Bank of America at BAML Conference Notes

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Brian Moynihan – Chairman and CEO

People asking if growth is prudent

“I am now asked, well geez now you’re growing, should you be growing when we are entering in to somewhere around the fourth or fifth longest recovery in history.”

18.5m mobile banking customers

“We’re now about 18.5 million mobile banking customers, each day about 5000 to 6000 more join us. ”

Nice to see the markets not overreact to Paris

“In terms of business, it was nice to see the market sort of recover yesterday. The actual impact I think will play out, but I think it’s not unknown that this type of activity that takes place. It’s known in the business community, we all plan on it, we all have to think about it, whether you’re in our industry or other industries. And so I think I’m not sure the impact will play out, but the reality is that it was nice to see the markets not overreacting one way or the other way yesterday.”

Keep your company being curious

” I think the question is culture, one of keeping your company always pressing and learning and being curious frankly. ”

Older generations are adopting mobile technology with a lag

“with the mobile technology, and you should be asking all your presenters and things like that, the change is wild because what 55 and 60 and 65 year old people are doing now is what 18 to 24 year old people did 24 months ago. So they are adopting this at a pace.”

Cyber security is a priority

“cyber security is something that, as tough as we are in expenses in all of our work trying to make sure that we get the expenses, it’s the area that we – basically if they need the money, they get the money and they go out and invest it and it’s grown from level to five times at level in the last six or seven years”

Cyber security and immune system talk

“you go to go through out network to get to the outside world so we could make sure we don’t bring in crazy stuff. There’s always sort of hygiene around your employees”

We now have 3x as much capital as we did 10 years ago

“we’ve been as an industry at this now for a long time, sort of under intense regulatory review and supervision as it should be to make sure that we do things. So think about it, capital, basically 10 years ago, our capital was about one-third the size it is today, tangible common equity, one-third. The balance sheet only was 1.7 trillion, 1.6 trillion, 1.7 trillion, it is 2.2 trillion. We have three times as much capital from 10 years ago today.”

Proprietary trading is largely out of the industry

“We earn about the same amount of money in both years just to think of it. The amount of balance sheet that’s – the company’s asset and capabilities are used for the real economy. So what do we do in markets? We facilitate the transmission of our issuing customers, issuing bonds, and our investing customer buying equities and things like that, and the ideas around that capital formation. So, proprietary trading is largely out of the industry Volcker, they are testing and supervising.”