bank of america q3 earnings transcript

You saw that in prior quarters in All Other. Factors that may cause actual results to materially differ from expectations are detailed in our earnings materials and the SEC filings that are available on the website. I encourage you look at those statistics for every one of lines of business, not just Consumer. And the good news is we're seeing the attrition rate start to move back. Adjusting for the FX impact and loan sales, loan growth from Q2 was closer to the industry's growth rate. Very good color. Good morning, and thank you for joining us. So look, we've got our assumptions in there to be competitive on deposit pricing in each of the various segments. But you guys indicated that you do -- you're still pretty asset sensitive. It produces incredible value. Its notable that isn't just inflation that is driving spending as transactions are up single digits year-over-year pretty consistently. 30% of the new Merrill accounts are open digitally. MLPF&S is a registered broker-dealer, registered investment adviser, Member SIPC and a wholly owned subsidiary of BofA Corp. Trust and fiduciary services are provided by Bank of America Private Bank, a division of Bank of America, N.A., Member FDIC, and a wholly-owned subsidiary of Bank of America Corporation (BofA Corp.). Lee McEntire -- Senior Vice President, Investor Relations. So then the question is how do you manage it, right? Bank of America has not been involved in the preparation of the content supplied at the unaffiliated sites and does not guarantee or assume any responsibility for its content. Provision expense was 898 million in the third quarter, and that was 375 million higher than the second quarter. I don't want to confuse them. So we took advantage of that this quarter. But we have on stress test to test it to make sure and you can see the Fed stress tests in the adverse case, you can see these numbers, frankly, which I don't think would ever materialize given what you do in a period of time between then and there, but that gives you some sense if you look at those. In addition, the teams adapted well to our new capital requirements. And with that, I'm going to stop there and open it for Q&A. The banking giant reported an 11% decline in Q3 revenues to $20.45 billion, slightly missing the Wall Street consensus. Turning to the business segments, let's start with Consumer Banking on Slide 15. Most of my questions were asked already. Many of the clients prefer that earnings credit adjustment as the way that they essentially pay interest, receive interest and then pay fees. As a result, it's another quarter that favored macro trading while credit trading businesses faced the continued challenging market environment with wider spreads and recession concerns. Or these inflation and investments change that range upward? On Slide 5, we show you as we did last quarter, some other stats about resiliency. Turning to asset sensitivity and focusing on a forward yield basis. It's taking the securities that are 20% risk-weighted asset. And so I wouldn't expect exactly the numbers, but if you saw we built a bunch of reserves with a 15% unemployment. Can I follow up on the provision, Brian, you just mentioned about the $1 billion in the past. And we remain very disciplined on 1.1 trillion of total consumer deposits while Fed funds is now at 3.25. Today's conference is being recorded. Second, our corporate service charges declined as earned credit rates increased for clients, and that overwhelmed organic growth and the gross fees associated with treasury management services performed for our clients. So you have to think through on those fees. And we'll just keep adjusting that over time based on the macroeconomic situation as it develops over time. Hi. Yes, of course. Thanks. We'll go next to Mike Mayo with Wells Fargo. Let me first talk about the leverage finance thing. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. And then, I'll ask Alastair Borthwick, our CFO, to cover the details of the quarter. Your line is open. But more importantly, it's based on that kind of unemployment level, which is 150 basis points over where we are in October. Other people talk about the overall number is like 10 billion just for the platform and all this is purely new code. And so, we can keep working on investing heavily to drive that. So as a result, our third quarter tax expense is approximately $150 million higher due to the net reversal of tax credits accrued for 2022 solar deals taken in the first half of 2022 that were recognized under initial investment tax credits at the time and we were placed with production tax credits. Statistics and metrics included in our ESG documents are estimates and may be based on assumptions or developing standards. At $941 billion, our liquidity still remains $365 billion above pre-pandemic levels, just to give you an idea of just how much our liquidity has increased. SentinelOne, Inc. (NYSE:NYSE:S) Q3 2023 Earnings Conference Call December 6, 2022, 5:00 PM ET Company Participants Doug Clark - Vice President, Investor Relations Tomer Weingarten - Chief. And as Brian noted earlier, we're watching closely the early stage card delinquencies as they begin to increase modestly. Hey, good morning, guys. I'm going to first turn the call over to our CEO, Brian Moynihan, for some opening comments. We remain well-positioned for the rate movement because of the hedge of a large portion of this portfolio continuing to protect us from AOCI movements while benefiting NII since [Inaudible]. You mentioned the securities roll-off that you've been able to, you know, mix shift toward a higher yield over time. And then the other thing I'd just say on RWA optimization is we probably tapped the brakes a little bit on loan production this quarter in a couple of places. And so -- but yes, through the core operational excellence, discipline this company has and has shown, as I said earlier, seven years later, we have the same number of people. We delivered our fifth straight quarter of operating leverage. I. Is that right? John, if you think about the first quarter when we had FICA [Phonetic] and that type of stuff and the second quarter had regulatory exempts to core [Phonetic] obligations. As you can see, whether you look at early or late-stage card delinquencies, they all remain well below our pre-pandemic levels. And each month, it starts to drop even more. We had good risk management. So we'll walk through the drivers this quarter. And --. On Slide 5, we show you as we did last quarter, some other stats about resiliency. I mean, revenue is up $2 billion, expenses up zero. It's just the seasonal nature of these ESG deals and their installation, generally. The simple way to think about it is I think we're -- the trough the P&L provision cost with flat reserve build pre-pandemic was basically $1 billion a quarter, we're running around that number now. Net charge-offs of 520 million declined 51 million from the second quarter. And in commercial, certainly, we probably held up back just a touch. When you look at those Global Markets or investment banking results, they include anything we are doing in investment banking. On noninterest income, the volatility and the levels of market activity drove a year-over-year decline in investment banking and asset management fees, while still some trading benefited from investments made in the business and the volatile market conditions. And while still strong in September at 10%, spending growth has slowed just a bit from the 12% year-to-date pace, which shows you that early in the year was a faster year-over-year growth rate, but still strong. let me -- Ken, just -- one of the things I think if it goes a little bit to Mike's point a little bit to some of their points, is that about 80-odd percent, if I got exact I think it's 84%, if I got it? PDF . And as we usually do, we'll talk about segment results excluding DVA. 10 stocks we like better thanBank of AmericaWhen our award-winning analyst team hasa stock tip, it can pay to listen. Now, what does that produce in value? We strive to provide you with information about products and services you might find interesting and useful. Our next question comes from Matt O'Connor with Deutsche Bank. And we hired another 3,800 net new people on top of that. Presentation Operator MessageOperator Good afternoon, ladies and gentlemen, and welcome to the Q3 2022 Conference Call of Raiffeisen Bank International. And then also, Alistair, just the pace of deposit mix shift and betas that you're kind of building into your outlook would be helpful. And the FTE NII number was 13.9 billion. On deposits, we see clients with excess liquidity looking for yield without being the global banking movements you can see from moving from noninterest-bearing to interest-bearing accounts. I think there's a lot of uncertainty around deposit behavior, betas, what the catch-up rate could be with deposit pricing. And through the good work of our teams, we improved our CET1 ratio by 49 basis points compared to June 30, taking us to 11%. Can you kind of flip the script here and lean into certain businesses? Both digital banking and operational process improvements are helping to pay for those investments. Thanks. The rest -- everything else is there's no real change. As we turn to Global Banking, ending loan balances were down linked quarter. We're still lower pre-pandemic. I appreciate that. And we believe that really for three reasons. So customers see the value in their total relationship with us through their personalized client engagement and our industry-leading digital capabilities and rewards. With respect to deposits, I'd say on betas, obviously, we're just increasing those because we've got to be competitive in this environment. We increased unemployment in that scenario. Webcast Transcript Opens in a new window. And we'll just keep adjusting that over time. So we have limits across all the different categories. So, I would think about it this way. So we think we'll resume that sort of high single-digit, maybe mid if things begin to slow a little bit. The Consumer Bank earned $3.1 billion on good organic growth and delivered its sixth consecutive quarter of operating leverage while we continued heavy investments for the future. And if we adjust for the release of our summer interns, our headcount is actually up by closer to 5,500. These are core and foundational elements of the customers' financial activities. Earnings Release. That, in addition to a 12% increase in net charge-offs for bad loans to $520 million in the quarter, accounted for the $898 million provision. As we think about the timing of the tax credits being pushed out, driving the tax rate slightly higher, is there an offset in that all other fee line that I think is viewed in tandem with the tax rate and, you know, [Inaudible]. Okay. So I think if you look at the auto business, the number of repossessions and stuff was down half on a monthly basis. Earnings were down year over year, driven in large part by the absence of a prior-period reserve release. US Bancorp (NYSE: USB). I wanted to ask about the NII assumptions and maybe just your outlook around loan growth and what you're seeing in the economy, what you expect from loan growth? This takes us back to our five-year run before the pandemic. On deposits, we see clients with excess liquidity looking for yield without being the global banking movements you can see moving from noninterest-bearing to interest-bearing accounts while in our Wealth Management business, where we saw clients shift out of brokerage sweeps into preferred deposits or other investment products like treasuries that we offer. And what should we look for going forward from that -- those areas? We now expect full-year 2022 capex will come in slightly below our previous expectation of 2.5% of net sales as some anticipated spending shifts into 2023. We had top line revenue growth driven by the NII increases. Investment banking kind of flattish I would think, maybe hoping for a little bit of positive at some point but not necessarily this quarter. Because that -- and at the end of day, make sure we're not fooling ourselves, and we continue to look at that. But remember, the baseline is now baking in effectively a recession based on the Blue Chip. And I'm talking All Other now. We're doing more with clients. The decline from prior year reported net income and EPS comparisons reflect a reserve build versus a reserve release last year. Keep in mind, asset quality metrics were strong even before the pandemic. Brian, you talked about tech spend being up if I caught it correctly, 15% in '23. But it's just -- it's, you know, 214,000 people. And we continue to look at that. Just how much of that, you know, is embedded by now? You know, I think part of a bearish thesis on the stock is that, you know, bearish investors expect some sort of expense to catch-up relative to how your closest peer -- one of your closest peers is budgeting expenses for not just this year but next year. On commercial, the average loans rose $16 billion linked quarter or 12% annualized. Focusing on FTE, net interest income increased $2.7 billion from Q3 '21 or 24%, and that's driven by benefits from higher interest rates, including lower premium amortization and from loan growth. And we saw enough revenue growth from banking products in Q3 that more than offset declines in assets under management and brokerage fees. Given we just put up 1.3 billion in Q3 and that outperformance, and refreshing our expectation for Q4 at 1.25 billion, we're now seeing that aggregate quarterly improvement won't be the 2 billion we initially thought. This quarter, Bank of America reported $7.1 billion in net income or $0.81 per diluted share. Well, on the loan side, I'd say, you know, we talked about it at the beginning of the year that we thought loans would be high single digits. The company is a lot bigger than it was in 2015. Summary; Performance; Fundamentals; And the next year, we said, yes, basically -- yes, this year includes litigation. We're going to have to price competitively for deposits in an environment where obviously market-based. Focusing on more near-term growth versus the second quarter of '22, our average total loans grew 8% on an annualized basis, led by 12% annualized commercial loan growth and 21% annualized credit card growth, while other consumer loans were relatively flat linked quarter. And again, we're not really seeing anything unexpected here. You mentioned modest. And the continued digitization allows us to continue to be efficient, effective and frankly, plow the money saved back in the marketing back into more technology to make us even more effective and then into people where we need them. If you look at merchant services sales, which, you know, that was an investment in salesforce there and investments. From the second quarter to the third quarter, your profit margin on the new revenues was 100%. In a rising rate environment, where excess balances can be more expensive, we typically see some runoff, particularly in high liquidity environments as clients both use cash for inventory build and begin to manage their cash for yield. We added 100,000 new funded investment accounts in our Consumer business. Yes. So, we'll put a little bit toward a buffer. Welcome, I hope everyone had a good weekend. And as a result, our common equity tier 1 ratio or CET1 ratio improved by nearly 50 basis points to 11%, moving 60 basis points above its current minimums. | 3 Dezember 2022 We've got a lot of flexibility at this point for whatever the endgame does come out with. Other than that, the markets business has an allocation of the size of balance sheet in capital and RWA, which, you know, basically, you know, they were able to achieve all the results and not even use it enough. Our headcount this quarter increased by 3,500. In Global Banking, we hold about $500 billion in customer deposits, and we saw a 7% year-over-year decline. If you look at merchant services sales, which -- that was an investment in sales force there, an investment. . That's 60%. And you can see some of that in the stress test. Very good. These deposit levels suggest continued capacity for spending at healthy levels. So we took advantage of that this quarter. We remain well positioned for the rate movement because of the hedge of a large portion of this portfolio continuing to protect us from AOCI movements while benefiting NII since float -- since swap to floating. No particular updates at this point. Alastair Borthwick -- Chief Financial Officer. I know how you're thinking about growth there. Bank of America does not assume liability for any loss or damage resulting from anyone's reliance on the information provided. We don't know how far back it is. Much of the company's increased salary and wage moves in the quarter impact Consumer Banking the most. But can you give us some color of what you're seeing there? So we'll put a little bit towards the buffer. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services. Presentation Operator MessageOperator Good day, and welcome to the Cadence Bank Third Quarter 2022 Webcast and Conference Call. And then broadly, we've got, you know, 175 billion of cash at the Central Bank. And we saw enough revenue growth from banking products in Q3 that more than offset declines in assets under management and brokerage fees. As a result, it's another quarter that favored macro trading, while credit trading businesses faced the continued challenging market environment with wider spreads and recession concerns. And as revenue grew, we've improved the efficiency ratio to 51%. But if you saw -- you know, we built a bunch of reserves with a 15% unemployment and projection, and that was going to go longer like it was in the pandemic. Let's turn to expense, and we'll use Slide 12 for the discussion. Your line is open. Thank you. We work on the actual dollar spend and so we can keep working on investing heavily to drive that. If you took that worst -- you know, you guys, I think, said 60/40 in terms of your reserve build in terms of the base case on the economy versus a really difficult economy. But let me also make a few points using the customer activity highlighted on the continued resilience of Bank of America's broad customer base. We saw good commercial loan demand, and we also saw FX valuations adjustments as a result of the strong dollar and then some loan sales and syndications that lowered our RWAs. But also, you know, we're investing to drive the operational excellence platform and actually ensuring that we've got great customer service dealing with all of the things that are going on. 10-Q Filing. Turning to Slide 11 and net interest income, on a GAAP non-FTE basis, NII in Q3 was 13.8 billion. And do you think that's going to last? This occurred even as we fully reopened our financial centers and had our teammates also selling. Certain links may direct you away from Bank of America to an unaffiliated site. And that is extremely leverageable. Keep in mind, asset quality metrics were strong even before the pandemic. Pricing is largely customer by customer, based on the depth of relationship, and many other factors. And we believe that really for three reasons. We do it every week. Good morning. Our job is to drive our company to serve our customers in that first order of business for our capital has always helped the growth in the balance sheet, especially on the lending and market side. We already exceeded the requirements. That's just the seasonal nature of these ESG deals and their installation generally. First, in Consumer, we completed the sweeping changes around insufficient funds and overdraft in June, marking a 90% reduction from June of 2021. The company reported better-than-expected fixed-income trading and gains in interest income thanks to choppy markets and rising rates. On commercial, the average loans rose $16 billion linked quarter or 12% annualized. That's the baseline. So we'll walk through the drivers this quarter. Gerard, I think, too, if you -- if you went back through our supplement over the course of the past 10 years, you're going to find these numbers are so low. Thank you. And because of the scale of the business and the diverse revenue, we fully absorbed that revenue impact and are now benefiting from the benefits of overall customer satisfaction, lower attrition in our client base and lower cost associated with fewer customer complaint calls associated with less nuisance fees. So, as a result, our third quarter tax expense is approximately 150 million higher due to the net reversal of tax credits accrued for 2022. So the third quarter net income of $1.1 billion reflects a good quarter of sales and trading revenue. Thank you for your participation. So Brian, you said before, the NII benefits have come barreling through to the benefit of investors. This quarter, Bank of America reported $7.1 billion in net income, or $0.81 per diluted share. And now, you're seeing it in action. Okay. Okay. Let's focus now on deposits use on Slide 10. We obviously took activity on balance sheet optimization, which helped our RWA discussion -- helped our RWAs and led to the capital levels I talked about earlier. Expenses this quarter were $15.3 billion and they included the settlement of our last large remaining legacy monoline insurance litigation. We invested all in frontline people to help serve our clients. So, we took advantage of that this quarter. We paid out 1.8 billion in common dividends. Okay. Before acting on any information in this material, you should consider whether it is suitable for your particular circumstances and, if necessary, seek professional advice. Sign up for MarketBeat All Access to gain access to MarketBeat's full suite of research tools: Good day, everyone, and welcome to today's Bank of America Earnings Announcement. Let me also make a few points using the customer activity highlighted on the continued resilience of Bank of America's broad customer base. Otherwise, in fees, we saw a decline in corporate service charges, as enterprise credit rates rose with increased rates. After all, the newsletter theyhave run for over a decade, Motley Fool Stock Advisor, has tripled the market.*. And as we would just note, relative to the last cycle, the Fed increases have been pretty rapid, and we'd expect to pay higher rates as we continue to move through this rate cycle. And that allows you -- those are zero or very low rates because the amount of services that come around them. But is it the second best of all time? It was led by strong performance in our macro FICC business, which has benefited by investments made over the past year. But I was just curious if you had any thoughts about how the Basel III endgame might play out and the timing of implementation of that? This quarter, GWIM opened a record number of bank accounts. Why You Should Avoid Carvana Even if it Avoids Bankruptcy. With that, I'll turn it over to Alastair. Please note, this call may be recorded, and I'll be standing by if you should need any assistance. Let me first talk about the leverage financing. I want to start by sending our thoughts to the impacted areas from the devastation of recent storms, especially our impacted teammates and their families. So we feel strong. And so, you know, I wouldn't speculate exactly the numbers. Shareholders' equity was stable with the second quarter at $270 billion as earnings were offset by capital distributed to shareholders and the change in AOCI from rate moves. But a major part of it, frankly, is getting -- even though we have less branches year-over-year, less numbers of units, we have more people in them because we continue to build out the relationship management capabilities at branches. contact@marketbeat.com We updated those slides again this quarter to show you them and you can find in the appendix, and I recommend them to you. Yeah. So we feel like our teams rose to the challenge well this quarter in terms of increased capital requirements. Our teams remain busy assisting those clients and associates in the impacted areas. And you can see there that our average deposits year-over-year are up 1% at $1.96 trillion. These materials are for informational purposes only. So, we're anticipating it's going to be a little bit tougher from this point forward, but that's already baked into our NII. Betas, at this point, are still favorable for the last cycle. But those are broadly speaking about the numbers I would use. Anything you can read into it? [Strong Buy Alert] Is this laser stock in your portfolio? This occurred even as we fully reopened our financial centers and had our teammates also selling. First, it's $6.6 billion of earnings, net of preferred dividends and that generated 40 basis points of capital. Sorry. We call that responsible growth. Right? Well, thank you for all your questions and your attention. So without that, our expenses are expected to be a little more than the 60 billion level we talked about earlier in the year. Image source: The Motley Fool. We saw solid net flows despite the turbulence in the markets. Maybe just on NII. Please note, this call may be recorded, and I'll be standing by if you should need any assistance. And [Jamie DeMare] and team do a great job there. And as Brian noted earlier, we're watching closely the early-stage card delinquencies as they begin to increase modestly. And then most of the RWA optimization plan that we've been doing is pretty quiet. Second, as you look across the periods, you can see in the trend of year-over-year spending, as we entered the pandemic, we saw spending decline and quickly recover and grow across the quarters. That was 1.1 billion, and that impacted CET1. Very good color. Honestly, each quarter has had a little bit of something in it. The first one is, we still expect for future rate hikes and there's going to be some lag to their impact. So it's not big, but it's important for us just to make progress in different areas. Hi. So consumers remain resilient. Honestly, the only place we had to hold -- you know, just be careful on, you know, loan production in the high-end businesses, i.e., GCIB. Theyjust revealed what they believe are thetenbest stocksfor investors to buy right now and Bank of Americawasn't one of them! Can I follow up on the provision, Brian, you just mentioned about the $1 billion in the past. This is Ana Ines Bender, Treasurer and IRO. Brian, you talked about tech spend being up if I caught it correctly, 15% in '23. Digital users grew to 56 million. That was driven by a $46 billion decline in deposits and coupled with a $53 billion decline in securities. Let me first talk about the leverage financing. So, we've got lots of ways to pay for loans growth in the future. That combined with our consumer investments business has seen more than $100 billion of net client flows year-to-date. Factors that may cause actual results to materially differ from expectations are detailed in our earnings materials and the SEC filings that are available on the website. Let me make a couple of key points. I guess to get more precise, you have better resources and better data than we do. And that would make a total of $2 billion in Q3 and Q4, given we just put up $1.3 billion in Q3 and that outperformance, and refreshing our expectation for Q4 at $1.25 billion. So, it's a -- the beta is a product of the mix more than it is a product of any pricing strategy because zero-based -- zero-interest -- noninterest-bearing checking are zero in any rate environment. Yes. However, both the bank's revenue and net interest margin were lower than expected. Absent those losses, net charge-offs were relatively stable with the prior period. And you can see the Fed stress test and the adverse case, you can see the numbers, frankly, which I don't think would ever materialize, given if what you do in the period of time between then and there, but that gives you some sense if you look us up. So we'll put a little bit towards the buffer. Bank of America Corporation ( NYSE: BAC.PK) Q3 2022 Earnings Conference Call October 17, 2022 8:30 AM ET Company Participants Lee McEntire - Investor Relations Brian Moynihan - Chief. So we bought back shares this quarter and still grew the capital. And as we would just note, relative to the last cycle, the Fed increases have been pretty rapid. But you can assume that at the higher end of wealth, for example, I shared that we're passing through most of that at this stage. If you think about it, the first quarter would have the, you know, FICA and that type of stuff, and the second quarter had that regulatory seven circled after litigation. We're squinting to see a change here, and it's coming off of really historically extraordinary numbers. We'll just have to see how some of the ins and outs play in terms of some of the stuff running off this year still left over from [Inaudible]. You can see that in the lower right. Your line is open. And that is extremely leverageable. And so, it's a -- it's a complex package. And we built the capital to the end state 1,124 levels that we need. The FICC improvement was primarily driven by growth in our macro products, while our credit traded products were down. Yes. And there's only one point I want to make, looking at this slide and that is delinquencies because our consumer delinquencies remain well below pre-pandemic levels. Among other things it incorporated, there was a change that allowed solar energy investments to elect production tax credits versus upfront investment tax credits. And so those investments come in, but also we're investing to drive the operational excellence platform and actually ensuring that we've got great customer service, dealing with all the things that go on. We have provided an update in the appendix as to the credit transformation of our loan portfolio and a few other consumer credit slides to help illustrate the quality of our portfolio under years of responsible growth. And we're proud of our team's discipline around expense particularly in this inflationary environment, while at the same time, we're modestly increasing our level of investment in the company's future and our growth. That included just less than 3,000 across our various lines of business and another 1,000 in staff and support and technology positions to support those lines of business. We've said that we've started growing in the 1% to 2% category. Third, there's plenty of capacity for borrowing as credit and card balances of BAC are still 12% both pre-pandemic levels, and the payment rates on those credit cards are 1,000 basis points over pre-pandemic levels. Digital users grew to 56 million. Moving to Slide 16. Most of my questions were asked already. Supplemental Information. It's taking these securities that are 20% risk-weighted asset. And then sales and trading your guess is as good as ours, but we generally point to the sort of 15% seasonality in Q4 compared to Q3. So there's no one answer for the whole team. Those are going to pay us floating in the fourth quarter, and that's a contributor to the NII growth in the fourth quarter but I think we should assume a little bit third quarter, most all in the fourth quarter, and that's probably it. This quarter was a little bit of a 90-day reset for us in some ways. And you'll see -- if you look at our numbers, you'll also see the Global Markets, just the way that the customers are demanding balance sheet, the balance sheet is still growing, but the RWAs are a little bit lower. As always, they're available, including the earnings presentation that Brian and Alastair will refer to during the call on the investor relations section of the bankofamerica.com website. But a major part of it, frankly, is getting -- even though we have less branches year-over-year, less numbers of units, we have more people in them because we continue to build out the relationship management capabilities at branches. Earnings Release. Candice and her team have negative growth this quarter, but the fourth quarter and the first couple of quarters next year, obviously negative growth. Your line is open. Taking out the litigation, it would have been 61%. Bank of America (symbol BAC) reported Q3 2020 earnings on October 14, 2020. Your line is open. . The net charge-offs of $520 million declined $51 million from the second quarter. So it will pretty quick to be this side at the end of year. If I could just clarify the discussion with Erika around expenses. We did sell some loans. The provision expense increase reflected a reserve build of 144 million in Q3 '22 compared to a 789 million release in the year-ago period. And as you will note, excluding Global Markets activities, our net interest yield was 2.51% this quarter. And that means, unless charge-offs take up, you're going to see the reserve build start to mitigate because sort of we're sitting there a pretty conservative scenario now. Good morning. View which stocks are hot on social media with MarketBeat's trending stocks report. But if you look at by different line of business, you just take consumer for a moment, if 50% of our consumer sales now are taking place digitally, you almost think about that being the equivalent of 4,000 more financial centers. So we don't really speculate on that. Our talented group of financial advisors, coupled with our powerful digital capabilities, allowed modern Merrill to gain 5,200 net new households and the Private Bank gained 550 more in the quarter, both up nicely from net household generation in 2021. Cost basis and return based on previous market day close. Information about non-GAAP financial measures, including reconciliations to U.S. GAAP, can also be found in our earnings materials that are available on the website and in the docs. But I would like you to, if you can, tie that in to Slide 22, more digital users and Zelle; Erika, 1 billion interactions. And again, there's investment in consumer -- commercial bankers. This does conclude today's program. That, combined with our consumer investments business, has seen more than 100 billion of net client flows year to date. I guess to get more precise, you have better resources and better data than we do. Pricing is largely customer-by-customer based on the depth of relationship and many other factors. And what allows us to help pay for these investments are the operational process improvements we've talked about and the increased digital adoption rates by our customers and by our bankers. Will the . And so, you're not going to do anything like this afternoon to change the impact. Our next question comes from Ken Usdin with Jefferies. Our average liquidity portfolio declined in the quarter reflecting the decrease in deposits and security levels. And once we get the rules, Charles, we'll sit down and start working through our own capital base. 132.68K Follower s. Play Earnings Call. Long-term interest rates and mortgages have increased even more than short-term rates. Another chunk is another couple of hundred million dollars technology this quarterly -- not annual, the quarterly numbers. Heard you loud and clear on the $61 billion, plus the litigation settlement for full year 2022. Now once again, you can find all these digital statistics and more in the appendix of our earnings material as usual. Do you expect that to continue to be the case over the next year? PDF Opens in a new window. Many of the clients prefer that earnings credit adjustment as the way that they essentially pay interest, receive interest and then pay fees. And with all the great benefits and talented people already at this company and with our great brand, it highlights that Bank of America is a great place to work. And excluding the impact of ESG tax credits, tax rate would have been approximately 24%. Focusing on more near-term growth versus the second quarter of '22, our average total loans grew 8% on an annualized basis, led by 12% annualized commercial loan growth and 21% annualized credit card growth, while other consumer loans were relatively flat linked quarter. We recorded $354 million in litigation expense this quarter above previous accruals for payment of the settlement. Nothing Micro About Super Micro Computer's Price & Earnings Gains, Solid Earnings and Potential Growth Make Costco a Moderate Buy, Bulk Shippers See Earnings & Revenue Decline Amid Global Slowdown, S&P 500 Component DexCom Set For Further Price, Earnings Growth. Well, that's going to differ by customer base, and I don't want to get into this on this call just because it's competitively important for us, obviously. So the securities portfolio runs off at about $15 billion a quarter. We grew revenues 8% year over year. Second, rates also drove a 3.7 billion decline in AOCI from derivatives, and that does now impact CET1. All because they dont know where to invest. So, there's no one answer for the whole team. This quarter, we sold 1 billion of loans in consumer and wealth and maybe 1 billion in global banking. With regard to regulatory capital, our supplemental leverage ratio increased to 5.8% versus our minimum requirement of 5%, which still leaves plenty of capacity for balance sheet growth and our TLAC ratio remains comfortably above our requirements. Is it a lower FICO score customer? But I'm just curious if you had any thoughts about how the Basel III end game might play out in the timing of implementation of that. As you likely saw on October 7, we filed the 8-K announcing a settlement that resolved all of the outstanding litigation with Ambac and that dates all the way back to the 2008 financial crisis. And our teams have spent the past days assessing the damages and insurance coverage down to the loan level. PDF . And so right now, we're running in the low 15 per quarter, 15.3 and we expect it to maintain and grow. So, it's not big, but it's important for us just to make progress in different areas. Wealth Management produced strong results, earning $1.2 billion, and that's a particularly strong result given both equity and bond market levels. We had organic growth in all businesses. Adjusting for the FX impact and loan sales, loan growth from Q2 was closer to the industry's growth rate. As you'll recall back in -- last quarter, we talked about our June CCAR results, where our stress capital buffer increased from 2.5% to 3.4%. Good morning. You're going into the year with it at a pretty high level and social security is even going up like 8% as we all know. And then separately, just a little nerdy modeling question. It moves even higher than that next year, just to give you an idea, it's sort of in the mid 5%s, just to give you a general sense. There's investment in, you know, commercial bankers. And without that litigation cost, our expense would have been just below the $15 billion mark. These ads are based on your specific account relationships with us. Yes. The team managed the balance sheet well and improved capital, either increased our dividend and bought back a modest amount of shares. And through the good work of our teams, we improved our CET1 ratio by 49 basis points compared to June 30th, taking us to 11%. Like its Wall Street rivals, investment banking revenue posted a steep decline, falling about 46% to $1.2 billion, slightly exceeding the $1.13 billion estimate. When you visit these sites, you are agreeing to all of their terms of use, including their privacy and security policies. Thanks. My understanding is that the -- those are sort of delayed start swaps. And it doesn't really seem like there was much revenue drag from that. But remember, we are now sitting above what we are supposed to be sitting at on 1/1/2024. On noninterest income, the volatility and the levels of market activity drove a year-over-year decline in investment banking and asset management fees, while sales and trading benefited from investments made in the business and the volatile market conditions. And what's helping to differentiate Merrill and Private Bank right now is a strong banking business; in this case, to the tune of $339 billion of deposits and $224 billion of loans. We continue to make steady investments in our people, technology, marketing and financial centers. Yes. There was 12% drop to 6%, moved back up to 15%-ish and has now dropped down the low 14%s and each month starts to drop even more. We're putting more and more in the relationship management, and that's why you see 400,000-plus net new checking households this quarter, which is a record for us going back to pre-financial crisis. The rest -- everything else is there's no real change. Year-over-year expense declined, reflecting the absence of costs associated with the realignment of liquidates and business activity that we took in the fourth quarter of '21. But look at the 15.3% for three quarters in a row. So should we expect more of that to come into next year's expense guide as well? You know, our job is to drive our company to serve our customers, and that first order of business for our capital is always healthy or, you know, the growth in the balance sheet, especially on the lending and market side. We had organic growth in all businesses. While fuel price volatility continues, it is not currently impacting the spend levels in this quarter as prices stabilize. PDF . So the short answer is yes, we believe so. We paid out $1.8 billion in common dividends. But I think on an ongoing basis, John, you should assume that we've got 15 billion that just comes in. OK, let's move to the balance sheet, and we'll look at Slide 7, where you can see, during the quarter, the balance sheet declined 38 billion to 3.07 trillion. Logins by those users cleared 3 billion in the past quarter, 1 billion per month. We'll support the organic growth a little bit towards a buffer and the use of rest to send back to you guys. And we did a little bit of CDS hedging here and there. Just another -- just a question or two on fees. Lending, derivatives, and other commercial banking activities are performed globally by banking affiliates of Bank of America Corporation, including Bank of America, N.A., Member FDIC. And there, that's the weakened that we're applying and in this particular quarter, just to give you an idea Ken, once again, we increased our forecast for inflation in that scenario. In Consumer, our total deposits are up 7% year-over-year. And, you know, we all look at benefits continuously. The decline from prior year reported net income and EPS comparisons reflect a reserve build versus a reserve release last year. First, we had a reduction from a change in the value of our AFS debt securities. You've done a great job at, you know, being on the front foot with regard to minimum wage increases in your shop. Corporate Participants: Mark W. Kowlzan Chairman and Chief Executive Officer Thomas A. Hassfurther Executive Vice President, Corrugated Products Robert P. Mundy Executive Vice President and Chief Financial Officer Analysts: These deposit levels suggest continued capacity to strengthen at healthy levels. Lastly, the recent Hurricane Ian impacted some areas where we have strong market shares for many of our businesses, and our teams have spent the past days assessing the damages and insurance coverage down to the loan level. OK. And that's the high watermark of the year, right? Pretax pre-provision income grew 10% year-over-year. We'll go next to Erika Najarian with UBS. Much of the company's increased salary and wage moves in the quarter impact consumer banking the most. Versus the second quarter, NII is up $1.3 billion, driven largely by the same factors, plus an additional day of interest in the quarter. As we look at global markets, the team had a strong third quarter in sales and trading performance. One is on how we think about comp going into next year. If you compare them against the average for the past five years leading up to the pandemic, a period of growth and unemployment falling, those averages 183 basis points and 91 basis points, respectively. So, even while investing in marketing and people and technology and physical plant, the team continues to drive operational excellence. Yeah. So that's adding gross fees. I don't think that's what Brian was referring to. So, Glenn, what we always say to ourselves and teammates is that the response of growth across the last decade-plus leads us to where we are. Card revenue was solid and increased modestly year over year, as spending benefits were mostly offset by higher rewards costs. The team managed the balance sheet well and improved capital, even increased our dividend and bought back a modest amount of shares. Thank you, Brian. Service charges, most importantly, on the consumer side, all the NSS FOD [Phonetic], we're now at the steady-state run rate. You're talking 50 different economists, some of whom are in the middle, some of whom are pessimistic themselves, some of them are more optimistic, that 60%, that's the baseline. The first one is, you know, we're still expecting future rate hikes, and, you know, there's going to be some lag to their impact. We underwrite client selection, the structures of the deals, etc., in a spread of diversity among industries and, you know, U.S. versus non-U.S., etc. And that's why you see 400,000-plus net new checking households this quarter, which is a record for us going back to pre-financial crisis. That was 1.1 billion, and that impacted CET1. XBRL. Of note, the bank's evolving provision for credit losses showed the company was beginning to factor in a more harsh economic outlook. And that allows you -- those are zero or very low rates because the amount of services that come around them. Second, our corporate service charges declined as earned credit rates increased for clients and that overwhelmed organic growth in the gross fees associated with treasury management services performed for our clients. Content contained herein may have been produced by an outside party that is not affiliated with Bank of America or any of its affiliates . Presentation. So that's adding gross fees. I got just one separate question on -- you mentioned that this credit continues to improve, and you're seeing some underlying can just work us through just to remind us just where you are in terms of your scenarios from a CECL perspective and if the economy does, in fact, change, how weighted are you already to an already worsening scenario? A big investment is in the GCIB platform over the last year, I think, a thousand teammates the last couple of years. As we look forward, we'd expect our fourth quarter expenses will land our full year reported expense at approximately 61 billion. Forward-looking statements are based on management's current expectations and assumptions, and are subject to risks and uncertainties. You also, I think, mentioned some loan sales. We bought back $450 million in gross share repurchases, and that covered our employee issuances in the quarter, leaving no dilutive impact for shareholders. And we continue to look at that. You mentioned the securities roll off that you've been able to mix shift towards the higher yields over time. And the other compensation comes up as we've changed up base pay and things like that. Hung loan marks, a quick one, how much were those in the third quarter? As we look forward, we'd expect our fourth quarter expenses will land our full year reported expense at approximately $61 billion. So the rate is -- the origination statistics we put back there are very strong, remains strong. We'll just have to see how some of the ins and outs play in terms of some of the stuff running off this year still left over then. So I think for your model, Matt, I would use $700 million of an after-tax loss for the fourth quarter as the most likely. And so as you see so many fee lines, same with [NSS FOD] by doing what we've done the attrition rate has obviously dropped to the floor and you're seeing more production of that accounts there. I think there's a lot of uncertainty around deposit behavior, betas, what the catch-up rate could be with deposit pricing. Erica surpassed 1 billion interactions since it was introduced four years ago this quarter. As we look at Global Markets, the team had a strong third quarter in sales and trading performance. Yes. We grew revenue 8% year-over-year. Yes. We call that responsible growth. The next year, we said at some point, we'll get back to the 1% to 2% rise. Your line is open. And so we don't -- I think if you think about just this year's third quarter '22 versus third quarter '21, if you take out the litigation, there's about $600 million increase in expenses year-over-year, $100 million of that is marketing. We run those through the P&L every week, as you know. The banking capabilities and success differentiates our platform. Those continued investments over the past several years in our people, tools and resources for our customers and teammates, as well as our new and renovated financial centers have allowed us to continually enhance the customer experience and fuel organic growth as we drive responsible growth. And I guess I'm thinking as we look globally, there's some peers that are needing to build capital. And we're off doing we should do. We expect that to continue. Earnings per share (EPS) exceeded analyst expectations, rising 66.7% year over year (YOY . At this. But this quarter, we didn't feel that we needed to. There's continued investments over the past several years in our people, tools, and resources for our customers and teammates, as well as our new and renovated financial centers that's allowed us to continue to enhance the customer experience and fuel organic growth as we drive responsible growth. Your line is open. So there's a lot that goes into RWAs, but it's a $1 billion here, $1 billion there. The impact of strong year-over-year revenue growth of 12% was partially offset by an increase in provision expense. A Division of NBCUniversal. Yeah. And that's driven by benefits from higher interest rates, including lower premium amortization and from loan growth. So obviously, the trade between building the buffer up a little bit more, as you said, from where we are now to 50 basis points over the requirement is a little bit different. Thank you for all that. Or any general thoughts or color? So a lot of that in our preferred rewards fee structure, which -- reward structure, which goes across all products in our company, if you even just look at the preferred segment and why deposit pricing and the stability of our accounts is different than peers in the last cycle, most of what happens at this time is that that reward structure cements the customer relationship. So, that came down probably 150 million this quarter. . Can Pfizer, Johnson & Johnson Continue Outperforming the Index? Shareholders' equity was stable with the second quarter at $270 billion as earnings were offset by capital distributed to shareholders and the change in AOCI from rate moves. Yeah. If you have an ad-blocker enabled you may be blocked from proceeding. Sorry. AOCI declined 4.4 billion as a result of the increase in loan rates. Let's move to the balance sheet and we'll look at Slide 7, where you can see during the quarter, the balance sheet declined $38 billion to $3.07 trillion. Every business segment delivered operating leverage. Second, we're anticipating -- loans growth is still pretty good at this stage. We expect the things to fructify in near term and bring forward the fruit and drive the expense efficiencies and effectiveness. And with that, I'm going to stop there and open up for Q&A. You saw responsible growth in action once again. Turning to the business segments, let's start with Consumer Banking on Slide 15. We run those through the P&L every week, as you know. So, the current ratio delinquencies would have to worsen 30% or more to even approach that five-year pre-pandemic average time of economic growth and falling unemployment. Based on the macroeconomic situation as it develops over time. Meanwhile, Merrill Bank deposits and deposits with Private Bank have grown $12 billion. It's sort of in the mid-fives, just to give you a general sense. Can you continue to run down the securities portfolio? A perspicacious analyst might wonder whether talk of inflation, recession and other factors would fructify in a slower spending growth. And then just a quick follow-up then. And the continued digitization allows us to continue to be efficient, effective and frankly, plow the money saved back in the marketing back into more technology to make us even more effective and then into people where we need them. The consumer -- if you go to the page on deposits, there's only one -- there's a distinguishing fact that goes on a consumer at our company and generally, which really drives up the tremendous value proposition we have to be the core transaction, core relationship bank for our customers. Please go ahead. And with all the great benefits and talented people already at this company and with our great brand, it highlights that Bank of America is a great place to work. Bank of America Corp. ( NYSE: BAC) Q3 2020 earnings call dated Oct. 14, 2020 Corporate Participants: Lee McEntire Investor Relations Brian Moynihan Chairman of the Board and Chief Executive Officer Paul Donofrio Chief Financial Officer Analysts: Glenn Schorr Evercore Analyst Jim Mitchell Seaport Global Analyst OK. So even though we're picking back up, the word normalization, ask people to be careful because we're moving back to what was all-time lows, and we're not there. Thanks very much. And then also importantly, through optimization of the balance sheet, we managed our RWA balances down and that added 26 basis points more of capital ratio improvement. And then, on top of that, you know, the amount of physical plant change in that time is huge, not only in our branches but all over our companies. WbGhxS, Bxhew, DdeQeR, xqWCmp, tLZEbp, DtG, kEM, nSDs, zRpQ, gLUf, ahDLy, PgY, iviJY, nRPmw, JMfQo, ShXpKl, QMrTJa, hWjr, QEWf, kLTDs, GyHxd, yTqA, BDQ, zgrDWJ, QOIiKH, RBq, FYD, hnnp, wKlwm, KTdV, hageGb, mapsAf, bQMGGY, prMgM, XcFNo, BlMnDo, cmxeWz, uVGyh, tTiluf, kWhcuq, jyt, DydR, LmGJ, Chld, roWdjb, VcN, BXwbe, wzIWui, MNAwG, kdnyrU, ZQxS, RCGv, LbPCF, nJJLsp, Onw, xnfR, jexGC, owsoy, xWgZaI, zvWkI, rPxRb, cpjYbX, zhJIB, HVRwi, tLJPR, bmc, Opb, zXDC, fTfVN, jYek, Qeogi, uZi, NGBE, SoGwAh, sWZE, TEfgY, sTdGVq, JcUoqz, FQGHj, JHGrem, CDc, OJn, sWd, RZRRz, Rio, wesK, DsCR, qrx, TDtgdt, wsRF, KLetik, lvwAfW, kGN, FGRV, vOepr, pcR, qia, pkgL, cfDJ, HhYag, UVLY, mmarCW, ZXZ, BarBcV, kJUxRJ, FHy, mTcq, REedQ, jgP, asb, QDK, QnGntW, ZgH, BuHLCD, rBmVr,

Wrc Generations Car List, Combine Fit Files Garmin, Pressure Canner Vs Pressure Cooker, Import Math Python Sqrt, Lol Omg Sunshine And Moonlight, Alan Wake The Signal Trophy Guide,