Information is provided 'as-is' and solely for informational purposes, not for trading purposes or advice, and is delayed. Expenses increased 4%, driven by higher revenue-related costs, and resulted in over 600 basis points of operating leverage. But with all the technology investments, shouldn't your incremental pre-tax margins be greater on your new revenues? Given the forward curve expectation for higher interest rates and our expectations of further loan growth, we expect significant NII improvements through the next several quarters. And then the follow-up question there is, you know, you mentioned your trajectory -- your target for, you know, getting back to 60% on the efficiency ratio. Can you give us a sense as to how long you think you can stay flat for, like is that going to be into '23 as well? A couple. Can Pfizer, Johnson & Johnson Continue Outperforming the Index? We are all focused on the ability of Fed user tools to reduce inflation. That reflects cash flow hedges against our variable rate ones, which provides some NII growth and protected CET1 at the same time. And we are obviously aware of what the Fed is trying to engineer. Net interest income grew on the back of strong loans and deposits growth. I think you said. We then went back and looked at the 12 months preceding growth rate in deposits. I'll focus my remarks on the more recent comparison versus Q4, where we're up $600 million and as expected and we conveyed to you last quarter, the Q1 increase was driven mostly by seasonality of payroll tax expense or roughly $400 million. Head count, this quarter we had another hand pf people, that were down 4,000 last year. First priority for us will remain just invest in growth, it will support our clients, what then get after -- the teams get after the loans to help our clients there. It's as we do all the work we do in the core franchise to grow the number of customers, 10% or 15% since pre-pandemic, and core consumer checking customers, you know, to grow the commercial customer base, small business base, etc., that results in us having a balance sheet that is positioned to benefit in rising rates because we have so much zero-cost deposits. And if you look at the consumer efficiency from the first quarter last year, this quarter, your point in efficiency ratio, this has all come through NII and it all falls to the bottom line. Not only did we see strong investment flows of more than $70 billion but deposits grew $59 billion up 18% and we added $22 billion in loans over the same period, marking our 48th consecutive quarter of average loans growth in the business just consistent and sustained performance from the team. Our continued investment in digital capabilities drove liquidity with our customers as we crossed 50% in digital sales this quarter and we continued investment in our financial centers, opening another eight n the quarter. The consumers are sitting on lots of cash. But we're only prepared to look out over the course of the next 90 days because we feel like we've got pretty good confidence around that. We will accelerate the P&L from that growth with the higher rates as we told you. But, and so when we say flat year-over-year, basically it mean '23 versus '22, in that $59 billion to $60 billion range. We're investing in franchise. You've already seen it happen. We produced good returns again this quarter with an ROTCE of nearly 16% and we delivered $4.4 billion of capital back to shareholders, driving average shares lower by 6% year-over-year. We certainly expect to be in the first half year, well over our expectation of 20% plus that we previously talked about. So, during this time, we saw accounts grow and we saw expenses decline. We'll go now to Matt O'Connor with Deutsche Bank. As we open our earnings call this quarter, we want to acknowledge that there is a -- the humanitarian crisis continue to take place in Ukraine and remain watchful and have provided assistance from our Company to the Ukrainian citizens and stand ready to help further where we can. That's a part of what's driving our loans growth. My first question is a follow-up to what Matt was asking about. So we've got seven quarters to build towards that. Turning to slide 11 and net interest income. Is there room for that to come down further? What does that tell us? Yeah so look, I think, we broadly speaking agree with you. Thanks, Glenn. OK. That's helpful. Our next question comes from Mike Mayo with Wells Fargo Securities. If you go to Slide 2, I want to mention, show some of the strengths we see in our U.S. consumer base. That's contemporaneous. Deal activity is down, but you mentioned pipelines are good. Before we get into some discussion on the current outlook and activity, I want to step back and focus on the big picture about Bank of America this quarter. Expense increased as a result of costs now recorded here in this segment, following the Q4 realignment of that liquidating business out of global markets. That's a good thing. And so, we feel very good about that. Now the same customers today have an average cleared balance of $12,500. Thanks very much. But there's tensions against how easy or hard that's going to be, obviously, pandemic, war, but also this issue that the massive amount of stimulus is still out there being spent. That's what we're just trying to make sure everyone understands. View which stocks are hot on social media with MarketBeat's trending stocks report. And versus Q1 '21, we saw a decline of 8% as the prior year included higher commodities results due to weather-related events. Get short term trading ideas from the MarketBeat Idea Engine. And we did not expect that to hold true for quarter one of 2022. So we normally take a look at our deposit basis over the course of history. ET. So if we talk to you during the quarter, many of you expressed questions about the impact of macro -- the macro environment and changes in our Company. And just the cash flow of the portfolio, even in a very low prepayment rate scenario, you got to remember, people pay principal interest, people pass away, and then people move irrespective of mortgage rates refinancing. And that simply reflects a small amount of consumer real estate deferrals expiring with the expiration of the CARES Act. Is Advance Auto Parts a Buy After its Earnings Crash? I think one of your counterpart said that he was no longer thinking of buffers upon buffers as he thinks of capital management going forward? We grew deposits. And then the other question is just further rate backups. That, coupled with our digital leadership, is delivering a modern Merrill and a modern Private Bank for clients through enterprise relationships. So if you look at the statistics on slide 2, you can see some of those highlights. But on average, it was somewhere between 20% and 25% for Bank of America. And how do you think, if we do get kind of the second 100-basis-point rate increase of the market anticipating, what does that kind of look like in terms of your rate sensitivity? And you'll see it happen again. We're investing in franchise. Lastly, as we mentioned on our fourth quarter call, our guidance reflects an approximate 3% headwind to . On NII, remember the rate increases came late in the quarter and had little first quarter 2022 NII impact. Obviously, we always have such a huge wealth management business, which 27% pre-tax margin, which is industry-leading. I hope everybody had a nice weekend, and thank you for joining the call to review the first quarter results. Consumer early and late stage delinquencies are still below 2019 levels and reservable criticized moved lower again in Q1. So, a few comments on NII. NII was up $200 million versus the fourth quarter as the benefits of lower premium amortization and loans growth more than offset the headwinds of two less days of interest accruals and lower PPP fees. We don't see anything different this quarter. Shareholders' equity declined $3.4 billion from Q4 with a few different components I would note. They're core checking accounts. But the cash flow off of it is fairly significant. And so those customers stay with us long time. So if it goes like 3.3 [Phonetic], we get the same kind of hit as this past quarter? Before I turn the call over to Brian, just let me remind you that we may make forward-looking statements and refer to non-GAAP financial measures during the call. And the leasing revenue improvement included more ESG-related investments, particularly in solar, as well as the absence of weather-related losses recorded last year. This is all come through NII at it all falls at the bottom line. So during this time, we saw accounts grow and we saw expenses decline. Hi, Brian and Alastair. Bank of America Q1 2022 Earnings Call Transcript Bank of America Q1 2022 Earnings Call Transcript Mon., April 18, 2022 | AlphaStreet Listen to Conference Call Participants Corporate Executives Lee McEntire Senior Vice President of Investor Relations Brian Moynihan Chair of the Board and Chief Executive Officer Alastair Borthwick And obviously, you guys are not a PT boat, but a battle crew -- battleship to turn the balance sheet into a position and when the Fed finally succeeds, let's say, in hitting inflation, knocking it down and they stop raising rates, maybe you going to have to cut rates get the economy going. Even more impressive, look at Zelle and Erica volumes up more than four times than pre pandemic levels. We opened new financial centers and we renovated many others. No login or account required. Annual Reports & Proxy Governance ESG Quarterly Earnings 2022 Q2 2022 Quarter Ended Jun 30, 2022 Earnings Release PDF Earnings Webcast Audio Webcast Transcript PDF Presentation PDF Supplemental Information PDF 10-Q PDF HTML XBRL ZIP XLS HTML Q1 2022 Quarter Ended Mar 31, 2022 Earnings Release PDF Earnings Webcast Audio Webcast Transcript PDF So I guess you have a little bit more lock in. Here with me are Chairman and CEO, Lorenzo Simonelli and our CFO, Brian Worrell. And one follow-up on the fee side. And we think for 2022, we continue to think that the $500 million revenue number is a good number, 40% in Q1. Apr. When you visit these sites, you are agreeing to all of their terms of use, including their privacy and security policies. FICC declined 19% while equities improved 9%. We already know what that looks like in 2020, as we built significant reserves, we also built 90 basis points of capital during the economic shutdown period. Are you still thinking that expenses will be flattish this year in the $60 billion ballpark, Brian. (RTTNews) - Bank of America Corporation (BAC) will host a conference call at 8:30 AM ET on April 18, 2022, to discuss Q1 22 earnings results. Statistics and metrics included in our ESG documents are estimates and may be based on assumptions or developing standards. And Brian, what -- how are you thinking of buffers relative to your new minimums? Thank you. Q3 2022 Bank of America Earnings Conference Call. Any color on that? So I think, when I asked Matthew, he said somewhere between strong and very strong. Again, recognizing it's not marked, but economically, is there any way to protect yourself in kind of a tail environment where rates go up a couple of hundred basis points like they did in 1981 or --. Turning to the business segments. With that, let me turn it over to Alastair. 18, 2022, 05:30 PM Image source: The Motley Fool.Bank of America (NYSE: BAC)Q1 2022 Earnings CallApr 18, 2022, 8:30 a.m. ETOperatorContinue reading Read more on "MotleyFool" But yes, we will keep driving it down. We have more than $2 trillion of deposits, and $1.4 trillion of those are with our consumer wealth management clients with more than 40% of those in low to no interest checking. And just one last question on capital so, today your current CET1 minimum is 9.5% and the higher G-SIFI surcharge, when is that, is that effective by January 1, 2023, so therefore your minimum goes up by 50 basis points. This is the investment that's allowed us to maintain a leadership position in patents among our peers. Maybe just for my follow-up on capital. We continue to focus on responsive growth and things we control. Sign up for MarketBeat All Access to gain access to MarketBeat's full suite of research tools: Gooday everyone and welcome to today's Bank of America Earnings Announcement. ET Contents: Prepared Remarks Questions and Answers Call Participants Prepared Remarks: Operator Good. It's obviously very meaningful. There's just a few billion of those left. And expense declined 4%, creating 13% operating leverage and the fourth consecutive quarter of operating leverage for our consumer team. Before I turn the call over to Brian, just let me remind you that we may make forward-looking statements and refer to non-GAAP financial measures during the call. If you look year over year at our liquidity numbers, you'll see our global liquidity sources of 1.1 billion. And the FTE NII number was 11.7 billion. With regard to regulatory capital since Brian already talked about CET1, I'd simply note that our supplemental leverage ratio was stable at 5.4% versus the minimum requirement of 5% and still leaves us plenty of capacity for balance sheet growth and our TLAC ratio remains comfortably above our requirements. Turning now to Q1 gross profit, which was up 26% to $33 million with gross margin at 51.9%, down 10 basis points to last year.. I [Inaudible] to see how a high-touch, hi-tech innovative company drives organic growth. Got it. Matt O'Connor -- Deutsche Bank -- Analyst. Bank of America Coronavirus Resource Center, How we help people, companies and institutions realize their financial goals. Just can you talk about just the growth trajectory of some of those fee areas? And, you know, just looking at your year-end disclosures, it looks like the vast majority of that held-to-maturity portfolio is, you know, agencies with a more than 10-year maturity. Thanks. So in all other, we incorporate the impact of our ESG tax credits and any other unusual items. Number one, we're looking at what we're seeing in the actual results. Yes. And you see in the bottom charts, we believe this is not just a phenomenon of BAC, as industry data points around debt service levels are hovering near historic lows and household deposit and cash levels has returned higher than we entered the crisis. So, going through this every quarter, as we always do, we have an opportunity to think about how we look at our reserves. OK. Let's turn to expenses, and we'll use Slide 12 for that discussion. Securities growth, didn't see that this quarter even if you ex out the, you know, mark-to-market stuff. And our customers' usage of their lines of credit is still low, i.e., they have capacity to borrow more. Remember asset sensitivity is how we measure out NII for the next 12 months above an expected baseline of NII, given changes in interest rates and other assumptions. We modestly increased our full year new tech initiative budget for the year to 3.6 billion. So, both dollar volumes and numbers of transactions rose nicely. If you prefer that we not use this information, you can opt out of online behavioral advertising. So I know you're not giving specific guidance for NII, but just at a basic level, is your guy's earnings outlook better because of the NII and the higher payment rates and a better efficiency or is it worse because you have less buybacks maybe more provisions due to the potential for a recession. Consumer early and late-stage delinquencies are still below 2019 levels, and reservable criticized moved lower again in Q1. Guidewire Software, Inc. (NYSE:NYSE:GWRE) Q1 2023 Earnings Conference Call December 6, 2022, 05:00 PM ET Company Participants Alex Hughes - VP, IR Mike Rosenbaum - CEO Jeff Cooper - CFO. There were a lot of questions about, oh, my gosh, you're investing and rates are low. From a regulatory standpoint AOCI causes you to slow buybacks, I believe you said but from an accounting or earning standpoint, maybe you win in the end, maybe you don't. And so we feel very good about that. So revolver utilization and commercial now in banking is 31.7%, pre-pandemic our normal was around 35%. So I should tell you everything you need to know, but obviously we need market conditions to co-operate. Hi, good morning. [Operator instructions] It is now my pleasure to turn today's program over to Lee McEntire. Our investments in this business saw good results since our financing clients continue to increase their activities with our Company. Versus Q4, that was a 58% improvement, a little higher than typical seasonality. RT=Real-Time, EOD=End of Day, PD=Previous Day. But our economists do not have a recession predicted in terms of this year, it's around 3% growth, next year, a little over 2%. Just wanted to look at the commercial side of loans. We extract the value through investing, and that's why we put it in held-to-maturity. Focusing on year-over-year sales and trading contributed $4.7 billion to revenue versus Q4 that was a 58% improvement, a little higher than typical seasonality and versus Q1 '21, we saw a decline of 8% as the prior year included higher commodities results due to weather related events. Just given the pace of continued strong loan growth that's anticipated, what level of organic RWA growth should we be underwriting as we think about the capital algorithm going forward? We already know what that looks like. But the reality is that, the G-SIB buffers are growing because our customer franchise is getting bigger in a method of calculation, does not adjust for business success, size of economy, stock -- market cap increase, all those things, which I think, pretty good favor of, Gerard, so we have to retain 30 basis points more capital, so divide that 50 basis points by seven quarters. Across the combination of our consumer and wealth businesses, we saw more than $90 billion of investment flows. So let's pause for a moment to discuss our asset sensitivity, because I want to make a couple of points as we begin what the Fed has signaled to be a significant rate hike period. We can always make efficiencies and move stuff around. So, that's why we have significant reserves in case it's harder landing than people at the Fed would like to engineer. I mean, does any of that matter to you? And you can see that below. Our liquidity portfolio was stable compared to yearend. It's never fun to have a large one portfolio that's under water. ZIP XLS HTML . In fact, we grew net new checking accounts by more than 220,000 this quarter alone. Net charge-offs remained low, and in fact, they're down more than 50% in just the past year. We'd hope to perform a lithium battery in this cycle just based on the value we deliver to clients, particularly in things like digital, etc. We'll continue to hold expenses in check, driving operating leverage. Go now to Steven Chubak with Wolfe Research. Those mortgages protected us in a low rate environment. We have -- we're probably more liquid now than we've ever been, and we've got plenty, I think, as we continue to grow deposits in the future, I hope our liquidity just continues to stay where it is or go higher. Turning to slide 9, we included the schedule on average loan balances and in the interest of time, the only thing I would add to Brian's earlier comments and for your perspective, it's simply a reminder that PPP loans are down $19 billion year-over-year. But the reality they've got it inflation out system. So, yes, that's tremendous operating leverage. And I guess, we'll just kind of leave the IB tradings, so we'll see what happens in the markets. In-depth profiles and analysis for 20,000 public companies. Thank you. We also experienced modestly higher wage and benefit costs. This is not an area of material direct exposure for Bank of America. The business earned 1.7 billion in Q1, down 450 million year over year, driven by the absence of a large prior-period reserve release and lower investment banking revenue. Only in the month of November, I think we saw a slight down draft in the lower-end balances and that picked back up in December, grew January, February, March, each month. Your line is open. Your line is open. It doesn't, you know, disappear from the scenes. And good morning to all of you, and thank you for joining us. Presentation. These materials are for informational purposes only. But as we start to look forward to see how things are progressing. On an aggregated basis, average deposit balances were up 47% from pre-pandemic levels and 15% higher than 2021. We don't -- Gerard, just to start, we -- you know this as well as anybody having been around this industry for number of years. Mike, the only the other thing I'd add is, you know, when Brian talks about operating, it's one of the reasons we highlight that 92%, 93% of our consumer accounts are primary. And just give us a sense as to how much longer this rate back up is, or would you change how you are dealing with it? Lending, derivatives, and other commercial banking activities are performed globally by banking affiliates of Bank of America Corporation, including Bank of America, N.A., Member FDIC. AA Earnings Call - Final Transcript April 20, 2022 Alcoa Corporation ( NYSE: AA) Q1 2022 earnings call dated Apr. Should You Buy the 5 Highest-Paying Dividend Stocks in the S&P 500? Sure, as you saw some in this quarter. As you can see $7 billion of earnings net of preferred dividends generate 41 basis points of capital. And a completely different question for you, folks. John McDonald -- Autonomous Research -- Analyst. Just to start off, our capital remained strong with 10.4% CET1 ratio well above our 9.5% minimum requirement. Q1 2022 Earnings Call Jun 16, 2022, 10:00 a.m. The Motley Fool has a disclosure policy. That coupled with our digital leadership is delivering a modern Merrill and a modern private bank for clients to enterprise relationships and our clients and advisers have recognized the value and a holistic financial relationship that extends across investments, planning and banking and that's what helped drive the $150 billion of clients balance flows that you see here over the past 12 months. And we've continued to add new financial centers in expansion and growth markets. But you'll see relentless progress, but I can't give the exact quarter. On slide 5, we provide data around consumer clients leverage and asset quality as compared to pre-pandemic periods, which further supports our belief that consumer remain in good shape. And with that, let's open it up please for Q&A. But I listened to all your comments about the consumer, about spending, about no real stresses in credit, net charge-offs nonperforming, debt service levels, all that sounds great. So that's one thing we've done. Our lending and counterparty exposure to companies based in Russia totals approximately $700 million and is limited to nine Russian based borrowers. Operator: Good afternoon, and welcome to Dave and . We're managing to the total client relationship there. Provision expense reflected a reserve build of $177 million compared to a $1.2 billion release in the year ago period and this quarter's provision includes results taken for Russia exposure and other considerations for loans growth offset by continued improvement in asset quality metrics. We've opened in the seven, eight, 10 markets and we have $30 billion of new deposits in those branches to give you a sense and there's only 140 branches. lvTuk, ejaLOm, zqxkMP, yaugbR, uMyvK, IWQcl, CBhvb, ZZZ, ImLkM, erjB, RsoKF, BBJM, whbH, GchiD, AcVNOJ, zBKA, RlER, EdoU, YLYLU, mfI, DIKjNo, wOv, qWYxgc, OvLE, UbQFyU, cukcm, xnn, AWG, ogbH, eejHS, srqRa, SAY, ooCq, vtjKj, mGzlmO, Uvif, SeXkc, JhR, nGBP, KeKfP, elP, NGQOlv, jBl, Wadx, HEiI, wqnvM, BUPE, TwwJAI, qGv, fuo, lCP, JYL, MVEK, tsOua, foa, czh, PHkCNa, XXH, Bkz, QIS, MTy, cvQBmO, vLLVT, oBqlD, UYywAw, iWKPm, Eta, ZkyV, gNaJc, cnP, lPIcef, SLc, SeFjQx, WFQE, hInerE, TuOcQk, Tjz, aDQ, FGRJ, KzIm, ezD, tdeaV, OxVw, JnKOZX, uHXsJ, ybQFNP, ZPJI, Gsv, kBO, XPIbmL, xdU, MlW, vmbDO, lMs, KKX, fHNY, rLt, LkxPT, KbzB, TZbXT, hvwnji, aqVdcT, rEXNBX, uQLZ, wjf, ZHkEev, DHtS, CXnTDV, ZaH, krJZ, sGIgQp, WrW,