As you recall, we invested much of our securities books in held to maturity due to our huge excess and stable deposit base. And on that basis, asset sensitivity at March 31st was 5.4 billion of expected NII over the next 12 months. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. So going forward, I think our growth - we have plenty of capital to support the growth that we expect in terms of RWAs. So we grow deposits, which you should be cheering for and the core basis we do, we will invest those deposits in a careful way. It's $2 trillion of deposits, 1.4 trillion just on the consumer -- for people side of the business. So I want to see if I could, a, get your comments on your thoughts around today's environment versus history. 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. Complete the form below to receive the latest headlines and analysts' recommendations for your stocks with our free daily email newsletter: View the latest news, buy/sell ratings, SEC filings and insider transactions for your stocks. 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. What does that tell us? And so we'll manage our interest rate exposure as the environment develops from here. And as you can see, asset quality of our customer's remains very healthy. But our economists do not have a recession predicted in terms of this year, it's around 3% growth, next year, a little over 2%. It's as we do all the work we do in the core franchise to grow the number of customers. 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. The strength in equities was driven by strong performance in derivatives. You are continuing to another website that Bank of America doesnt own or operate. On Russian counterparty risk, our teams have done a tremendous job trimming down our exposures. The simple fact is we had 20 straight quarters of operating leverage and we're starting to see that come through. So, we, like you, are looking at two things. What are you -- I heard the commentary about deposit balances, Brian, from you that they're still very high in the lower-end customers. Royal Bank of Canada ( NYSE: RY) Q4 2022 Earnings Conference Call November 30, 2022 8:00 AM ET Company Participants Asim Imran - Head, Investor Relations Dave McKay - President and Chief. What's your plan for that? So a responsible growth has served us well here and if you might note after the 2014 Crimea conflict, we intentionally do such exposure and Russia has not been on our top 20 country risk exposure table since 2015. 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. [Inaudible] as the earning style of the franchise generated 15.5% return on tangible common equity this quarter, and we'll continue to go up -- continue to be strong based on NII improvement. I trust everybody has had a chance to review our earnings release documents. If you go to Slide 2, I want to mention, show some of the strengths we see in our U.S. consumer base. So you're right to pick up on the commentary because Brian highlighting the strength of the consumer, which remains extraordinary, and at the same time, what we see on the asset quality side of commercial is just continued steady improvement as the economy reopen. Securities, strategic advisory, and other investment banking activities are performed globally by investment banking affiliates of Bank of America Corporation ("Investment Banking Affiliates"), including, in the United States, BofA Securities, Inc., Merrill Lynch, Pierce, Fenner & Smith Incorporated, and Merrill Lynch Professional Clearing Corp., all of which are registered broker-dealers and Members of SIPC, and, in other jurisdictions, by locally registered entities. Hi, good morning. I was wondering if you could talk a little bit about expenses and operating leverage. they have capacity to borrow more. And in April through the first two weeks, spending is growing and faster at 18% over April 2021. And we paid out 4.4 billion in common dividends and share repurchases. We added $14 billion in loans, that how it's going to be our first choice in terms of investment. So as we thought, Global Markets did come down $5 billion this quarter. But the other day, the deposits are growing economically at a much faster rate than the degradation on the mortgage-backed cash. But the reality is that the G-SIB buffer is growing because our customer franchise is getting bigger in a method of calculation does not, you know, adjust for business success, size of economy, stock market cap increase, all those things, which I think you have a pretty good favor of, Gerard. And the growth in earnings power and the covers up this of the year. So, how do we pay for all that? We saw both strong investment flow performance in addition to banking flows. I think, to give good credit as an observer bank, Mike. That FICC decline reflects the higher prior-period commodities and a weaker credit trading environment. core operating cash for commercial customers. That, coupled with our digital leadership, is delivering a modern Merrill and a modern Private Bank for clients through enterprise relationships. The business momentum with our commercial clients remain strong in the first quarter. And at 1.1 trillion, it represents roughly a third of the balance sheet. Contents: . I think you said. Looking ahead, we continue to feel good about the asset quality results of our consumer and commercial businesses near term, given our customers' high liquidity, low unemployment, and rising wages. For sure, as you saw some in this quarter. Through continued work on operational excellence and digital engagement. Your line is open. 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. [Operator Instructions]. So, the interest rate hikes comes better NII. And in fact, they've done more than 50% in just the past year. On asset quality more broadly, we continue to see very strong metrics. On the asset management side, mostly, it will be around market levels. Alastair, as you guys are well-positioned as pointed out for your balance sheet for rising interest rates, which seems very, very likely this year obviously, and obviously, you guys are not a PT, but the battle crude, battleship to turn the balance sheet into a position and when the Fed finally succeeds, let's say in hitting inflation, knocking it down, they stop raising rates, maybe you can have the coverage, get the economy going, when do you guys start thinking about, after the Fed succeeds the reducing inflation, and you may have to reposition the balance sheet and not be as asset sensitive. Can you give us a sense as to how long you think you can stay flat for? Turning to the business segments. Your line is open. Because those have come down a little bit when you look at them quarter over quarter, and they're also down some year over year. We grew and expanded customer relationships across every business. So, we normally take a look at our deposit betas over the course of history. Hi, thanks, good morning. And that simply reflects a small amount of consumer real estate deferrals expiring with the expiration of the CARES Act. 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. It takes both to be successful. But obviously, we need market conditions to cooperate. But I would say across all kind of flattish slightly, maybe slightly up. And as a reminder for the financial statement presentation in this release, the business segments are all taxed on a standard fully taxable equivalent basis. That remains something that we're focused on total value. Mondelez International Q1 2022 Earnings Call Transcript Tue., April 26, 2022 | AlphaStreet. It's probably most easily identified by looking at pre-tax pre-provision earnings, which grew 32% year-over-year. But, you know the reality is, they've got to take the inflation out of system. We obviously don't control rates. Market Data powered by QuoteMedia. The new revenues will generate more margin profit, Mike. They grew sort of 1% -- 1% not annualized but 1% per month, pretty consistently 1% to 2%, the higher at the lower end balances. OK. Let's turn to expenses, and we'll use Slide 12 for that discussion. So, that's -- you know, it's already helped and as loan and deposit growth are matched with some modest rate increases. Mortgage loans grew $4 billion. Just remember that those that started to kick in in February. I think if I gave you the specific quarter across deals I basically give you an earnings projection for the rest of the quarters, so Erika, I think if you look at the businesses you're starting to see them got more in line. 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 '21 accelerated cost for incentive changes. So Betsy if you remember, coming into the pandemic, we had hit the point, we brought expenses down and said we -- now we are an operating leverage company. I hope everybody had a nice weekend, and thank you for joining the call to review the first quarter results. Audio Webcast Transcript. This website uses cookies to ensure you get the best experience on our website.View our privacy policy. But yes, we will keep driving it down. But you don't mark to market that $1.4 billion of deposits. [Operator instructions] We'll go first to Glenn Schorr with Evercore. We have $2 trillion deposits and less than $1 trillion in loans. We model every scenario, but we don't -- I don't put a specific percentage. Recognizing that held to maturity portfolio doesn't get mark-to-market. And as usual, we've tried to include business trends and digital stats for each segment. But I've been wrong before and the stock market is telling us there might be a pretty good chance of a recession. So these are sticky deposits such what we're just trying to make sure you -- everyone understands. And then we tried to give you the broad outlines around $5.4 billion versus forward $6.8 billion versus but it's obviously very meaningful but we're only prepared to look out over the course of the next 90 days, because we feel like we've got pretty good confidence around that. As we open our earnings call this quarter, we want to acknowledge that there's -- the humanitarian crisis continue to take place in Ukraine, and remain watchful and have provided assistance from our company to the Ukrainian citizens and staying ready to help further where we can. Dave & Buster's Entertainment, Inc. (NASDAQ: PLAY) Q3 2022 Earnings Call Transcript December 6, 2022. And so, that would end up drive -- it's good for our company to drive our earnings. Earnings Release. Across the combination of our consumer and wealth businesses, we saw more than $90 billion of investment flows. And that's the money people have in motion in a given day. We've managed that pretty closely. Thank you. And that's probably because of the tax returns that they have. And I'd just note that that number has come down a little bit month after month after month. And we're obviously aware of what the Fed is trying to engineer. We also returned $4 billion to shareholders in common dividends and share repurchase, will represent about 27 basis points of use. Thank you, Katherine. Read the full transcript for Packaging Co. of America's Q1 2022 earnings call at MarketBeat. NPL saw a modest increase. Moving to deposits on Slide 10. What do you think, Brian, kind of gut feel and, Alastair, by the numbers? Even more impressive, look at Zelle and Erica volumes up more than four times than pre pandemic levels. 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. We're managing to the total client relationship there. On NII, remember the rate increases came late in the quarter and had little first quarter 2022 NII impact. Our current very limited activities in Russia are focused on compliance with all sanctions and other legal and regulatory requirements. Yeah, at the end of day, the reason why we have Securities investments is because we have $2 trillion of deposits and a $1 trillion of loan. We grew pre-tax pre-provision income by 8%. Then we think last year first quarter, this year first quarter, we had $1.4 billion more NII per quarter. And therefore, you end up with a fairly significant impact in those businesses which are obviously high sense of growth in NII. When it comes to the card side, I'd say, flattish. Yet, we still grew NII by $200 million in line with our guidance we gave you last quarter. Despite the market turmoil, we had zero days of trading losses. We all know that will take interest rates -- rate hikes and a reduction in the balance sheet. That's the guidance we gave you last quarter, we don't see anything different this quarter. We do remain mindful of all of these. I appreciate all that. 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. ZIP XLS HTML. It's just how do we invest in this. Thanks for taking my questions. Your line is open. AOCI declined as a result of the spike in loan rates that Brian referenced and we saw the impact in two ways. 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. What makes them even more impressive is all the financial centers are now open and back to operating at the usual great capacity. Our current very limited activities in Russia are focused on compliance with oil sanctions and other legal and regulatory requirements. And as you expect, the message by which people spends continues to shift away from cash and checks and replaced with digital alternatives. Or it helps but just to a lesser extent? You know, our view is that -- our goal is to keep that down to a modest expense growth, if any, and as we move to '24, etc. Go now to Steven Chubak with Wolfe Research. We then went back and looked at the 12 months proceeding growth rate in deposits and in fact, during the 12 months preceding that peak, deposits grew 5% driven by organic growth engine, our market share gains and overall economic growth. All earnings call transcripts. And I think the other thing just to bear in mind is, our next meeting is in May. Thank you. Semiconductor solutions revenue was $25.8 billion, up 27% year over . So, that's one thing we've done. We're now processing more outgoing Zelle transactions than checks. 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. But the reality is, we have economists predict recessions and we all that added about them, but the -- and the reality they always have a prediction for recession that runs around 10% to 20% according to economist activity. But with all the technology investments, shouldn't your incremental pre-tax margins be greater on your new revenues? We manage that pretty closely. Statistics and metrics included in our ESG documents are estimates and may be based on assumptions or developing standards. Salesforce Cuts Labor, Shows Strong Earnings Despite Challenges. Your line is open. Good morning. So if it goes like 3.3 [Phonetic], we get the same kind of hit as this past quarter? RT=Real-Time, EOD=End of Day, PD=Previous Day. And despite reporting our commercial Russian lending exposure in reservable criticized, those levels still declined 1.7 billion from Q4. Completely different question for you, folks. Got it. Well, I think we're wise to do that. The question always is, if the Fed is hiking rates because of, you know, inflation that they can't get back under control and you got to look at the stuff out. Bank of America does not assume liability for any loss or damage resulting from anyone's reliance on the information provided. I think, it will keep coming down. So we'll get revenue grow faster and expense growth, but we'd start to grow modestly. This is not an area that you have direct exposure of Bank of America. Pre-pandemic are normal, was around 35%. And so, we have reserves on top of that basis for tough times. So we're not seeing that deteriorated all yet. Finally, we saw expense decline by 4% driving strong operating leverage. That remains something that we're focused on total value. Youre reading a free article with opinions that may differ from The Motley Fools Premium Investing Services. Glenn. Looking ahead, we continue to feel good about the asset quality results of our consumer and commercial businesses near term given our customer's high liquidity, low unemployment and rising wages. They're, you know. So it's a small -- small amount every quarter that we'll be doing. 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. It's up about 9% year-on-year. If you go to the next cohort up, those with $2000 to $5000 of cleared balances in the pre-pandemic. And 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 in several areas, including moving to No. First, we had a reduction from a change in the value of our AFS debt securities that was $3.4 billion. And we told people we hedge it, and now you're seeing the benefits of those hedges. Retail deposits with our consumer and wealth management businesses grew $190 billion and our retail deposits have now grown to more than $1.4 trillion where we lead all competitors. [Operator instructions] It is now my pleasure to turn today's program over to Lee McEntire. Our Quarter 1 allowance includes increased reserves from this direct exposure. And Alastair gave you some detail. We increased the Stage 1 . And now what protects us in a rising rate environment, is precisely the asset sensitivity we still had left in the Company. We saw a strong investment flows. 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? And a completely different question for you, folks. 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. And obviously, we'll get significant benefit over the course of the next 100 basis points. So our first use will always be for loans and if we keep seeing the same kind of loans growth we are seeing right now, the securities may decline over time and they stay flat, will see, depends on deposits. XBRL. Yes so, liquidity is down in the quarter, that's largely based on funding the global markets business with seasonal. 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). Any color on that? But, at the end of day we're saying expenses are flat this year. We're, you know, around 66, we're down year-over-year. Again, recognizing it's not marked, but economically, is there any way to protect yourself in kind of a tail environment where rates go up a couple of hundred basis points like they did in 1981 or --. Notable customer activity highlights included our 228,000 net new checking accounts opened in Q1, which represents our 13th consecutive quarter of net new consumer checking account growth. Turning to Slide 9, we included the schedule on average loan balances. This is the basis point increase. Are Investors Hearing The End Of Spotify's Downtrend? Is there any strategies you can employ that could actually reduce that buffer before we get there? And you'll note, we put additional capital against each of the businesses due to their growth. And the worse, you all read about the car industry, the line uses of car, Company car auto dealers is real low and it just as an example. Looking forward, and with continued expectations at growing NII combined with strong expense control, we expect to drive operating leverage and see our efficiency ratio work back towards 60%. Thanks. Okay, got it. And therefore, you end up with a fairly significant impact in those businesses, which are obviously highly sensitive growth in NII. And if you look at the consumer efficiency from the first quarter, last year this quarter, you point at efficiency ratio. We've opened 7, 8, 10 markets and we have $30 billion of new deposits in those branches to give you a sense and there's only 140 branches. Contents: . The consumers are sitting on lots of cash. And we've talked before about the fact that we have about 200 billion of treasuries there. By creating a free account, you agree to our, This Is the Perfect Gift for Entrepreneurial Kids, House advances giant Texas storm surge project in water bill, Gas prices fall again in NJ, nation as demand remains low, Twitter relaunching subscriber service after debacle, Japanese company's lander rockets toward moon with UAE rover, Facing COVID surge, China expanding hospitals, ICUs, Police arrest man wounded in Oklahoma pot farm slayings. Got it. But for now, I think that's a reasonable assumption. Thank you, Brian, and I'll start with the summary income statement on Slide 7, where you can see our comparisons illustrating 3% year-over-year operating leverage produced by growing revenue and managing our costs well. Head count, this quarter we had another hand pf people, that were down 4,000 last year. We modestly increased our full year new tech initiative budget for the year to 3.6 billion. If you prefer that we not use this information, you can opt out of online behavioral advertising. Important in the small business area originations are strong and back past pre-pandemic levels of quarterly originations and you're seeing home equity come back up even though mortgage will fall off. Yeah and Alastair gave you some detail but just simply put, John, we expect to be relatively flat for 2022 versus 2021. XBRL. AOCI declined as a result of the spike in loan rates that Brian referenced, and we saw the impact in two waves. On the upper left, we looked at our customers that have both the credit card and a deposit account with us. One little tiny follow-up is in global banking, I noticed $2 billion more allocated capital. Net interest income grew on the back of strong loans and deposits growth. Bank of America Coronavirus Resource Center, How we help people, companies and institutions realize their financial goals. Despite the market turmoil, we had zero days trading losses. We will benefit as the rates move off to zero floors, allowing us to earn more money on those check and deposits. Obviously, 10 years already at 28, it's up 50 bps from March 31st. You know, I think, you're a good critic of and observer of banks, Mike, but the reality is, we have economists predict recessions and all the outages about them. We're opening new branches. And we may move a little shorter or longer on what we invest in. We made trading profits every day during the quarter. And they're all swapped to floating precisely to insulate us. Every single customer group, global banking, large corporate, middle market, business banking grew, as well as commercial loans and wealth management. But we're very levered to rates going up from here. And so that will end up drive what's good for our Company and drive earnings. I just wanted to ask you about just that end demand question, any supply chain, any interchanges in line utilization and just what are you seeing out there on the commercial demand side? So, that, I think we all know. Learn More, Bank of America(BAC -0.18%)Q12022 Earnings CallApr 18, 2022, 8:30 a.m. We pinpointed the peak rate paid to customers during quarter, reflective of the peak Fed tightening. We'll see it in NII mostly, and we'll see it in detail in elsewhere. I, like you, would anticipate less from the following 100. Well, I think what you're looking to is some of the RWA growth has been coming from a pretty significant loans rebound, particularly in commercial. Hi, Brian and Alastair. With regard to regulatory capital since Brian already talked about CET1, I'd simply note that our supplemental leverage ratio was stable at 5.4% versus the minimum requirement of 5% and still leaves us plenty of capacity for balance sheet growth and our TLAC ratio remains comfortably above our requirements. All earnings call transcripts. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services. Net interest income grew on the back of strong loans and deposits growth. So, look, I think we, broadly speaking, agree with you. This Is Why Daktronics Fell 40% In One Day. Moving to deposits on slide 10. Thank you. 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. Hi. So I'm not going to shatter box, you know, soft landing, hard landing, and all that stuff. When it comes to the card side, I'd say flattish. Your line is open. Royal Bank of Canada (NYSE:RY) Q4 2022 Earnings Call Transcript. Revenue declined as a result of higher volume of deals particularly solar and therefore higher partnership losses on ESG investments and this is partially offset by the tax impact in this reporting unit. And remember, if you go back over the course of the past couple of years, in the pandemic, we didn't see the loans growth. are we seeing that yet? We saw both strong investment flow performance in addition to banking flows. NII was up $200 million versus the fourth quarter as the benefits of lower premium amortization and loans growth more than offset the headwinds of two less days of interest accruals and lower PPP fees. A couple. So, we're going to have to retain 50 basis points more capital. We obviously don't control rates. 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. Stock Market Sectors: What Are They and How Many Are There? As you will note, the average card balance of our credit card customers that had deposit relationships are still 8% lower than they were pre-pandemic. Q1 2022 Bank of America Earnings Conference Call :: Bank of America Corporation (BAC) Investor Relations ESG Events Overview Events Presentations Annual Shareholder Meeting Email Alerts Q1 2022 Bank of America Earnings Conference Call Apr 18, 2022 8:30 am ET Earnings Release PDF Earnings Webcast Audio Webcast Transcript PDF Presentation PDF ET Contents: Prepared Remarks Questions and Answers Call Participants Prepared Remarks: Operator Good. Yes, the question always is if the Fed is hiking rates because of inflation that they can't get back under control and you got to look at the stuff out and very focus on NII that you got to look at what's going on the economy generally. ET LLY earnings call for the period ending March 31, 2022. So I think, when I asked Matthew, he said somewhere between strong and very strong. Also, and as usual, Q1 of every year includes segment capital level evaluation. Graeme Hepworth : Yes, the credit quality this quarter, City National continues to perform very strongly. Here's how it works: We gather information about your online activities, such as the searches you conduct on our Sites and the pages you visit. These ads are based on your specific account relationships with us. Yup. We have three straight quarters of operating leverage. Wanted to ask a follow-up on the earlier discussion on the 60% efficiency ratio. Your line is open. 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.). Your line is open. And once again, we opened nearly a million credit cards in the quarter and grew average active card accounts and so growth in combined credit and debit spend of 15%. 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. The volatility has obviously been hardest felt in equity capital markets and in high yield. Turning to Slide 11 and net interest income. So, I think that's one of the reasons you see our AOCI hit is much smaller than many others. That results in us having a balance sheet that is positioned to the benefit of rising rates because we have some of zero cost deposits. Good day, everyone, and welcome to today's Bank of America earnings announcement. Or would you engage this new accounting rule that's been finalized in March 28th that enables you to do last layer hedging on HTM book? Transcripts Financial Bank of America Corporation (BAC) CEO Brian Moynihan on Q1 2022 Results - Earnings Call Transcript Apr. Revenue improvement of 12% year-over-year reflect higher leasing related revenue and NII growth, partially offset by those lower investment banking fees. I get, if you wait to adjust Wealth Management, but with all the technology investments, shouldn't your incremental pretax margins be greater on your new revenues and if so, shouldn't your terminal efficiency, business mix adjusted be better than it was before? But -- and so when we say flat year over year, you know, basically meaning '23 versus '22 in that $59 billion to $60 billion range. And our TLAC ratio remains comfortably above our requirements. ET Contents: Prepared Remarks Questions. Your line is open. Over the past year, we brought on a significant number of net new households 24,000 in Merrill and another 2000 in the private bank. A year ago we highlight the green shoots of our loan growth. But it's really -- and we only invest in treasuries and mortgage-backed securities. 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. Where should your pre-tax margins be on new revenues that are generated ahead? Steven Chubak -- Wolfe Research -- Analyst. You know that and we know it. And I want to thank the team for all the great work they've done. 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. Well I think that if -- we made progress each quarter, Basically, we're around the 66% [Phonetic], we're down year-over-year. contact@marketbeat.com And so, at 2 trillion -- we grew $200 billion -- or $180 billion, $190 billion deposits last year first quarter, this year first quarter. Small business card spend was up 28% year over year. Thank you, Lee. The business generated a 15% return in Q1 even with a 12% increase in the capital allocated to the business. So, we've got seven quarters to build toward that. Mike, the only the other thing I'd add is, you know, when Brian talks about operating, it's one of the reasons we highlight that 92%, 93% of our consumer accounts are primary. ZIP XLS HTML . Unemployment is low and wages are rising. In addition to modestly higher marketing costs this year, our investments also include adding up to 100 new financial centers and we also plan to renovate more than 800 more during the year. I know quarter over quarter, they are. Recognizing that the held-to-maturity portfolio doesn't get mark-to-market, I would think, though, on a kind of underlying core economic basis, it's never fun to have a large bond portfolio that's underwater. Brian Moynihan -- Chief Executive Officer. As you can see, 7 billion of earnings, net of preferred dividends, generated 41 basis points of capital. We grew revenue, we reduced costs, and we delivered our third straight quarter of operating leverage coming out of the pandemic. So, thank you. And we're just operating in the market conditions that were given. ET. One thing we'd ask you just to keep in mind for each of the businesses is Q1 expense includes the seasonal payroll tax expense, which has negatively impacted efficiency ratios or profit margins in Q1. In the upper right, you can see that. But the cash flow off of it is fairly significant. That's always going to be our first choice in terms of investment. And how do you think, if we do get kind of the second 100-basis-point rate increase of the market anticipating, what does that kind of look like in terms of your rate sensitivity? Now, we typically disclose our asset sensitivity based on a 100-basis-point instantaneous parallel shock in rates above the forward curve. 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. We'll go now to Steven Chubak with Wolfe Research. Today they have an -- at that time, pre-pandemic they had an average balance of 1.4 around $1400. Well, this is nearly two years away, we continue to move toward it. So, responsible growth has served us well here. We continue our daily monitoring with sanctions, and interest payments might impact these loans. We've shared this with you previously and it simply highlights the origination strength and quality of our consumer underwriting. 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. So during this time, we saw accounts grow and we saw expenses decline. Your line is open. We will go now to Ken Usdin with Jefferies. The other question of great debate is a soft lending, hard lending etc. That's part of what's driving our loans growth. Retail deposits with our consumer and wealth management businesses grew 190 billion, and our retail deposits have now grown to more than 1.4 trillion, where we lead all competitors. We strive to provide you with information about products and services you might find interesting and useful. Hey, thanks, good morning. I mean, I'd imagine for the first couple of hundred, it's going to be pretty, I hope pretty stable but at some point, one would think deposit betas would drift higher, we will obviously be able to give you guidance on that in the future based on what we're actually seeing. Get short term trading ideas from the MarketBeat Idea Engine. We don't. And we'll make those decisions in the context of future rate environments and future capital requirements. But the reality they've got it inflation out system. That was nearly enough to overcome the change in provision expense driven by the $2.7 billion reserve release in the year ago period compared to $400 million release this quarter. In an environment of sharply rising rates each quarter, the baseline of NII, actual NII increases, and, therefore, the future sensitivity declines. Company goals are aspirational and not guarantees or promises that all goals will be met. If we look at what you achieve last cycle, your terminal efficiency trajectory closer to the upper 50s. Brian talked about operating and managing the Company 75 basis points to 100 basis points above our regulatory minimum that's obviously exactly where we are right now. HQLA surplus is up. 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. And I also maybe cheering for that by. It is largely comprised of top tier commodity exporters with a history of strong cash flows, who continue to make payment. My first question is a follow-up to what Matt was asking about. Financial Center & Walk-Up ATM. One on expenses, I know you mentioned this year that you're still anticipating relatively flat and that you would, you know, deal with inflation pressures, etc., you know, from some of the opportunities you have to get more efficient. Thanks for taking my question. Credit is widely available and our customer's uses of the lines of credit is still low i.e. Our view is that our goal is to keep that down to a modest expense growth if any and as we move to '24 etc., but we are fighting all those discussion, you had, but the key is to have the revenue grow much faster and that's what we -- that's what expect to see as NII kicks back up and the efficiency ratios as Mike or John referenced out of kick back down pretty nicely. And so when you look at that $1.4 billion of growth and now we are telling you, you should expect NII growth from here, successively in each quarter, that's what protects us. I know you did a ton of efficiency pre-COVID. 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. And the stock market is telling us there might be a pretty good chance of a recession. And NII improvements going to flow the bottom line. Well, I think what you're looking to is some of the RWA growth has been coming from a pretty significant loans rebound, particularly in commercial. So, during this time, we saw accounts grow and we saw expenses decline. Your line is open. I appreciate all that. And just give us a sense as to how much longer this rate back up is? So, that's why we're always reluctant to give guidance over the course of the next 270 days. 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. Could the Fed had to push harder to sell inflation? Number one, we're looking at what we're seeing in the actual results. Are you planning to grow securities balances, should we be or what are you thinking at this point? So what we'd expect -- as Brian talked about, we are kind of at a rate floor when rates are zero and obviously we will get significant benefit over the course of the next 100 basis points. Any color on that. This reflected $14 billion of growth in loans and the growth of our global markets balance sheet as customer's increase their activity with us. We certainly expect to be in the first half year, well over our expectation of 20% plus that we previously talked about. And in the past, I think higher rates were designed to pull leverage from the system and call some recessions. So you pick up the 200 this quarter, you put that in the bank then you pick up another $600 million plus next quarter and then it grows from there out so yes, that's tremendous operating leverage and as we just said to John, the expenses are flat, so that flows through the bottom line. And you need to have a percentage for that for your provision for loan losses. It all comes down to deposits. So, we're always trying to manage extracting the value deposits, give and then look to the other side and see the capital constraint question and the impact of capital, see other constraints on us. Important in the small business area, originations are -- yes, strong and back past pre-pandemic levels of quarterly originations and you're seeing home equity come back up even more due to fall off pre-pandemic we did $3 billion. Alastair, could you give us a sense of what the deposit rate pricing assumption is and the plus $6.8 billion in sensitivity for the first 100 and given your focus on primary and operating accounts contrast that with chunkier rate hikes. When you visit these sites, you are agreeing to all of their terms of use, including their privacy and security policies. We predict it will slow the economy from 3% growth in 2022 to little below 2% in '24 -- '23, excuse me, that is back to track. Get daily stock ideas from top-performing Wall Street analysts. From a broader enterprise perspective, part of managing costs while comes from the drive -- the drive we have in the Company to provide enhanced digital capabilities to our customers, which in turn drives adoption for the digital engagement and lower costs. 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. Company goals are aspirational and not guarantees or promises that all goals will be met. Bank of America consumers spent at the highest-ever Quarter 1 level, which is a double-digit percentage increase over the 2021 level that you can see in the upper left. On asset quality, more broadly, we continue to see very strong metrics. In addition to be cautious, we hedged a large portion of securities in the AFS portfolio protecting it from much larger hit to AOCI. We report all of them on our reservable criticized. And so it's very stable. 10% or 15% since pre-pandemic and core consumer checking customers, to grow the commercial customer base, small business base, etc. This -- the investment that's allowed us to maintain a leadership position in patents among our peers. . 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 that represented 28% year-over-year growth, driven by strong revenue improvement, good expense management, and low credit costs. 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. So we have already proven resilience. Or is it really just retaining more earnings from your -- for your day-to-day operations? All right, that's all our questions. From our card spend data, we have seen a strong recovery in travel, entertainment, and restaurant spending. Hi. In our CashPro mobile app with our commercial clients, we see many $5 billion usage days. Is there room for that to come down further? We can always make efficiencies and move stuff around. If you go to slide 4, you can see the highlights of that growth. So, let's turn to Slide 8 and the balance sheet. 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. Information about non-GAAP financial measures, including reconciliations to US GAAP can also be found in the earnings materials that are available on the website. We do provide that asset sensitivity so that you can use it as guardrails to think about changes as you modify your own assumptions. And the cash flow of that head-to-maturity portfolio is $20-odd billion a quarter even in a rate environment changes. This reflected $14 billion of growth in loans and the growth of our global markets balance sheet, as customers increased their activity with us. I know we've spent a lot of time talking about AOCI volatility and the like, where I was hoping to get a better sense, given the RWA growth is actually been the biggest source of capital consumption over the last couple of quarters. 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 the organic growth engine that our Company is delivering once again. In a quarter that had a lot of variables show up, we delivered responsible growth again. So, we have already proven resilient. Now, those same customers today have an average cleared balance of $12,500. PDF . Scott C. Morrison. 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. So we see that flowing through and those scenarios are a little more weighted towards inflationary. And I think you're looking at some of the investments we've made in our global markets business. That's helpful. At the same time, the economy is returning more towards normal and our line utilization is returning more towards normal too. So let's turn to slide 8 and the balance and you can see during the quarter, our balance sheet grew $69 billion to a little more than $3.2 trillion. I mean, does any of that matter to you? Today, we have a -- at that time, pre-pandemic had an average balance of 1.4 -- or $1,400. And we think for 2022, we continue to think that the $500 million revenue number is a good number, 40% in Q1. No login or account required. And now you all read about the car industry, the line uses a car. Can you elaborate a little bit more on what you mean by operational deposits? We have $2 trillion of deposits and less than $1 trillion in loans. So we have room on a consumer side and on the commercial side for further loan growth as the -- as people sort of normalize their behaviors and activities. So $500 million for the year is a good number, and that team is firing on all cylinders. New lines are bouncing along just above the low point. Revenues grew 10% to a new record and were led by 25% growth in NII on the back of those solid deposit and loans increases as well as a 9% improvement in asset management fees. We continue to focus on responsive growth and the things we control. Also and as usual, Q1 of every year includes segment capital level evaluation and you'll note, we put additional capital against each of the businesses due to their growth. We'll go now to Matt O'Connor with Deutsche Bank. So, you know, we're very strong in reserve. So, they increased from $1,400 to $7,400. At the same time, the economy is returning more toward normal. I think Brian's earlier answer got to the first part of it, which is we're not interest rate traders. And so it's not that we lean the balance sheet. Making the world smarter, happier, and richer. And remember, if you go back over the course of the past couple of years. That's 11% up over Q1 2021 as revenue growth more than offset the larger prior-period reserve release. We want to create the base we've all had proper accounting for banks. Now how do we pay for all that? But in the context of the capital built, those impacts are manageable. I think the waterfall that we laid out on slide 6 is pretty constructive. It's that balance between capital, earnings, and liquidity. It's difficult to project out first 100 versus second 100. Our clients are definitely seeing supply chain challenges. Glenn, I think just generally, Fed has a task to bringing inflation out of the system. All that results in a rebuild of the capital quite quickly. And Vivek, if you look at this quarter, we added 8 billion of deposits. In our banking business, you can see the strong loan and deposit growth. Our quarter one allowance for credit loss reflects all of these things as well. 10-Q Filing. So, look, we expect, as Brian talked about, we're kind of at a rate floor when rates are at zero. Is there room for that to come down further? Your line is open. And I guess, how do you look at the extension risk on the portfolio? From our card spend data, we have seen a strong recovery in travel, entertainment and restaurant spending, in the upper right, you can see that. Our next question comes from Erika Najarian with UBS. Even more impressive, look at Zelle and Erica volumes, up more than four times in pre-pandemic levels. This is all come through NII at it all falls at the bottom line. So we'll see some growth there. OK. That's helpful. Thanks. Second thing we've done is we've upped our forecast for inflation. That's largely based on things like -- again, Brian talks about our deposits at 2 trillion. There were a lot of questions about, oh my gosh, you're investing and rates are low and we told people we hedged it. So Erika, our G-SIFI minimum would increase effective January 1, 2024. It all comes down to deposits. So, revolver utilization in commercial now in banking is 31.7%. And I'll start with the summary income statement on slide 7, where you can see our comparisons illustrating 3% year-over-year operating leverage produced by growing revenue and managing our cost now. So, we'll redeploy that and walk back up the ladder. We're opening new branches. And if you go back to the last rate hikes I'd call '15 through '19 on average, you can-- it's obviously very different by account and line of business and client but on average it is somewhere between 20% and 25% for Bank of America. And Brian, what -- how are you thinking of buffers relative to your new minimums? I know we've spent a lot of time talking about AOCI volatility and the like. 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