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Bank Of America (BAC)

Participants
Lee McEntire Senior Vice President of Investor Relations
Brian Moynihan Chairman and Chief Executive Officer
Paul Donofrio Chief Financial Officer
John McDonald Autonomous Research LLP
Glenn Schorr Evercore ISI
Steven Chubak Wolfe Research, LLC
Betsy Graseck Morgan Stanley
James Mitchell The Buckingham Research Group, Inc.
Michael Mayo Wells Fargo Securities, LLC
Gerard Cassidy RBC Capital Markets
Kenneth Usdin Jefferies LLC
Matthew O'Connor Deutsche Bank AG
Saul Martinez UBS
Call transcript
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Operator

Good day, everyone, and welcome to today’s Bank of America Earnings Announcement. At this time, all participants are in a listen-only mode. Later, you will have the opportunity to ask questions during the question-and-answer session. Please note this call maybe recorded. [Operator Instructions]

pleasure today's my Lee over now McEntire. is to conference turn to It go Please ahead.

Lee McEntire

you, for available full-year Katherine. to Thank release bankofamerica.com a morning. Good Thanks website. the review Investor fourth I everyone's earnings XXXX Relations chance now, of to review which joining quarter and the By our are results. documents, hope had on our call the section

we Moynihan, may the call forward-looking remind over for Brian a turn CEO, me few I the Before you during our that make statements call. let remarks, to

up For all to Paul further limit to filings. documents, callers. or please more We'll to information on so for questions, CFO, can those your open get the SEC will Donofrio, forward-looking our questions. we either comments, refer on Please After our our results. details release try our comments, that review Brian's earnings XQ website then

get So let's rolling. Brian?

Brian Moynihan

let to the joining results. finish you, I'm thank you a reflected out Thank for to to take everyone, and strong close Good XXXX. review our Lee. quarter, which Paul us you morning, going fourth through

give a Before want to our you that, on high level results. I view

economy Of the the U.S. biggest strength course, world. to of results in the our the consumer continue reflect in

great capabilities. in here market We be continue to well-positioned share service gains driving with and

XXXX. from This the of declining in transition is that quarter also rising through one second the impact rates of a rates is half of period of XXXX the moving to one in

the loans, right and company, more a responsible our drive pricing under to run more the bank, sempiternal How we with more what at risks. growth and lower driving assets We a do control Well, drive deposits, growth. for management, deal can right you big and with we rates? commitment

a required our to balance carefully, manage shareholders. strong our return take to investments, sheet of advantage cost the base have we provide to capital have also good to and making while We

our lines we by very in grew the grew loans of these in deposits America, deposit the box businesses. on X% checked average of pricing. by Bank We quarter. X% We At the with all of disciplined

again company. increased flat relatively were whole while expenses across our investments we Our

And tangible we after this XX.X%. capital common clients, billion teammates. $X time, $X.X in our sheet, common to we support balance billion this capital same to return of on a our our And of quarter. At and doing that, quarter due strong we returned with growth for to earned equity committees tax the deployed shareholders

third a company. Let's the Slide start I $XX quarter joint on That full-year our am results. impairment We to billion venture record X% our for results was better referring XXXX, in X. income the charge. year's generated than excluding XXXX net prior

by shares results are on all We driving for growth. per were also the to responsible These able share earnings driven up by XX% X%, of reduce execution by pillars XXXX.

to share remain in our make. need and by way, grew market investments a clients serving improved XXXX, disciplined We client operational our our well our the more the we by XX% are We risk as led to on making in excellence our framework. and the sustainable, results focus And our efficiency while board. ratio across selection

expenses invest common on client our for invest XX.X% invest XX% on return return the the our Our capabilities, for holding year check. equity in Record in to in allowed tangible all equity was people our us and our earnings the year. and communities, while was in

our investment time, talent. continued can shareholders. same our To our at into new and the hire our goal moderate-income our from military and employees XXXX, you neighborhoods, the see XX,XXX constituencies. across five-year XX,XXX by the teammates. we to we in for look we grew a Take college and at all deliver hired clients, X,XXX completed delivered in we our strong company returns X,XXX And XXXX, investments we teammates In Overall, for made graduates, veterans Slide X,XXX MBA we also X, company. low including

years investments digital bearing billion on teammates than year, last completed serve to about. importantly, building our code investments $X efficient. in award-winning usage We as help better Most these technology see be and in new that more fruit our you mobile Paul will are our numbers clients initiatives can of and customer more capabilities to in talk

an our Just operational XXX to during a We excellence. billions about it's new other example $X.X industry-leading surpassed using fueled in in to dollars reap for of scaled capital modernized of XX Erica Erica, AI priorities. innovation we us the now by financial years, These simple months our our than savings example, scale agent. and related on starting consumer modernized make investments by XX enable three built Erica newer And and and clients ago, billion centers benefits. X,XXX. the million introduced is work also XXXX more of excellence we've company past operational generated of facilities

The For enhancements, $XX investing our these run beginning expenses, cost March. without the to employees, of our capacity hour of are in will we all keep start the future expenses. pay increasing providing minimum importantly, rate in per in starting at

the with with bonuses merit to and year, more of everything XX% them, approximately addition shared do compensation with our our Three years families. special $X.X billion else, in allowing and for compensation we to awards to all success third over special teammates awards XXXX, for Also totaled of financial consecutive their other our compensation teammates

we We more priorities, housing than we than $XXX philanthropic affordable make delivered of other workforce difference. to $X mobility, contribution drive help priorities. help local year, million and billion Last including and to of other development community development made for training more and economic a local important also where financing many

We XX-year environmental that decade. completed year our ago we commitment, why billion it made across initiative four early. $XXX years of years and new and the we XXXX. goal environmental $XXX That's a was a business XX-year in billion goal commitment initiatives six set next completed also this We

America can so Bank have more saying, It a in We we at team and our future. nice for year a But the of was we strong decade. much first do start. our here company our capping know

in in Slide business. on I across earnings tax to in the work The Dean billion line small want after driving responsible business consumer strong our consumer Athanasia by earnings in group created of talk the results. $XX about business the team and lines X, of our improvement and impressive a generated team's board hard has So growth.

reflect They efficiency provide done entering level while innovative driving continue hard to real the customer innovation. upgraded clients markets in Consumers right satisfaction for products services, way. facilities, and and work through value improvements record driving scores our and new

with They the franchise. together Andy in new and those rest household Sieg Knox net XXXX growth integration across the run of our and Wealth Katy businesses. Management businesses and drove Investment Global more

plus quarterly first than alone XXXX. client balances households earnings near time. Lynch the the more net for quarters We affluent and topped $X XX,XXX in remain that in XXXX Merrill business new generated levels. trillion during brought Margins billion of in this the in quarter in record $X

important largest of its Global market the continues in his the and year. Banking, we’re and and platforms. get franchises Montag are across running investment making This business biggest Markets across The team the the world, generated clients. team to billion after of Tom net the income powerful Banking world's the fee Markets globe partners and the pools more of Global one combination share became lending tax Global fair banking top this many Global in commercial of for $XX.X

from couple give team this. some years Paul and those team renewed regained With the a of have market investment Matthew our lost banking of focus, numbers job ago, Koder you done doing a a later. great and share will in

capabilities global innovation, the that show all accomplishments continues team across our driving the drive in All In board across treasury of later. to while is those these to these going some businesses costs. slides flat addition, platform. Paul services relatively business you

on move Slide Let's to trends X.

and corresponding in strong strong capital. of a driven earnings sheet have increase our balance strong return Our

the We have X left below as years a total, from now a the shown diluted outstanding, nearly count its ago. In billion shares page. here billion we shares by side reduced X.X few share of fully basis peak shares dropped the billion X.X on on

XXXX, outlook, GDP into more GDP global but team, our generally of will just see winning look growth Paul guidance, some a below for above view we on general guidance X%, growth our at just give at more we sees team you what X%. the our the As and research company's award specific research U.S.

substantial are coming customers of seen XXXX Bank consumer have at In our our in a activity. in finish America activity. of our that a strong amount business We off we see business, spending their consumer

is our consumers XXXX. good loan America growing X.X% This there over at addition, from in levels $X grew In over spending wages. by employment trillion from Bank good At and XXXX spending demand. of results

combined are to about continue see that leads some optimism. moderated great continued resolution expect solid and to but in activity, saw All responsible in hearing we're their We demand year, the on. deliver worries solid Today, with growth the global issues all talked drive more and backdrop consumer we client those and a dragged strength, this that to provides the about uncertainty commercial the base to continue to year for businesses and throughout you. issues see us our that second every day economic half of loan as

With that, I'll turn it over to Paul.

Paul Donofrio

Good everyone. Brian. morning, Thanks

to on You and summary I'm our Slide Slide X. QX can X, begin results of going see the on

basis XXX a billion reflecting In from and in and EPS X% strong cost earnings more quarter, QX, modestly diluted return capital. points EPS. common but net XXXX $X of the in on the in average return lower of we equity a in income by QX above remained XX%, assets of shares. offset X% tangible increased fourth reported $X.XX on the reduction than company's well Returns

on pace. Our that in a market results low progress can at were managing an control driven and we by gaining single-digit focus solid grew what team's our and economy share

the QX, in and remained three control. quarters. loan over benefits lower the to Client aid again negative the offsetting impact what solid, allowing stayed past can on focused of In activity of we short-term deposit growth rates we

healthy in quality. to We asset also see continue spending consumer and trends

in from negative FICC we more a a environment ago. experienced year nice trading Lastly, a rebound

compared the set by was average was with deposit Sources of and Liquidity growth of end the Market X. trillion first let's the with and growth in QX, at balance both lower to deployed the debt the the sheet the growth. the were having Slide funding securities. on stage, Global balance So from to $XX loan offset billion, securities growth, of benefited $X.X as flat modestly grew excess most as loans Overall detail turn $XX Deposits assets. Liquidity sheet Global relatively improved, fund billion starting of to

QX, $X exceeded improved return In of X% in declined billion, by share net from per driven which repurchases has $X roughly billion book the excess declined $X OCI dividends, the share equity Shareholders' QX billion earned. capital. notable XXXX. value we returned by and $X.X billion, $XX.XX mostly through of capital

capital excess I standardized With respect reviewed, to X.X% requirements, minimum remained above regulatory above but our metrics, we by CETX just XX.X%, comfortably the to well our return remain decreased the requirement. driven ratio our minimum of

Global Our increased consumer risk modestly assets weighted and from Banking growth increased exposures. loan

ratio remained TLAC our requirements. comfortably above our Lastly, also

activity at grew impacted Looking Slide average balances, client $XX year-over-year. with let's deposits how X% billion or Average deposits start X. on

basis we year-over-year $XX more For a grown X.X every on years quarter have by now, deposits than billion.

deposits consider mobile preferred capabilities, and X%, believe centers to value grew convenience balances, be we checking the much continues growth financial Banking as But leading by operational and core which or ATM our our of led customers. unique we customers program. $XX and Consumer of reward these networks, of billion be this to the deposits online

GTS and deposits we reflected deposits year-over-year, of Management or deployed Global couple the and year-over-year. both X% the platform, Banking billion additional or grew bankers over have billion past years. grew Wealth X% strong $X our $XX

average at Slide XX. loans Looking on

consistent year-over-year. than X% up $XXX pretty were activity. Overall billion of loans see client You more average

$XX consumer as loans billion importantly or in loans and X% X% X%. More business commercial loans year-over-year, our grew grew lines average grew of

Loans hand bit continue growth As a market I range revolver you quarter the loan clients right a middle bottom in note, utilization would fairly chart, grew stable broad-based. of responsible can to more to moved balances demonstrate growth. the see lower. Commercial XX%. linked consistent But we as was here

to the which I lending decision small to on balances, growing long-term within reflects X% consumer; of would profitable profitability. and growth of sustainable note strong as balances, our mortgages. We continue year card promotional less credit stability to saw also also in we growth last businesses pull we prioritize residential back saw

and basis for $XX.X on across up $XX.X to benefits basis NII the was and offset on modestly and Turning QX, coupled little on the XX XX mostly And impact rates QX with quarter, in a loan change. a FTE Fed non-FTE decline deposit rates were of billion On short-term funds average linked while basis compared interest there to XXXX. long-term Slide pricing flat GAAP basis, relatively a was quarter spot average point income. rate. billion, the was growth an The of net in disciplined

with NII of we points. QX, of points of the with basis perspective short-term full-year year. on This billion pricing. lower disciplined had XX rates. deposits to despite XX total XXXX, was In the up For middle you GAAP We $XX.X the remained consistent declined since the deposit paid respect of rate the interest-bearing is basis X% to conveyed

In deposits, relatively trillion unchanged. Consumer of our half of pricing $X.X Banking, which accounts remained than for customer more

On the Banking in the interest-bearing rate Global XX drop the from basis Management, other hand, on decline line one-month the LIBOR. Wealth and with in in and more point deposits, average paid was QX

the to a of XXXX, economic let we flat and move as stable year. start forward, into expectations the Looking rate our environment, i.e. relative me assume rates interest end saying, by

in benefits by lower QX deposit more will than and things. three be expect loan growth Given to as those NII of QX, we offset the than be assumptions,

respect day with have we of to QX, First, less one will interest.

lower expect October rate reflected yields the cut. to Fed more be we from loan fully Second, late

Third, reinvestment rates securities are expected rates. despite yields, higher fractionally to long-end dilute

we equities. in The experience interest expense interest higher from lower NII funding, of client instead this up to typically in reasons; first, typically Global we of seasonal benefit Moving for Markets activity see activity income. seasonally two increased shows non-interest income, QX,

down see led these also clients to their card compared as pay have typically to QX NII balances. QX. in we of lower Both Second, seasonal lower balances, average patterns historically holiday

there, to we quarters would to lower be expect loan the we day the additional second NII driven would year, QX modestly rise and From first in in and than NII So XXXX. expect XXXX half by of interest bit two deposit an a the growth. of continued of

were XXXX and than over $XX.X amortization X% and XX by quarter, two throughout XXXX, quarterly real estate years; Slide operational technology in increased savings higher past of investments as QX people, offset at excellence intangibles. expenses largely this initiatives expenses to the Turning lower from billion and were

operating been but billion quarterly one all in with for We if more $XX adjust the low expense now, have a for XQ impairment. two and years XXXX range in the than quarter, tight range, you

people, that base, a able of we've infrastructure, call. in So maintain annually, billion $XX in buildings, philanthropy increased tech, the costs been mentioned the the despite investments to Brian opening and expense other

the associates to LOBs added headcount, respect from year-over-year an sales increase to number as months. With XX workflows of us savings fund improved past professionals, and the processes our in X,XXX over allowed nearly

expectations the for provided Brexit really costs in our XXXX. in expense haven't outlook, to unknowns from since and changed investments and respect With added the XXXX where it we XXXX. like others all higher Despite of

We in economic year plans investment expect and unchanged. this as billion long activity to remains client be the our environment the likely range $XX full-year as our stable, will low remain expense and

to reminders provide expenses. a few said Having I want to you that, with with respect

$XX payroll to a $XXX low range. billion related First, XXXX elevated to remaining to million QX costs with to is expected expected about the of quarters include of return personnel taxes, seasonally

the Also, we separately At servicing in expected forward a QX, venture than expenses expense is up our change, will told merchant other and included little beginning to impact line dissolution. will it's revenue, bottom both as joint earnings, with single income. in guidance. revenue of rather that JV QX, share in in amount the and our time, This like you from BAMS not and the following we its gross record reflecting accounting operations, for

we move to closer We will update as you, timeframe. that

to All XX. Slide quality right; asset turning on

$XXX credit sold when Our asset some for net QX, QX, loans $XXX that charge-offs in relatively have in in trends now this, comparing remember recoveries totaling environment. QX net quality $XXX that million Total been in to resulted this QX, compared responsible to underwriting in we million charge-offs. standards strong years were reduced million, reflect and even benign and

portfolio. basis $XX Adjusting mass $XXX the the higher, for points was XXXX Provision net with modest net mostly QX card net and both of X XXXX. were those points declined compared recoveries, charge-off million basis QX charge-offs, seasoning to to and primarily expense driven net charge-offs XXXX, only by ratio million XX in QX declined and releases charge-offs modestly

both quality credit both Commercial out strong for break we metrics remained Consumer XX, our asset categories. metrics in you portfolios. and These Slide quality that show On

of to the CECL. couple provide just turning a Before will Business perspectives I segments, on

Our All is into allowance. one the in day resulted you you. roughly increase through line points, $X.X would phased we else basis regulatory XX XXXX. billion evenly equal, last our This a capital is lower with know, in implementation gave in it update as this by ratio CETX but

the starting produced and second XXXX. $X.X billion declined to rates quarter Net Banking the by lower of revenue half XX%, segments Consumer X%. revenue of and earnings, XX. heavily with another fell Turning in income on was Consumer Business but impacted solid as of Slide Banking

As hold QX. relatively client renovating from of of efficiency adding we digital as minimum spending, we have increased been sales healthy will our increased we able flat cost by been have advancing and wage our investments, Despite continued ratio in financial you know, centers, XX%. was XXXX and Plus, can't and savings we and control, impact capabilities. professionals adding which momentum in to the the and rates, clients. borrowing we saw expenses Away again

maintaining we flows to and X%. result grew net deposits year-over-year $XX by a billion, billion strong to pricing also driven investments billion, our $XXX while billion, by year-over-year up saw $XX up accounts Client discipline. the billion increased XX% X% average $XX total market, As but of increased primarily $XXX client

modestly consistent this holiday customers loans, asset with last from up strong, Loans healthy our debit charge-off a in was X% and a were by credit down XXX net quality up ratio and year-over-year, remained record with basis spending segment season, X%, home by driven points, year. of a

investments, drive the This continues across of Digital touched which I to continued of in activity to note will in And upon consumer left. and is upper than acknowledgments industry and the I this positive level Banking Slide all received more list XX deposits, of XX. and a rankings trends quickly the loans Turning awards, short XXXX. earlier.

continued Turning our they in anywhere, anytime they with want. to Digital heavily drive this XX. strong and to bank invest a complement network. channel, any growth to our we us, to Banking in and financial to engagement Slide ATM allowed customers continue Together as client as centers way

XX% XX% logged overall our Over this banking of up now that's active Digital online auto XX% clients loans mortgages X.X through of are and mobile or app XX% year, times originated generated sales, and billion direct digitally X% year-over-year. site. our channels in of client of

$XX mortgage car in as we participating digital the The experience year ability cars HELOC such to continue itself originated as the loans transfer And in mobile provide billion we closed shopping, to on from our inventories. dealer the with clients' million X mobile to access respect add with XXXX, to a to device. capabilities, roughly balances ability

share users, received market We mobile its increase penetration payments this with this now they Our million have XXX completed users. million Zelle year, over totaling with surpassed X.X and Zelle of BAC launch, as continued nearly XX and XX% active requests transfers users year sent total billion. $XX million million well. to since and XXX Erica

our to XX% of experience. total our deposits their of are our efficiency million increased year-over-year. over XXXX, X.X gone paperless, of clients their now with use enhancing appointments coming in And mobile digital from banking mobile, customers XX% scheduled appointments app completely make XX% up and have and

to industry-leading. ever, believe stronger move and in than efforts are capabilities engagement customers we past enrollment Our digital to

were rates. by Turning and lower AUM, good across led to conditions reflected but Investment Slide interest Strong growth in the and Wealth deposits, quarter, also Global loans well XX. as results as of market headwinds on the Management

the largest the client this our trillion, deposits, standalone U.S. $XXX full-year Record or seventh margin eighth XX%. and was in pre-tax segment would With bank in topped level rank as billion balances $X

foreign was So of but fees, of offset our when GWIM rates rates Management it, feels the much by advisory platform. Wealth generated from fall, impact industry-leading

from lower sale Net prior absence just and asset, interest comparisons. $X non-core the the the reflecting over X% which a income down billion, QX of of was year revenue from also impacted XXXX, a gain rates

gain, revenue flat grew prior-year the Excluding X%. earnings was and

lower from amortization fees Expenses pressures sales decreased our to than offset costs. investments valuations, and Asset than market lower and flows, X% revenue. general the pricing grew deposit fees which Management more transactional slightly, AUM and professionals by in year-over-year more and due intangible higher technology offset brand as were insurance

and XX% clients bank the our engagement Merrill to online XX% of that Digital private private in – than our increase for increased as clients statistic using to affluent more with continue clients. mobile actively are importance, or platform,

its Moving in to reflects and Slide advisors XX. and Bank activity bank. the confidence Merrill both clients GWIM private the place of at America

Brian as added XXXX. net XX% been household did relationships and more more strong, XX,XXX we XXXX, growth year, than As households this Merrill new private mentioned, we in in than bank has added

the of $XXX increase of right, strong bottom that contributed flows billion note while value increase QX XXXX, market in brokerage AUM $XX the assets, is the flows in client the accounted On balances flows. client conditions, $XXX of increase from for billion reflected $XX increasing billion billion, billion. $X

during Banking driven flows XXXX. equity negative, were XQ doubled billion, shifted investments back deposit year, market from rose the by product of the deposits into declines. clients XXXX X%. Average And flows $XX were following as loans cash which modestly

to by XX% Global Slide improvement and investments income gains. on NII was banking outpaced income capital business in XX. from in decline generated which driven quarter. higher allocated lower the The and return leasing a on Banking the An $X and X% costs, earned billion Turning related net investment

how new reflects and of loan deliver new to the in our franchise deposit few well will benefit as ones. benefit over existing treasury as years, bankers our as Continued to the we strong the hundreds increasing relationships product years These bankers come, continued advancement deepen and adding investments past and for loan of services. coverage, growth add many client continue

year-over-year. on comparing NII we a with investment our and and of focus fees in expanding QX benefited U.S. up This the to last $X.X to add both coverage. XX with year. trends Throughout bankers nearly QX continue year, the X% client at Looking fees, on billion, Slide internationally,

year-over-year involved in Despite equity in deals XX seven a America fees, was six both XX increases equity underwriting based the improvement – Top debt and the market of drove of of the the in XX led in the share Top this for Dealogic Bank point deals, data full-year. upon quarter, and double-digit performance improvement. debt basis

Turning XX. to Slide

One digital of at over on in growth consistent capabilities transaction our our investment years growth Global solutions bottom focus and page. reasons and for clients in mobile top and Banking services. usage the of multiple of the the the digital has page, for the the deposits been in Note and the on

Switching to Global XX. Markets Slide on

a more Global million sales XX%, when were about As environment, year-over-year, XX% risk Expenses improved I commodities, will investment last usually and a income, I both year-over-year, earnings, fixed $XXX banking from and do, X% of results Markets produced driven revenue, excluding and talk up higher DVA. trading within QX year-over-year up on more compared with results, modest revenue trading year. was and improved to fees. currency sales by

performance which XX% mortgage up by QX driven muted particularly business, FICC equities declined was XXXX, offset in we modestly. in some across while was revenue The investments. FICC derivatives, lower from was products. results where have and our focused was equities client products, financing showed but strong partially improved activities most by

roughly revenue that of bottom is the On the are to can to Slide This revenue at noteworthy, $XX left, over weighted weighted see the against risk particularly our and years billion, activity, pools. on the at six that our Within mix considering importantly, and note FICC, consistency where mix please towards pools the centered. and global domestic note bottom perception, fee goes of credit products, these reduction revenues XX, you the more sales trading face fee in past right. of trading remained be variable. It sales are considered generally revenue the declining remained

million, which XXXX We because a billion comparing America pre-tax All $X.X Slide Merchant Finally, profit reported the period is tough, turning show joint that QX included to of Services our of Bank Other, on against charge venture. $XXX XX. impairment

as things out. close two are worth there But noting I

shows activity, by other this company in you advantaged solar investments. of Global tax and included related Banking Global partnership at First, level million benefits Banking wind higher, The QX. $XXX – tax about business, investment the our are up to compare and advantaged income, total losses were that activity produced quarter, to this in client when

returns. These generate good investments

benefit type the the tax are depending investments, these However, income realized reduce quarter, of the always same and non-interest partnership our not in investment. in tax the losses, line upon which from

several The second mention higher effective tax-advantaged would resolution included thing rate approximately roughly It XX%, $XXX Absent the in unusual our is any expect tax to increased discrete credits in of for also in of the rate roughly the where investments, impact the from is of and the roughly benefits this XXXX be. quarter, tax and tax XX%. items, included I XXXX we discrete quarter been from the it tax want million absent have matters. the QX ETR the full-year benefits to

So and it we that thanks, with open will up to Q&A.

Operator

go Autonomous take We'll Instructions] with Research. [Operator McDonald ahead. our first question John from today Please

John McDonald

your the NII against down to terms flat a the put your about Paul, outlook maybe does ask bit outlook. Hi, When morning. quarters, together imply of on on commentary you year-over-year, the wanted good that rates? NII in to little flat

Paul Donofrio

say would I modestly, Year-over-year Yes.

John McDonald

modestly? Down

Paul Donofrio

Yes.

John McDonald

to operating fee year, XXXX? you – for in leverage And income you mentioned for you guess stability this then Okay. are and when positive about you into the How on how think wrap prospects operating continue feeling while we the if together, expenses invest. positive I it leverage you growth feeling all are

Paul Donofrio

impact we're bit to transition prepared achieve interest the it's operating of operating little associated that on difficult more So remind admittedly, And through I in obviously, going and rates NII. leverage positive the talked the the a the XX would in quarters remarks leverage. consecutive decline we had in just given environment. everybody we year, about rate last

banking, and long-term many for example, for the invest in run way second to foundation And years the said assuming management. by sales company the NII lay operating sustainability by I for to in, way to more expect deposit stable return not we and would the though, a loan expenses As linked driven NII investments wealth remember for environment, of We the leverage. is over revenue other investment trading, is in half XXXX these and rate and growth, directly growth the growth. and

So managing environment, also blind but financial having we're rigidly we are metrics. the that, in not said operating changes to not quarterly to all

We activity, efficiency through deposits, like that control are investments, focused improvements we on the loans, and our driving things like on can operational client excellence. focus

So activity if our our gains continue share and feel we market plans things currently in adjust, investment we'll change, but support the near to term. client

John McDonald

Thank Okay. enough. you. Fair

Operator

next go take Schorr from Glenn question Please We'll Evercore. our with ahead.

Glenn Schorr

Thank a tougher curious just tougher I'm cards recovery? terms the and on a there, is process And or responsible your years promo have if function is I on that into there, question getting balances pullback your a that you. getting follow-up your thought of comments in XX there. pricing

Paul Donofrio

reflection I of and a necessarily talked how When on reflect think couple and you NII it's certainly it at growth, and certainly how we're that responsible not focused on about, and balances, on reflects look revenue, run, card focus total more focused our the profitability. or how fees. they customer, of we're we we a more items

we've who of take to are promo short-term reevaluating take been advantage – First, some balances. rewards relationship a prospects just or gain short-term looking

balances that's a bit. little clearly affected So

bit. paying less has promo the off month each of portfolio with balances, percentage Also the risen a

of accounts. margin, that's if though, to each if last we what our continue out XQ more we you on year, I look points had up profitability the X.X% cards a see XX basis with think new gains again than you year-over-year risk-adjusted million and focus you adjust have month to at

to from So to I going here. grow that is line think start

Brian Moynihan

type had Paul's many to plus lost primary still with us X production of from go continues usage base card. grow, room – new the a it use and point cardholders. as we – lot customers card to million new customer be product of from to a just of Glenn, how have a the and two-thirds then people of We think, taking penetration I so

lot we're that, generating are So on a who focus we new strategy. on is the really that, while exactly and customers focused not surfing

So it's mix to customer a also core really profitability, holistic sticking of but that strategy.

Glenn Schorr

Appreciate that.

on maybe more one Just GWIM.

people a up talked rates, that. offset market's and fee-based about lot more you So going and lower

the margins continues start to there? made know hanging But scale which been in we this can and up build question constrained is that investments see – like have above bit we can the we've great. as range, I by are tick that. little So things XX% you've I a there, is payouts XX% to in all to the

Just curious, years. of bigger next over the picture the couple

Brian Moynihan

Yes.

it dimensions. Management a is bank. very in the One, about Wealth think inside two business, So large

loan-to-deposit margin will So the which and the pick strong that's very if have then been stable that, leveraged to here, to the then one That's point. from here up margin. rates contribute growth, –

the drop of very of you twist late that this in same basis in are months through with and part in last XXXX. going the So point rates few XX business

forward. go different so will other no mitigate and that's So than situations, many that

the side of got you other into goes from you've is about a of higher, numbers can Round you way way you've compensation of, If system presentation the which the the the get the is of think question, compensation. got sort thing, revenue. runs it basic that XX%

on So the you're basically making $X.XX a profit margin, is other margin. in pretty which $X.XX strong

you opportunities is things. assets think which got portfolio, it a MEGI all a along of of – year that the is over type growing billion growing the is about XX% and we've if [indiscernible] after, Edge the the to dimensions, go XX%, which which $X in has So Merrill set things

grow, the and and Merrill customer digital that the about private the team to then statements of penetrated common and provides with various the other digitization drive physical things of And plant, the offices the space in terms base of density like in physical Then which consolidating in that, they cities increase we getting of money. customer and margins in we that a base can and both people you in saves continue physical plant additional way. to towns, the the plant that Andy's of least As think that are to all bank efficiency. Lynch, products wealth available whole is FAs,

can So a then adding the efficiency, of financial work digitization, way generates there we overhead on lot margin. contributing which is advisors physical plant to have more in scale more more

of good comp, system, things to So we're we a lot continue and I your $X.XX improve comp – you're after changing working the think make XX% it's can them. of – forward, to but and pretty margin there's not

in we been drive is, we've environment. growth, rate is start rising stable fact, and like to again, in or It and margin, sustain what even rates falling terms be but in loan will a heroes of our if easier able appear look would to it if, which stay rates projection

Glenn Schorr

you. Thank

Operator

with next Our question Steven ahead. go from comes Chubak Wolfe Please Research.

Steven Chubak

Hey, good morning.

income. a ask on to fee follow-up wanted I So

GDP you quite past fee of given about expectations resiliency years? the continues expectations, Paul just was some I the should GDP. to just to The tailwinds. earlier, that line in growth in account NII forecasting And Brian, you explicit Brian we moderating the the fee core income core some it softer note track year, with know, fee been as cited has U.S. think impressive. growth did you or Loan on global in strong be but past modeling deposit So and growth modestly expectations growth, haven't should traject coming well. you market this trying the and of very noted, a despite bit given declined how guidance

Brian Moynihan

ability has fees category categories of if consumer the In hit the where stable significantly income of that but the quo The back the that's think areas, words, we penalty interchange kind you that. is I margin. think on reliance over about other in broad last plus things through stuff system the all most point. through, get come system benefit been Reg stuff – status each we and it the them strategy kind rewards E business consumer you the that brought fee on from decade that, have like in through impact done, that, to reduce rewards preferred card at the and to the down a the of in this

loyalty of company they to base, in grow that ought part So to those where I a strategy invest which But marginally. is point our to have we our remember, products. our think to and client fees, the gotten should see

Think checking reward be of balances you, driven usage. they’ll consolidating through in back because X% pay so NII growth system And the helped relationship consumer. you which to a modest card about growth. is That the the with by people in year-over-year

always to be going So it's that.

what grow tell management, should to market that will going heavily to go you faster. the that wealth me influenced it is you be When do there see and you'll

hand, said, fee isn't the As as it you there's people trading compression the discuss it, volatile other on as want side. as on but – to know, Paul

of different revenue up, it's But is the services I paying So a balances. that's us digits. piece Treasury are people has high-single each at think, element. line fee flattish, the because through items line

Steven, revenue. like the in So terms morphed time, as I long that of just the banks a types them for spread becoming revenue business me guy together of have a between differentiation versus think fee who total has harder models is been around

revenue through twist So ends economy the slightly to to been and go as this than that hundred basis on and we we see have faster couple back and grow rates move we've in you'll able quarter, by as below ought us get the expenses points, that, track, this XXXX. do

Steven Chubak

that color, just follow-up a Brian. Paul. maybe for for you And Thanks

and same mortgage lieu deploying You've MBS. been expectations? guidance, strength to day of sort sheet to given some does loans, just balance your loans retaining more prepare bank balance relatively be your sheet, appetite liquidity a path, and was credit in the of could substantial of first position that continue your pioneers, for percentage the on selling a provide of of concrete wondering, or willingness in we you're or two just separately, provision just that inform terms CECL you the and maybe And I'm down guys impacts excess hoping CECL, clean into as those

Paul Donofrio

this of first to and putting trend see continue the But been many that sheet. That now. over doing how for quarters for that plan. them, point now, mortgages Well on our in develops that's originating think quarter long-term. the XX% balance are we've will we We'll your I

balancing, CECL sheet. loans liquidity, effect on we really a Clearly, with we the consider have of returning don't capital impact. growing on the the consider capital effect balance Those high amount

there. we're to what I'm change doing never saying going not we're but So

In CECL, you the we're think terms given comfortable we've I that guidance with. of

We changing a when $X when than much don't net We we've charge-offs due and that charge-offs be net would quarter. a than see our XXXX, out, – approximately running we've little to bit be CECL been at everything provision provision's net CECL, back it in expect to higher that, been billion future, to and you running charge-offs. a you means just little factor have going into that to higher the in

Brian Moynihan

last your securities in be doing growth you're of basis always XX have and the At not $XX and of simple. part. of part, but somewhere have billion, in half remember board, coming the the and and grew invested reason lot costs you're and all-in $XX whole billion securities across end You that When day, this the balances non-interest. go is money by billion loan to $XX to why or in on we raising other the first on treasuries a has pricing the – the the deposit mortgage-backed to it's in deposit points

to we the company. credit You're turn of that we good part in down not take rest risk going customer because that activity the and around credit the risk take don't enough of portfolio,

treasuries that And liquidity put so as side, had the the strategy just on mortgage with excess backs and on mortgages. think investment

mortgage-backed that, securities yielding mortgage-backed securities' the and we've because you the than than sheet, been told better risk better availability. they're Paul on frankly, putting balance our is credit

that pay for we risk. would else for taking why So somebody

Steven Chubak

I two guys well. plunge as And day taking appreciate enough. you Fair the

Operator

from take ahead. Please We'll Stanley. Graseck next question go Betsy our Morgan with

Betsy Graseck

good Hi, morning.

Brian Moynihan

morning, Good Betsy.

Betsy Graseck

especially rate change side, the years? you side? past get maybe here from the given on leverage, that of Brian, producers, four improving a we've give go there in and to obviously question see those over you the over is and sense, opportunity I Thanks. driving to bus helpful. because from the global the in if that the significant So hit of could do it SKU Can be and operating back people how markets, in is excellent XX us as management banks operating consumer way, years the and is, here, on three, had much by positive leverage would the you improvement how office generate global you

Brian Moynihan

a it's to But paraphrase all it the company with have for run and a the be little me this decades. let delectation bit. So honor to power doing able

of position. team, passed just done a and what done decade But a the we So point with the they've a as putting great you they've out, great job. job

efficiency the or Management how the business efficiency separately look Banking which business It's markets these here. improve. the ratios So so from of or business, can we are XX%, XX% business, Consumer you if here, Wealth you see, the can the show XX% at you operating

this We we years of X,XXX actual company, how we goes coming just I'd few savings. had simplified digitization work great last is, to And the Betsey say ideas up. don't keep over what They continue the far and processes produce the know implemented. improved just in and we've

that. And we so, end of an don't just see

environment we the that economy the forward predicted us. of and a able is rate aside the decided that efficiency, a sub-X% ahead lot low, to more that we growing leave there produce that at so think can activities XX%, been at is is push And level we've

hard our And saying you've start say accounts work for done. we're the started in about number of to we you team, thinking only start nice that – checking all the in also, XXXX and thanks so just we quarter. had we'd this if But getting here, company this passed,

accounts, ran the the average we all but of on off balance primary so, our $X,XXX. accounts, And non-primary

deposits by it of basis down cost year-over-year If you think I about that. the X think went consumer, and something like points

this it's that scale, by further the which investments grind, work, but taking can these and efficiency lot and digitization the activity of incremental by costs the of more. we it's So get out a a hard at and

per year. checks years XX% dropping Another since example ago, is became really there Zelle pushed written, started out about two has

down Each years requires five and piece drop is checks that had we of written a and one a $XXX consumers, $X by billion processing that to you're those we're checks by So of XX% ago, year. now almost paper million. time, seeing

to Is pressure on it's not. gone? the constant change they're operating going But that for overnight, Absolutely positive other hand, benefit where us.

it. us. and on colleague we upside have lot there. worked ahead and teams but us think your simplification for there's the the is lot it that hard, a board, to we process Katy across the of asked working are Management we've Andy of look business, improve There on So Wealth about earlier

the time, the get more business, you we've markets equities. it make then efficient over electronification effect And in more like and will seen

at five As that the revenue from ago, same this you of that's four, fighting though, in always the you most same at then. and the if fact, years you had price amount market profits changes know so look business, had trading time a of actually we we

profit, million good when $X $XXX both profit, just equation. billion quarter, earlier It's it's you're bit is fighting sides and business. of quarters little the this into getting it That's a the activity in of turned just We a generally higher. better of

So improve, look do tremendous is and extra is up There for to us improve room lift our advantages. The new scale job too. it's to team and everything. opening provide to excited markets it the

Betsy Graseck

I maybe forward Paul, there, for you. the just Paul, question bit Good could look term with a Okay. longer-term. on be nearer little a

But you that case? rates. you it's I on more little back a you more granularity, than mentioned first the why for XXXX better what's detail a you a then some forward NII you expectation that level times behind some us little a of with couple and color half, be give for about sense XXXX talked your of, bit like that maybe But know, that half? improvement year-on-year conviction flattish in full-year. on, curve but give the the assume down to little think I expect get earlier a I being modestly the second and you half bit from maybe could

Paul Donofrio

three level, cuts, pricing that assuming deposit to continue further it's pricing given in appropriate and deposit some think loan deposit experienced. no and its about about deposit planned I modest as reductions we cuts bring On growth deposit we discipline. we've pricing, an pricing, the to

get rate products paid expect rate Global react to If in and the end quickly and Banking another relatively deposit Wealth to us we for higher even industry, cut, the Management further, materializes decline cut. pass-through we any as for forward curve short

it's confidence price growing have have we about in we and our and the we how and confidence growing So deposits the products, loans.

more deal an to one we've guidance in The less about got is day we – QX have with.

sort and of quarter, have we seasonality, the that we our lack shows Normal the the non-interest third economic again. we'll up quarter. which start of interest the of an pricing a second to see We expect And plus, expect, current get have and deposit again, activity would income the just instead growing environment, by income. growth, loan equities, to assuming would effect the you in that deposit in we time that's that

Brian Moynihan

I'd go got Paul the quarter and because question of is which same this described question just quarters your dynamics, first add you've – to direction, John's that. of just the the that, couple and

we push to middle growth is flatness. but operating into back as leverage and that on the move through, on, through have XXXX. stability You we expense of see to what getting basic We're back NII

basis underneath four a point lot months. rate takes in just it get XX but cut So to

Betsy Graseck

Okay, that's helpful. you. Thank

Operator

with comes go Buckingham ahead. Jim Our Please Mitchell from next question Research.

James Mitchell

in Maybe year? expectation the start maybe a growth, a interest Is guys. of that in of morning gives I NII could grind stabilize net follow-up the the margin question just starts good Is to should on back the growth that that in is to it way. the balance or we the Hey, half sheet down different your do NIMs, – you what still but takeover? confidence should expect last really

this How that about do assume NIM but starts margin, of think when, half we obviously in interest rate assumption, big assuming we mix to environment, year? a it's the stabilize second unchanged, sort of current the is in do net the

Paul Donofrio

I summarized think you've we that's said. – what succinctly correctly what

James Mitchell

Okay.

question. get I maybe So another

on just deposit the So growth...

Brian Moynihan

you for award bonus a that one. will question We

James Mitchell

XQ. Just acceleration industry, deposit in seen the on the we've some growth,

rates. short-term lower have We

this least do of year? can we could if I of the if single-digit about the acceleration there at have to think there you and deposit into we continue sort We you – do some do growth? – seasonality think balance in Fed expansion, how sheet first tends above mid be half see How this XQ. growth, the continued guess the –

Paul Donofrio

the that's you going reestablish by look markets like lower stuff that banking, rate et business – lower are the cetera, hand, cetera when if types the and affect X, think that. Federal in I Page of to the levels things et right movement at have you reserve our due to – the Reserve,

much and have really and Wealth But it drives what in really the Banking doesn't the area, impact Consumer that of that's an value. Management the

dollars the been consumer $XXX doing. consistent the billion odd checking for fairly year-over-year, what in at business, that's they've X% So which grew and with

year-over-year. which including part all-in, Remember, that the point interest grew of, bearing its also XX basis

year That's $XXX of also for the and economics, sort macroeconomic a variables. Banking, then Wealth Global million broad the what affected expense Management million interest $XXX and but all total that of So so in drives isn't that – deposits. really by

capabilities, just us growing, generating doing high accounts, consumers. touch, that's more product the balance a high tech where $X,XXX satisfaction, great what's checking per and is That's average job to drive and going account great then The with it. great and plus more and checking customer

I'd So growth say the would the deposit that absolutely enhance pure you're it general much consumer. momentary businesses. be U.S. There things doesn't difference can in right. some But of to institutional make

James Mitchell

Thanks. helpful. That's Okay.

Operator

Mayo Mike from comes Wells question with next Please go Fargo. ahead. Our

Michael Mayo

Hi.

Brian Moynihan

Mike. Hi

Michael Mayo

XX%. is and in to the efficiency year, where like on the on dollar you've – of one. spending some is that is, not quarter, investment this compare efficiency lot in questions and fourth to amount call, your banks worse that And gotten And a simple was coming XXXX? targeting, The it and XX% other efficient last this tech what and is are question how for backdrop of question year does spending the the the

We Now, you're spending Slide we money. see that X. of lot a know can

You've pointed off. paying is out that the spending

more then So wrapper we, the figure core put it, spending out, and if efficiency a you you could just okay, level, number as analysts a can around to would. put a if

Brian Moynihan

lot anybody That things peers. our the profit, else but we a of – in have to management more pre-tax XX% other one some XX% XX% XX%, our for to than or the So or at does. ratio compared wealth margin year, efficiency people answer changes that just i.e. of that ratio remember efficiency XX% that relative core banking

bigger bigger, we but have margins, number, trillion assets, the a just the sheer the in biggest best at tax $X a It's for making $X it's because math. quarter after just billion business

efficiency class, look our you unit, business tops our when at by by the it the different. in is business just So unit is mix

out, So figure Mike. I'll let that you

or billion level It's just back the spending. spent same – $X But same of be it we spend, to in to we XXXX, in tech constant this this the billion your have scheduled $X.X year. XXXX,

initiatives. Now different pure that's obviously technology year, products its every

could on backbone and and that about of be talk of everything, the higher. put top number the people You

that through we keep just is flat. capabilities new changing that the and to to what's aren't products drive ability But because driving that, system, expenses and that's and

done much in If so, showed when XXXX terms XXXX, our of redos, $XX.X cetera. et Management, XXXX you of cetera, look $XX.X you quarter branches. in the Wealth in you running new the see billion, expenses in or per we've cetera, X,XXX complete think teammates new for and how billion across there, chart, Paul et about hundreds buildings et

that so chopping away, are – are tremendous that's run we're those the while excellence. levels all investment that coming the And from and operational rate, in

coming we're year, which year usage that but of in XX%, checks spend, it's are much the spending about Mike, XXX% isn't where technology, of things we're at usage Zelle, a going use to over So grew which look that the you to out mobile what on I talked you usage per getting cash question the got that's written of XX% it, the the down. like and a

opened cetera last et the markets I talked do to over actually of years. branches, branches there, we about, branches couple up XX Even that and have we've new XX that. to continue in but X,XXX to

flattish. of of relatively in branches efficiency, rest So are though even that, your markets funds the the numbers

coming slightly. down we're So

gives So set of complex but a things, hopefully that it's color. you some

Michael Mayo

more does expenses? rate this your increase try Yes. new in new much I'll growth tech how branches, guess hiring you not time, I new are investing you opening are expanding you the are like it's number, of markets, to since associates, one

Brian Moynihan

It's $X.X billion.

and So amount last it's be – the year the in run rate. will this year. like it And

are or for take takeout digitally half supports out? originated that but for more than paid of our uses, by be customer cost thing You just you today. right loans efficiencies, could Company, to provides So the in do other so the auto the it's how it'd which XX% could, not mix the that the the of –

we did billion billion something of or think originations. $X I mortgage like $X

XX%. in Mike, we're benefits produced So you auto into getting as are and years digital investments – example are you three reaping the hence, exist, not XXXX, go we is of the its now did for – made it, XXXX

think that Just efficient much more how Mortgage... Digital processes is.

Michael Mayo

mix one spend bank, think and change versus goes I change me – that one tax change more. bank they more ago, are three do where more and run to headed? figures you you're bank, What time then just toward years the the today – Let are bank. this the the try spending or assume the And you to more four like

Brian Moynihan

plus, and then and you're to modeling, capital and billion $X The Yes. the behind CCAR Brexit in lot of regulatory – rules obviously data the spending rules us with gone. us environment terms still models make implementing the money those behind improving with of work. by That's that

The thought running than is functionality, you it is the initiatives, only in about XXXX, around it's this that sort of some much issue against if yes, you that is in going – in XXXX off XXXX works was of good. business largely it long-term which so are than these new thing feature mobile projects, was higher how to banking, that

Michael Mayo

All right, thank you.

Operator

from comes question next Our Gerard Cassidy with RBC.

line Your is open.

Brian Moynihan

Good morning, Gerard.

Gerard Cassidy

were of ago move comments processed can – that, can us the number your unit? digital, versus you? you years some about When paper touched savings are to it the you Brian. on do remind the that are five morning, from you cost the what in checks per already us, – How when Good you of Brian, today. share remind you

Brian Moynihan

half, are like the and over mobile ATMs at the rest. still are and a that, XX% branches now five or the mobile to, So it kind of I But which that if think for quarters, Gerard, it point, was than we at which starts. good our that and have like by look more you're because referring about been before checks is written are are the is the little what deposit, customers, this is something thing basically, stops then we you branches

round So the physical $X.XX $X.XX. that if $X.XX $X.XX at you $X think about movement, ATM that, and and in numbers. is

Gerard Cassidy

moving sensed the with on of that corporates can you guys board an the fourth guys sectors then all to us then the customers credit be little because keeping color on particular And are banks, any from some credit, that optimistic portfolio? of have the I of give of part and across your we eye in question, more these mean, for reported almost within commercial maybe is your seem a some quarter issues. peers as Great. that And trade – or strong any you

well? that, you're on If seeing you could comment if customer base that in as your

Brian Moynihan

you about in think gives first our aside half recession, generally inventory take would Yes, I'll of people and in half Paul. market with confidence backwards. one seeing nothing of the see had people call the bit XXXX, resolutions the you seeing That second of thing That that – to we'll some happens the terms as of system. activities, are I’ll – the leave through day-to-day, up, have what is, makes but it. these year, let a issues. But you little in this your a companies are more decline emerge goes for the the first The obviously good if of part went feeling. being Gerard, hopefully

So you've entered a new place, right.

out then So phase. hit kind We're that you there. of come and down, bottom, from in to you start grow transition a you

be the of passed. of that China, external USMCA. the of people's today resolution Everybody with environment getting other to issues So think over is a it's was minds. going the combination deal There one says the are obviously, I

helpful fact supply The think it year during I the think what it. about capacity done was to XXXX people. chains to would and people do, have needed that to very that they change be

speak, customers million the entities Those The of with $XXX sort value it's get us of didn't endpoint That's and more and are system. plus customer, disruptive without out it. things up to spent running. better services the to to create Brexit, we like We so money. had them and get just through

which that lot you're I without on a which and being other So done, a done of the is worry, bit of relief side activity. of that think a was is what work, feeling little being

kind slower our off you're even come out expenditures, XXXX, so the there. and rate And of stabilize in capital grew which much at a experts high will starting say – from

Paul? credit, on And

Paul Donofrio

Sure.

it the to start I'd through various running portfolio, by we that it. on So sectors, always routinely management, credit, are bringing discussing analyzing saying senior

on a for So we've for that the some always are got looking process great risks horizon. real

we've now. been standards company years strong underwriting for with the you As know, running

You in CCAR our results. see that

of sector because out for run or company marketplace, mean, we've not another how may pick the So now. directly one hesitate in noticed I years I affect but sort given to stuff it the we us

some energy paying that But loan you're we're attention looking certainly to paying if overly paying we've the attention leverage with sectors respect attention how natural market, prices. given them not to gas for to about certainly leverage to, concerned But we're we that We're managed lending. think we're company.

to We on disruption. are have on spots certainly little around the looking world malls. a got always maybe with – at eye experiencing enclosed respect that eye retail our our We've

question. I'd that how that's So answer

Gerard Cassidy

good. Thank you. Very

Operator

Ken We'll go Please ahead. Usdin now Jefferies. go to with

Kenneth Usdin

morning. Good thanks. Hey,

and on question a the Just balance sheet capital.

what CETX, So the SCB buyback stated still goal around payout, target gotten so has a where Thanks. the peers you for you and is And than your waiting you're finalization. have you secondly, capital point your the any rethink XX.X% been one, depending at changes be, we then We're your between Two mix? to on terms might dividend mix in get? of where which might would lower XX%. the think questions, anticipated

Paul Donofrio

out, I'll I But buffers start cushion. want you as might we buybacks. guess on and Brian, dividends on look meaningful mean today, point I pick have a can you up the or you to –

an us really issue now. So it's right not for

when buffer things the think size mentioned, is what we what you given are cushion, affect emphasize, publicly, would prejudge we about a makes changing, there. have of have really But given of of right today of to get a buffer, regulations, terms it don't that the and lots we current and still don't going things now. I when we that buffer as sizable – can SCB as just question ultimate other buffer we needs to be, much to sense In talked because our haven't a be,

Brian Moynihan

timeframe, we in the earlier, part you reducing – dividend move of that. count up then keep a count. issue terms expected we been go showed sort look earnings than XX% transaction. to In into versus the as of and And of we about rest we've share will if clear the payout, the lot was XXXX share level increasing buyback. Yes, the the of at the the And after dividend page Merrill will people higher you was the sort

need back and deposit a loan we're our seeing capital. So good think do the of we us that sheet. to capital the fine-tune We use that don't that's growth balance and continuing to through to pushing you're fund the down, growth, able

us move what and with expect all CCAR so done dividend before, to we've stuff. the that assuming consistent up, good approval And

was, it and rate level the where, environment share saw retire the we idea you of flatten help that up drive growth, shares. But was EPS allows that year-over-year half the in will an in saw made What use double-digits, of year. second EPS can benefits to the the at you is because to movements buyback, us earnings the a we year-over-year, the keep the

think And to shareholders. do so best thing we the that's the for

Kenneth Usdin

Understood. Thank you, guys.

Operator

O'Connor next Bank. Deutsche our take ahead. Matt from Please go We'll question with

Matthew O'Connor

and of Hi drivers slowed. the the growth X maybe guys. to last, could versus at changing kind and that's I obviously temporary. talk for it of within if growth the for then what net run-off? pace months, was has for has kind business industry of Maybe And the months commercial XX the been about from expecting that's all, of drive you're that both lines, just wondering then loan the XXXX. if you Maybe

pace So loan year? just Thanks. this growth of drivers talk the the about and

Brian Moynihan

Sure.

mid-single-digits. growth of to our kind look, should be So continue segments in Business

increased As Global you know, regions. X% we X%, by Banking activity and and international companies, grew grew that leasing growth and middle grew activity, consumer X% in solid market residential this by driven quarter. was corporates, at year-over-year Both GWIM mortgage large driven

broad-based. So pretty

through solid current talked application environment, We through With respect the about the – consumer of economic already growth the that. card, in we've anticipate as loans, sort bit assuming little applications a mortgage well pull-through to pipeline. as of

With were card We expect up that time here. quarter. were this significantly. strong over residential we originations respect They can growing to mortgages, start

that's QX going solid growth. So to to translate

However, continued you partially by run-off remember have of non-core that's to be that portfolio. going the offset

expect be modestly growth up year-over-year. We our to

and sort about, remains be and these small loans, in focused in mid on we of in growth single-digits. favorable, on our commercial outlook prime business, solid expect and all year-over-year that growth should I'm remain remember, again We talking categories super-prime

So that's run through how I'd it.

Matthew O'Connor

think saw that netting then mid segments And kind the growth of you Okay. the quarter, some as holes? this in growth stay of single-digit in you space with you macro out run-off, do the Business the X% kind the of of

Brian Moynihan

Yes.

Paul Donofrio

Yes.

that impacts on like hand have be upper we for at move before chart things gotten really now see look loans, run purposes income point getting status to right the doing page because were there, to major cleaning and will off, we which restructuring weren't portfolio you terms loan of that on we in the of corner, If of there run-off up. that's continue the – the sales – to any basically and – won't on, out natural we any the that their you in where

growth that think I that's overall nominal company. the So so for just smaller, helps the

Brian Moynihan

to $X be quarter. billion billion, going a $X.X It's

Matthew O'Connor

Okay.

nothing it saying? $X.X or billion loan of you major So what might but billion be are $X sales, that's

Brian Moynihan

not no, sales. loan No,

Paul Donofrio

That run-off…

Brian Moynihan

The run-off is running quarter. per $X at about $X.X billion billion,

Paul Donofrio

natural paydowns just mortgages those and home in equities. Of

Matthew O'Connor

it. Got

Thank Okay, that's helpful. you.

Operator

go last UBS. from take Martinez Please today with ahead. question Saul our We'll

Your line is open.

Saul Martinez

morning guys. good Hey,

GDP guess mix. horse time. but out beating ratio guys on mix, it a that mean, a even overall are growth say, over ask So the dead I XX% about we if part back different a growth efficiency I'll forgive being I big way. revenue you in to But XX%, me the assume revenue for slightly with GWIM question, of gets

the that to obviously the digitization, payments, efficiency continue reduce reduce low obvious you XXs drive like opportunities there there costs an towards why couldn't any electronification pretty here. percent range doesn't down seem which of about Brian, unit some this your It reason mid from just ratio say materially XXs, couldn't you to of into is pretty Is materially. trends reason even and you given why below, the talked secular

Brian Moynihan

That's PDP doing. revenue that's If basis flat we the what plus, efficiency the premise we're will expenses leverage if keep of basis operating XXX and by and producing of definition. was ratio the keep the grows, that points

continue and able we'll and do what So to. to is, our it we've you're stating job been

Saul Martinez

Okay.

difficult the glide there or – nothing becomes to is no there is any from is path really while? much or more for there prevent obvious – obvious at which, is which from doing you at seems is is it here there any point just, a it like So just point that

Brian Moynihan

see We'll let anymore. you do know it when can't don't it. But we think we we

Saul Martinez

right, All thanks Okay, a it. lot. got

Operator

Moynihan time. It further closing Brian back to have We now the any turn pleasure is questions call remarks. no at this to for my

Brian Moynihan

attention your way, franchise. call. earnings, thank you they all another the team, and the the in across finished did doing of for right the growing job the year for the a We Well XXXX on you making strong it great investments

The size lot say, nice Every we focus responsible We'll run loan, activity. We've continue company. good underlying start. business relatively in provide a had As stable got late the work and teammates, at growth a rate customer through institution, this it's that helped scale of to on to room came tremendous growth. year. this the client by our us in deposit, all and with that performance, a cut

feel the described feel Paul other it, that, good about earlier. we we good side So and of as working through about

on asked and to it, which continue the grow focused which every us is services, continuing many help implement think you take. But on to across markets' at ours continue develop about. we rate and to as the and business the an which market we're we're We of are focused costs, to meet is Thank our share doing opportunity, needs products you.

Operator

today's Thank conclude you program. does participation. for your This

at You anytime. may disconnect