Bank of America 4Q15 Earnings Call Notes

Bank of America’s (BAC) CEO Brian Moynihan on Q4 2015 Results

Returned $4.5B to shareholders this year

“Our tangible common equity of $162 billion is at record levels as well. We returned $4.5 billion to shareholders this year in common dividends and share repurchases. Our tangible book value per share improved 8% in the past 12 months to a new high of $15.62.”

6% reserves against energy portfolio

“Sure, look as we said in comments we have got reserves against that energy portfolio of $500 million, that is 6% of the high risk subsectors”

Goal is to return more capital to shareholders

“Our goal is long term is to return more and more capital to shareholders through dividend and stock buybacks at this price obviously stock buybacks are favored”

Middle market business lending has been strong

“if you look across it is client section in the middle market business has been strong. The best that we’re seeing is things in our business banking, small business portfolio are actually starting to see growth there sticking to our credit risk which is the first time in many years we had to run off some stuff it came in through style Merrill and everything else that we are finally seeing nominal growth.”

Emphasize again that NPLs continue to come down outside of energy

“I would emphasize again that outside of the energy portfolio we are not seeing movement in NPL and criticize in our assets. Our NPLs continue to come down.”

We think we can get ROE to 12

“As we said we ran about 9%, it has just been traveling about 9.5% for the year and return to tangible common equity. We believe we have a path to get that to 12. Rates get us part of it and hard work and expenses and core revenue growth has been driving to get this in LAS expense drop and we’re chipping away that, if you look from ’14 to ’15 we made some substantial steps and we will continue to drive away. ”

Paul Donofrio

Credit and debit spending volumes strong

“Credit spending volumes finished on a high note as Q4 spending was 5% higher than last year outdating what we believe to be total market spend levels. Debit spending was strong as well. For example, on Christmas Eve day we saw record debit and credit spending of more than $1 billion.”

Revenue growth remains challenging even though the economy is improving

“Although the U.S. economy is improving slowly, revenue growth remains challenging. This quarter we continued our progress on those things we can control and drive”

Continue to see lots of opportunities to help our customers growth their businesses

“outside of energy, we are not seeing asset quality change nor are we see a reduction in appetite for our credit. I would remind everybody that we look we’re very, very focused on our customer framework and our risk framework, but within that framework we continue to see a lot of opportunities that help our customers grow their businesses. If you look at this quarter and you just focus on the core, we had 3% quarter-over-quarter growth or an annualized growth rate of little over 12% or $22 billion, I’m not going to sit here and tell you that is what is going to be next quarter, but we’re not seeing material decline in conversations with our clients about how that thing grows.”