Bank of America Corporation (NYSE:BAC.PRC) Q3 2016 Earnings Conference Call - Final Transcript

Oct 17, 2016 • 08:30 am ET


Bank of America Corporation (NYSE:BAC.PRC) Q3 2016 Earnings Conference Call - Final Transcript


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Good day everyone and welcome to today's program. At this time, all participants are in a listen-only mode, later you'll have the opportunity to ask questions during the question-and-answer session. [Operator Instructions]

Please note this call is being recorded . It is now my pleasure to turn the conference over to Mr. Lee McEntire. Please go ahead.

Lee McEntire

Good morning. Thanks to everyone on the phone as well as the webcast for joining us this morning for the third-quarter 2016 results. Hopefully everybody has had a chance to review the earnings release documents that are available on the website. Before I turn the call over to Brian and Paul let me remind you we may make some forward-looking statements.

For further information on these please refer to either our earnings release documents, our website or our SEC filings. One thing before Brian and Paul get into the results I just want to remind you we filed an 8-K on October 4 giving notification the Company changed our method of accounting for the amortization of premium and accretion of discounts related to certain debt securities known by the investment community as FAS 91.

Our change to the contractual method which is used by the majority of our peers will provide better comparability of our results. As a result of that change we restated our historical results and provided the historically restated information in the 8-K and our earnings materials today naturally reflect those restatements. With that let me turn it over to Brian Moynihan, our Chairman and CEO, for some opening comments before Paul Donofrio, our CFO, goes through the details. Brian.

Brian Moynihan

Thank you, Lee. Good morning everyone and thank you for joining us today to review our third-quarter results. Our results this quarter continue our progress on our long-term strategy. We continue to drive responsible growth and deliver more of the Company's capabilities to our customers and clients. This progress is becoming clearer with each successive quarter and you can see the highlights of that on slide 2.

We reported earnings of $5 billion or $0.41 per diluted share, an EPS improvement of 8% from the year-ago quarter. We improved operating leverage across the businesses, utilizing technology to lower cost and improve our processes. Our pretax earnings improved 17% compared to third-quarter 2015. This pretax earnings comparison is important as it eliminates the unusual movements in the tax line like this quarter's tax charge and the UK corporate tax rate change.

Like last quarter, I thought I would address a few topics we are hearing from all of you. To do that let's look at slide 3 and 4 of the earnings material. A first question is, are we making progress driving our responsible growth strategy? Yes, we continue to show progress throughout all the businesses. Our revenue growth has more clarity as we move past the periods of significant impacts from implementing regulations, running off non-core portfolios and divesting non-core businesses. Revenue grew 3% over the third quarter of last year.