of 2013, and Phase 2 of the program should generate $3B in savings (~11% of commercial and markets business expenses) by mid 2015." Bank of America closed at $14.56 on Wednesday.