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Key Points From Bank of America Conference Call

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Wednesday morning, Bank of America (NYSE: BAC) became the latest large bank to report second-quarter financial results that exceeded Wall Street's expectations. At 9:30 a.m. EST, the bank held a conference call to discuss the surprisingly strong results; here are some key quotes:

Brian T. Moynihan Chief Executive Officer, President, Director

  • “...capital ratios moved higher...in the process of returning capital to shareholders, expenses down 1 billion dollars from a year ago and down 800 million on a yearly basis..”

Bruce R. Thompson: Chief Financial Officer

  • “Total revenues for the quarter was very solid at 22.9 billion dollars..” “...made significant progress on all of our primary businesses this quarter...mortgages increased, credit card balances stabilized...”
  • “...global banking revenue showed increased strength...”
  • “...customer activity with loans remains strong as loans and leases were up $10B from 1Q13, driven by continued strength in commercial loan originations...”
  • “...tangible book value per share remained relatively flat from the first quarter...”
  • “Returned approximately $1.0B of capital through 80MM common shares repurchased below tangible book value per share at an average price of $12.59; authorized to repurchase an additional $4.0B through 1Q14”
  • “Tangible book value per share of $13.32 1 was down slightly from 1Q13, as earnings and share repurchases mostly offset a $4.2B after-tax decline in accumulated other comprehensive income (AOCI).”
  • “Basel 1: Continued to grow Tier 1 common capital ratio to 10.83%, up 34bps from 1Q13 and 45bps from pro-forma 4Q12”
  • “Basel 3: Estimated Tier 1 common capital ratio of 9.60%, up 8bps from 1Q13. $43B RWA reduction driven by overall improvement in credit quality”
  • [when discussing the Proposed Supplementary Leverage Ratio]: “In connection with the July 2013 proposed U.S. NPR, we estimate our bank holding company supplementary leverage ratio to be approximately 4.9% - 5.0% at 2Q13...relative to the 5 percent minimum made very good progress for all the different measures we are required to operate within..”
  • “...time to require funding increased 32 months from 29 months, well above target of 24 months, and will try to move towards 24 after upcoming debt maturity payments...”
  • “...do expect net interest income to build off of 2Q 10.4 billion adjusted level...”
  • “...total expenses down significantly, continued to deliver on expense reductions...from new BAC initiatives in other businesses we operate...”
  • “...257,000 employees down 7 percent from period year ago...”
  • “...US credit card balances appear to have stabilized...”
  • “...our market share in the retail mortgage space broke just above 5 percent compared to just below 4 percent last year...”

Posted-In: Brian T. Moynihan Bruce R. ThompsonEarnings News Management Events

 

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