Bank Of America (BAC)

Lee McEntire Senior Vice President of Investor Relations
Brian Moynihan Chairman, President and Chief Executive Officer
Paul Donofrio Chief Financial Officer
Glenn Schorr Evercore ISI
Gerard Cassidy RBC Capital Markets
Michael Mayo Wells Fargo Securities, LLC
John McDonald Autonomous Research LLP
Matthew O'Connor Deutsche Bank AG
Betsy Graseck Morgan Stanley
Steven Chubak Wolfe Research, LLC
James Mitchell Seaport Global Securities, LLC
Kenneth Usdin Jefferies LLC
Call transcript
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Good day, everyone, and welcome to the Bank of America First Quarter 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. [Operator Instructions] Please note, today’s call is being recorded. And it’s now my pleasure to turn the conference over to Lee McEntire. ahead. go Please

Lee McEntire

you first Thank chance the to call review Good results. for Hopefully, our documents. quarter earnings a you've review our morning. release joining all to had

earnings And our usual, to the presentation comments. during As some first I'll call new of turn Relations the CEO, call Paul for Donofrio, improved on available, opening I the are including bankofamerica.com the that be website. Brian referring ask they Moynihan, we'll then CFO, details to Investor section to cover to and over of the am going quarter. the our the

during I just call of elements financial over remind Before forward-looking regarding to results. me we the that Paul, measures may make let to call the the you refer statements various Brian turn and and financial non-GAAP

our cause forward-looking risks period Our subject been Factors are current filings on are about earnings the management's that are pandemic during GAAP, our available on materials also including may on measures, website. to statements assumptions be are SEC to can in. reconciliations we've expectations that and earnings that the detailed non-GAAP financial in Information found the based those are website. in and operating be particularly different uncertainties, our the and to materials that U.S.

with it will Take over turn that, I it So to you, away. Brian.

Brian Moynihan

year uncertainty liquidity. would time. would our we which you versus is balance faced and emerged us. last when what The crisis. indicators reserves economic an what that ratios, that capital by been It's America's now see recovery recent results, were to sheet since the we than Bank impact. higher of this From first last joining have have stronger record economic thank our we accelerating an charge-offs for we reflected has supported year, you, momentum healthcare with most Compared entered company's even all reported and as we recovery to different the Thank company has economic competitor we higher Lee, a year lower health perspective, the and at be gained see we of fiscal-monetary an and policies. But include crisis continues the

our leadership business way crisis. diverse model across with us all our positions has through earn helped businesses the Our

and Management Our Wealth Global which this quarter. from to Markets well markets typically healthy Global environment would capital benefit businesses, perform this continued

you, Our equity to performed also are quarters new earn has recovery full to Consumer moment. mode on well. put, But a common costs. several this dedication with long going shareholders. and to in quarter here, assets work generating Banking more per you and growth our team, our are more and proud our new businesses rate led and of and All are after put tangible These interest decade-plus share, which out my position XX%. more negatively the through is and a simply return by has impacted we details the us to the take very Paul EPS $X.XX in is money responsible and But first now in to being environment credit we of deliver both for in of Global back a by this believe businesses clients. relationship

with tremendous by they And repurchases details you corner highlights. are let's go a your best-in-class the as the left-hand won't team's consensus improve. share this Obviously, announcement last economy. of projections those Slide see continue first, restrictions X. discuss like But Federal America upper this quarters Our are They quarters. repurchases current increase X, on but X, X, data. regarding we've intention the Bank economic over coming most the key shared On updated the morning the recovering through of few projections few Slides them, GDP our reference. highlight lifted in to quarterly the the for They highlights for I our there slides research Reserve. and signposts. all to the you But can are

also Bank the of our much in prior note higher increases customers the the payments consumer only the of which the to spending economic will than is bottom of higher than market. not a when much optimism You decline, year from reflected at is the slide, comparison. began to-date you element XXXX, appropriate This but are year the key notably this is a year-to-date seeing more in America

to of a and our pandemic previously customers, matters, other rate saw by XXXX. versus so growth XXXX year-over-year far and faster in movement year-to-date, the a up XXXX, X%. was trend growth X% XX% reform XXXX Then plus But XXXX larger going in back are after-tax to over base Looking XXXX type growth only X% money from the moving we a to plus. step-change X% we than hit on of at

of is month spending America amount highest trend Bank of quarter consumer moved The record the fully was economy of on of money the The though not quarter track, fully Bank first ever consumers of March America to is by consumers. led record a was dollar spending. even by yet a reopened. and

As charge-offs. slides, a Slide lower way the its deferrals worked from you the [indiscernible] look through level the on as of these spike note card has on X, also expired delinquencies

lows, next suggesting early again near charge-offs historic at of low addition, quarter. card levels stage In or delinquencies are

And well. line the customers think increase across in comparing a do pandemic added business which we months, the As customers a every of business we across has period last digitally economy XX perspective, every are what as our the engaged from of their have more more and business. customer's business customers those simply have about platform. it as is you improved, When to across continued

nearly us see past customers boomers going to use Slide XX are by You increased pushing digital active users, by later and million that seniors. we added on this XX quarter, active X led million

Commercial business whole franchise. to We Merrill Lynch Bank small customers the to cash every management have Business more the the deposit Bank, consumer balances business to across in and Private Bank, and and from

in quarter, capabilities New to Merrill have new in along billion taxes clients whether our middle XX,XXX those in businesses investment And investment those our our capabilities market banking our total aggregated consumer our sales traditional Edge and attained existing PPP Lynch from total consumer new new Private investment flows our business Combined accounts and added more $XX and Montag and have great business done Merrill and a $X a platforms. in billion capabilities digital-only of with banking there. platforms trading Jimmy Koder, with the decade, through market than assets sales in the saw revenue customers, is year-over-year. and helped is XX% investment We through and the up through both job million range and broader platform the now funding grow trillion by banking, over corporate Matthew service our client great X provided of our highest bringing relationships, Bank. households investment a DeMare clients. by $X.X teams the across Tom We and we business the and wealth lending small advisors. banking trading net relationships led of all way continue and

at and across these groups during been. a all the is customer of our highest pandemic, levels company Our brand the it's rose loyalty of satisfaction clients

of fourth our note reached of note with bonus quarter, our in the and have engagement serve, it's to success broad-based that we've teammates to our with plan, another satisfaction. a you'll does employee also is highest our expenses time at been. We sense and And this driven level which is done we provided the in our new And our support has company this. communities employees’ it pride what we

economic income that a certain on do three Those couple last So of remain comments the being reinstated areas before are and each. while And where highly we have the levels. improving, to areas interest some our Pipeline capturing increase with loan growth be inventory, are with growth to liquidity on do need borrow, do they This what companies expands and continues said, decade. a work remain to which is growth The cause have high, the credit investor pandemic. loan whole economy below businesses. standards to we but customer do projected recover. our we origination balances. companies. pre-pandemic loan remain and to the build as the areas their should were for and they of for hiring, consumers loan in impacts highlight those as continues net I'd in back across payments growth, in We've system the lot focused expense, all and

prepayments low. quarters. saw increase remains current three benefited impacts mortgage lower appear quarter. Banking quarter was after applications how liquidity Pipelines this see remain loans X, January March. to our This in in with a mortgage last have That reduction credit costs. of negatively up pre-pandemic out, loan the and continue sets and build, falling line to first driving but net percentage, As further reserves along runoff continue each of – We dollars sign. one see We'll levels moving and you the credit stabilized to it the charge-offs and of customer growth, in to below but mortgage has month that's loan rates have strong growth. this again consumer originations obviously supporting loans, Global usage plays from March good but higher in can in Slide Card

has the told year. interest We of would that third Now last believe quarter, the two be the of you of so. flat fourth was and income. in current ago to to proven drawdown be net this loans interest months days less six and NII Despite trough quarter quarter we

NII recent of stage materializes year, as, of of curve the billion I the thinking a As would the large year year, this way set forward investment NII factors. growth and in work as as we believe ahead, see well revenue, picking quarters curve had of from quarter highlight last ought than should interest. year rate just fourth into trajectory We the about later we a a benefits our is move most exit see lost quarter higher The and by the this to we I loan this would billion several we And our in rate XXXX, continued level quarter the expense to by $XX.X area days this expense. $X modest driven expected interest the as driven in liquidity, the steepened through quarter. interest of follows: we the those up begin its if

Some were seasonal impacts.

not of their in Some charges to our normal expense impacts news operating others due revenue-driven taken. and were and good volume that were typical

significant run a payroll is typically year specialized and quarter that first I'd about the as $XXX million. for course. programs their this to elevated the expense, especially We begin the you remind start look also due down second expect tax was company forward our attrition, as to to back decline expense. in in way headcount to work XXXX its seen the We've you quarter

would Next, classify in to is as of and do. I increase say what The items business by I of costs revenue, $XXX the is is a driven activity positive. course, improved higher were follows. our we're roughly million typical our which, from differing It's the

our behavior. traffic First, digital given our and made the engagement customer customers progress in other with

to for continue quarter. rationalize customers, charge and recorded of the to in and will estate do million We real impairment an teammates our $XXX our that

Banking changed retirement portion Global which before instead Banking our rule. given this incentive that Markets include noting previously previous our the full as a for award fourth four we equity had the our Second, years. three and award reported, shared being accelerate success Global for XXX,XXX next awards worth of efforts amortized year's caused of the pandemic. on in we rule, costs built over to severance recognizing times different quarter during teammates, That special last awarded work year this a in to outstanding retirement of prior, last – costs teammates time broad the for Other is their and three was base that And years.

in loans through a to XXX,XXX from obtained in IP billion customers clients We've forgiveness. COVID helping these expense government. expenses, $XX various are by unemployment have quarter. the PPNR great originated established going programs billion of even XXX,XXX But share the quarter's and assistant these clients almost We bit the programs. of in those. broadly we claims payment and our PPP, for a to we but forgiveness payments. elevated unemployment continue disbursement have Paul job remains Additionally, processed as now and PPP fourth details stimulus for help $XXX after expenses done the PPP is rose stimulus to absorbing claims, speaking, our the

As target we billion in to we this year, talked for expenses to last XXXX. fiscal year's XXXX expense ended about levels in be year the a similar $XX

increase that quarter, the billion. $X.X Given about we target would this by charges

keep to though branches we the ago. the and for Even the billion six technology all you in made have build-out perspective However, XXXX, We expense I just some want in inflation investments new other real in – time markets, here. our reported years $XX and year starting new $XX more in more costs, $XX having healthcare and just customers, during teammates moving that wages the period. hour sales to activities, resources, our from and estate an of

We lot do, operational are at bigger where discipline XXXX, expense should a excellence six is and you was roughly and targeting what That it us continue to later in years XXXX to we company later. expect that. in

the other we in shareholders, same $X This you, both our cover by shareholders, So equality commitment employees, our you returned our this capital time, more detail. delivered off social quarter we billion to by support their our keeping on supported to return billion deliver With over stakeholders strong equity our you, to $XXX customers, funding growth. the critical our providing in let to of the shareholders in for $X We the billion and employees delivered communities to our already little quarter. efforts and hand that quarter, We've for them our and Paul XX%, commitment. first customers We systems responsible the by resilient $X.XX earnings, At can million and rewarding in our to and in transact. safe improvement pandemic. balance we summary, of racial in that, tangible increase shows drove and common in deliver a support again $X driving billion. our in We me society. and generating supplying with sheet toward

Paul Donofrio

morning, and and on Brian. Good Slide X starting Thanks, hello, I'm everyone. X together.

rather comparisons now, As the quarters included how $X.XX relative share, which we I've of crisis year-over-year. done will QX. majority growth, in offset earnings we $X.X higher compares income than than more The which this or prior health through my earned strong net reflect or to the progressing QX, In few billion, are the quarter of be to past billion, improvement $X.XX in per share $X.X per to expense. revenue

tangible included in sales and also by was resulted growth fees, results, benefit. respect reserve equity and billion $X.X was fees, a management seasonal XXX investment spending. trading business, faced billion return earnings Additionally, returns, provision asset driven record which challenge and our consumer Revenue XX.X points. against while a was strong holiday $X.X to record release, management banking the fees With ROA wealth on elevated QX common and basis

billion. increase some prior a Deposit period-end year, X. continue Moving from higher. on drive basis, Global balances increased surpassed now balance billion, year-end has reverse us. grew also only seasonal On $X and billion rates. $X.XX QX billion debt in activity approach portfolio billion increase quarter, metric. at increased the total to QX, quarter is deposits sheet liquidity it marginally as that from the Note to CETX $XX balance liquidity by and sheet of trillion. a balance XX.X%, of by into on $XX in and to sheet billion, and mostly $XXX is balance with while versus the consistent With the long also our that XXXX. deployed than our coming is assets. Shareholders' $X in average standardized of billion. ratios, that only repo in up more and the Slide our up net increased QX. $XX declined customers sheet fell. from The worth sheet QX decrease $XXX regulatory total as cash were continued ratio this driven respect to capital by noting Markets our distributions offset expanded $X.X billion We our $XX $XXX binding versus basis, is $XXX Note securities, for billion and remain fourth up grow, It in binding balance bond billion lows an growth one-third with loans OCI Earnings trillion their excess us, $X.X to off our and equity which are billion Deposits declined an

basis QX, to deployed the which into billion were more ratio capital basis mortgage-backed offset from allocation. XX a is liquidity declined markets minimum of the of an increased level higher into from ratio points above capital CETX $XX the our sheet. global benefits by X.X%, balance RWA it than growth While translates requirement XXX securities and points our The from in

excluding and us at Our in supplemental the relief the of the TLAC ratio X.X% at and quarter-end X% deposits forma room balance minimum pro requirement was basis, leaves Fed for sheet. on X.X% investments treasuries. versus plenty growth the a in for X%

above comfortably requirements. Our remained TLAC ratio our

lending. Let levels. me respect But I X, the see across mortgages. your in declined the continue But to we more stimulus also only In markets we have With growth global from I as rates. seeing our a for hold loans, outpace base, consumer and month, banking strengthen. existing payments as GWIM to historic banking, away balances benefit noted we can respect with year security-based because balance the as deposits we GWIM high across to the growth declining to customers Markets, hopeful not the that Plus, liquidity and in would spend new client Slide attracting With a downward well loans are products continued by and the because $XX averages focus Markets. for NII. of see from sheet. capital continued accommodating Global Loan drives deposits, custom in on moving customer card payment pay with to change, to billion turnaround. continued also billion. $XX are saw down Brian on a on balances and loans we XX, will to what drove than in Global build from money as but customers. supply, above loans paid minute contributing relax the is Slide economy commercial normal tremendous well is linked-quarter accounts you improvement so we trend linked-quarter on before as attention downs led the is draw earlier, what liquidity to seasonality as by adding holiday consumers as limits some the originations stabilized are and noteworthy lending pipelines

non-FTE benefit securities average our relative basis cash, on on points. $XXX On improved XXX were split the points involving to year-end. was yield $X.X roughly On from declined billion a income exclude QX relatively in legacy we Turning Securities approximately net to interest, cash basis flat XXXX, of lower interest in headwinds weighted it we of QX These headwinds of an you billion, QX, was offset QX, from The deployed basis, to two driven see what and XX, Net to and QX. balances, securities. billion into GAAP relatively FTE liquidity on by from $XX.X rate was flat was repo, settlement increased Compared good and the excess amortization we lower some basis. interest and basis if Reducing approximately mostly we but by net as modestly mortgage-backed Markets. and some into and billion of that treasuries NII litigation Slide $XXX this a a and $XXX declining outcome yield income. stable, the deployment loan million QX levels, environment a were X Global excess deposits billion a across the $XX.X securities premium days higher by loan securities. interest from fewer earning expense. our considering of

those could swaps, QX the higher, in similar of keeping a to treasuries with floating. improvement hedged have but purchases, securities we the effectively purchased been Now, yield however, portion

all will rates, asset growth you the deposit sensitivity our is note, and As given rising. low

year-end Our securities asset liquidity sensitivity the significant, the of increased and our relationships. The remained is levels rates deposit rates our higher highlighting into rising to value baseline. and sensitivity customer lower as deployment of from

note curve A that materializes, these modest that higher year. that and we recover, comments on no first, back assumes the rates. some that growth continues forward-looking the of of on economy that please assume interest the is year. thoughts sensitivity few longer the the NII But remainder So in for invest available forward the fairly to to liquidity loan NII at have rate half the

in if write-off to of quarters curve. premium those we expect billion be the as QX, improvement amortization Given forward headwind assumptions, follow continued few mortgage $X.X remained quite across premium At a next in high. some mortgage rates prepayments the

parts comments and from as level. billion rise So much as could include levels said, $X believe this NII XQ premium rates, amortization. by forward-looking a from as lot Brian material But we moving loan XXXX quarter's of


than Turning add Brian higher to and will $XX.X the remarks to expenses billion, I earlier. billion Slide XX of QX. expenses. were QX some $X.X mentioned

about of $XXX First, elevation the QX expense million. included normal seasonal tax payroll of

higher revenue as Second, outlook the experienced the to $XXX better for the quarter. This period's of year, of accrued costs. increased result a and for added the remainder we roughly and revenue incentives current million performance a for solid processing

some incurred a of some years. awards expense. that expensed made Third, portions decision awards, $XXX incentive XXXX of expense We have would our operating we million been accelerated eligible. retirement This QX on over those four certain expense that approximately from into making typical differs comp reversed

company. million roles different back on that choose charge our severance headcount. realization. with of severance associates over in for we moved improvement, also an This to million to charge expectation process $XXX get impairment And respect recorded we role opportunities toward eliminated incurred is real We as in some through estate an usual the based a as $XXX of might as work business

proving a largely to hoped. reduce had cost Lastly, we than processing. in costs unchanged unemployment with our associated PPP remained by restarting modest little are as some offset forgiveness COVID safely and originations slower claims declines and costs COVID were additional employee-related costs

this than resulted of through coupled helped asset programs in years this average QX. stimulus charge-offs. has quarter of to with support than low Net growth, losses Slide were XX% card basis last has and which net of underwriting under quarter quality was customer That lower loans, million the points customers And pandemic. despite our QX. charge-off XX XX. in Government fourth discipline the before they on Turning pandemic in were support expected quarter or XXXX, $XXX and an and responsible the were million, increase get lower assistance $XXX of

balances in from was exception other category the every small a Provision the declined in billion business and primarily an the and losses, loan in were QX. a credit $X.X consumer benefit the $X.X release of With by in reserve small driven reserves. card uptick while $X.X the quarter outlook billion. macroeconomic billion a card, billion, as improvement losses lower resulted releases in of Total commercial release $X.X was

X%, Our CECL. ended and quarter began rate XXXX above XXXX those allowance GDP at of as XQ X.X%, end scenarios, the of day-one the scenarios. scenario loans to the unemployment where we include setting in north be assumes respect forecasted rate. is line following at a of also multitude QX that a of remained we XXXX. upon percent end to leases assumptions, reserve unemployment weighting is our the still X.XX% to weighted March Based continued The of which its With will of our return XXXX the which adoption by of with to level well just

in from for consumer declined. our the as improve, the be continue due consumer content commercial economic consumer despite lower deferrals, both to a QX, and million losses, the charge-offs remained XX, increase scenario Slide loss move in rose XXXX, outlook the the LTV other quality our exit $XXX we NPLs XXX-day limited we to card expect metrics levels have delinquencies lower. in and weighted estate given million respect $XXX unemployment to remaining expect uptick noted expected net we just With which assumed To the late-stage the year. will we losses uncertainties Overall, real reduction losses under healthy On showed QX. the in low portfolios. to the card For small average extent card, absent reserve credit X.X% ratios. pipeline, and given

criticized book are and stabilized the the our to net and given remains portfolio quality either quarter Overall, million Moving of reservable the grade from with the NPLs as of the exposure $XXX collateralized. solid in exposures the investment declined environment, commercial, or declining XX% fourth asset commercial quarter. charge-offs

and X%, cost deployment of seasonal flows, result Revenue our the basis starting XXX would tax the increase business payroll deposits the card real costs, banking charge, Slide segments and consumer Turning the to higher innovation customer points. higher more of deposits impairment benefit capture than investment enabled increase The seasonally reflecting of with segment This caused estate of revenue another XXX to centers, brand, as elevated in all lower have $X.X billion been has mostly and around QX as offset XX. which from spending. well expense. us terms Expenses in also the QX expense. provision of as higher an holiday in lower moved the basis cost our quarter declined reflecting Consumer banking of quarter our a more income to impairment share points. QX earned QX. of strong and Absent deposits this billion fair produced the customer in specialists than our strength on in digital, of has liquidity. $X.X in versus as

points is the As Average as to delinquencies noted QX Slide net bulge A rose earlier. due reserve the see flow-through XX, the charge-offs expected, significant from in can in quarter. a of release card $X.X provision the you increase $XXX deposits benefit resulted billion XX% that paid million basis Rate billion On in low X in to compared of of deposits to up growth nearly are XX% interest and deposits consumer checking. the are investments. checking. two-thirds QX with XXXX as down $XXX of in

investment I as were recognize of up loans value earlier, offering. average the covered billion are so year-over-year deposits the growth $XX online to throughout billion QX. the up Lastly, We customers continue of note just our as balances quarter $XXX from XX% would note,

you improvement of year. can households of see digital in our we on this and our enrollment part Slide noted platform to quarter. see XX% continued this as As digital Brian XX, consumer use some

Small business-to-consumer year-over-year. Zelle Zelle. all to hold and are taking continued XX% see our volume payments XX% of and dollar Zelle made banking businesses our We up in global across consumer up now via payments XXX% year-over-year, businesses. digital is

you to Plus, As businesses our continues and capabilities with assistant, success our other users' Erica, usage. see, can Erica as we digital are to applying add well.


Turning to wealth management.

from to remain balances driven clients year-over-year, the deposit on solid payroll We clients. responsibly. Client This deliver increases. levels, affluent manage as – grow record household to back an continued AUM with a billion improvement and acquisition needs investment we to environment organic tax. flows, provision QX of well rose and higher in Lynch record a in and market. including very comprehensive were $XXX to for the AUM in provider flows. new competitive million strong and by record total complemented both driven of respect a experienced X% $XXX revenue-related expense. banking in revenue and a increase and With increased up Net exceeded Bank, and elevated client revenue, household virtual Private Expenses a near-record Merrill continued record respect We AUM market fees. costs the improved of to by income durably quarter clients, client and strong as by fees $X.X of trillion, risk choice solid resulted NII flows seasonally as loan growth, as growth higher

households During advisors X,XXX QX, net and Bank. Lynch nearly the new in net new Private added in our XXX over Merrill relationships

which Merrill page management and and the digitally embraced engage interactions. our to both secure the Private skip a highlights to In critical tools are in relationship and Slide that advisors Bank, clients. a is mechanisms clients fast, enabled XX, for of digitally value have digital safe our progress which new wealth Let's

digitally the balances, are and loans Our QX, wealth which highly log-ins. number in. in XX% engaged check of Merrill sign most to all through trade, can of record active. franchise In clients the saw households of we ease simple of a in logging clients – a with some side be with done are originate Clients

as parties. continue and well the client recognized becoming both differentiators, We third modernize enhance key are for these and capabilities being and to advisor, the as capabilities by

Slide revenue. Banking a million $X.X Moving improving QX, $XXX to billion benefit and by solid QX, Global nearly on earned The from business provision in driven XX.

year-over-year and XX% investment strong been in challenging, deposit has While banking records. investment QX. by has firmwide produced billion exceeded $X.X XX% banking been growing fees, loan previous The revenue over growth growth and team

Looking by billion a reserve fees, at impairments on total expense of investments. revenue some in IB higher and despite to X%, QX. release driven Provision QX, declined comparing $X.X weather-related revenue reflected the tax-advantaged

rose of net QX, by million million Importantly, expense the Non-interest $XX earlier. fell QX. reflecting from $XXX charge-offs incentive award noted XX% changes from

and QX. the outlook seasonally and improved costs strong performance tax payroll IB increased Additionally, in personnel elevated

while Looking is average liquid. deposits at remained Year-over-year, relative the Slide XX, up impressive up as XX%, on an to low. an sheet historic at highly moved are deposits repaid balance customers QX

significant our and same As and late increase wholesale that capabilities loans the customers digital the quarter. an even the enjoy. of usage stabilized in We banking present some by digital quarter early a more to safety, with reflected continued results the revenue solid grow, markets to accelerate XX. Switching global continued highlights engagement in XX, Slide relative in declined quarter, ease, improvement on and noted highest digital to year-over-year on consumer QX. Slide driven earlier, decade our but Wholesale to convenience over

results talk segment do, usually will I I the DVA. excluding about As

This quarter, XXXX. and in Global billion of more QX, the level $X.X of the XX% a QX QX was markets net $XXX gain. than DVA earnings quarter double negligible, up produced year-ago from had but million

partially in higher on trading municipal in driven commodities in and expense This strong year-over-year an a and to driven The card period. XX% the Focusing year-ago and equities. QX. strong acceleration on and trading versus increasing opportunities improvement from relative products. fees. in delivering revenue, volume-related by billion the strength and XX% by has a up by and results and produced changes equity Sales cash. in in activity gains XX% products XX% in fixed return was in $X.X both mortgage, weakness macro revenue reflected strong awards. sales by in other a increase equities performance and in return The expense trading, contributed in was business was and The credit, increase year-over-year, year-over-year, incentive These driven underwriting expenses in trading XX% offset trading results was reduced a capital on

in a build. to activities larger Finally, $XXX ESG on reserve The also improvement year-ago other of which increase show income expected modest XX, given was by in million tax this driven reported XXXX. net QX included we profits The Slide benefit a an year. all compared quarter

this rate ESG quarter tax tax credit, been rate portfolio have excluding effective XX%. and driven our of would XX% was our tax the Our by investments,

XX%. For the rate tax full-year, absent of or the laws other effective tax any changes in be range in the an current we XX% unusual items, to to expect

let's to go With Q&A. Okay. that,


with ahead. Schorr first we'll Instructions] Glenn go Please go [Operator to ISI. Evercore Today,

Glenn Schorr

lot much. Thanks could side. us – gave in just you if we wanted I I the to on get jumping-off second the Hi. very just of try point detail a expense to a quarter. wonder

right. low- with expenses all for think mid-$XX to then the give you range. to I years right the all perspective, want you to see look while you it the that's billion were to And franchise. grew could you your you if many I meaning – the if if us total gets flat keep able comments,

economy of crept have strong, don't I look if at. the problem, up. address and could wonder creep growing, the you that Thanks. believe I expense is the they give very Now to perspective capital But expense and but right markets had were us dollars an

Paul Donofrio


in quarter, second about right. terms the think I of you're So

of progress the down dependent revenue north $XX expenses expect taking of We just environment the make and on costs. we the COVID billion amount in

your our agree expenses, you. In terms about of comment to we ability manage with

expenses wage, years opening comments, dramatic in minimum Brian absorbed not in increase increases, to merit I investments, increases. all the noted we've increase managed for think improvement as we've and his volumes, processing now, digital in benefits,

been fund about our other are other we to in sort basically initiatives and – future. operational we've the using calls, of excellence talked investments So in as

create to operating best give time. talked we that's guidance extended I the expenses level clearly at And can think maybe goal maybe X% leverage a period think you. over about our of rising an is I We've here per year. probably

a pandemic a again a have and in lot with going all absent ins more lot this about obviously, But of out, no we we some here a than question that sticky we're variability of hoped. little middle they're bit a sitting there's outs, had to that. of And You quarter. the come had expenses been of COVID

a get expenses growth so of level revenue. level and to kind very back reasonable relative normal over the to of And we'll long-term a

Glenn Schorr

Maybe Thank one just you. That's one. exactly what looking other I for. was

growth lot in specialized and the think and lending, the out credit in private some started and transportation a aircraft now I strong we doing corporate see transitioning markets it of now. large and middle-market lending. It's lending,

just your relationship, a breadth given backyard. significant lending the that competitor don't I'm same of are things your backyard. in if in they those traditional a have. as kind of have mentioned the all franchise, curious growth I credit you your curious That's see So But the franchise you private

Brian Moynihan

these I loan, take, for commercial and depending the mortgage – the on in years, asset, side. markets consumer have types the Glenn, then other think, I I'd people of type the been credit, think of

bottom just chart. shown through that's to that So is long-term companies the need you having impact a our the low. sure is that that – still compete a frankly, stuff credit are companies reality aren't their has as along an through draw of But lines get lines. it. the we've job an and pandemic are And now, those And impact. operating But well rates bump using of impact what's to that and

market the our rate come competitive. back, getting feel good feel services growth continues improve businesses. they're we the and are business about and banking middle up we to and about So economy We as provide the will our can good set businesses, small and

I that'll so think don't reaches ever it think and further. change And I

stuff digits to the strong of and level. to very And – middle-market and that. we're mid-single back we company, extra reaches it and in obviously, competitive. do to before go feel that a leverage return like things want pandemic amounts as expect will of the But we hit, terms Sometimes, leverage we'd

Glenn Schorr

That's great. Thanks, Brian.


from Cassidy go next Please ahead. our Gerard with question take RBC. We'll

Your line open. is

Gerard Cassidy

Brian. morning, Good

Brian Moynihan

are Hey, How Gerard. you?

Gerard Cassidy

on give Good. – how in light fashion you the the announced stress that for proceed buffer course, your effect color on thinking repurchase with buy cushion got be the fits give capital Can you touched with Can okay? Did buyback, peers share construct you you new and billion $XX I being in do it green about they will us buyback? into back some which you you third assuming guys you how billion you after past to free the billion CCAR, that you're best you and Obviously, quarter, in $XX of about will to the your get $XX I'm June. the you us see guys. on the share think in program capital a goes today. stock

Brian Moynihan


we'll for able quarter, going couple if the this which going rules expect in quarter. that's so was you'd to the question a One cushion, if the be bring which the of maintain over And that with then year this to substantial the to back up assuming a July, we'll a back the fourth into number held the cushion start to by we start new year, to not moved effect a We'll at over first and of this quarter average, come to to is substantial we're up the last is honestly to requirement stock go us bring down. were because is original about and we have that our X.X%. of I'll for cushion more do think CCAR time – our third and maintain a closer quarter, buy – all cushion repurchase and quarters our a filings, that things. last second us to move So look amount. the – We're for average the a fairly going quarter – a four quarter you goes suspension pace ability higher to

it the forward. in back continue – the to on and back saddle drive the get dividend. earnings company, And because we'll the power of also So work

And so get as us can. expect to right as we after soon

Gerard Cassidy

that? stronger much and is on look to – XXXX? day-one what from reserve reserve with economy talked your about levels. higher And of you that you you're the loss good. an color the CECL than some it where loan XXXX, January could that us you forecast number. And potential reserve day-one when considering than in share Paul, today gave us just day-one number outlook the you you you approach loan could you at loss And them January Can for the releases? further considerably own your you Very environment see Can was compare give when obviously on level,

Paul Donofrio


an down the absent to remaining continue which come the reserves, in reserves quarters remain we a on deterioration as – the environment Just in to diminish. coming we expect, as don't continue will we believe uncertainties

of our upon terms view sources. of every portfolio of at versus day-one CECL, reserving that are future the we In moment, size sort the and based upon the and based of mix independent reserve quarter is our

you that, that recognize changed. as portfolio think to has you've got So about our

highest which rate card, know from of down some reserve example, XX% has as day-one. the For is you

about how you need think changed. the to really has mix So

call I was just to it, little a cushion we to We've do to have just our go that there reserve a mix work mistaken. basis of back. bit to done And You back shows get product significant, level can't I'll it going apply on and day-one I a that think think you're not which if still today's day-one. to XXX I'm points numbers,

Gerard Cassidy

Very good. Thank you.


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

Michael Mayo

them as that relates it views efficiency. can two help hoping have you opposing to I'm me I and Hi. reconcile

hand, points. slides XX% of positive. XXX consumer. Global like basis XX%, Digital, of digital, the your On it's connections, the wealth, bank and still are what, growing unit households, cost one dollar very per deposit,

like it's So best-in-class.

all noted. that is So progress technology

expenses see other hand, expenses, the I I at the for higher efficiency hear guidance and I ratio Slide the the XX, I see and and for look On year. this

So we underlying ratio efficiency efficiency out expenses. consider billion of And And the you where if Thanks. time? increase these this guess over just time? me The of go reconcile you're XX% should I calling with ratio. kind on $X.X lot that number that I one should is – do can recognize of a trends positive that help this quarter-over-quarter, page

Brian Moynihan

and as And you Mike, short to the XX, pointed come helped you had fed under and rates posture off the you look But low-XXs, improvement finally it left-hand move stuff. a it at you NII more you So this environment of even page with up ratio funds out improve. our level across need businesses well the rate and comes of that rate up loans' infrastructure, some type XX%. the then and bankers had of know the you you very that our base. i.e. goes more go – those we branches frankly of and got if or and because will massive more don't and XX% and page in side floors out years you of spread the in that commercial quarter – little drop to the that spreads even the more on at after remember just usage the operating that that – due as know, expense to back this continues deposit expenses as the But our LIBOR you efficiency that of to attached stuff to well

low-XXs. should the think expect forma a I even on could see you you basis, So pro that

move expect move NII. pick the to see through up, the start then up the should rates more. you You And pick you'd back here even up it we year, if as to in move levels

Michael Mayo

you but are you're And picking disclose much how pandemic? you I lighten your during the now Or or… is investing, you up always up investing mean, don't how did spend?

Brian Moynihan

technology on Not the side.

Michael Mayo

Overall basis. pro forma

Brian Moynihan

we take go did this the numbers last of yes, and gave we – up, year I we three year advantage continue those because were would initiatives on side, frankly, change, a technology Mike, look, you and that. mean, to technology bit in

success years new We're or quarter, the salespeople. And organic, of XX, weren't that so markets top the three, on up now that. and off And that XX we then all ago. think in we're branches and five seeing driving four, cities moving from in opened this I two

to Now, the we going opportunities reposition the because that's from there. up you're continue us just to in weren't what the year But probably the program see people last efficiencies to lightened front. OpEx

have couldn't the And there were overstaffing for in of a because teammates rose, so with other, have had from and anchored employees. distancing working to more move that really we them to as support you the each circumstances. the home issues headcount few social high-risk exigencies of your When of

down. little you're up drift a higher. to it And ran now see starting we So

headcount of expenses. in invested we the number rate do year core our the bankers, But last at except in is the payback huge. commercial for we that we're again years, than So it reality incremental same did is because year probably, to and everything, going past this will drive

Michael Mayo

follow-up. And then last

quarter of on your well Just I made. expected. employees Is the a like bit Or those efforts it you've the you payments some that two? other all come you longer COVID-related are and of mean, the toward a of you've we expenses, with that like When or little off? maybe the that? special seems another than had do tail treated end think

Brian Moynihan

time somebody kids, why to down to as we your we're normalize it. your schools work client come in day started hire job blending of change. things you so we've can a can blending as "Teammates, situation you clients." tailored this during reopen home like said, pandemic. care home, at our and give do when will to that, and reopen, rise scores continue we Obviously, of and last – schools It's Well, we'll because year from our Obviously, the you take a the $XXX the That's that great for program.

this PPP, us start We of more it tail, those obviously, the program as a That it's we normalize Mike, to Obviously, XXX,XXX because again. That's modest time, we're But through will take extended can longer got shape thing. out. at be the forgiveness it one seeing done. second will we're the teammates but quarter. end volumes just

out that the the times. all see things like would But six since or months. operations of and or times testing come will the – we've came two happen, down things and as next it that cleaning right the extra three over PPP done, normalize meals And be number. and so longer we're four, guess the because more sort in teammates the and for you'll took I two we

XX,XXX we So billion peak, on it. At to originated we're support the – doing excuse loans in customers, or working do people change me, million, to so X.X our But programs, it's different good. the constant need what under X.X we had rules. four

X,XXX it work can back forgiveness, we in and about we've there Now, down. X,XXX and got

piece So piece it start the to after you'll piece. after next six I blend think see down months, over

Michael Mayo

All right. you. Thank


next comes Our with Research. go ahead. from John question Autonomous McDonald Please

John McDonald


the of I'm that total stuff we Sorry, some about took a announced numbers with on things ballpark kind might some discussing, COVID special – this $X the XXX remind quarter the the and that the of to which the of just expenses. it. you expenses size billion kind like might on I'm on at were the is you reasonable? be Is Brian, Paul, costs, expenses again, point trying rebase growth think what's then that? trying $XX.X you And before million us, like to of XX if kind year, COVID just off put at business and that?

Paul Donofrio

was quarter. would million think be flat, of quarter I approximately That to the last net the $XXX first COVID COVID roughly to by expenses expenses. of way, in

associated expenses with and and child lower of As ramped some pay But did that. offset we said, care unemployment new Brian and the we supplemental that up processing things for of PPP with ramp-up claims. like

Brian Moynihan


just of, in the the timing John, things. is be of other wasn't to about $X the it's to is compensation first why in because sort mind year full here So going think billion, we told you the matters quarter reason simple-minded because higher higher on billion that be of we differences our $X.X and some it,

as down pushing So back possible. as as it we're fast you know, well

John McDonald


rate the deployment deployment? then, Could of anymore. when or to deployment that what just assume automatic doesn't rate And you're liquidity just – disclosures, wanted Like the Paul, you. interest model talking follow-up, explain mentioned because of that? I you Okay. you moves about changed Thank

Paul Donofrio

assume of doesn't liquidity. automatic deployment model The

talking I about we're XXX down. up think and the XX

John McDonald

Yes. exactly. Yes, Yes.

Paul Donofrio

mean, some fourth quarter asset-sensitive in we quarter. I got little the bit first liquidity less a Yes. and in we the because deployed

you in that's when the higher rates obviously liquidity shock baseline. rate now, – you're up, a that And so anymore. at deploying And not

the sensitivity what Do kind of saying? into the So it I'm moved you baseline. see from

John McDonald

distributed? Okay. kind the Got you kind billion growth is evenly? Is was get the see fourth second-half that How that Or by loan coming And ramp NII of the the quarter. last on to $X based it. thing of that do it could you higher just back? happen

Paul Donofrio

pieces of Yes. fairly a here. Look, our careful guidance. been about moving There's lot we've

that of amortization got You've premium move around. can

got growth, predict. which You've loan hard is to

we want to to too about from get being be So we how specific about here there. careful

in and of we'll start see like though investing. the It that like growth have than upon two NII but days you on in back in we've mortgage got think necessarily We'd I hasn't have we half Again, up. quarter at come got pick was said, to down gone time. good up to and could some be there. over very $X about it growth invest it quarter, the loan because even yet, loan amortization flexibility the do faster that's can will terms securities, feel we to and loan we gave some to put first based guidance that in in into year. higher modest I rates the getting billion fourth expense not liquidity, the come what forward curve the see here. or got And least down. to that materializing We've We've slower some go the of growth, we

I So that's give can you. best the perspective

John McDonald

Okay. Fair enough. Thank you.


Bank. Please Matthew from go Deutsche comes question next with O'Connor ahead. our And

Matthew O'Connor

just on done. of Good morning. follow-up deployment want you've the I to liquidity that

think, we know hedged. this since mortgage-backed hedged, a I securities, deployed of of the of last aren't look said of into treasuries You that's most did portion most quarter small quarter. are deposits longer-term have been If what your of that you And a were securities. lot you but XXXX, added. I or the end back some the

these gone next conceptually, So I growth happened rates that to assets so Are not up, already this rates of like the back the quarters? kind of the Or you for is kind signaling in thinking of have guess last thought years? this think kind loan the of moves few come you is of big just quarter many going much? and couple what's at that locking

Paul Donofrio

want because I Well, everybody's of me what we clear sure kind done. have to that let up make about back

back all XXXX, are if the to you to billion, go down billion. the year-end are went XXXX way all and You $XX – loans deposits way back up $XXX

deploy some see deposit So we growth. to to created $XXX billion somewhere, more of going plus liquidity we're

$XXX of we cash to So on $XXX had and the Through of QX, the billion. the billion, up of up it are interest billion remarks, billion have we swaps. $XXX $XXX deploy about and But I $XXX securities rate treasuries, bought liquidity, are but as said to in end those billion equivalents we treasuries, somewhere.

$XXX cash our in terms to growth turn or $XXX can think being invest billion of ability billion for as of fund really loan you or So other the of uses.

we've capital, to So another. rates throughout We we interest liquidity, make we've customers balancing all been deliver what matter on balancing trying no Again, it's that can just capital, And earnings gone process. do whole our way this about make and to or one bets and want don't We for liquidity, happens. earnings. this to sure that think been as through tend pandemic. I we've

Matthew O'Connor

Okay. separately, in bit. about you prepared guys And then the mentioned just remarks, increasing limits little hold a

and where you that hold you trading the could to of detail a terms kind But if on back give where on referring little businesses. and in circle now you're of were more think the limits. just you concept are I

Paul Donofrio

look, mean, are, now. terms – about underwriting I the think, of consumer we back I sure. pre-pandemic – side, in on think to Yes, criteria, pre-pandemic if we you

a customers. I for storage and bit in they the commercial we're of I are there in than light light the loans of to hold terms particularly more of in still In little the industries company, mentality think we're pre-pandemic. of side, do global everywhere levels, but markets, loan affected our a And where the growth, that else, we're they carefully, relaxed have watching around some need of for what think back size on moving

otherwise the underwriting The bigger. real have So taken in than yes, standards. maybe company a bigger might we but positions is we're change few pre-pandemic, taking there's just no

liquidity. more have We

We have more capital.

of is all this think appropriate. we So

Matthew O'Connor

large that's trading loans, respect the not clarify. And with to just corporate to book,

Paul Donofrio

Yes, that's right. That's right.

Matthew O'Connor


Brian Moynihan

has Just think wealth side, company's actually to it, the across the the consumer bit. going to just by P&L drive especially, loan business management growth, what's about so you little if grown business, look at a on also

down, of happened that down. And because the cards interesting but came consumer is what's big mortgage and thing Consumer got is is commercial down the You churn, business largely down. been Matt. to their as back Paul watch criteria, XX%. We've because year's now last Everybody unemployment pulled we this pulled to now – underlying reinstated, and so – back time went said.

million new cards units what's We So happened? one quarter. did of a

last XXX. XXX as and year's if fell back Going first you up. quarter, look low and month, moving the as it it's into up And It's already to change back stacking that. north on by

as the So it coming last at nine at you only that's opens yes, which catching of obviously, run and where for back from, in. the the look come system, so around X,XXX X,XXX – up is six, that's and basically sales months, eight was up if branch months, branches

will back So cards, production will that and on consumer down important. the higher the rate to slow side, are bodes slightly most on, environment. a continue kick prepayments up, at Mortgages which well obviously, on

affluent, market, You'll see seen then has actually mortgage you the they've – well people, banking, that to good of usage. and wealthy a lending business they've but line that bodes that the that's to all there. has grow. does middle And some a aspects, GWIM of GWIM and go job, done type done the on

our this America that year, have access capital through you economy expand to demand, it – some has usage to which And for at that to final companies X% come at, and of so see should is in team point, come the meet up. should Bank what that order

line in down to because seeing the just at cards like level. lower sell, business, there even aren't usage So card things you're the

being in of peaks you – as in engine, But size if terms think it'd if of about hold unemployment across that back in the have little have as our loan had to slowed crisis we confidence and right $XX production XX% back that turning what with think of be sheer company growth. in last about together flywheel the off, take good enable about down crank added getting we things So the that's all talking and company. things the that just billion think it, a start X%, flywheel But grew push demand loans. up crushed necessarily on we the the to and of that levels because you harder the a be final is quarter Paul having and of us the that then watch year, second you to just

so So the growth point, strong with because capacity commercial you transactional to have consumers. excess on tremendous Paul's is still and core deposits deposit the

Matthew O'Connor

you. That's Understood. helpful. Thank


Betsy Please Our with Morgan go ahead. next Stanley. question Graseck is from

Betsy Graseck

morning. Good Hi.

Brian Moynihan

Hi, Betsy.

Betsy Graseck

trim to Question, lean there's stage to I'm your very an didn't any RWAs allocation. potentially one go Brian, your only in in recently. I'm given maybe more really addition you've keep markets this just into have. so in in option you're discussed GSIBs the of to I tight. Is if capital do if And about markets. traditionally, GSIB the that that GSIB, thinking there were been capital to maybe down a and know all And the table you looking at kind on thought the the excess And number of you higher capital to that wondering that's up opportunities buybacks wondering on leaning liquidity you earlier?

Brian Moynihan


not in. together. year. that might margin, know, actually things It at So all way the is there, may is the mutually that opportunity calculation, the the bucket we advantage team into and the where and the the capabilities – all But and move related go harder except they're up that things – exclusive to expect stock we increases from the and have were price the as where sheer you terms a of that in Betsy are you stock put go take just team based that the end away in to where at And straight Tom with by of business, at all, and and maintain two last business of Jimmy – size markets all risk way not we expanding are now. on and that

away the things, took step. synchronize the down if the just XX% you but of the in come to it that? a our of keep company's we size, grown to and the deposit have about some around has And size. do company. And idea with been due overall another do clients the is size of that even it would has it The the growing, kept why around and reason company it synergy is you why So growth we the third

the we've working we're told a We year-end, continue come obviously, Tom you first-quarter to team down. but to at us so and that. now shouldn't do to – we are activity, expect on than And were Tom – ideas stay little bigger

effective take ratios will Now, job But and has time of how so the the the here, opportunities there them, managed well. great for done see if out. team plays bit a those aren't risk we'll a it

done them more for quarter, we're work the going If you them with pandemic, in look job we're of great to and balance. at at throughout at the they've the And support and the it managing quarter, some capital. it for a look risk-reward results trading proud look they've last done,

Betsy Graseck

Thanks. Okay. SMBs and huge there discussions with the your I That's apps and players. only one I say also that but consumer great. you most corporate And you're consumer tedious separately, for comping have And of on skillset in because market a not then FinTech is for people it's everything have tedious with presence. doing digital

Okay. getting But this you're call. like there out your I don't message feel beyond

that bringing you done the consumers clients you've for of and what in four beyond you given digital FinTech to to your any trying walls your message the So the clients? actually the get to thought of are have

Brian Moynihan

first the our that – job clients always why starts do this great it flows reason serve is with Well, a numbers. thing the the through do and and that to we

that this them digitization the that can of structure and types the give the a help fees drop consumer that due As huge of Mike cost significant guideposts. way – advantage, and dramatically to and we customers it frankly, over interact way up said the we and take way can the way due made our for activity at business in fee is efficiency this of earlier, consumer run which the years idea the we things. out all to terms And we over other that's

the Merrill all the as billion out, different of the And get growth, word kinds and Edge they've there's the goes we so and seen, we XXX tell in awards, terms on of agencies we list and ranking over everybody on now. win

quarter impact But the FinTech do. to side. a you even on year shows customers $X extra tell than will areas a $X.X And the for – to customers new years And digital side, million ability I we ability digital and be expenses impact last first consumer learned making so on is digitize ago XX we our from I money this fully flat The active are debate job and colleagues on your having six to of with – didn't for the to corporate of company on billion you on from and the half leave of to resources. more have think, so I'll the the the company. about great that job the in our our as do billion, a merits relative million

So we'll keep pushing out there. it

number their story, down in and but can one You way up. the that know, customer customers the wallets way our the attrition, means is help penetration is tell the person that attrition us understand the you reality is want we of to

that to we wealth changes, exist look see doesn't in the it. threw statistics Just size at are the they've major there. of out and adapted management These which how much

where in to is we're keep but they kind thing telling producing stuff about telling neatest benefit The where earnings keep we which the keep going is down going it the the key you with We'll we're and telling producing, of we'll our it's it. way story. the So kind story producing, a go it's continues efficiency produced be next we've to this forward. – been with have

you and so So volumes show to charts nothing if things, it. with those out at and there's look driving it and Erica, there it close the just pages on

and manage their it's to usage and ability their market the their things help personalization the investments. for and people the so payments mass And the and

about as with is the it reality seven merchant payments the the we major we seven what investments are. keep it good see drive level, I growing We're us and often services, of like six the a customers lowest drive put and any of major as of to position of on to technology integrated had We number at push is story feel and that number putting an in the improve couple on it we merchant number So we we'd tell we've – commercial but areas. side basis. a of XXXK or had, businesses that, market the to we'll in just can, investments business

are these investments. major So

millions core We for base, into making year the expense dollars paid that of that efficiency better by hundreds are businesses. of of a go the

Betsy Graseck

thanks. Okay,


Chubak Wolfe Please And Steven with ahead. go our next question from is Research.

Steven Chubak

Hi, good morning.

on and ask NII amortization. So a specific to really I the to wanted premium follow-up outlook

normal benefit increase size all hoping did we've – seen was you to this portfolio, of liquidity. given Now, MBS contemplated help and billion-dollar would in be growth we levels the Paul, if prepayment exit sheer rate the of amount what the in see in more the the of the XXXX. the excess I deployment premium revert benefit speeds for how is and much that could

Paul Donofrio


driver gotten loan because that one. most in Two, be the a the about most amortization. me in grown, try I last quarter sort portfolio go what you couple amortization a Let as securities as so give could can't And to the the to, the be if and year come $X.X down it important lot portfolio out, and I That's back think dollars, One, point and billion. you the look the billion would about has perspectives. modest reduction first what driver important would to was the at you second would bigger. you size was premium of of just it just say growth has premium

guidance to there. that's enough QX. XXXX, it right million So I grown than more meaningful of Again, going we're guidance was going XQ few you. of that terms much. we've terms a But in maybe to few a to down be it's because in – gave $XXX in where not so really think, we go

Steven Chubak

a relief your Okay, just is balance as understood. But SLR, on quarter And I billion so, might excluding headroom for CETX on if just $XXX my what constraint sheet your in billion looking SLR expectations mitigating for or binding. sort that you follow-up, past in the the binding does maybe of take at sheet for become CETX just growth, target was growth the balance assume if haven't guys wanted to ratios, ask five CETX, look to the about saw our I are Fed on actions binding? before consider another fact capital. your balance SLR $XXX amount this additional If that potential I preparing sheet think still analysis ratio, quarter, And sheer at we growth our you – you of QE the like maybe XX.X% in how SLR know, you today. billion you $XXX becomes suggests a

Paul Donofrio

way a think. well, calculations Steven. you don't I glad just feel – are numbers to think than numbers bigger be out the right. there, take some your And you think but the are I'd through It's I I lot

Brian Moynihan

– we We've Yes. sheet work came and done up in that bigger number I terms with balance of a capacity.

Paul Donofrio

the the basis the basis maintained points On bigger much example, base it's times SRL, the for by or quarter. XXX XX points

of multiple grown it's so it's than bigger we've So multiple by the far from It's that. – lot. what

Steven Chubak

at like you recognize the to binding. of we're guess, what lens I relatively is In maybe shake is terms think, SLR to balance under have where order, out $XXX that's it like sheet. difference is ratio, constraint But the that if But a in relief access like SLR, this billion-plus access, more quarters – what there of the sub-six capacity grow. billion X% a going binding growth you most looks of just the in becomes where couple I Yes, have of I in more forma, the pro ratio gets becomes both. short $XXX

it, you what trying was little your that's I than bit given So I becomes would it at, constraints? CETX to more binding get mitigate to is, a look guess that

Brian Moynihan

away. to it's hundreds not the issue, but We've of managed the dollars capital the minimum billions ratios that's maintain I requirement, it's think just of –


Steven Chubak


Paul Donofrio

right? We're the regulatory minimum. to that's billion-ish So of X, X.X $XXX forma, April and down pro capacity

As But to buffer. the you math. we'd rough said, have that's a want

Steven Chubak

that's it much I later with offline enough. question. on, it taking But for anyway. very can in Fair thanks Lee take the so very Okay. framed you helpful how


ahead. the next with Please Seaport question go Jim Mitchell is Securities. And Global from

James Mitchell

good had a we on we maybe the in charge-offs. bit I Obviously, cadence Hey, first for charge-offs Should now do given Maybe Or XX-plus we quarter that the increase hit of fourth we Are are morning. think we're about card the balances, delinquencies book delinquency lows. card heading this the delinquencies? near have an almost back we toward to little of day expect, but trajectory down back just quarter. XXXs we how that? charge-offs, the how do view think, your of you in lower think a

Brian Moynihan

just X, because Jim, that turn page I of XXX will look from can went you it. you kind up to go back it mean, bit. to a We see summarized you at XXX, – If down chart.

produces is next can coming quarter's is page this – on obviously that You and see down. this the what back charge-offs right-hand of come side

the out, lower, the the you So just of provisioning the to charge-offs. and you delinquency. And the aside side think sea. it's but year and right also projected from migrate page to further going Leave that's come half have a actual as balance under left-hand from

you've frankly, if it But you right, that or takes comes got this hope, in for well it next you down six now. something anything, that much growth months lot it dynamic out quarters. of couple the like bodes it of delinquency because get the maybe just might So a getting and change longer would this

James Mitchell


lower I they for at were maybe start last you So very mean, year the that level balances grow least until levels the to is reason more think if look I so we is low takeaway? only of ask you keep now can charge-offs significantly that ratios than at that pre-COVID sort still

Brian Moynihan

balances But delinquency because it did then. probably go grow there'll no down as be

You the know, minor add amount delinquency through when might balances a comes from later that. is year it whatever to those it

as even denominator right? percentage the down will push go further balances near up term, effect the on So

James Mitchell

a And side. Okay. technology follow-up on the maybe

You out? give you merchant a more excitement out as small acquisition, thoughts on there guys of just you business. processing set I platform in your obviously, Axia that think What's level, involved? that your sort did you one, Can of Are guess, acquisitions the build do an up your opportunity building platform?

Brian Moynihan

million to wonderful we're it a years the XX can is very it it But and the $XXX why great it that's $XXX proud year People some has really a little position deal. and back capital, that in year why we and a last bought the our reason because to invest you of of the platform. or we that we back. – reasons go sold come venture wasn't But it joint one expense rate Remember, is whatever of The we plays run around year. that up moved million services. market to back by of brought it half us put got forget to key where of forward, about for whole across. that Raise half the two bought merchant ago. it's in history ago years a was. We Look, a company platform now

it small that there out colleagues exciting of then is can banking what's people scheme integration can force thousands through ability product payments. So like it exciting to sales to about have the is sales sell us without nano and take selling about the to payment really the in area. is been the things and it actually business in our and and business working help What's our the what for medical is on we've acquisition that force having this exciting deliver of a commercial

a these payment be small business in merchant have very them. which favorable exchange. And to integration cost an PXP traditional much low outside it's merchant value but the schemes flexible along to is all which payment rooted to business gateways, So as and real-time all the held completely actually is the more contemporary to with you to

combination through platforms Zelle larger – what and through doing it's things the payment blockchain all and you merger and element else. go payments everything and So gateways. a are and the the and into These we're exciting with business real-time different payments

investment of charge the way things keep part of XX% way is by the card that all at Zelle's So make for there years credit those up consumers of driving people Zelle in half but implementation. XX and now, so credit minute last the companies small volume commercial goes that, to payments has expect to new network the that. us that the charge good by written that, out line effects were of part the business getting the the all of at investments the Zelle the of it a pages the we're that down new and the from The checks news you side business that's our of million by in think checks was and it half couple and reach look large you the used terms consumers. When core on like card and of to

the that So merchants of the use effect and you network get you it get to in real-time.

the lot. of thing a commercial this Nguyen change system Faiz Thong bringing So in in on leading expect team to and P&L the of are fund fully just A including of and made. major that acquisitions year this the the a including we Ahmad lot been and a part on like Mark lot the and balance that is that's see you all sheet a Monaco coming will side should be replacement investments made made and investment the people to

James Mitchell

color. great That's Okay. Thanks, Brian.


next Our Ken is question from ahead. Jefferies. go Usdin with Please

Kenneth Usdin

Hey. Thanks.

card do releveraging stimulus the Just how one now time sense incremental of is sticking starting question just start come the business on and or growth you around kind of to guys that might get stimulus over And deposit versus the and trade-off specifically? balance that of the regards around Thanks. staging how the in with much spent? to be to that card what's growth and

Brian Moynihan

XX%-odd about earnings I it. stimulus and and Paul things a last of you it mind look has I I But literally, was like to in the make be – when – think, depends, largely, to saw that. think, on a money just customers’ been simple power spent it

little the XX% sitting power are household. the And of of stratification earnings people's different other in by the accounts so

go that the to pay an balances. to balances just part was of for their a be March, stuff, and or But spent last to so – have is XX%, year went users' bodes stuff. last that use. year start that – spent into because consumers debt And getting you're virus might and come And we're the It purchase rate news January and is February reopening more what been much see payments expect way spent, to balanced news. the up growth the numbers quarter. effect and you've or has economic an then, as some which this in has used constant you'd on as But pathways vaccine drive up. up And and good go to has that down has not will in then – for their starting to well in good watch limited be with cards pay card rate the been with it observed you travel down yes,

news the So are the is every healthy aspect. good from consumers

deferrals no left business. except have We mortgage in the

April in the time what their which all So And system, numbers today. in parts in the Northeast we that country. higher the in consumers outside this eat the northern to weather expect and opened last up through money you even down, sitting bodes number central economy about retail even with well the this too delinquencies had debate of the to isn't month we be the partly and month accounts, in those pleasant sales was in because their March year reopened that's the of wanted saw numbers the to if and you the

Kenneth Usdin

offset Okay. question is could still as as Jim's is credit offset well that around. an And better if offset XX% the in – sitting about Got the that's stick there it.

trade-off. that Thank take you. we'll So

Brian Moynihan

the – to you the where lend came remember, we Yes. we decide And where the consumer the in releases lower reserve you're knew our that's we seeing models of by and – space, we what society at They're never projected clear losses money unemployment through we that play now. the consumers. delinquency where watching close became coming and right that much projected consumer in as levels that what

Kenneth Usdin

Brian. Thanks,

Brian Moynihan

you. Thank


the we remarks. our appear to questions, have now I would further no floor It as return for closing presenters will

Brian Moynihan

all forward Thank drive share, We continue while company per $X.XX – we'll to continue XX%. you to $X next to look it. and earnings responsible quarter return, talking equity thank growth to and we for Thank the joining we're of you and doing you billion Well, us. common of tangible is you. produced


participation. today's your program. for Thanks We'll conclude

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