PROFIT GROWTH EXPECTED TO BE
DOWN DO YOU TO IMPACT OF COVID
LAB SHARES AT 201 AND CHANGE,
THE BANKS HAVE BEEN HIGHLIGHT
FRONT AND CENTER ALL WEEK
REPORTING QUARTERLY EARNINGS
BANK OF AMERICA REPORTED
EARNINGS EARLIER IN THE WEEK
FOURTH QUARTER PROFIT UP 28%
TO 7.01 BILLION DOLLARS, 82
CENTS A SHARE REVENUE UP 10%,
22.17 BILLION THAT WAS BEATING
EXPECTATIONS, ON REVENUE,
JOINING ME RIGHT NOW IS
CHAIRMAN AND CEO OF BANK OF
AMERICA, BRIAN MOYNIHAN, GREAT
TO SEE YOU THIS MORNING HAPPY
NEW YEAR TO YOU THANKS FOR
BEING HERE.
>> HAPPY NEW YEAR MARIA GOOD
TO SEE YOU AGAIN.
HOW WOULD YOU CHARACTERIZE THE
QUARTER ASSESS BUSINESS WITH
MOST RECENT EARNINGS WHAT
DROVE BUSINESS?
>> WELL IF YOU LOOK AT WHAT
BANK OF AMERICA DID FOURTH
QUARTER, STATISTICS 7 BILLION
DOLLARS EARNINGS, GOOD RIGHT
WAY GOOD RISK MANAGEMENT THE
INTERESTING PARTS 50 BILLION
DOLLARS IN FOURTH QUARTER IN
CORE MIDDLE MARKET OF
BUSINESSES, STRONG LOAN
GROWTH, CONSUMER GROWTH
CUSTOMERS BORROWING DOING
THINGS TERRIFIC, STRONG
DEPOSIT GROWTH RECORD
INVESTMENT BANKING FEES,
TRADING TEAM DID A GOOD JOB
FOURTH QUARTER WEAKER IN
TRADING HISTORICALLY, ALL IN A
GREAT QUARTER A GREAT YEAR
TEAMMATES DID A GREAT JOB
SERVING CUSTOMERS AGAIN DURING
TIME COVID DEALING WITH ALL
THINGS YOU HAVE TO DEAL WITH
GIVEN DAY.
>> YOU ARE RIGHT CHALLENGE
EVERYWHERE YOU’VE GOT
TREMENDOUS NUMBERS, BRIAN,
WALK US THROUGH WHERE THE
GROWTH WAS, BECAUSE FOR A
WHILE HERE, WE WERE TALKING
ABOUT THE CAPITAL MARKETS
BUSINESS, DOING REALLY WELL
OBVIOUSLY ALL MERGES
ACQUISITIONS, AND TRADING, BUT
THE LOAN GROWTH WAS JUST OKAY.
THIS QUARTER WAS A BIT
DIFFERENT, YOU ACTUARIAL
SEEING LOAN GROWTH PICK UP
SPEED WHAT ARE YOU EXPECTING
IN TERMS OF LOAN GROWTH ON
RESIDENTIAL AND COMMERCIAL
SIDE FOR 2022 BRIAN?
>> A WELL, WE TALKED BACK IN
OCTOBER, AFTER THIRD-QUARTER
EARNINGS, AND WE TALKED ABOUT
LOAN GROWTH, WE WERE SORT OF
AN OUTLIER STARTING TO SEE
MORE IN THIS QUARTER SAW IT
FASTER THAN MARKET, MEXICO
FRANKLY TWO THINGS A GREAT
CLIENT BASE MOST IMPORTANT
THING A GREAT TEAMMATES OUT
THERE WINNING IN MARKET
GETTING GROWTH, DRIVING IT BUT
WHAT DOES IT SAY ABOUT BROADER
ECONOMY, YOU KNOW, IF YOU LOOK
WHAT CONSUMERS DID IN FOURTH
QUARTER AMOUNT OF MONEY SPENT
WAS A RECORD AT BANK OF
AMERICA SO WE SAW LAST YEAR
3.6 TRILLION DOLLARS SPENDING
IN FOURTH QUARTER UP 30% OVER
2019 FOURTH QUARTER FORGET
ABOUT 20.
IN DECEMBER STRONG TOO EVEN IN
JANUARY, SO FAR FIRST THREE
WEEKS OR SO WE ARE SEEING SEG17TH SEEING THAT NUMBER
SEG17TH SEEING THAT NUMBER
HOLD UP DOUBLE-DIGIT GROWTH
CONSUMERS HAVE MONEY IN
PANDEMIC IN ACCOUNTS YOU ARE
SEEK COMMERCIAL BORROWERS,
SUPPLY CHAIN THINGS DIFFICULT
TO DEAL WITH, GETTING
EMPLOYEES, THEY STARTED USING
LINES AGAIN MEANS BUILDING
INVENTORIES RAW MATERIAL
SELLING GOODS ECONOMY IS
STRONG BUT LOOK OUR EXPERTS
HAVE 4% 2022 BUT STARTS TO
NORMALIZE IN 23 YOU ARE, THAT
IS THE JOB GET BACK TO NORMAL
AFTER RECOVERED FROM PANDEMIC
FED HAS TO DO NOW.
MARIA: YOU MAKE A LOT OF
GREAT POINTS I SPOKE WITH ONE
CEO IN TECH YESTERDAY HE SAID
MARIA THINGS WORSENED THIRD
AND FOURTH QUARTER WITH A
REGARDS TO SUPPLY CHAIN SHIP
SHORTAGE NOT GOING AWAY SOON
GOING TO BE AN ISSUE WHAT ARE
YOU EXPECTING FROM FEDERAL
RESERVE LOOK AT NERVOUS
MARKETS TRYING TO FIGURE OUT
IF FED IS GOING TO GET IT
RIGHT GOING FROM THIS EASING
POSITION TO NOW TIGHTENING
POSITION HOW -- ARE YOU
EXPECTING BRIAN?
>> IF YOU GO BACK TO START OF
PANDEMIC THE AMOUNT OF FISCAL
STIMULUS AMOUNT OF MONETARY
COMBINATION HITTING THE
ECONOMY AT ONCE DID ITS JOB
THAT THE ECONOMY RIGHT NOW IS
LARGELY THE SIZE IT WAS
PRE-PANDEMIC, UNEMPLOYMENT
BELOW 4% WAS 3.6 NOW 3.9,
THOSE NUMBERS MEAN ECONOMY IS
RECOVERING THE FED HAS TO
NORMALIZE THINK 2019, WITHH
WHERE FED WAS CHAIR, VOTERS
HAD A 2% FED FUNDS RATE
ECONOMY TO GROW 2%, ECONOMY
WAS MIDSIZED UNEMPLOYMENT 3.6
WHATEVER IT WAS EXACTLY WHAT
YOU THE MARKET EXPECTS FOUR
FED INCREASES WE AGREE WITH
THAT RESEARCH TEAM TERRIFIC,
SAYS 4 FED INCREASES
EXPECTATION THEY MOTIVE FASTER
INFLATION NUMBERS ARE REALLY
LARGE THAT WILL BRING GROWTH
RATE ECONOMY BACK TO NORMAL 6%
LAST YEAR 4% THIS YEAR 2% NEXT
YEAR NORMALIZING ACTIVITY
IMPORTANT TO BRING TO STOP THE
POTENTIAL, THINGS THAT GO ON
WHEN MONEY IS TOO LOOSE.
MARIA: EVERYBODY EXPECTED
EXPENSESING TO UP WE CONTINUE
TO SEE PRESSURE, ON WAGES, AND
ON COMPETITION FOR PEOPLE.
BRIAN I WANT TO GET YOUR TAKE
ON ALL OF THIS, BECAUSE AM I
RIGHT THAT YOU SPEND 36.1
BILLION ON WAGES AND BENEFITS
LAST YEAR THAT WAS UP 10% FROM
A YEAR EARLIER?
WE’VE GOT THIS PRESSURE ON
WAGES, THAT HAS NOT LET UP AT
ALL, WHAT CAN YOU TELL US?
YOU WERE THE FIRST I THINK OF
ALL MAJOR BANKS TO RAISE
WAGES, ON TELLERS, AND THE
HOURLY WAGE, BUT YOU ARE
SEEING A LOT OF PRESSURE FROM
ALL SORTS OF -- WHAT CAN YOU
TELL US?
>> WELL, YOU KNOW DEPENDS, THE
MARKETS REALLY BUSINESS
FINANCIAL ADVISER COMPENSATION
DRIVEN BY MARKET MARKET,
BUSINESS WITH RECORD REVENUES
175, 170 BILLION DOLLARS FLOWS
INTO THOSE WEALTH MANAGEMENT
PLATFORMS LAST YEAR ALONE
THOSE TALES GOING A GREAT JOB
THAT WAGE, THE INVESTMENT
BANK, OF COURSE, THEIR WAGES
LIFT BECAUSE THEY HAD A GREAT
YEAR FOUR QUARTERS ABOVE TWO
BILLION DOLLARS, IN INVESTMENT
BANKING REVENUE RECORD FOR THE
COMPANY, THE TRADING HAD A
RECORD YEAR LAST YEAR UP,
IMPORTANTLY, WE HAVE BEEN ON
AB PATH TO MAKE SURE THAT WE
ARE BEST PLACE FOR EMPLOYEES
TO WORK, OUR CORE EMPLOYEES
HAVE HIGH SINGLE DIGIT WAGE
CFOS AFTER YEAR AFTER YEAR
LAST YEAR FOURTH STRAIGHT YEAR
COMPANY WADE BONUS A CHANCE TO
PARTICIPATE IN SUCCESS WHEN
YOU TALK TO CLIENTS WAGE
GROWTH FLAIRING ASPECT OF WAGE
GROWTH THE PRESSURE PUTS ON
MARGINS VERY SERIOUS CONCERN I
THINK THAT IS WHAT FED HAS TO
WORK ON, AND -- GET RIGHT THEY
HAVE TO WORK ON GETTING THE --
THE GROWTH AND INFLATION
WAGES, AMOUNT OF WAGES GROWTH
AND WAGE PRICE TO GET IT DOWN
MORE NORMAL TASK AHEAD
ENGAGING ON IT LATE LAST YEAR.
MARIA: SO, BRIAN, WHAT DO YOU
NEED AT THIS POINT DO YOU SEED
THE NAME BRANCH FOOTPRINT THAT
USED IN THE PAST AS THESE
WAGES ARE GOING HIGHER, AND
PRESSURING ALL BUSINESSES --
TO STAGES, HOW WILL YOU DEAL
WITH THIS?
WE TALKED ABOUT, TECHNOLOGY,
VERSUS THE BRANCHES IN THE
PAST.
BUT WAS THIS ONE OF THOSE
TIPPING POINTS WHERE YOU TAKE
A LOOK, AT WHETHER OR NOT YOU
NEED THAT KIND OF A FOOTPRINT.
>> WE STARTED TAKING A LOOK 15
YEARS AGO AGO WHAT WE TALKED
ABOUT HIGH TOUCH HIGH CHECK,
IN OUR CONSUMER BUSINESSES,
YOU HAVE A DOMINANT PART OF
ACTIVITY, WE’LL MANAGEMENT
COMMERCIAL BANKING INVESTMENT
BANKING MARKET HAS MORE
ATTACHED TO IT CLIENTS WANT
ONE TO ONE RELATIONSHIP VERY
DIFFERENT ACROSS THE BOARD
DIGIT ACTIVITY LAST QUARTER
2.7 BILLION DIGITAL
INTERACTIONS WITH CLIENTS IN
QUARTER WE SPEND 3 1/2 BILLION
DOLLARS A YEAR ON NEW
TECHNOLOGY CODE, 10, 12
BILLION RUN PLATFORM NEW
INITIATIVES, ACTIVITY.
ERIC, PLATFORM -- HAS FOUR
TIMES AS MUCH ACTIVITY GOING
THROUGH IT FOURTH QUARTER THIS
YEAR VERSUS FOURTH QUARTER 21
VERSUS -- DIGITIZATION HIGH
TOUCH HIGH-TECH NEXT TODAY,
TWO OR THREE00 THOUSAND PEOPLE
IN BRANCH A GREAT TEAMMATES
SERVE WELL OUR JOB HAVE
CUSTOMER HAVE ANY WAY THEY
WANT AUTOMATION, DIGITIZATION,
6,000 BRANCHES, A LOT OF -- US
MORE EFFICIENT ON THE OTHER
HAND CUSTOMER SERVICES HAVE
GONE UP SIZE COMPANY GONE UP
GROWING FASTER IN MARKET THAT
IS A GREAT COMBINATION, THAT
IS WHAT WE’RE TRYING TO
ACHIEVE WITH BANK OF AMERICA
PERFECT.
>> I THINK YOU MAKE GREAT
POINTS I GUESS I AM TRYING TO
UNDERSTAND, IS HOW SIGNIFICANT
IS THE PRESSURE, ON WAGES, I
KNOW THAT YOU’VE SEEN SOME
ADVISERS LEAVE HOW MUCH
PRESSURE ARE YOU FEELING, TO
MAKE SURE TO KEEP HE THAT TOP
TALENT AT BOFA, YOUR BIGGEST
EXPENSES LABOR, AND THEN
THERE’S TAX BANK OF AMERICA
SPENT 3 1/2 BILLION ON NEW
TECH INITIATIVES LAST YEAR
YOU’VE GOT CYBERISSUES THERE
THAT YOU ARE CONTINUING TO
SPEND BIG MONEY ON.
ARE YOU GOING TO BE DOING MORE
FINTECH DEALS?
>> THIS WAY WE DO THIS
OPERATIONAL EXCELLENCE DRIVE
PRINCIPALS WE CALL RESPONSE
GROWTH GROW, DO RIGHT RISK
CUSTOMER FOCUSED SUSTAINABLE
ONE OF THE PARTS BEING
SUSTAINABLE IS OPERATIONAL,
LENS WORK 2000 IDEAS LAST YEAR
ALONE WORKED, TO IMPROVE
FRANCHISE MONEY OUT OF WORK
CAN GO AWAY PUTTING MONEY INTO
MORE PEOPLE TO SERVE OUR
CLIENTS, MORE TECHNOLOGY TO
SERVE THEM MORE WAGES FOR
THOSE TEAM TO DO A GREAT JOB
DESERVE TO GET PAID MORE YES,
VERY SACRIFICE.
>> ATRIION, WE PRIDE GREAT
BENEFITS CHILDCARE THAT ENABLE
PEOPLE TO CONTINUE TO WORK
WITH YOUNG FAMILIES A LOT OF
PRESSURE WE PROVIDE COMMUNITY
BENEFITS, ET CETERA,
IMPORTANTLY GREAT STARTING
WAGES HIRING LOTS OF KIDS OUT
OF SCHOOL FRANKLY ABILITY FOR
HEALTHCARE IN OUR COMPANY, OUR
TEAMMATES, WHO ARE --
HEALTHCARE PROOM INCREASE
SINCE 2011 WE CONTINUE TO KEEP
THAT, TO SERVE THEM WELL ALL
THAT IS WHAT WE DO TO BE A
GREAT QUARTER THAT IS WHY WE
HAVE A GREAT TEAM THEY DO A
GREAT JOB FOR US.
>> I AM GLAD YOU MENTIONED
WEALTH MANAGEMENT 171 BILLION
THERE WHAT A GREAT PERFORMANCE
IN TERMS OF CAPITAL MARKETS,
WHAT YOU ARE SEEING IN WEALTH
MANAGEMENT AND NEW ACCOUNTS,
BRIAN, LET ME TURN TO POLICY,
BECAUSE WE KNOW THAT PRESIDENT
BIDEN NOMINATING PROGRESSIVES
SARAH BLOOM RASKIN FOR THE
VICE CHAIRMEN OF SUPERVISION,
THIS IS GOING TO BE THE MOST
IMPORTANT ROLE IN TERMS OF
OVERSEEING THE BANKS, BY THE
WAY, THIS IS THE DEMOCRAT --
HOUSE REPRESENTATIVE RASKIN,
YOUR THOUGHTS ON HOW THINGS
WILL CHANGE, REMEMBER, WHAT
SHE WROTE BACK IN SEPTEMBER.
SAYING THAT WELL NONE OF THE
REGULATORY AGENCIES ARE
SPECIFICALLY DESIGNED TO
MITIGATE THE RISKS OF CLIMATE
RELATED EVENTS SHE WANTED
CLIMATE CHANGE TO BE A MAJOR
PRIORITY FOR THE BANKING
SECTOR.
YOUR THOUGHTS ON HOW YOU WILL
BE DEALING POTENTIALLY IF SHE
GETS APPROVED WITH THIS NEW
BANK SUPERVISOR AND HOW ABOUT
-- TO CHANGE SPENDING
ALLOCATING CAPITAL TOWARDS
CLIMATE?
>> WHAT WE DO, OVERALL YOU
KNOW, MARIA, I SAID TO YOU
MANY TIMES WE’VE BEEN AROUND
AS COMPANY SINCE 1784, THE
COMPANY LOTS OF REGULATORY
SCREAMS BANK CHARTER NUMBER
TWO, ALEXANDER HAMILTON WAS
THERE WE WILL BE AROUND, THE
STORY CHANGES REGULATIONS
CHANGE WE ADAPT TO THEM IT IS
WHAT WE IN MYSTERY HAVE TO DO
THE KEY TO REMEMBER OVER THE
LAST, YOU KNOW -- GREAT
FINANCIAL CRISIS IN 78, AMOUNT
OF CAPITAL IN INDUSTRY
LIQUIDITY THE WAY INDUSTRY
OPERATES, ALLOWED IT IN
PANDEMIC CRIES A SOURCE OF
STRENGTH TORT AMERICAN ECONOMY
SUPPORTING COMMERCE WITH
MILLIONS OF CONSUMER DEFRLS
SUPPORTING COMMERCE RAISING
CAPITAL FOR THEM KEEPING
BANKING SYSTEM OPEN FRANKLY
OTHER THINGS HAD TO SHUT DOWN
EVERY DAY WE OPERATED I THINK
PEOPLE HAVE TO REMEMBER NO
MATTER WHAT THE DEBATE IS
ABOUT, INCREMENTAL CHANGE THE
CORE BANKING SYSTEM IN UNITED
STATES A PILLAR OF STRENGTH
NOT ONLY FOR UNITED STATES BUT
FOR THE WORLD I THINK THAT IS
THE KEY, AND SO, WE WILL
WHATEVER REGULATION COMES UP
WHATEVER HAPPENS WE WILL DEAL
WITH, SO YOU KNOW THAT IS THAT
IS THE LIFE OF A BANKER I
THINK A HE WILL TALENTED
TEAMMATES KNOW HOW TO WORK OUR
WAY THROUGH WHATEVER COMES AT
US.
MARIA: QUICK BEFORE I GO
OBVIOUSLY, A NERVOUS MARKET
MARKETS DOWN FIRST TWO WEEKS
OF THE YEAR, IS THIS
WARRANTED?
WHAT KIND OF 2022 ARE YOU
EXPECTING MACRO STORY BRIAN.
>> LOOK AT OUR STOCK BOUNCED
DOWN A LITTLE BIT AROUND
EARNINGS, EVERYTHING, UP FOR
YEAR 40% UP YEAR LAST 12
MILLIONAIRES MARKET HAS BEEN
UP A LOT AS FED SLOWS DOWN
ECONOMY SLOWS DOWN, BY DESIGN,
BACK MORE NORMALIZED CONDITION
THE MARKET IS GOING TO REFLECT
THAT OUR EXPERTS S&P, FLAT FOR
THE YEAR, YOU KNOW, LOOK WE
WILL SEE HOW THAT PLAYS OUT,
REALITY IS THIS IS WHAT WE
EXPECTED OUTCOME OF A CHANGE
IN HE MONETARY POLICY CHANGE
IN FISCAL POLICY HAD TO TAKE
PLACE IT HAD WHERE AN NOW THAT