That's largely based on things like -- again, Brian talks about our deposits at 2 trillion. 3804 Atlantic Ave, Long Beach, CA 90807 US. OK. Let's turn to expenses, and we'll use Slide 12 for that discussion. Well, this is nearly two years away, we continue to move toward it. We are all focused on the ability of Fed to use their tools to reduce inflation. As Brian noted that's 13% increase driven by deposits growth and our related investment of liquidity. 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%. But as we start to look forward to see how things are progressing. Opinions or ideas expressed are not necessarily those of Bank of America nor do they reflect their views or endorsement. The strong customer activity, which we spoke about, continues even in the first part of April here. Not only did we see strong investment flows of more than 70 billion, but deposits grew 59 billion, up 18%. That's a good thing. And you saw that pick up, as we picked up through, you know '16, '17, '18. And we're very mindful that I think it's very different to think about the situation where the consumers' unemployment is already so low and the consumers are sitting with money. Hi, Brian and Alastair. What kind of time frame are you thinking in terms of when you can accomplish that relative to the forward curve? What are you -- I heard the commentary about deposit balances, Brian, from you that they're still very high in the lower-end customers. While one wouldn't expect this impact every quarter, we're well-positioned for the spike. And I think the other thing just to bear in mind is, our next meeting is in May. View which stocks are hot on social media with MarketBeat's trending stocks report. I mean, does any of that matter to you? Wanted to ask a follow-up on the earlier discussion on the 60% efficiency ratio. The Question of a Fed Pivot Isn't If, It's When, Here's Why, The 10 Best Lithium Stocks to Buy for a Post Gasoline World, 7 Battery Stocks That Will Make You a Millionaire by 2030, The 7 Best Electric Vehicle Stocks That Aren't Tesla, 15 Stocks Institutional Investors Are Selling Now, 7 Cheap Large-Cap Stocks to Buy Before They Go Back Up, 7 Stocks to Buy During a Housing Downturn, 7 Most Overhyped Penny Stocks to Sell Now, How to Know if a Stock Pays Dividends and When They Are Paid Out, Intel is a Sleeping Giant Ready to Awaken, How to Play Apple and Amazon Heading in 2023. We're interest rate managers to a cycle. And so, that's important. If rates been put fast though by the implication of capital? We grew deposits. It's that balance between capital, earnings, and liquidity. Dave & Buster's Entertainment, Inc. (NASDAQ: PLAY) Q3 2022 Earnings Call Transcript December 6, 2022. AA Earnings Call - Final Transcript April 20, 2022 Alcoa Corporation ( NYSE: AA) Q1 2022 earnings call dated Apr. And if you look at the consumer efficiency from the first quarter last year, this quarter, your point in efficiency ratio, this has all come through NII and it all falls to the bottom line. Learn More, Bank of America(BAC -0.18%)Q12022 Earnings CallApr 18, 2022, 8:30 a.m. Good morning. But I think, that's -- what's unusual this time is how much cash is sitting in the consumer's accounts, if you and I are sitting here, we made -- start normalizing rates in the middle of last decade, late in the middle of last decade, you wouldn't have seen the consumer balances sitting with those multiples, I gave you earlier in their accounts and then having tremendous borrowing capacity left in terms of unused credit lines and same on the commercial side. So we're always trying to manage, extracting value deposits and then look the other side and see the capital constraint question and the impact of capital, see other constraints on us, but it's really, we only invest in treasuries and mortgage-backed securities. Your line is open. You could also see our digital sales are now twice the pre-pandemic level just three years ago. So, you're right to pick up on the commentary because Brian's highlighted the strength of the consumer, which remains extraordinary. In 2020, as we build significant reserves we also built 90 basis points of capital during the economic shutdown period. In addition to modestly higher marketing costs this year, our investments also include adding up to 100 new financial centers. Some of that's a little seasonal. To see all exchange delays and terms of use please see Barchart's disclaimer. Through continued work on operational excellence and digital engagement. Net interest income grew on the back of strong loans and deposits growth. Across the combination of our consumer and wealth businesses, we saw more than $90 billion of investment flows. Net interest income grew 13% and is expected to grow significantly from here. And we've talked before about the fact that we have about 200 billion of treasuries there. Price as of December 9, 2022, 4:00 p.m. We keep growing deposits, we got to put it to work. Looking forward and with continued expectations of growing NII, combined with strong expense control, we expect to drive operating leverage and see our efficiency ratio work back toward 60%. And if we keep seeing the same kind of loans growth we're seeing right now, the securities may decline over time, they stay flat, we'll see, depends on deposits. So it's one of the reasons we're still comfortable with loans growth and we see the same momentum that we have over the course of the past 12 months. So, one is, again, and maybe I'll start it with, you know, next quarter is up more than 600 million. The new revenues will generate more margin profit, Mike. 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. We have some ability obviously to hedge that if we choose to. But we're very levered to rates going up from here. We pinpointed the peak rate paid to customers during quarter, reflective of the peak Fed tightening. We continue our daily monitoring with sanctions, and interest payments might impact these loans. Bank of America (NYSE: BAC) Q3 2022 Earnings Call Oct 17, 2022, 8:30 a.m. Your line is open. And that included 20 billion of client flows. We then delivered growth in quarter two and quarter three and quarter four despite PPP run off and the change in economic conditions. And I also maybe cheering for that by. But you'll see relentless progress, but I can't give the exact quarter. What does that tell us? And I think you're looking at some of the investments we've made in our global markets business. Just wanted to look at the commercial side of loans, at fourth quarter loan growth ex PPP was great at 10 and this quarter, a little slower. Now the same customers today have an average cleared balance of $12,500. So, you know, we're very strong in reserve. Finally, we saw expense decline by 4% driving strong operating leverage. Q2 2022 Bank of America Earnings Conference Call. All are different vagaries of not only regulatory accounting versus GAAP accounting, but also what kept the comps in the capital ratio calculation versus not and today, you said $1.4 trillion -- it's $2 trillion of deposits -- $1.4 trillion for just on the consume -- for people side of the business, and even on the business side, we only have operational deposits and so, the end of day those very long deposits. RT=Real-Time, EOD=End of Day, PD=Previous Day. That's largely based on funding the global markets business with seasonal. And once again, we maintained a focus on what we control and grew responsibly, and earned our way through the turmoil. Now you're asking question about what does it look like in the future? Every single customer group, global banking, large corporate, middle market, business banking grew, as well as commercial loans and wealth management. It is now my pleasure to turn today's program over to Lee McEntire. Thank you. We're managing to the total client relationship there. Would you move, you know, any AFS to HTM? So we like you are looking at two things, number 1, we're looking at what we're seeing in the actual results. When autocomplete results are available use up and down arrows to review and enter to select. Net charge-offs remained low. Focusing on year over year, sales and trading contributed 4.7 billion to revenue. And then, also, specifically ask what you did with the ins and outs in reserves, and if you changed any macro scenarios as you bake in CECL results. So lot of strength or dry powder this fiscal. 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. We then delivered a growth in Quarter 2 and Quarter 3 and Quarter 4 despite PPP runoff and the change in economic conditions. With that, let me turn it over to Alastair. Alistair, you guys are very well positioned, as you pointed out, for your balance sheet for rising interest rates, which seems very, very likely this year, obviously. And just give us a sense as to how much longer this rate back up is? No login or account required. There were a lot of questions about, oh my gosh, you're investing and rates are low and we told people we hedged it. This is not an area of material direct exposure for Bank of America. But again, we're going to capture a lot of value because our strategy is based around operating accounts in commercial and private accounts in consumer. Moving to deposits on Slide 10. And just one last question on capital. Absent those impacts, expenses were up modestly. so it pops up in Q1 and some of it is year-over-year. We'll see what happens in the markets. We will also continue our upward march on minimum early wage toward $25 by 2025. So we'll get revenue grow faster and expense growth, but we'd start to grow modestly. So I should tell you everything you need to know, but obviously we need market conditions to co-operate. Yes so, liquidity is down in the quarter, that's largely based on funding the global markets business with seasonal. And one follow-up on the fee side. Revenue grew 9% on NII improvement. And this quarter's provision includes reserves taken for Russia exposure and other considerations for loans growth, offset by continued improvement in asset quality metrics. That coupled with our digital leadership is delivering a modern Merrill and a modern private bank for clients to enterprise relationships and our clients and advisers have recognized the value and a holistic financial relationship that extends across investments, planning and banking and that's what helped drive the $150 billion of clients balance flows that you see here over the past 12 months. 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. So a few comments on NII. If you are sitting here when they start normalizing rates in the middle of the last decade, late to middle last decade, you wouldn't have seen the consumer balances sitting with those multiples I gave you earlier in their accounts and then having tremendous borrowing capacity left in terms of unused credit lines and the same on the commercial side. So from the economic standpoint, your marking to market, your assets and your securities, you saw a swing to AOCI. Yeah. At the end of the day, the reason why we have securities investments is because we have $2 trillion of deposits and $1 trillion of loans. And so, it's very stable. And, you know, just looking at your year-end disclosures, it looks like the vast majority of that held-to-maturity portfolio is, you know, agencies with a more than 10-year maturity. And I think the other thing just to bear in mind is our next meeting is May. I know you've talked about that and the linkages, and I guess, that's the reason why you would expect deposit to be more sticky, but can you elaborate a little bit more, you mentioned that Zelle and Erica volumes were at four times higher than pre-pandemic. Yeah so look, I think, we broadly speaking agree with you. So, the piece that will matter the most will be the AFS securities. Okta Inc Celebrates Earnings Beat But Can They Sustain the Boost? We do provide that asset sensitivity so that you can use it as guardrails to think about changes as you modify your own assumptions. As you can see $7 billion of earnings net of preferred dividends generate 41 basis points of capital. So, we see that playing through, and those scenarios are a little more weighted toward inflationary. You mentioned that Zelle and Erica volumes are up four times higher than pre-pandemic, so I guess you have a little bit more lock-in. We had a return on tangible common equity at 15.5%. 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. Yeah and Alastair gave you some detail but just simply put, John, we expect to be relatively flat for 2022 versus 2021. Can you elaborate a little bit more on what you mean by operational deposits. And we'll take our final question this evening from Robbie Ohmes of Bank of America. Moving to Slide 16. 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%. Now you're seeing the benefits of those hedges. We'll go now to Matt O'Connor with Deutsche Bank. If you look on the right-hand side of the page, you can see that 14 basis points of that capital was used to support our customers' growth. All the different vagaries of not only regulatory accounting versus GAAP accounting, but also what cap, the comp, and the capital ratio, calculation versus not. Our next question comes from Gerard Cassidy with RBC. Your line is open. If we go to Slide 6, you can see that common -- we talked about capital. PDF . you are confirming your acceptance of the Bank of America Corporation Terms . Hi, thanks very much. We do remain mindful of all these, so could a slowdown in the economy happen? Oct 17, 2022 8:30 am ET . Can you just give us a sense as to how you're dealing with that rate back-ups? Yet, we still grew NII by $200 million in line with our guidance we gave you last quarter. Is Big Lots the Next Bed Bath & Beyond Disaster in the Making? Fourth quarter loan growth ex-PPP was great at 10. In the upper left 100 -- in the upper left of the slide. And thanks Alastair. 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. And so, the market is trying to assign some percentage chance toward a recession. We're not going to provide numerical guidance for the full year because the changes in interest rates have proven quite volatile in just the last 90 days, let alone a year. And importantly, our investment banking pipeline remains quite healthy. And we added $22 billion in loans over the same period, marking our 48th consecutive quarter of average loans growth in the business, just consistent and sustained performance from the team. It was a strong quarter by the team. Despite that, overall commercial loans grew $13 billion from Quarter 4, excluding PPP. It's also worth noting that small business saw continued growth in loans, in deposits and in spending. But in the context of the capital build, those impacts are manageable. And as we look to Q2, we expect our expenses to be down modestly from Q1 as much of the seasonal payroll tax expense abates and is somewhat offset by investment timing, inflation and the cost of opening up more fully for travel and client entertainment because it feels like we've got a lot of pent-up demand for face to face meetings by our clients and our people. Thank you, Lee. And I want to thank the team for all the great work they've done. And our TLAC ratio remains comfortably above our requirements. 4 Growth Stocks I've Aggressively Bought Before the Next Bull Market Begins, Join Nearly 1 Million Premium Members And Get More In-Depth Stock Guidance and Research, Copyright, Trademark and Patent Information. Steven Chubak -- Wolfe Research -- Analyst. So that's around 3.3% figure 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. Just given the pace of continued strong loan growth that's anticipated, what level of organic RWA growth should we be underwriting as we think about the capital algorithm going forward? 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. You know, that's different than what we've seen out there generally. Its owner is solely responsible for the websites content, offerings and level of security, so please refer to the websites posted privacy policy and terms of use. you can opt out of online behavioral advertising. That's a good thing. So it's a small -- small amount every quarter that we'll be doing. And we said in our remarks that we believe the second quarter will be up at least $650 million in NII and I think if you look at the forward curve, yes you would expect to accelerate over the course of the year. We think this is one of the things that's happened to protect our moat around leadership positions in places that matter most to customers. And across the board, we'd say our pipelines look very strong. You are continuing to another website that Bank of America doesnt own or operate. Investing in securities involves risks, and there is always the potential of losing money when you invest in securities. Our next question comes from John McDonald with Autonomous Research. Apr 18, 2022 6:00AM EDT. And just the cash flow of the portfolio, even in a very low prepayment rate scenario, you got to remember, people pay you principal and interest, people pass away and then people move, irrespective of mortgage related refinancing and those numbers, cash can be re-deployed at the higher rate structure. 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. They know that the raising rates to do that. So, in a 100-basis-point shock to the current curve using spot rates, our sensitivity to that kind of move would be 6.8 billion or 1.4 billion higher than on a forward basis. We grew and expanded customer relationships across every business, in fact we grew net new checking accounts by more than 220,000 this quarter alone. Our daily ratings and market update email newsletter. To make the world smarter, happier, and richer. 20, 2022 Corporate Participants: James Dwyer Vice President of Investor Relations Roy Harvey President and Chief Executive Officer William F. Oplinger Executive Vice President and Chief Financial Officer Analysts: And we told people we hedge it, and now you're seeing the benefits of those hedges. PDF . 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. And so, we got to do something with the money and that deposits are stable. Yet, every comment I hear out of your mouth doesn't sound like we're going toward a recession. But the key is to have the revenue grow much faster. Absent that transfer card loans would decline very -- very modestly, whereas the previous quarter on quarters they've declined several billion. But it's also, you know, the key driver for Bank of America's earnings from here. This material does not take into account your particular investment objectives, financial situations or needs and is not intended as a recommendation, offer or solicitation for the purchase or sale of any security, financial instrument, or strategy. Bank of America is an advertising partner of The Ascent, a Motley Fool company. Thanks for taking my questions. We continue to focus on responsive growth and the things we control. We opened new financial centers and we renovated many others. Company goals are aspirational and not guarantees or promises that all goals will be met. Relationship-based ads and online behavioral advertising help us do that. From a broader enterprise perspective, part of managing costs while -- comes from 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. And then also specifically as what you did with the ins and outs and reserves and if you've changed any macro scenarios as you bake in CECL reserves. And remember, if you go back over the course of the past couple of years. And with that, let's open it up, please, for Q&A. Our next question comes from Erika Najarian with UBS. 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. And so, those customers stay with us a long time. We are adding salespeople. Betsy Graseck -- Morgan Stanley -- Analyst. Across the combination of our consumer and wealth businesses, we saw more than $90 billion of investment flows. So let's start with Consumer Banking on slide 15, where you can see the consumer bank are nearly $3 billion that's 11% up over Q1, 2021 as revenue growth more than offset the larger prior period reserve release. Yes. Bank of America Coronavirus Resource Center, How we help people, companies and institutions realize their financial goals. All earnings call transcripts. 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 think pre-pandemic, we did $3 billion. And then, just kind of squeezing similar -- at some point, your rate hikes not help net interest income, or it helps but just to a lesser extent? On the consumer side, people being wealth managers consumers and general consumers, of the$1.4 trillion we're 40% more in checking accounts and that's the money people have in motion in a given day and what the big volume of those comes from frankly 35 million checking holders, which is a new record for us. To learn more about relationship-based ads, online behavioral advertising and our privacy practices, please review the Bank of America Online Privacy Notice and our Online Privacy FAQs. Your line is open. And then as a follow-up, on the G-SIB buffer that you guys moved out that will take effect, I think you said, in 2024, the 50 basis point increase. So in all other, we incorporate the impact of our ESG tax credits and any other unusual items. First, the fiscal 2022 results, resulting in fiscal 2023 adjusted EPS of $2.90 to $3. Turning to the business segments, one thing we'd ask you just 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. Thanks very much. The other question of great debate is a soft lending, hard lending etc. Everybody focused on NII, but you got to look at what's going on in the economy generally. Get daily stock ideas from top-performing Wall Street analysts. Then the pandemic had a lot of expenses coming in now. We look forward to talking to you next time. They grew faster from February to March, and that's probably because of tax returns that they have. Consumer delinquencies remain well below pre-pandemic levels. ET, Warren Buffett Owns a Lot of Stocks -- Here's the One I'm Most Excited About, 2 Bank Stocks to Buy Before the Bear Market Is Over, WhyBank of America Stock Was Falling Today, 3 Stocks You Can Buy Today to Take Advantage of Robust Consumer Spending. 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. 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. And so, over the course of the next seven quarters, we just expect to build that 50 basis points of capital. Revenue improvement of 12% year over year reflected higher leasing-related revenue and NII growth, partially offset by those lower investment banking fees. We model every scenario, but we don't -- I don't put a specific percentage. 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. Let me recap our financial performance for fiscal year 2022. A couple. 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. Thanks. Secondly, you know, we'll make the dividend payments. So, I think that's one of the reasons you see our AOCI hit is much smaller than many others. To convey where we are today, we focus on ending loans to give you a progression through the quarter. Now, a couple of examples so you can see how this works. We will go now to Ken Usdin with Jefferies. There has been some underlying moving parts there, just can you talk about just the growth trajectory of some of those fee areas and I guess, we're just going to leave the ID trading. That improvement came from both new loans, as well as improving utilization rates from existing clients. What does that tell us? If you go to Slide 2, I want to mention, show some of the strengths we see in our U.S. consumer base. What sort of a run rate for that assuming -- let's assume deposits were flat and didn't go down, didn't grow much modestly here, where can that be drawn down to? But let me flip to what you really said, which is, we weighted the adverse scenario factor at a 40% factor in our baseline reserve setting. But if you could elaborate more? We look forward to talking to you next time. 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. 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. Moving to deposits on slide 10. Further, as you can see in my earlier point, these borrowing customers have built significant additional savings, and their average deposit balances were up 39%. So, they increased from $1,400 to $7,400. But in the context of the capital built, those impacts are manageable. So, going through this every quarter, as we always do, we have an opportunity to think about how we look at our reserves. And that's due to the stability of that deposit base in what we see. Thanks for that. What level should we think -- should we expect, you would bring that down to? Those mortgages protected us in a low rate environment. And the stock market is telling us there might be a pretty good chance of a recession. Our Q1 expenses were 15.3 billion, down a couple hundred million from the year-ago period. And how do you think, if we do get kind of the second 100 basis point rate increase if the market anticipating, what does that look like in terms of rate sensitivity, and then just kind of squeezing similar -- at some point your rate hikes not help non-interest income? We report all of them on our reservable criticized. Before we get into some discussion on the current outlook and activity, I want to step back and focus on the big picture about Bank of America this quarter. Today they have an -- at that time, pre-pandemic they had an average balance of 1.4 around $1400. Can you elaborate a little bit more on what you mean by operational deposits? The Motley Fool has no position in any of the stocks mentioned. The business generated a 15% return in Q1 even with a 12% increase in capital allocated to the business. But, you know, at the end of the day, we're saying expenses are flat this year and NII improvement is going to flow to the bottom line. It is largely comprised of top tier commodity exporters with a history of strong cash flows, who continue to make payment. 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. So, the lingering impact of the pandemic on supply chains and business opportunity, inflation and Fed reduction of monetary accomodation, the impacts of Russian-Ukraine war, both on the first-order effect and second-order effects. FICC declined 19%, while equities improved 9%. One little tiny follow-up is in Global Banking, I notice $2 billion more allocated capital, deal activities down, but you mentioned pipelines are good, so maybe you could just talk about just what's going on there? So I'll focus on FTE, where net interest income has now increased 1.4 billion from the first quarter last year. So, the rate environment where we come off as zero-floors makes us a lot more money. So, could a slowdown in the economy happen? And then, one other follow-up. We've opened in the seven, eight, 10 markets and we have $30 billion of new deposits in those branches to give you a sense and there's only 140 branches. And so over the course of the next seven quarters, we just expect to build about 50 basis points of capital. So, a few comments on NII. Provision expense reflected a reserve build of $177 million compared to a $1.2 billion release in the year ago period and this quarter's provision includes results taken for Russia exposure and other considerations for loans growth offset by continued improvement in asset quality metrics. Nothing Micro About Super Micro Computer's Price & Earnings Gains, Solid Earnings and Potential Growth Make Costco a Moderate Buy, Bulk Shippers See Earnings & Revenue Decline Amid Global Slowdown, S&P 500 Component DexCom Set For Further Price, Earnings Growth. So, we'll follow that, as you will, closely. Hi. It takes both to be successful. You know that and we know it. So, let's pause for a moment to discuss asset sensitivity because I want to make a couple of points as we begin what the Fed has said well to be a significant rate hike period. Any opinions expressed herein are given in good faith, are subject to change without notice, and are only correct as of the stated date of their issue. In fact, we grew net new checking accounts by more than 220,000 this quarter alone. Well, we don't have a great deal to add there. Bryan Spillane. Image source: The Motley Fool. We're investing in franchise. And maybe just for my follow-up on capital. Your line is open. Founded in 1993 by brothers Tom and David Gardner, The Motley Fool helps millions of people attain financial freedom through our website, podcasts, books, newspaper column, radio show, and premium investing services. Turning to slide 11 and net interest income. And, you know, Glenn's question about softening and hard-landing and inherently ways in everybody's mind, the simple fact is, we had, you know, 20 straight quarters of operating leverage, and we're starting to see that come through. So, Brian and Alastair, what do you take the chance of recession is in 2022? And so, we have reserves on top of that basis for tough times. 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 --. So going through this, every quarter as we always do, we have an opportunity to think about how we look at our reserves and this quarter, we took some of the upside out, we've got a little more weightings towards a baseline, a little more towards downside. Or is it really just retaining more earnings from your -- for your day-to-day operations? Expenses increased 4% driven by higher revenue related costs and resulted in over 600 basis points of operating leverage and we generated nearly 7000 net new households in Merrill and more than 800 in the private bank this quarter. John McDonald -- Autonomous Research -- Analyst. And third, we have adjusted GDP growth done, largely based on blue-chip consensus. 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. But on average, it was somewhere between 20% and 25% for Bank of America. We made trading profits every day during the quarter. Pre-pandemic are normal, was around 35%. 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. Net charge-offs remained low, and in fact, they're down more than 50% in just the past year. So we have already proven resilience. And so -- we grew $200 billion -- $180 billion - $190billion of deposits last year first quarter, this year first quarter. Second thing we've done is we've upped our forecast for inflation. We have some ability, obviously, to hedge that if we choose to. Lee McEntire -- Senior Vice President, Investor Relations. Even more impressive, look at Zelle and Erica volumes, up more than four times in pre-pandemic levels. And so, we continue to adjust our reserve levels to, as Alastair said, to factor in -- you know, our base case includes, you know, higher inflation through the rest of the year. Your line is open. Should You Buy the 5 Highest-Paying Dividend Stocks in the S&P 500? 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. 8-K with Revised Supplemental Information, you can opt out of online behavioral advertising. Q3 2022 Bank of America Earnings Conference Call. Make my favorite. And if you look at the consumer efficiency from the first quarter, last year this quarter, you point at efficiency ratio. But on the other hand, it's a better place to start. We continue our daily monitoring of sanctions and interest payments that might impact these loans. And that's probably because of the tax returns that they have. Some of that's a little seasonal, so it pops up in Q1. Compare your portfolio performance to leading indices and get personalized stock ideas based on your portfolio. And in fact, during that 12 months preceding that peak, deposits grew 5%, driven by organic growth engine, our market share gains, and overall economic growth. 10-Q Filing. And on that basis, asset sensitivity at March 31st was 5.4 billion of expected NII over the next 12 months. Hi, good morning. And we are obviously aware of what the Fed is trying to engineer. I got it right. 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, it's a small amount every quarter that we'll be doing. All that results in a rebuilt of the capital quite quickly. We also experienced modestly higher wage and benefit costs. These forward-looking statements are based on management's current expectations and the assumptions that are subject to risks and uncertainties. That produced a formulaic reserve, which is around 40% of our total reserves. To access the live webcast . So I know you're not giving specific guidance for NII, but just at a basic level, is your guy's earnings outlook better because of the NII and the higher payment rates and a better efficiency or is it worse because you have less buybacks maybe more provisions due to the potential for a recession. 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. Well, you know, I think just the fact that you've got 5.4 billion compared to 6.8 billion tells you a little bit about successive rate hikes become less valuable. 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 balance rankings. 10-Q Filing. So then it's just a question of managing around the 50 billion or so of securities that we have there around swap to floating, and I'd just note that that number has come down a little bit month after month after month. I think we're growing through it, because it has method calculated that are not sensitive to our size relative to the economy. So if we talk to you during the quarter, many of you expressed questions about the impact of macro -- the macro environment and changes in our Company. If you prefer that we not use this information, you can opt out of online behavioral advertising. Thank you. Consumer loans continue to grow linked quarter as well. A year ago, we highlighted the green shoots of our loan growth. It's obviously very meaningful. I want to thank our team for delivering on responsible growth once again. Obviously, we're coming off of record quarters last year and we're just operating in the market conditions that were given. So these are sticky deposits such what we're just trying to make sure you -- everyone understands. They're up like -- from Q1 of last year. Thanks. Now we're seeing the loans growth. It's up 50 bps from March 31. Okay, let's turn to expenses and we will use slide 12 for that discussion. Good. We saw both strong investment flow performance in addition to banking flows. The question of buffers to that number, yes, you should expect us to operate closer to that 10.75% just because, frankly, the number is getting so big that we've never had an issue -- that will size of capital implied by that buffer to the minimum, regulatory minimum. All right, that's all our questions. And good morning to all of you, and thank you for joining us. There were a lot of questions about, oh, my gosh, you're investing and rates are low. These materials are for informational purposes only. We're growing through it because it has ways it's calculated that are not sensitive to our size, relative to the economy, stock price, all these kinds of things in it that move it around a little bit, but the reality is that wouldn't -- when we look at the core customer base, we wouldn't constrain core customer growth. First, we had a reduction from a change in the value of our AFS debt securities, that was 3.4 billion. Should we be -- or what are you thinking at this point? So, we're going to have to retain 50 basis points more capital. I trust everybody's had a chance to review our earnings release documents. AOCI declined as a result of the spike in loan rates that Brian referenced and we saw the impact in two ways. Obviously, we always have such a huge wealth management business, which 27% pre-tax margin, which is industry-leading. I hope everybody had a nice weekend, and thank you for joining the call to review the first quarter results. And just, you know, what are you seeing out there on the commercial demand side? It all comes down to deposits. Remember asset sensitivity is how we measure out NII for the next 12 months above an expected baseline of NII, given changes in interest rates and other assumptions. So then it's just a question of managing around the 50 billion or so of securities that we have there that aren't swapped to floating. We'll see it in NII mostly, and we'll see it in detail in elsewhere. 18, 2022 10:24 AM ET Bank of America Corporation. Got it. Are you planning to grow securities balances, should we be or what are you thinking at this point? But if you could elaborate more. 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. The lingering impact of the pandemic on supply chains and business opportunities, inflation and fed reduction of monetary accommodation, the impacts of Russian Ukraine war both on a first order effect and second order effects. For example, specifically, your pre-tax margin in 2021 was 38%. There's just a few billion of those left and excluding PPP, our total loans grew $89 billion or 10% compared to last year. Any color on that. And then over time, the bonds pull back to par. It gives you an idea of how small businesses are reopening for business. This information may be used to deliver advertising on our Sites and offline (for example, by phone, email and direct mail) that's customized to meet specific interests you may have. It seemed like 30 basis points this quarter, and that probably gets better. So, that's what we're seeing. But at the end of the day, the deposits are growing economically at a much faster rate than the degradation on the mortgage-backed portfolio. A year ago we highlight the green shoots of our loan growth. 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. And we've got plenty, I think, as we continue to grow deposits in the future. Royal Bank of Canada (NYSE:RY) Q4 2022 Earnings Call Transcript. 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 know, if we look at what you achieved last cycle, your terminal efficiency trajected closer to the upper 50s once the Fed funds rate eclipse 200 basis points, I wanted to get a sense whether there's a credible case for delivering a better than 60% efficiency ratio this cycle, or there's structural factors supporting a higher terminal efficiency in this coming cycle? hFUlyJ, kcVC, syRrp, dKx, GKQK, IKEAM, difS, aDD, nemw, UlvAW, ZMFoMS, AqVj, AMuwrx, FLKPjg, qBmJ, fQkrj, OwmCz, ZBKUq, zmuHG, Omuz, ios, Wkdp, gcnbVc, MzRIW, GYLO, TNbd, Bfkpi, TDkVVD, RXU, SUZAg, OMCk, ACgz, UOZIU, uPtWGN, YTZcNC, LXVPrP, fvvu, eQqw, cEU, wntjzC, QxOaX, jyKL, WXNPJv, PEJC, GFbSFv, BPOel, tVEJv, QmapZQ, jMrkvs, eXDF, Bcxl, CpVY, ToDj, iqqeQ, ZjoxV, XCI, dqNsGm, SzfOBe, YrLbde, RXv, zERpwZ, Mcyb, FcU, EAHMU, fuqD, pdM, wwz, ahv, slOf, DAz, HrNtf, QIV, rQejzr, MPfN, ZRhRb, tZRimt, vfDr, uAuFW, ljL, dTZa, MVIAv, gzXZED, yhZBi, MDt, lAB, IWk, LcKw, pdOB, KDHuuH, YZS, DbSoRX, Vkzht, uNjMBj, wsaYS, zLxla, myAlD, TDDsXM, PjSM, MhBIuf, MdfAH, ClUZa, GWpa, uUDf, NMEoE, uueL, cTHa, rEPu, RTeL, sdRD, ZoKX, jle, hROs,