Now a word on Russia. We don't. For the quarter for the company, our effective tax rate was 10%, benefiting from ESG investment tax credits. This quarter, our resilience was tested. Thank you, Lee and good morning to all of you and thank you for joining us. I remind you, as the securities mature, the AOCI reverses and higher rates result in higher NII over a relatively short period of time. 77% of retail CFD accounts lose money, Credit Suisse resumed at buy at Bank of America after fundraising completed, Bank of America (BAC) Stock Sinks As Market Gains: What You Should Know, Piper Sandler initiates coverage of JPMorgan, Citigroup, Bank of America, The Tell: Mortgage bonds are cheap but no one is buying, says BofA Global, Piper Sandler initiates Bank of America with neutral rating, $36 price target, The Zacks Analyst Blog Highlights Bank of America, T-Mobile US, ConocoPhillips, Starbucks and Sysco, Goldman warns on job cuts as BofA slows hiring on potential recession, The Tell: Bank of America stock plunges, leading selloff in shares of largest U.S. banks, Get real-time Bank of America charts here >>, Registration on or use of this site constitutes acceptance of our. This Is Why Daktronics Fell 40% In One Day. Obviously, we always have such a huge wealth management business which 27% pre-tax margin which is industry leading moves up to 30% last quarter will impact that gets a bigger part of our business than others that you'll see relentless progress but I can't give the exact quarter. Thank you, Katherine. Your line is open. And then between markets and wealth management, now wealth management has done a great job of growing its loans and deposits, so that will help it. Maybe just for my follow-up on capital. That remains something that we're focused on total value. Relationship-based ads and online behavioral advertising help us do that. Make my favorite. Well, our clients are definitely seeing supply chain challenges. First, let's look at year-over-year growth. On the upper left, we looked at our customers that have both the credit card and a deposit account with us. The business earned $1.7 billion in Q1, down $450 million year-over-year driven by the absence of a large prior period reserve release and lower investment banking revenue. And obviously, we'll get significant benefit over the course of the next 100 basis points. And just looking at your year end disclosures, it looks like the vast majority of that held to maturity portfolio is agencies with more than 10-years maturity. These forward-looking statements are based on management's current expectations and the assumptions that are subject to risks and uncertainties. PDF . But, at the end of day we're saying expenses are flat this year. Guidewire Software, Inc. (NYSE:NYSE:GWRE) Q1 2023 Earnings Conference Call December 6, 2022, 05:00 PM ET Company Participants Alex Hughes - VP, IR Mike Rosenbaum - CEO Jeff Cooper - CFO. And I guess, how do you look at the extension risk on the portfolio? It's probably most easily identified by looking at pre-tax pre-provision earnings, which grew 32% year over year. Yes. And all the feature functionality helps them our retention for our preferred customer base in the consumer segment, which represents 70% or 80% of all the deposits with 99-point something. That 5.4 billion is down from 6.5 billion at yearend, largely because higher rates are now factored into and running through our actual or baseline NII. So, we'll see some growth there. Bank of Hawaii Corporation ( NYSE: BOH) Q1 2022 Results Conference Call April 25, 2022 2:00 PM ET Company Participants Janelle Higa - Head of IR Peter Ho - Chairman, President and CEO. So, in many ways that's one, we purchased some securities at which to replace loans that were coming off. Q1 2022 Earnings Call Jun 16, 2022, 10:00 a.m. And even though there may be some quarters that would show modest growth, I think they're all positive, if I got it right. The other question of great debate is a soft lending, hard lending etc. Market Data copyright 2022 QuoteMedia. And we paid out 4.4 billion in common dividends and share repurchases. Price as of December 9, 2022, 4:00 p.m. So, you know, I think when I asked Matthew, he said somewhere between strong and very strong, so that should tell you everything you need to know. Securities balances came down a little bit, $13 billion. So revolver utilization and commercial now in banking is 31.7%, pre-pandemic our normal was around 35%. And I think you're looking at some of the investments we've made in our global markets business. And you can see during the quarter, our balance sheet grew 69 billion to a little more than 3.2 trillion. Currently, we believe this to be modest and reflect our international strategy to focus on large multinational clients that have geographically diverse operations. I figured that's like $15 billion to $20 billion of loans potential as the economy continues to heal and as clients begin to take utilization back. What we do is we try to protect in a cautious way all the risks. And Vivek, if you look at this quarter, we added 8 billion of deposits. Q2 2022 Bank of America Earnings Conference Call. Deposits, I know some -- several of you are wondering if deposits can continue to grow as rates begin to rise. Net charge-offs this quarter were better than our expectations once again and remained below 400 million, down 52% compared to Q1 2021. But the reality is that, the G-SIB buffers are growing because our customer franchise is getting bigger in a method of calculation, does not adjust for business success, size of economy, stock -- market cap increase, all those things, which I think, pretty good favor of, Gerard, so we have to retain 30 basis points more capital, so divide that 50 basis points by seven quarters. Hi. We've opened in the seven, eight, 10 markets and we have $30 billion of new deposits in those branches to give you a sense and there's only 140 branches. And you see in the bottom charts, we believe this is not just a phenomenon of BAC, as industry data points around debt service levels are hovering near historic lows and household deposit and cash levels has returned higher than we entered the crisis. Currently, we believe this to be modest and reflect our international strategy that focus on large multinational clients that have geographically diverse operations. Cost basis and return based on previous market day close. And if we keep seeing the same kind of loans growth we're seeing right now, the securities may decline over time, they stay flat, we'll see, depends on deposits. Our next question comes from John McDonald with Autonomous Research. What sort of a run rate for that assuming -- let's assume deposits were flat and didn't go down, didn't grow much modestly here, where can that be drawn down to? And then as a follow-up on the G-SIB buffer that you guys pointed out that will take effect, I think you said in 2024. And we're very mindful that I think it's very different to think about the situation where the consumers' unemployment is already so low and the consumers are sitting with money. Recognizing that held to maturity portfolio doesn't get mark-to-market. I know you did a ton of efficiency pre-COVID. First, let's look at year-over-year growth and across the past 12 months, we saw solid growth across the client base as we deepened relationships and added net new accounts. And obviously, you guys are not a PT boat, but a battle crew -- battleship to turn the balance sheet into a position and when the Fed finally succeeds, let's say, in hitting inflation, knocking it down and they stop raising rates, maybe you going to have to cut rates get the economy going. So, in all other, we incorporate the impact of our ESG tax credits and any other unusual items. You have a lot more people, data businesses, insight, end of the US economy and you need to have a percentage with that for your provision for loan losses. ET. Matt O'Connor -- Deutsche Bank -- Analyst. We have more than $2 trillion of deposits, and $1.4 trillion of those are with our consumer wealth management clients with more than 40% of those in low to no interest checking. And we are obviously aware of what the Fed is trying to engineer. This is not an area of material direct exposure for Bank of America. You know, there's been some underlying moving parts there. 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. We produced good returns again this quarter with an ROTCE of nearly 16%, and we delivered 4.4 billion of capital back to shareholders, driving average shares lower by 6% year over year. 4 Social Security Changes Joe Biden Wants to Make: Is 2023 the Year They Become Reality? But it's really -- and we only invest in treasuries and mortgage-backed securities. Content contained herein may have been produced by an outside party that is not affiliated with Bank of America or any of its affiliates (Bank of America). On slide 14, we highlight the credit quality metrics for both our consumer and commercial portfolios and I'm happy to answer any questions later, but a couple of things are worth repeating. So, let's pause for a moment to discuss asset sensitivity because I want to make a couple of points as we begin what the Fed has said well to be a significant rate hike period. Our year-over-year average deposits are up 240 billion or 13%. I would remind you that in quarter four, we highlighted to you that of the $55 billion of growth in that single quarter, $16 billion was Global Markets. ZIP XLS HTML . So I think that's one of the reasons you see our AOCI hit is much smaller than many others. If you are sitting here when they start normalizing rates in the middle of the last decade, late to middle last decade, you wouldn't have seen the consumer balances sitting with those multiples I gave you earlier in their accounts and then having tremendous borrowing capacity left in terms of unused credit lines and the same on the commercial side. Through continued work on operational excellence and digital engagement. And then, we tried to give you the broad outlines around 5.4 billion versus forward 6.8 billion versus spot. But on average, it was somewhere between 20% and 25% for Bank of America. The strength in equities was driven by strong performance in derivatives. And on that basis, asset sensitivity at March 31st was 5.4 billion of expected NII over the next 12 months. Your password must be at least 8 characters long and contain at least 1 number, 1 letter, and 1 special character. On the consumer side, people being wealth managers consumers and general consumers, of the$1.4 trillion we're 40% more in checking accounts and that's the money people have in motion in a given day and what the big volume of those comes from frankly 35 million checking holders, which is a new record for us. And we told people we hedge it, and now you're seeing the benefits of those hedges. Mike, those are all the pieces that simply put I think Alastair said, NII pick up next quarter. That's what we're just trying to make sure everyone understands. What's your plan for that? And we'll take our final question this evening from Robbie Ohmes of Bank of America. It's as we do all the work we do in the core franchise to grow the number of customers. So, is this 50% chance, 20% chance? So, the rate environment where we come off as zero-floors makes us a lot more money. BofA Securities, Inc., Merrill Lynch, Pierce, Fenner & Smith Incorporated and Merrill Lynch Professional Clearing Corp. are registered as futures commission merchants with the CFTC and are members of the NFA. Every single customer group Global Banking, Large Corporate, Middle Market business banking grew, as well as commercial loans and wealth management. If you go to the next cohort up, those with $2000 to $5000 of cleared balances in the pre-pandemic. That's a pretty strong impact to efficiency, especially because it's going through the businesses, even the wealth management business. We already know what that looks like in 2020, as we built significant reserves, we also built 90 basis points of capital during the economic shutdown period. Turning now to Q1 gross profit, which was up 26% to $33 million with gross margin at 51.9%, down 10 basis points to last year.. So assuming rising rates as reflected in today's forward curve and if we see continued loans growth, I would just reiterate what we said last quarter that we expect to see robust and NII growth in 2022 compared to 2021. Data delayed 15 minutes unless otherwise indicated (view delay times for all exchanges). So I want to see if I could, a, get your comments on your thoughts around today's environment versus history. Your line is open. But what it means is a long tail to consumer spend growth. Now the same customers today have an average cleared balance of $12,500. Two questions, one on expenses, I know you mentioned this year that you're still anticipating relatively flat and that you would deal with inflation pressures, etc., from some of the opportunities you have to get more efficient. These forward-looking statements are based on management's current expectations and the assumptions that are subject to risks and uncertainties. Again, the economy is beginning to return now to something more normal after bouncing around a bunch. We certainly expect to be in the first half year, well over our expectation of 20% plus that we previously talked about. So, I think that's one of the reasons you see our AOCI hit is much smaller than many others. What if we're wrong and things do get tougher? The Motley Fool has no position in any of the stocks mentioned. ET Contents: Prepared Remarks Questions and Answers Call Participants Prepared Remarks: Operator Good. Wanted to ask a follow-up on the earlier discussion on the 60% efficiency ratio. Company goals are aspirational and not guarantees or promises that all goals will be met. I know quarter over quarter, they are, but as we start to look forward to see how things are progressing. But that's always going to be debated and you should be cheering for strong wealth management revenues even if it means a lot less efficiency ratio. All are different vagaries of not only regulatory accounting versus GAAP accounting, but also what kept the comps in the capital ratio calculation versus not and today, you said $1.4 trillion -- it's $2 trillion of deposits -- $1.4 trillion for just on the consume -- for people side of the business, and even on the business side, we only have operational deposits and so, the end of day those very long deposits. We are all focused on the ability of Fed to use their tools to reduce inflation. And we said in our remarks that we believe the second quarter will be up at least $650 million in NII and I think if you look at the forward curve, yes you would expect to accelerate over the course of the year. Now you asked the question last quarter about the same sensitivity on a spot basis relative to our current curve and given that the yield curve is projecting 125 basis points of rate hikes over the next [Indecipherable], we thought it was appropriate to provide that disclosure. Card loans declined $2 billion from quarter 4, driven by the transfer of $1.6 billion within the card loan portfolio to the held for sale category. We have $2 trillion of deposits and less than $1 trillion in loans. You know, that's different than what we've seen out there generally. So, we'll redeploy that and walk back up the ladder. Prior to the Ukrainian invasion, these exposure were mostly investment grade. First quarter 2022 comparable diluted earnings per share were $0.77 versus $0.72 in 2021, an increase of 7%. Your line is open. Your line is open. We'll go next to Betsy Graseck with Morgan Stanley. After all, the newsletter theyhave run for over a decade, Motley Fool Stock Advisor, has tripled the market.*. Importantly, despite March of last year, including the stimulus bonus, we saw the spending in the month of March 2022 on a comparable basis to 2021, 13% higher by dollar volume. So, we, like you, are looking at two things. But with all the technology investments, shouldn't your incremental pre-tax margins be greater on your new revenues? So we might -- we haven't seen the data for April yet, but it's growing very strong all the way up and the people carried pre-pandemic $10,000 - $20,000 in balances, we are still growing very strongly. This information may be used to deliver advertising on our Sites and offline (for example, by phone, email and direct mail) that's customized to meet specific interests you may have. But again, we're going to capture a lot of value because our strategy is based around operating accounts in commercial and private accounts in consumer. Read the full transcript for Mondelez International's Q1 2022 earnings call at MarketBeat. We are now possibly more outgoing Zelle transactions than checks and our CashPro mobile app with our commercial clients, we see many $5 billion usage days. We manage that pretty closely. Shareholders' equity declined $3.4 billion from Q4 with a few different components I would note. Is there any strategies you can employ that could actually reduce that buffer before we get there? Again, the economy is beginning to return to something more normal after bouncing around a bunch. And so, we'll manage our interest rate exposure as the environment develops from here. We'll go now to Matt O'Connor with Deutsche Bank. And as we look to Q2, we expect our expenses to be down modestly from Q1 as much of the seasonal payroll tax expense abates and is somewhat offset by investment timing, inflation and the cost of opening up more fully for travel and client entertainment because it feels like we've got a lot of pent-up demand for face to face meetings by our clients and our people. That reflects cash flow hedges against our variable rate ones, which provides some NII growth and protected CET1 at the same time. [Operator Instructions] We'll go first to Glenn Schorr with Evercore. The earnings release we issued earlier today can be found on our website at bakerhughes.com. And in the past, I think higher rates were designed to pull leverage from the system and caused some recession and so the markets trying to assign some percentage chance towards the recession, yet every comment I hear out of your mouth doesn't sound like we're going towards a recession. And they're all swapped to floating precisely to insulate us. Learn More, Bank of America(BAC -0.18%)Q12022 Earnings CallApr 18, 2022, 8:30 a.m. And I guess, we'll just kind of leave the IB tradings, so we'll see what happens in the markets. Now, those same customers today have an average cleared balance of $12,500. Bank of America continues to deliver wealth management at scale across a full range of our client segments and with the best advisors in the industry according to Barron's rankings. Good, thanks. You can see in the top chart loans have moved back above our pre-pandemic levels on the right hand side of the slide, and you could see it being led by commercial. Okta Inc Celebrates Earnings Beat But Can They Sustain the Boost? Our liquidity portfolio was stable compared to year end and at $1.1 trillion it represents roughly a third of the balance sheet. We report all of them on our reservable criticized. Or is it worse because you have less buybacks, maybe more provisions, due to the potential for a recession? When autocomplete results are available use up and down arrows to review and enter to select. Despite that, overall commercial loans grew $13 billion from Quarter 4, excluding PPP. Before I turn the call over to Brian, just let me remind you that we may make forward-looking statements and refer to non-GAAP financial measures during the call. That is why we run stress test each quarters to look at scenarios to see what will happen in a highly inflationary environment. We expect our effective tax rate in 2022 to be between 10% to 12%, absent any tax law changes or any unusual items. Given the forward curve expectation for higher interest rates and our expectations of further loan growth, we expect significant NII improvement through the next several quarters. You can see in the top chart, loans have moved back above our pre-pandemic levels on the right-hand side of the slide, and you can see it being led by commercial. So, I wanted to see if I could, a, get you to comment on your thoughts around today's environment versus history? I'll focus my remarks on the more recent comparison versus Q4, where we're up $600 million and as expected and we conveyed to you last quarter, the Q1 increase was driven mostly by seasonality of payroll tax expense or roughly $400 million. So we're not seeing that deteriorated all yet. Those mortgages protected us in a low-rate environment. We will go now to Ken Usdin with Jefferies. They're all swapped to floating precisely to insulate us. Hi, thanks, good morning. As we look forward, we continue to invest heavily in technology, people, and marketing across our lines of business. And that's what we expect to see as NII kicks back up and efficiency ratios as Mike or John referenced, ought to kick back down pretty nicely. And we're just operating in the market conditions that were given. So, both dollar volumes and numbers of transactions rose nicely. As you recall, we invested much of our securities books in held to maturity due to our huge excess and stable deposit base. And versus Q1 '21, we saw a decline of 8% as the prior year included higher commodities results due to weather-related events. So, we did not expect that to hold true for Quarter 1 of 2022. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. In addition to be cautious, we hedged a large portion of securities in the AFS portfolio protecting it from much larger hit to AOCI. All that results in a rebuild of the capital quite quickly. I think one of your counterparts said that he was no longer thinking of buffers upon buffers as he thinks of capital management going forward. So then it's just a question of managing around the 50 billion or so of securities that we have there that aren't swapped to floating. Your line is open. Thank you. Stock Market Sectors: What Are They and How Many Are There? NPL saw a modest increase. They grew faster from February to March. Yet, every comment I hear out of your mouth doesn't sound like we're going toward a recession. I think Brian's earlier answer got to the first part of it, which is we're not interest rate traders group and straight managers through a cycle. Obviously, we're coming off of record quarters last year and we're just operating in the market conditions that were given. Market Data powered by QuoteMedia. Welcome. But from an accounting or earnings standpoint, maybe you win in the end, maybe you don't. While the Investment Banking fee line was down from the record quarters of the past year, Matthew Koder and his team produced solid results with a strong forward pipeline and we gained market share with several areas including moving to number 2 in that mid-cap investment banking. But just any thoughts on some of the consumer-related and brokers-weighted fee areas? We continue our daily monitoring with sanctions, and interest payments might impact these loans. And so, we got to do something with the money and that deposits are stable. 2 in the mid-cap investment banking. And a little bit of net new household growth and flows growth again this year. Versus Q4, that was a 58% improvement, a little higher than typical seasonality. It doesn't disappear from the scenes. Read the full transcript for Packaging Co. of America's Q1 2022 earnings call at MarketBeat. Every single customer group, global banking, large corporate, middle market, business banking grew, as well as commercial loans and wealth management. We've got seven quarters. Q1 2023 Earnings Call Dec 08, 2022, 5:00 p.m. Yup. Senior Vice President of Investor Relations, Chair of the Board and Chief Executive Officer, Senior Vice President of Investor Relations at Bank of America, Chair of the Board and Chief Executive Officer at Bank of America, Chief Financial Officer at Bank of America, Get 30 Days of MarketBeat All Access Free, Sign in to your free account to enjoy these benefits. And just the cash flow of the portfolio, even in a very low prepayment rate scenario, you got to remember, people pay principal interest, people pass away, and then people move irrespective of mortgage rates refinancing. Operator: Good afternoon, and welcome to Dave and . Bank of Montreal (NYSE:NYSE:BMO) Q4 2022 Earnings Call Transcript December 01, 2022 08:30 AM ET Company Participants Christine Viau - Investor Relations Darryl White - Chief Executive. When you visit these sites, you are agreeing to all of their terms of use, including their privacy and security policies. And so that's important and all the feature functionality helps them -- our retention for our preferred customer base in the consumer segment, which represents 70% or 80% of all the deposits is 99 point something. As always, they are available, including the earnings presentation that we'll be referring to during this call, on our investor relations section of the bankofamerica.com website. You can see the organic growth engine that our Company is delivering once again. We'd hope to perform a little better in this cycle just based on the value we deliver to clients particularly in things like digital etc. Thanks. I mean I would imagine for the first couple of hundreds, it's going to be pretty -- I would hope, pretty stable. Also, if you opt out of online behavioral advertising, you may still see ads when you sign in to your account, for example through Online Banking or MyMerrill. We'll take our next question from Bryan Spillane of Bank of America. PDF HTML. So going through this, every quarter as we always do, we have an opportunity to think about how we look at our reserves and this quarter, we took some of the upside out, we've got a little more weightings towards a baseline, a little more towards downside. Mike, you know, those are all the pieces. Content contained herein may have been produced by an outside party that is not affiliated with Bank of America or any of its affiliates (Bank of America). And if you go back to the last three out rate hike, cycle '15 through '19, on average, you can't -- it's obviously very different by account and line of business and client. You know, so if it goes to like 33, we get the same kind of hit as this past quarter. They're, you know. And I think I'm not going back and checking it quarter by `quarter. So, Alastair can give you more detail but you remember what drives the size of the balance sheets are right hand side not a left. That's different than what we've seen out there generally, but remember, during -- it's a rate throws in a pre-pandemic setting and Glenn's question about soft lending, hard lending and inherently weighs in those mind. Financial Center & Walk-Up ATM. We're opening new branches. 10 min read. And so, the market is trying to assign some percentage chance toward a recession. You know, the question of great debate is a soft lining, hard lining, etc. That is back to trend. We also evaluate our portfolios and continue to do so considering second-order impacts to this crisis. Factors that may cause actual results to materially differ from expectations are detailed in our earnings materials and our SEC filings that are available on the website. Just given the pace of continued strong loan growth that's anticipated, what level of organic RWA growth should we be underwriting, as we think about the capital algorithm going forward? And can you unpack some of the things you're doing to get more efficient. So, assuming rising rates as reflected in today's forward curve and if we see continued loans growth, I would just reiterate what we said last quarter that we expect to see robust NII growth in 2022 compared to 2021. That means commercial loans, excluding global markets, grew $17 billion. So, we might -- we haven't seen the data for April yet, but it's growing very strong, all the way up into the people who carried pre-pandemic at $10,000 to $20,000, our balances are still growing in very strongly. Revenue declined as a result of higher volume of deals, particularly solar, and therefore, higher partnership losses on ESG investments. And then for modest growth to return in 2024? We predict it will slow the economy from 3% growth in 2022 to a little below 2% in '24 -- '23, excuse me. Shareholders' equity benefited from net income after preferred dividends of 6.6 billion, as well as issuance of 2.4 billion in preferred stock. Prior to 2010, non-degree granting schools were required to maintain transcripts for five years, and degree granting schools . We also grew investment account 7% and we saw those balances grow 10% from Q1 '21 to $350 billion and that included $20 billion of client flows. Your line is open. Good morning everyone and welcome to the Baker Hughes First Quarter 2022 earnings conference call. Bank of America is an advertising partner of The Ascent, a Motley Fool company. What I was hoping to get a better sense of, given that RWA growth has actually been the biggest source of capital consumption over the last couple of quarters, it's up about 9% year on year. This website uses cookies to ensure you get the best experience on our website.View our privacy policy. So is this 50% chance, 20% chance, what do you think Brian, kind of gut feel and Alastair, by the numbers? I know we've spent a lot of time talking about AOCI volatility and the like. If you go to page -- slide 6, you can see the Common Equity -- we had talked about capital. The question of buffers to that number, you should expect us to operate, close to that 10.75% just because frankly the numbers getting so big that you -- we've never had an issue of the size of capital implied by that buffer to the minimum -- regulatory minimum. We look forward to talking to you next time. These ads are based on your specific account relationships with us. As we open our earnings call this quarter, we want to acknowledge that there is a -- the humanitarian crisis continue to take place in Ukraine and remain watchful and have provided assistance from our Company to the Ukrainian citizens and stand ready to help further where we can. But, you know, and also remember, economically, if we don't market deposit, this is one of the great debates we've all had it not for accounting for banks. This is the basis point increase. So, we have already proven resilient. We also evaluate our portfolio and will continue to do so considering second order impacts of this crisis. OK. Got it. At the end of the day, as we told you last quarter and a few quarters before that, the organic growth machine in Bank of America is driving hard, growing its market share, growing its deposits, growing its loans, and doing well in the market. Is there room for that to come down further? And then, also, specifically ask what you did with the ins and outs in reserves, and if you changed any macro scenarios as you bake in CECL results. And the efficiency ratio, you know, let's always see where we get to, but, you know, it will keep coming down and we are improving every -- all the way through into the pandemic and with operating leverage every quarter. Are you planning to grow securities balances? But it's also, you know, the key driver for Bank of America's earnings from here. Thanks. We looked at the pre-pandemic customers who had $1,000 to $2000 of cleared balances BAC. The business generated a 15% return in Q1 even with a 12% increase in capital allocated to the business. Finally, we saw expense decline by 4% driving strong operating leverage. 18, 2022, 05:30 PM Image source: The Motley Fool.Bank of America (NYSE: BAC)Q1 2022 Earnings CallApr 18, 2022, 8:30 a.m. ETOperatorContinue reading Read more on "MotleyFool" For sure, as you saw some in this quarter. That's great color. So, look, we expect, as Brian talked about, we're kind of at a rate floor when rates are at zero. Thanks for that. Q1 net income of 1.5 billion reflects a solid quarter of sales and trading revenue, and it includes a new record for equities. Another economic sign posted a continuation of loan growth. Provision expense was $30 million in Q1 as reserve release of 362 million closely matched net charge-offs in the quarter. We're not going to provide numerical guidance for the full year because the changes in interest rates have proven quite volatile in just the last 90 days, let alone a year. But I think, that's -- what's unusual this time is how much cash is sitting in the consumer's accounts, if you and I are sitting here, we made -- start normalizing rates in the middle of last decade, late in the middle of last decade, you wouldn't have seen the consumer balances sitting with those multiples, I gave you earlier in their accounts and then having tremendous borrowing capacity left in terms of unused credit lines and same on the commercial side. If we got to slide 3, I want to mention the -- shows some of the strength we see in our US consumer base. Absent that transfer card loans would decline very -- very modestly, whereas the previous quarter on quarters they've declined several billion. By the way, even with the fuel costs up 40% and more from last year, fuel represents about 6% of overall debit and credit card spending, and a lot less of overall spending as card, as you can see in the lower left, is 21% of all spending. So, liquidity is down in the quarter. Chris Kotowski -- Oppenheimer and Company -- Analyst. But there's tensions against how easy or hard that's going to be, obviously, pandemic, war, but also this issue that the massive amount of stimulus is still out there being spent. Across the combination of our consumer and wealth businesses, we saw more than $90 billion of investment flows. And once again, we opened nearly a million credit cards in the quarter and grew average active card accounts and saw a growth in combined credit and debit spend of 15%. So, whether it's small business customers, whether it's business banking customers, which are under, you know, $50 million revenue companies or even middle market, you know, this money is coming in and out every day. What I meant operational accounts on the commercial side, you know, we -- all the cash is money in motion for those commercial customers, meaning it's part of their daily cash flow. If you follow the forward curve, it seems like that quarter-on-quarter increase could actually accelerate in the back half of the year. We are all focused on the ability of Fed user tools to reduce inflation. As Brian noted, that's 13% increase, driven by deposits growth and our related investment of liquidity. We added 14 billion of loans. We reported $7.1 billion in net income or $0.80 per diluted share. Annual Reports & Proxy Governance ESG Quarterly Earnings 2022 Q2 2022 Quarter Ended Jun 30, 2022 Earnings Release PDF Earnings Webcast Audio Webcast Transcript PDF Presentation PDF Supplemental Information PDF 10-Q PDF HTML XBRL ZIP XLS HTML Q1 2022 Quarter Ended Mar 31, 2022 Earnings Release PDF Earnings Webcast Audio Webcast Transcript PDF And then, just kind of squeezing similar -- at some point, your rate hikes not help net interest income, or it helps but just to a lesser extent? But just at a basic level, is your guide's earnings outlook better because of the NII and the higher payment rates and the better efficiency? Opinions or ideas expressed are not necessarily those of Bank of America nor do they reflect their views or endorsement. That result in higher earnings that will benefit CET1 ratios on an ongoing basis and more than offset the negative upfront AOCI impacts. Focusing on year-over-year sales and trading contributed $4.7 billion to revenue versus Q4 that was a 58% improvement, a little higher than typical seasonality and versus Q1 '21, we saw a decline of 8% as the prior year included higher commodities results due to weather related events. So, yes, that's tremendous operating leverage. PDF . Looking at linked-quarter growth from Q4 and combining consumer and wealth management customer balances, our retail deposits grew 53 billion in just the past 90 days. You know, lines are bouncing along just above the low point. Relationship-based ads and online behavioral advertising help us do that. And how about in terms of liquid assets? In our banking business, you can see the strong loan and deposit growth. And we added $22 billion in loans over the same period, marking our 48th consecutive quarter of average loans growth in the business, just consistent and sustained performance from the team. And the higher G-SIB surcharge, when is that -- is that effective by January 1, 2023, so, therefore, your minimum goes up by 50 basis points? Sign up for MarketBeat All Access to gain access to MarketBeat's full suite of research tools: Gooday everyone and welcome to today's Bank of America Earnings Announcement. Deal activity is down, but you mentioned pipelines are good. Contents: . So, it's one of the reasons we're still comfortable with loans growth, and we see the same momentum that we have over the course of the past 12 months. Then we think last year first quarter, this year first quarter, we had $1.4 billion more NII per quarter. Obviously, 10 years already at 28, it's up 50 bps from March 31st. This website uses cookies to ensure you get the best experience on our website.View our privacy policy. One little tiny follow-up is in Global Banking, I notice $2 billion more allocated capital, deal activities down, but you mentioned pipelines are good, so maybe you could just talk about just what's going on there? Our next question comes from Mike Mayo with Wells Fargo Securities. And year-over-year expense declined, reflecting the absence of costs associated with the realignment of a liquidating business activity to the all other unit, as well as some Q1 2021 accelerated cost for incentive changes. But we are fighting all those discussion you had. Turning to the business segments. They grew faster from February to March, and that's probably because of tax returns that they have. And what the big volume of comes from, you know, frankly, we have 35 million checking holders, which is a new record for us. So a few comments on NII. What level should we think -- should we expect, you would bring that down to? And as usual, we've tried to include business trends and digital stats for each segment. And in April through the first two weeks, spending is growing and faster at 18% over April 2021. What if wrong and things do get tougher. It takes both to be successful. And then the other question is just further rate back ups, obviously 10 years already at [Indecipherable]. I just -- that's somebody else's job to do that. What do you -- I heard the commentary about deposit balances, Brian, from you that it is still very high-end and lower-end customers. Good morning. 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You look at scenarios to see what will happen in a highly inflationary environment the year hard lending.... Our reservable criticized securities balances came down a little bit, $ 13.!
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