trending Market Intelligence /marketintelligence/en/news-insights/trending/NFtlI4KpKhRZKThKMwcJGw2 content
Log in to other products

Login to Market Intelligence Platform

 /


Looking for more?

Contact Us

Request a Demo

You're one step closer to unlocking our suite of comprehensive and robust tools.

Fill out the form so we can connect you to the right person.

If your company has a current subscription with S&P Global Market Intelligence, you can register as a new user for access to the platform(s) covered by your license at Market Intelligence platform or S&P Capital IQ.

  • First Name*
  • Last Name*
  • Business Email *
  • Phone *
  • Company Name *
  • City *
  • We generated a verification code for you

  • Enter verification Code here*

* Required

Thank you for your interest in S&P Global Market Intelligence! We noticed you've identified yourself as a student. Through existing partnerships with academic institutions around the globe, it's likely you already have access to our resources. Please contact your professors, library, or administrative staff to receive your student login.

At this time we are unable to offer free trials or product demonstrations directly to students. If you discover that our solutions are not available to you, we encourage you to advocate at your university for a best-in-class learning experience that will help you long after you've completed your degree. We apologize for any inconvenience this may cause.

In This List

BofA provides expense reduction target for 2018

Street Talk Episode 68 - As many investors zig away from bank stocks, 2 vets in the space zag toward them

Street Talk Episode 66 - Community banks tap the debt markets while the getting is good

Street Talk Episode 67 - Veteran investor tabs Mick Mulvaney to help with latest financial stock-focused fund

Street Talk Episode 65 - Deferral practices trap US bank portfolios in purgatory


BofA provides expense reduction target for 2018

Whilethe lower for longer rate environment presents a headwind to profitability,Bank of America Corp.believes it can grow earnings by keeping net interest income stable whiletargeting further expense reductions over the next six quarters.

Earlyon July 18, BofA reported that second-quarter net income applicable tocommon shareholders declined to $3.87 billion, or 36 cents per share, from $4.80billion, or 43 cents per share, in the year-ago period.

BofAChairman and CEO Brian Moynihan said on a conference call to discusssecond-quarter results that the company believes it "surely can" growearnings even if interest rates remain low by keeping net interest income andfees stable to growing, while further reducing its expense base.

Inthe second quarter, BofA reported that net interest income totaled $9.21 billion,up slightly from $9.17 billion in the prior period, but down from $10.46billion one year ago. Noninterest expense declined to $13.49 billion in thesecond quarter from $14.82 billion in the linked quarter and $13.96 billion ayear earlier. Moynihan said BofA's expenses reached a level in the secondquarter not seen since 2008.

Overthe last four quarters, BofA's expenses total around $56 billion, but thecompany expects to reduce the annualized amount to $53 billion over the nextsix quarters.

Analystson the conference call pressed BofA executives for further details on theplanned expense reductions and asked why the company felt the need to provideexpenses targets for 2018.

Moynihansaid the company decided to provide the Street with its expense targets becauseit felt like the analyst community has not fully appreciated its efforts toreduce costs and needs to update their estimates. He further noted that BofA'swork to simplify core processes and increase digital customers will help thecompany reduce expenses further.

BofACFO Paul Donofrio added that more customers are increasingly adopting digitalbanking. When customers make deposits through digital channels, the transactionis 90% cheaper for BofA, he said. BofA's active mobile users grew to 20.2million in the second quarter from 19.6 million in the prior quarter and 17.6million a year earlier.