Q1 2014 Earnings Call Transcript

Transcript Call Date 04/16/2014

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

It is now my pleasure to turn the conference over to Mr. Lee McEntire. Please go ahead.

Lee McEntire - IR: Thank you. Good morning. Thanks for joining us on the web as well as the phone this morning. Before I turn the call over to CEO, Brian Moynihan; and CFO, Bruce Thompson, let me just say that we may make some forward-looking statements for details on those I'll refer you to our Page 24 and 25 in our earnings deck material either the website or our SEC filings.

And with that I'll turn it over to Brian.

Brian T. Moynihan - CEO: Thank you, Lee. Good morning, everyone and thank you for joining us to review the first quarter results.

As you can see from our numbers we report a loss this quarter. That loss reflects the cost of resolving more of our legacy mortgage issues as well as adding reserves primarily to previously disclosed legacy mortgage related matters.

As disappointed as we are in the bottom line results, we are pleased to report that the businesses reported earnings are at a level that allow us to substantially offset these losses. And also at the same time we are able to still grow an improve our Basel III standardized regulatory capital ratio during the quarter.

Bruce will take you through the particulars of our results, but first I want to spend a couple of minutes looking at progress we continue to make across the customer groups that we serve.

In particular we added some slides to the appendix on Pages 17 and 18 which highlight multiyear trends across our customer groups.

Let me just touch on a few of those and connect them to our result. When you think about our broad consumer franchise for mass market consumers, affluent and wealthy consumers, as we think about the mass market group the strategy in our retail segment has been the lower to cost of service, but it improved our customer experience. We do that by continuing to optimize our delivery networks of all sites in response to customer behavioral changes.

Banking centers and basic teller transactions continued to decline as customers move their business to mobile and online transaction. Yet we still have many millions of visit each week to our branches. But in the aggregate our self-service channels of ATM, online and mobile transactions continue to grow.

This quarter more than 10% of all the deposit transactions that consumers make in our company are now done through mobile devices, as people effectively carry a branch in their pocket.

This coupled with other measures allowed us to reduce our costs in our consumer banking business 4% from last year's first quarter. It allows us to continue to invest in other areas to further improve customer satisfaction and grow sales.

On the preferred side of our consumer business where we serve banking clients, we continue to invest in this group by adding sales specialists. We now have more than 6,500 sales specialists concentrating on the top banking centers. We also increase service associates to drive satisfaction as well.

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