Key Points From Bank of America Conference Call - Bank of America (NYSE:BAC)

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

Brian T. Monyihan 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...”

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