Bank of America Corporation (NYSE:BAC) Q4 2014 Earnings Conference Call - Final Transcript

Jan 15, 2015 • 08:30 am ET

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Bank of America Corporation (NYSE:BAC) Q4 2014 Earnings Conference Call - Final Transcript

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Presentation
Executive
Brian Moynihan

When we had around 290,000 FTE. Nevertheless, the three years since then driving at the right way, we completed 2014 and in the year was around 220,000 FTEs. Non-interest expense excluding litigation declined $4.4 billion, compared from 2013 to 2014 and is down more than $8 billion in the last couple of years and yet we have more work to do ahead of us. We further strengthened and already strong liquid balance sheet and increased our common stock dividend during 2014 for the first time since 2007.

As you can see on this page, our credit cost are at a decade low level. So notwithstanding the headwinds our industry faced (inaudible) rates and ongoing global economic sluggishness, we've built a platform for growth, especially in the context of continued improving US economy. We build a company with leading market positions across every core customer base, and our task now is continue to build on that foundation and the progress you've made.

As you look at our result, you'll see the year-over-year earnings in our primary businesses with exceptions in consumer real-estate business made progress to show stability in of all the great geopolitical environment.

Importantly as you think about our company, we have been investing growth with taking out expense. We've reduced our low headcount during 2014 by around 8%, but the same time we invested. We invested by reallocating resources to sales capacity from the savings increasing in all our core businesses.

We invested by reallocating expense reductions to product capabilities, our mobile capabilities are cash management capabilities and other capabilities around the world. We've invested some of those savings in our technology spending over $3 billion in 2014 to improve and protect our company. Now, you can see the results in panic spaces and Bruce will touch on them in the line of business presentations.

We expect a continuous effort going forward. We have teams working on it every day. They are working to reallocate non-productive expense to drive towards growth allowing us to maintain the good expense management come to expect from our company. At the same time, we are laser focused on winning market share and growing with our customers, the economy continues to improve and we look forward to reporting that progress during the year ahead.

With that, I'll turn it over to Bruce to take you through the quarter's numbers.

Executive
Bruce Thompson

Thanks Brian, and good morning everyone. Let's start on slide 3 and I'm going to go through the details. During the fourth quarter, we've recorded $3.1 billion of earnings or $0.25 per diluted share. I may give you a few thoughts on revenues. There were two significant adjustments to revenue as well as negative DDA charges that in the aggregate reduced, reported revenues this quarter by $1.2 million pre-tax or roughly $0.07 a share after tax. On the components of the $1.2 million impact, we recorded a roughly 500

Executive
Unidentified Speaker

and $78 million negative market related adjustment, which as you all know we refer to as