Bank of America 3Q16 Earnings Call Notes

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Bank of America’s (BAC) CEO Brian Moynihan on Q3 2016 Results

Consumer health generally good

“US consumer health is generally good. Over the past few quarters, exposures in our oil and gas that were causing industry concerns for commercial losses have improved, and charge-offs have receded. Other commercial credit remains very strong”

We feel good about loan growth

“We feel good about loan growth, the economy feels good. So we are confident that we can grow. But of course there’s going to be some uncertainty, and as I said in certain sectors and certain regions around the world. I would remind you that we are focused on responsible growth.”

We have a goal to return our excess capital

“you’re little bit of a horse race between increasing earnings and increasing capital and as we return more you expect that the horse race increasing earnings would stay ahead of it. But we’ve got room to go and we’re driving at it. But if we don’t hit – the issue is that our capital continues to grow that capital is also used as investor and continues to go under our book value and so it’s not going anywhere. It’s there to be returned when we can get through the process of getting from where we are to higher percentages of capital return and ultimately returning excess capital.”

People don’t change commercial banking relationships in an afternoon

“People don’t change commercial banking relationships in an afternoon. So in our business banking and our middle market especially across America, we have been adding commercial bankers and we expect that to be down to our benefit. ”

Paul Donofrio

Shift to self serve is great for our shareholders

“I would emphasizes this shift to self-serve. We’re seeing good momentum with more than 21 million mobile banking active users and that’s growing every week, every month. 18% of our deposit transactions are now completed through mobile devices, that’s better for customers, it’s also better for our shareholders. It’s one-tenth the cost of walking into a branch”

Clients going to have a few ways to invest their IRAs

“Look, clients are going to have three ways to invest in their IRA, they’re going to do it completely, self-direct to Merrill Edge. They are going to be able to do it online, but enhance with professional portfolio managed through Merrill Edge guide and investing. And again for those clients who want one on one advice and service from their FA, they’re going to be able to do that on a fee based advisory platform.”