Bank of America 1Q14 Earnings Call Notes

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A digest of some of the top insights that I’ve gathered from this week’s earnings calls.  Full notes can be found here.

People carry a branch in their pocket

“This quarter, more than 10%, of all of the deposit transactions that consumers make in our Company are now done through mobile devices, as people effectively carry a branch in their pocket.”

Assets in self directed brokerage up 21%

“On investment side of this general consumer client base, our Merrill Edge assets grew 21% from last year.”

Net charge offs at 62bps

“Net charge offs declined $194 million to $1.4 billion or a 62 basis point net loss ratio.”

Got to be prudent about loan growth

“I think going forward you should expect to see us grow loans but we’re going to be prudent and it needs to be at returns that make sense and for those customers that we have good relationships with.”

Much much less litigation still remaining, but could be lumpy still

“your point about what would be ongoing litigation, trust me, much, much lower but the question is the lumpiness refers to the transition we got left on a few of these matters.”

Should get the efficiency ratio into the high 50s

“I think if you go back and look at what we talked about in the fourth quarter, where we talked about where we’d like to get to from an ROA return on tangible common equity and we talked about once rate started to move up that and as we looked out, we look out in a couple of years, that efficiency ratio should be in the high 50s.”

M&A pipeline is strong

“I think what we see is, the overall markets continue to be strong. The pipeline and the amount of activity in discussions from an M&A perspective is encouraging. And I would say as we go forward that — we talked about, we felt the pipeline was strong at the end of the year, and as we look at the pipeline, it did not change materially, one way or the other at the end of the first quarter versus the end of the year. And as we said, we feel very good about the quarter with revenue side being north of a $1.5 billion and the highest than any firm that has reported at this point.”