Bank of America 2Q15 Earnings Call Notes

Economy continues to steadily improve. Commercial business generating loans

“From a broad economic standpoint what do we see out there, notwithstanding uncertain economies outside United States we see the U.S. economy continues to steadily improve. In our middle market business, our commercial businesses, our company’s balance sheets are strong and they continue to drive loans at a higher rate than they did last quarter”

We don’t see fed funds going up until January 2016

” quite frankly we don’t look at and our models don’t show fed funds going up until January of 2016.”

Rep and warrant benefits, MSR and lack of litigation all helped results

“I would say that generally that the hedge results on the MSR were fairly decent in the quarter and then you can see, like we said there just wasn’t much litigation during the quarter as well. So all of those things led to the results being where they are. But you’re right that we’ve typically had 100 to 200 of rep and warrant provision and we had 200 benefits that you get a sense of the magnitude of the swing on a comparable period basis.”

Home equity pressured because so many repayments still

“if you look at things like the home equity balances and things like that, those were under pressure just because we are still seeing significant repayments even though we are producing a lot in that area. ”

Card balances are stable but growth is driven by new cards

“We are still fighting a couple of things in consumer, one is the card balances have probably [ph] stabilized and you saw it from our first quarter, second quarter a slight uptick there. That’s because we had — we’ve been hitting increasingly record sales of credit card, so I think we did about 1.3 million this quarter, ”

Strong credit quality on Home equity

“home equity originations of line amounts were about $3.2 billion. They were to loan to value less than 60%. FICOs deep into the 700s, and so there were more than $3 billion of those booked. That’s number one market share”