Bank of America 2Q 2014 Conferce Call Highlights

Bank of America Corp BAC released its Q2 2014 conference call following its earnings on Wednesday, before the market open. The call consisted of short term guidance and revenue breakdown for each of Bank of America's banking segments. Before the call the bank reported EPS for the quarter of $4.89 compared to consensus EPS of $4.43. Revenue surpassed analyst expectations of $2.71 billion, Bank of America reported revenue of $2.78 billion for the quarter. Highlights From The Conference Call:

• Purchase mortgage volume increase , increase mobile customers after rollout a new advanced mobile banking platform in an earlier quarter.
• Banks total assets increased by $20.7 billion from its previous quarter, driven by more repo activity and an increase in securities balances.
• Bank of America reported 19 cents per diluted shares for Q2 2014.
• Litigation expense of $3.8 billion contribute to reserves.
• settlement amount 650 million including AIG to be an objector in litigation dispute.
• mortgage rev offset by seasonal mortgage expected revenue
• Expenses improve by 6 percent, expenses decline.
• Net income for the quarter has benefit from the sale of 2.01 billion in residential mortgage loans.
• Commercial loans had positive result, delinquencies continue to improve for the quarter.
• Tangible book value increased by 3 percent from Q1 2014.
• Series-T preferred shares stock issuance of $1.5 billion at favorable rate.
• Common equity tier 1 capital (CET1) came out to 12.0 percent, increasing by $7 billion from Q1 2014.
• Long term debt increased of 2.3 billion from the banks first quarter. Long-term debt yields declined by 0.12 percent from Q1 2014, mainly due to lower new issuance spreads.
• Lower consumer loan balances and lower loan yields due to rates decreasing within the quarter.
• Non-interest expense of $18.5 billion, decreasing by $3.7 billion from Q1 2014, included 4 billion in litigation, down $2 billion from Q1 2014. Litigation expense contribute to build bank reserves.
• Goal to reduce cost by optimizing network.
• rates on deposits reported at an all time low of 6 basis points.
• Bank of America announced the reduction of 72 new banking sales locations.
• Issued over 1.1 million in new total consumer credit cards domestically, 65 percent to existing customers.
• consumer real estate services (CRES) increased net income by nearly $700 million.mprove mortgage origination in the banks CRES division increased by 25 percent from the previous first quarter result.
• home loans saw better leverage as banking improved.
• In the bankes Global MArket segment, average loans and leases of $271.4 billion, 6 percent for the quarter, increasing by Q2 2013 by $50 million, due to growth in Commercial & Industrial, Commercial Real Estate and Leasing.
• Consumer and Business Banking increased earnings by 29 percent from Q2 2013.
• FICC revenue increased by $117MM (5 Percent) from Q3 2014 due to better volume in mortgages and munis influencing a decline in foreign exchange and commodities revenues decreased in the second quarter by $576 million or 20 percent from Q1 2014 due to seasonality.
• Equities revenue declined by $162 million (14 percent) compared to Q2 2013 and $121 million (11 percent) compared to Q1 2014 as low volatility depressed secondary market volumes and client activity
• Tax rate lower, expects a 31 percent tax rate by the second half of 2015.