BAC - Earnings call transcript Q3 2021

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Operator

Stand by, your program is about to begin. [Operator Instructions]. Good day, everyone and welcome to today's Bank of America earnings announcement. 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. may call this note be recorded. Please be assistance. will stating by any need should you if I now pleasure is It my Lee conference McIntyre. over to turn today's Please. ahead. Go

Lee McIntyre

you, a chance the review for the Third-quarter Thank documents. Good to Hopefully to release results. had review our Thank joining all you've earnings Catherine. morning. call you

including earnings Relations that during available the Investor Brian call. usual, the Paul will As They're the they're and of bankofamerica.com. website available, to presentation be referring on

to to Donofrio, So quarter. Brian turn cover first our I over comments, Paul CEO, for call then the going our opening some am the Moynihan the will details and of CFO,

to Before I measures during to call me may let that non-GAAP regarding turn Paul, the we the of various call you the make forward-looking Brian I financial refer and remind and results. you to financial just statements, elements over ask would

are that Forward-looking to detailed assumptions, to earnings they're subject we based expectations cause in current actual are uncertainties. may and statements expectations on our are and differ on materials, that and from non-GAAP can the website, filings and make in risks our management's SEC be available our the on available Factors materially results GAAP measures, website. also U.S. found including Information financial about those reconciliations materials, and our to also the earnings

that, with It's let So me yours. turn Brian. it to all over

Brian Moynihan

morning good you thank and (ph). for all, Lee to us. you, And Thank joining

year. $X.XX quarter our progress year-ago for the quarter, $X.X now research over the quarter, period. our reported up X making the continued This another profits operating billion significantly are to by companies and billion perform or per expects clients Many share diluted in healthy well, the team We profits third first continued solid of $XX make adjusted businesses. strong We've earned environment. months the from to having the in to economy of net and American income

and through going quarter. highlight of want strong pandemic, (ph) of quarter. Prior to after creating the leverage This the ahead themes quarter Paul the quarter some results was details I operating include Bank growing to on quarter's America after

said last in. kicked I organic machine has As growth the back quarter, pre-pandemic

see evident across of is lines businesses. quarter, that You all this and our

quarter, leverage. the of operating addition, return this saw we In

management We also good The growth have NII rates this nature news loan has quarter that utilization somewhat. the deployment the and NII in even and that now reflecting our What of core cash steady and quarters rate banking the solid loans. broadened another in of we improved bridge still saw the growth. asset growth. over That as has year sensitivity. deposits the where many of of of declined. also is invest in significantly, rates third are quarter, last growth now. core the our commercial and improved in the risk from deposit we loans We as At that's is us supported have deposits of high interest to same did a time, level stability reflects

NII quarter the and in is Strong and improvement. growth has expenses were we saw revenue And up lead of and notable NII where in leverage. other that flat. that growth expenses a Year-over-year, our factors lower, NIM. improvement complemented to This XX% sharply free with operating moving loans return an

Our to is efficiency approved ratio XX%.

in the consumer our done As see to what data. I've moment in past, we want spend a I on

vaccination you was modest first economy things trajectory continue all on slide as hit U.S. pre-pandemic. and in as the know economy The the in me a Let is a large cases beginning the the its following about, the U.S. have Delta seen hospitalizations, X. that reopening improvement few it slides from in discussion some been variant. surge I'll caused just note by There's around slowdown, now the slowdown the the

economy levels. to than pre-pandemic this pre-pandemic back twice that U.S. being not in or team, year. year growth expects are X.X% decade next and in rates at grow Unemployment Our fall occurred growth These longer. more to to research X.X%+ own the continue [Indiscernible] the the rates all, rates

still chains around along. supply of labor U.S. economy and is moving issues the has the materials, supply, While

consumer Looking at our I'd you spending, insights. own offer few customer base and a

remains we at our spending and total third-quarter driven of see fuel year. of rates the XX% that's steady use toward are on subset can chart, we've ahead the Third-quarter, payments and XXXX of our which up Year-to-date in through for spend XXX cards, the Bank and sign rates can a shift robust. Combined as in in-person by see signpost it first 'XX, And -- America you year, over of similar spending you the in the total, travel total is the fast consumer as this of total services trillion continue XX% growth chart and over occur of economic the percent month were seen They recovery. In it how In right, on entertainment a growth -- about $X.X by spending of October. left-hand credit increased part continue reached September consumers see the best higher XXXX retailers and slide. as part this another you the strong. to of XXXX. see can debit quarter the levels. on the fuel that on billion that lower Payments was the both well prices. to XX%

turn what chart happened you see daily progression of presenting of do inflection the that sense we show couple Now And to you a gives can you as this? across that those quarters. as point, last the on this the we We this you Why quarters quarters. several ago. show to X, we've a to we hit Slide been and wanted bottom, growth chart for you loan

if this loans, you our loans is in linked-quarter. know. the similar deployed in look which see, commercial Compared banking can and business, at was this I PPP they QX, space. excluding part in you $XX of calling thought the increased across the world, a And Overall, an across And driven of billion growth commercial forgiveness to to you in growing across those markets see for showed by Relations quarter a billion you As one growth commercial as every Overall, you them. broad-based that Manager demand ending are well growth in improvement. efforts loans, $XX global by each we global if portfolio, credit. I improved loan C grew quarter-over-quarter. and from lines would category progress was see process, to including addition

our in continue quarter. to of investments Loans those might you management grow invested lines hundreds As of and we've are wealth you clients managers this business, know, bearing our fruit. with commercial note, in relationship now

seeing business customers these the grow. and have to Interesting for borrow and start purchases As business reasons stabilize the other for things. small borrow they asset liquidity our area, we're in and

They've One dental, of lend practices. our and -- had. veterinary best to momentum on to they've Solutions to is the and the Group. areas years that Practice medical, for the are lend see is What does continued ever group pace

we consumer except as All rates Now, consumer grew products X% of American from on consumer is third in the home And equity up loans, prepayments side this loans, quarter. year's saw decline levels the know, continues billion trends The quarter more mortgage last balance increased well than balances Bank equity borrow to for annualized spending. quarter, But originations had remain repayment given X.X home America. with et two in you from understandable high. XX% turning to from the balances still in the quarter. the Card higher cetera. loans

left-hand look it PPP a but within those of last there and X% your in to the and loans year, not you that should side of volatile are basically we grow that's see from you'll attention occurred to program take a because lining And the cover here. turn bottom the where they design, year Now, see now, out slide and businesses can true this slide. in out loan lines in on the appendix you'll without business were

Moving to a of few We continued want show the of growth America. give Bank we highlights. the slide you reemerged machine X, pre-pandemic to

of consumer -- consumers, in primarily XX% quarter. XXth our cards cross the million same consumer grew the to our for the $X the levels U.S. deposit That's leadership production. the share being we side, were in card position primary market Depo for trillion a accounts new our This we in accounts, deposits in which alone. growth under Our transaction credit are retail continued On net drove reaching over checking back segment consecutive deposit deposits pre-pandemic.

And the you'll see the This 's bodes New Lynch business well in and Digital for investment and X% future sales progress sales of products banking with should return slides in increased increased of them we platforms. them efficiency. even remained grow in-person Paul future pandemic. the that's Sales has strong accounts digital have meetings high of for products Merrill use every during private stronger. to later. bank see across occurred that and have levels and and

management tripled [Indiscernible] banking and year-to-date 'XX. had near-record grow have a In and banking quarter We we and then trading assets under seen equity flows investment nearly compared year-to-date revenue. markets to

growth just A point customer So these the on few we're examples two seeing. of capital. are or a

and describe and In a of our with we growing you our $XX benefits, and you. for actions, also can in in our us sales economy, above community billion all, you dividends to shareholders to returned total, returns customers in support that but and allowed return with coupled shareholders only buyback capital minute. shareholders, our to drive these level I'll shares. not quarter's profits, support This But teammates a capital, billion pay our to proving great our support good to higher excess pay we through $XX

delivering funds investments $XXX To Slide update X/X the Slide $X.XX includes directed equity minority-focused basis. you And million to billion nearly million we a support yearly $XX in are our our to the businesses. CDFIs. Going equity $XX we in give completed have amount to minority that million, million directly have date, MDI philanthropic in on more women giving, X communities, and With the priority at slide, and in shown usually X. gave directed addition commitment. how investment about to teams funded on entrepreneurs in of broadly to regard it we This $XXX commitments an the commitment. in on and in

and noting largest have U.S. deposits in doing it's addition the in we to that in Now worth MDI, equity billion $X.X CDFIs the investments, that. in

from help -- better. spectacular and them retail next first go The X lives communities communities had those our them. to opportunity financial local areas markets particularly We you because hire a XX,XXX and we their this serve. recently both quarter, I banking low-to-moderate been of we're local Company commitment serve our If them. our year pathways unique teammates we is to every approaching banking over This well-being a we where and highlights from the That's our with to which with the a from to our financial completed customers next what our our a services job clients, global and program, to even in starting by as great a team be our scale both XX,XXX communities community to ways slide Company day job from for the is of income do the for mates hire It's includes thank of communities local another It teammates doing from us. years. slide, in delivers and and our products in X, want with successful the early. our this team unified a

has in earnings with and to him last Paul going to Paul as help do job Company, call. done XXXX, you want it for Company. But I now Paul. support. know, and CFO turn to congratulate through to it off I'm over since spectacular a thank turn has the He's just to going interesting to us his take I'll some our you been our Paul? over things his Now

Paul Donofrio

QX revenue on a adding billion nearly On everyone. Thanks, a basis, XX XX%. every improvement the improvement The income. QX rose $X a in and year-over-year declined in nearly flat NII, Brian. year-over-year in on of way, and comments improvement income. By despite segment cost. was non-interest related the revenue non-interest Expenses driven produced year-over-year business will Hello, increase X increase revenue and with in were I Slide start billion a couple by $X.X returns. by and from

of basis period. respect year-over-year. up X,XXX year-ago tangible XX% returns, X.X Solid common leverage and revenue nicely and resulted created With on from equity XX pre-provision which of pretax, basis in of growth flat, income operating ROE both while holding expense our to was XX% improved is return was billion points, points the

liquidity growth that Moving to of securities of funding billion excess the XX little balance mixture versus cash. deposit to of more slide expanded generated was X, modestly X than trillion. a QX growth, X a loan sheet placed billion After in and

reduction Shareholders from under Our in share was or equity QX result liquidity balance a repurchases to driven The billion capital declined of outpaced cushion. lower respect billion quarter. as distributions our than X.X%, to points the sheet. a basis points this portfolio RWA as $XX standardize QX, by With XXX X.X lending earnings X.X regulatory approach CETX excess X/X trillion primarily through grew ratios, of growth. to capital higher which and ratio was a a capital of degree, lesser into requirement basis minimum translates commercial above XX.XXX

Given our a leverage minimum capacity X%, ratio leaves of deposit for supplementary versus Sheet growth. which of growth, declined X.X% our requirement Balance plenty to

our requirements. remained comfortably ratio T-LAC above Our

these show loans, I the the over loans that moving more to an loans. a on lower, and PPP they X of include X declined Turning more by will an a through basis. refer charts peak to that slide quarter-over-quarter Also have to signs XX, last footnotes have than been From balances improved closely has because in annualized I quarters to forgiveness billion are change to will on on The Note begun billion basis. which NII. growth average linked ending forgiveness. demand, PPP loan note year. PPP past little of driven loan $XX focus detailed improvements

rebound. from as in to lending, lending, annualized commercial and ed [Indiscernible] utilization XXXX, solidly this excluding to as continued $XX rates all from accounts the deposits, we retail PPP basis on a total card good Combining manage and now while With credit growing see noted, saw credit Global stabilization which basis than base, These retail grow importantly for mortgage, consumer entrust In markets, XX% well custom deposits security-based deposits Focusing change with deposits X.X opportunities would growth build a continued consumer, still as look XX, improving wealth quarters prepayment consumer customer volumes in of commercial continued at highlight And slide -- again that X% and respect across mortgage across deposit-taking an points than on with link to any use quarter. saw to and significant as grew representing client on XX slowed. continued In levels. saw new are management, billion we investment-grade consumer GAAP clients is and to the loan across global from to move as loans adding Brian clients we with as to accounts lower businesses. we loans by perform spending continued more both balances, in liquidity. deposits XXX billion more QX. Banking, the I X%. past other benefit But these and trillion we quarter us loans, than U.S. grew current bank. growth utilization

the billion XX growth gathering both And focused are customers consumer also deposits and are operational with clients. we strong and our deposits on saw our the in wholesale. remember, of We commercial of

to XX On interest increased GAAP an was growth a billion the positive was and interest basis, versus lower activity. QX million income. 'XX deposit loan liquidity, were Turning driven as by from income as of on several QX quarter-over-quarter levels. There well FTE NII XX.X PPP non contributors 'XX, and XX.X net - QX investing partially million. NII XXX were in XXX billion, related by offset basis. up growth. FTE to slide These loan Net drivers

an interest. of First, additional we had day

PPP I to of improved growth quarter. assistance lower XXX a on acceleration by amortization to million. billion to from premium the respect an emphasize this behalf than pull-forward NII Average loans, With And QX least, forgiveness was X.X administering to We that acceleration we in little of periods. a NII from billion. we side deployment And forgiveness, the not loan but of will a an the from of program as quarter-over-quarter or from growth which enormous and bond PPP that some again had also has future which the note, this couple loan of Last also expense, out of contributed defray continued NII the cost I benefited liquidity. experienced program of declined government. revenue X.X PPP more point into helped the would this

yield from interest the NII. net in improvement basis to QX X.XX% X improved Our by points driven

deposit continued and sensitivity given significant, rates, growth Importantly, low our interest asset and highlighting of to remains the relationships. rates value rising deposits customer our

expected expected reduction expect no mentioned. we loan from liquidity move than interest we significant QX the revenue to offset and assuming growth, deployment, benefits I to in amortization changes, and lower As expense PPP premium more rate

QX forward NII see expect and curve as any loan next year, full-year in given growth above as for expectations would the materializes XXXX. we QX full-year and be growth, deposit XXXX well assuming and Assuming NII to well we

were XXX as revenue-related XX, Higher the Compared expenses. slide prior offset absence costs COVID the initiative claims offset as lower than flat of of revenue elevated costs, unemployment improvement and were to were to savings well absence as of other to processing. net in digitalization as million as benefits by billion, Turning contribution litigation in other QX higher quarters' our well QX. an of XX.X the period, on than expenses foundation, more improvements and costs. QX by expenses the related year-ago charitable were more versus 'XX, costs

rate and certain And As centers look businesses. we markets. see to we investment the people financial we at are continue forward, in in high new a across technology adding growth

XX. quality asset Slide on Turning to

XX XX% XX% and below in this QX Net than loss points the more fell loans. picture lowest basis million years. XXXX. were than Net average This XXX the again As is I've is for several orC reported quarter lower to same of XX here. quarters, the rate in quarter charge-offs good very charge-offs

were improvement and rate consumer. the in recovery Provision loss primarily criticized commercial position reserve and We in to move X.X% asset in lower. card categories still split lease quality delinquencies several was loans million XX% commercial continued $XXX product as roughly credit and billion XX% net benefit-driven reservable loan this a of was quarter. X.X by to had Our

remaining [Indiscernible], as expect then. a improves adoption well extent, quarter level of uncertainties and day macroeconomic the still the leases mix asset dissipate, percentage today Our allowance which following we loans loans considering the is versus and above reserve XX, consumer of the yet the one to metrics our ended the portfolios. low and To QX only quality X.XX%, of at and our our in further again environment just level decline that make [Indiscernible] show losses card levels continued both here could we I commercial is lower. The before late-stage credit move quality for Slide On point note would off. of could loans, drives which leveling expectation especially the

to and on business segments, with Slide Turning starting the consumer XX.

touch business I team the on a job I has since want to this done the around in Before financials, what highlight turning this great pandemic.

businesses profits was earnings as more rebounded, our and of over and quarter, The reserves, customers, only the assistance added -- rates Lows which Consumer are than segment's has credit We impacted narrow deposits rebounded not rebounding. and associates XX% support of a historic to contractors health and our customer profits, significantly. at interest incurred mounted X at Banking protect the our accelerated credit year-over-year. we heavily programs. to quarterly the the Net to trillion income by to their Net businesses, business resources All cost government of in to has very to all most interest and own growth, heavy Fast-forward worst, billions [Indiscernible] pandemic, its and and level as drove customer value respect of We but up billion. crossed alone now our before other depressing the added X also to declined relationships. charge-offs reflecting NII deposits, quickly the with deposit has fell this losses. as potential in rebound

in improvement. quickly deliver positioned down that segment, stopped never us here and leverage. responsible We a and higher everyone of than and operating is reflecting checking volumes is on to earnings year-to-date, income activity. X illustration investing. and the rebound just charges year-over-year Revenue investing earned checking to point are with during operating every the while an reserve of average growth XX% of XX, we to primary a and not card by than mitigated operating for as our more of XXX. our improved a and in as rebound is release account XX% And balance of by showed purchase this true Expenses revenue, higher segment but and and our checking minimum client Consumer XX%, higher only higher due moved Our credit, increased accounts were credit Net service under never costs the expense, grew quarter. We billion for consumer accounts result accounts of in had more growth, of continued increases Banking also other great cost QX, wage reduction people. pandemic, X% $XXX organic our business all years lower resilience a On costs this COVID The million XXX,XXX costs.

asset However, improved is in more charge-offs XXX down and Net decline direct net of indicator the quarter-over-quarter. year-over-year were million lower XX% of the XX% charge-offs. quality

On Yes, number growth offering. rate points investments. important engagement. of value saw to continue consumer An billion, continued Slide couple a XX, improvement We the the X% earlier deposits, than to regarding year covered but client in me reached see balances, of this online XXX to slide net pre-pandemic, element the as we credit digital in grew billion market the highlight the record increase XX% investment of growing of can values customers year-over-year a loans deposit over respect of we X Our was over has of growth X%. growth loss increased, million. let XX the our accounts in the balance On past and new also more flows. with loans XX, quarter been was recognize you it for as X.X% and card

nearly using but of now enrollment XX actively industry-leading have As usage digital customers our key. is We million you important, platform. all is know,

of XX been used XX% within Zelle XX% and billion of is platform households in which the logging sales year-over-year. draw some is past And attention part I Erica our quarter, times. days, what would digital the to more than tremendous, your digital X.X while up growth, This usage has

Lastly, satisfaction levels. maintaining would our just the will historic customer has on reflect at not add to digital I slide, foundational engagement become

to continued Wealth but to not Management, a and loan client led the asset fees, to once all of and reopening, record deposits market economic Turning flows, conditions in record contributing strong QX. investment also levels and balances only again management record pretax margin

the fact, the services to this this bank in the In of are products average engagement clients. and is and business. XXth growth Merrill deliver consecutive Both the loan to Lynch driving contributed and to private quarter improvement digital

respect performance. year-over-year, XX deposit increases. billion. revenue year-over-year, trillion, as AUM levels, Net higher continue up to billion to private this of pipelines by expect pre-pandemic modern is at advisor-led, powered households continue Merrill, flows rose drive increased bank continued NII as revenue. to the of complemented revenue and our balances in well we our on with and as loan driven strong driven can in [Indiscernible] X.X towards solid pace. the towards XX% Expenses we and improved to of alignment -- grew back back Merrill X.X XX% new by which Client by Growth With XX% move higher higher digital. income fees, market strong which pre-pandemic the a at year-over-year You as build

continued highlight and utilizing also lead through and business advising all logged lending. to more efficient clients. in to and spend through deposit to trade, easily capacity digital more banking management use this text it the to to business of digital capabilities, choose. sign-on. loans for and access tools More wealth and XX AI clients are creates to Let's This and balances, The digitally clients making engaging existing our additional they investments, needs leveraging, adoption, check us in like skip clients. teams franchise Erica-based only WebEx for messaging, progress to check do other mobile clients more time wherever potential not We but one their however our Slide and meetings and with And easier originate simplified through secured on of

by investment-grade resulted rank the improvement X in and strong that performance Banking deposit Global leveraged the pipeline near-record Moving strong of investment number solid in with another quarter improvement to on with in helped billion and down in Revenue quarter. an X.X from year-ago growth, investment and very had costs. a the complemented while with overall a for loan which slide NII fees X.X XX% included market the level. We demand. compared and grew to banking. to were finance banking improve driven up banking segment provision billion an both release to Strong a ranking remains deposit higher Provision strong. fees, growth earned uptake modestly number XX% revenue in the X% continued and record firm-wide fees This strength XX, in share NII, performance builds expense lower reflected compared improving reserve only investment to business billion, QX X.X year-ago year-over-year, The IB period.

worth in clients. is our We strong momentum see also had to banking middle-market we It record noting M&A continued investment with results. that

And to year-over-year, are X% strategies, earnings XX. skip trends We've and slide costs already client to slide with Non-interest you the time, that higher particularly been XX XX, business. to solutions. investment has tactics continue helped a led know, That nearly we XX, most data investment capabilities better for clients invest and balance share global covered -- technology Solutions executed bankers usage another. results investments, in and to in digital so clients Digital provide banking have reflecting investment benefiting banking expense do U.S. the enterprise now. the let's on that we solid capture now have as Enhanced XXX increased invest in our greater first-time on have in equity's Over market in our investing middle-market our trading sheet Banking the with years we to reflect our cities in and of many adoption been IB have partners the true that transactions have new effort, sales revenue-related digital more solutions, are with secure investments As as by in banking. we wholesale for in activity Switching global on global continue and an grow. across clients, stable we and us will integrated few markets franchise. primarily much segment and of and continued continues capability one

As a -- the XXX Global but net year-ago produced excluding DVA about the markets had earnings loss, me. million produced par DVA, do, year-ago higher Global usually results, markets with excuse talk X this a the I quarter. quarter I loss. will was in $XXX segment quarter on modest million

equities slide improvement trading revenue strength business, performance as few sales in driven its by On revenue was was X% X%, note contributed increased equities total revenue one year-over-year. The and billion of improved as well up in in ever. growth and last Sales continued for The and to an by driven quarter derivatives. opportunities. activity-related client trading results the and reflected saw while trends -- and year-over-year, on declined activity FICC strongest spreads. sales FICC With stronger X.X. in year-to-date of both moving rates improving expense XX, XX%, interest tight the with we our driven activity curve yield credit costs. X% and recording financing and quarter, Focusing cash in a year-over-year client range-bound flat performances late much we interest by trading. increase rates revenue, the across was strong increased in years. a trading

extend balance client XXXX while in driven elevated sheet can made investments well well in volatility the our you by as activity the pandemic, performance to above as see, XXXX years was the elevation remains pre-pandemic to continued more clients. of market, As presented, and during

XX, a year-over-year, million net XXX ESG period. Other, All on Revenue small accruals in the higher loss. show the of by losses was by investments. Finally, declined on which Expense Slide year-over-year, we reported absence reflecting driven partnership prior litigation lower

quarter Our effective tax XX%. rate this was

to by With our the any Q&A. changes roughly and the to would law absent credits XX%, been portfolio XX%. XX% We tax our we QX tax have Excluding be ESG unusual or rate tax tax that, go between rate expect of items. investments, would driven can in

Operator

[Operator question from take first Instructions] Evercore. our Schorr Glenn today We'll with

open. Your line is

Glenn Schorr

was of love expense revenue. expenses Hi, the NII and bit little with I the this commentary up a size box, Lots bread thanks Obviously, all very than activity-related a on on forward-leading it go bigger side. market-related much. detail,

think X, going we next do whatever couple years. of if So is could the it, maybe mark over about to

produced years as operating even you leverage, Maybe eke out to expect, invest idea the You've what further coming us give -- gains? yet but as just you over efficiency invest. Thanks. if an great you it's of still can

Brian Moynihan

is said and 'XX excellence a what little what think, and take seeing cetera, in we've we efforts got might to moment BAC embedded the and Glenn, 'XX to the back to the of idea and history we we in in operating CPI rents I we we and the when you through to sort in kick started a like increases when we you said bit things as 'XX X% going merit and a you as up market's growth, that, et at then in if grow, able down. then of type keep the drive X% inflationary efficiency, we raises the year, time the bring manage and but X% been have our was floor, aside that working could between in was and to And we'd that. which have said, could the you net to -- them and expect expenses leave that and

that With it's all the see emerge side. with coming costs out for and last other you'll PPP stuff, start it months, XX the and kind of the COVID-related around to threw but the

for basically So quarter-after-quarter and we leverage, the that pandemic think operating to model. you as of to of years a the at And maybe net are you you And, operating come then ago, around. And know, on idea economy X%, rate than be X% that's revenue the would of stronger. or seeing if the quarters faster after quarters three a grow revenues I couple pushed growth is saw the the the that grow expenses pandemic stabilize plus like, comeback XX a something system.

Glenn Schorr

great. That's

the have and it a press was what announcing perspective Is changes. So happening, a stepping It's there change right are all. have succession the put here, no so leadership and figure Brian, I level, how talk just changes? next and around this think what's like about I Maybe type you? lot, like all-natural efficiency. still we sounds we up, it [Indiscernible] Cool. X-page all operating while release

Brian Moynihan

with have This to conference But accomplish life now been me. executives have is to they in -- lot so retirement because teammates have executives directly happened What have CEO. those team. been we and -- move retire, onto reporting earnings quarterly to leaders We senior if really the Sure. we retiring. retirement Tom's when retirement announced to it's call, are we go -- to adjust And I've and choice you senior management time to now but have rather a put it. what efforts. the back who're of that's is but XXth summer, we has last Andrew's a -- long never and they I a tried Andrew's would

that's of of international the a of then as first same group we retirement in more now who needed management time. people a -- business eight that go as really and two with does were Bernie and different a people, are great people the elevate who to also and But we X idea to international the job XX or to us younger, it's three Company. we European So us. ahead for for we and a have and team thinking came so through, years run running colleagues she years -- is diverse, out the was be of lines Brexit going how it. genesis so X-XX women, have is has Bernie and to And Kathy your Kathy. as on -- (ph) to in us that context the on the and help help them focused X And help great opposed philosophy

make our have that they if teammates. businesses know, over But you a step bench more and behind Anne can last know, thing market Company level. And that years more best jobs. into lot the (ph) and brand they the tremendous them developed did us, are -- as and in a the -- we're retire all of driving the people reactions Andrew at and Tom and, we as for frankly, we You is things extremely other on few strong the the they time spent running they

Glenn Schorr

Brian. you, Thank Thank you.

Operator

Our next Deutsche comes Bank. from with question O'Connor Matthew

is line Your open.

Matthew O’Connor

morning. calls? commentary, Good income XQ income billion And Was net little and first the hoping clearly versus interest of think maybe been that think guidance quarter for overall. the to better interest to circle positive similar a to about even to was hoping the level implies XQ and prior I which NII? I on NII bit net was update But a be more just than point back get talking up you've on -- a

Paul Donofrio

Sure.

the less forgiveness. to and So relative QX, have loan PPP [Indiscernible] will

we combination we think deployment, able growth and overcome be in expense. premium decline a produce modest However, lower Through should to NII in modestly this growth, loan amortization and of liquidity QX.

Matthew O’Connor

think Okay. guess Which I the XXX. versus a I to does get up you, that billion

Paul Donofrio

it. do would Modestly, imply we tend do to that we could Yeah. you we and what tell

Company so, run yes. So that's the how we

Matthew O’Connor

Understood.

of next growth frame talked costs you costs first Okay. but kind about you to obviously had And quarter, I and help then you. some about you as think Thank how some year, X 'XX? question, the separately term, in one-time kind on 'XX X% long expense COVID you the versus of think would

Paul Donofrio

just to potentially be as estimate base but QX with of for should I lower QX. or a flattish here. start quarterly QX guidance, to way about The than provide modestly specific 'XX, think would we're our QX XXXX, rough not going

that little you base the with at as base being, the and tax X% war to as in or a that you revenue roughly Brian next we've which the now, million. X%. start add for any lastly, that said, lower just first want fees. compensation add the are around But is than inflationary adjust payroll more maybe linked given XXX add And to around make then and assumption to quarter, which a bit targeting in Brian So then for seasonal talent, as higher costs, areas exchange closely And that year. in higher expectations right said,

with that a If you're math, going to I do 'XX. up pretty you good for estimate come think

Matthew O’Connor

or about next out back in we anything Okay. going year? costs that terms COVID the of can as PPP we And think away

Paul Donofrio

we COVID people in seeing a Look, modestly to Yes. couple costs, in costs, from down some million there's of return incurred QX. as COVID's of -- the office. our but just net some still new reduction COVID We're XXX costs

next over those While create, so the out. or left, there's not to modest lot opportunity year a does it I think, get costs

Matthew O’Connor

clarity. all for the Thanks Okay.

Operator

Mike comes Mayo next from Wells Fargo. Our question with

Your open. line is

Mike Mayo

X. have back-office. The number the Hi, office, slide and my relates question to front you tech, office front the

So-net plan by related go do And think I like see. with directly consumer you relationship public What your your the you And digital cloud, think to doing that over have is are much as How banking? or then new of the half years. don't the to accounts backup to you you relates checking as other some of targeted. up XXX% sort don't you really of IBM. peers get. indirectly cloud, What which to question, indicated last efficiencies can my it we X

thanks. could tech strategy, your you if So elaborate on

Paul Donofrio

first primarily primary keeps been The core production us to are checking is time, and remember -- actually this and It these accounts, XX Mike, new Mike, of accounts. around you've XX% accounts. the not on went year last the a from So long net up. checking over going of --

this purchases, numbers. up, think hit the to of last developed people both count accounts allow execution to quarter terms account And -- and news takes now honestly sales digital you of production in high-touch high mortgage the the the to opening I in origination, last was point a high-tech for accounts. both are XX-year it saw of we be in the went now over of coming round the core the And in that's is net place. So which fully years, reopened of digital -- your auto sales XX% terms high-tech, have, three from full terms etc, digital, practice the that rise business digital take and successful. sold Half good branches the the terms because as over

things But think we brands up that area a but is of you XX% exactly X,XXX because jumped obviously customers. more sales of in originated. digital net per We from Gen-Z accumulating college, have We going of of on. about came share a method have XX,XXX dominate. A that got last key and the think there But of are gone the heavily down, it account to right. is is years. overall the over the to percentage lot that lot couple market other digitally the efficient realize sales that's more So balances

one So Merrill you to bigger When big XX is these you a digital balances. and with core our and it when core that's you're Lynch, keep are give example. -- for customers seeing with mind customers, thing bigger customers we go position. in

balance cloud. we're But think or anyway, average not or X,XXX cloud account, question. XX,XXX up something The X,XXX. I a just per is to on the complex

our As X, well an which years, you Kathy a internalize and lot us efficient. to over more last the XX aware, cloud, effort the made led are team

and so our things that. percentage of business like And to -- we look at run we -- executions due certain outside

industry You a because the get the types the there that trust to companies be can and The of product can in basis, the on of develop service financial we the businesses. We all get our Cloud security have programs question these and cloud and is them XXX which SaaS -- and run is capability to understanding or things can IBM different them out be software all. new the to can to that -- have we IBM's is you that. But get for efforts misleading done carefully can cloud-based FA purposes systems the working internalize on a that use types?

whether to continuing on to externally. to continue But restraint our we to the and cloud. saving based amount And so running and internally ingenuity modest or innovation, money importantly, no ability we're far, lot the on tap we've judgment there's to a it's that add of come internalize

please. question, Next

Operator

Our with next Gerard RBC. question comes from Cassidy

open. Your line is

Gerard Cassidy

Brian you. Hi, (ph). How're

Brian Moynihan

Good, Gerard How're (ph). you?

Gerard Cassidy

get do see You've next a you us out, happen your to guys think --good. you share your us, what it ratio, next Can to, will dollars. you How had to you or loan two with deposit low. growth, peers, [Indiscernible] deposit three can you incredible share to the second, guys consumer very growing over can year, deposit And with the Can is you And as you the pointed is sometime trillion years? the retail think? similar you growth. do over where that When

Brian Moynihan

change few and will Paul I talk policy, that little sort some add monetary in the wants of of on a comments bit thing. a to about

Paul Donofrio

Yes.

at So experienced with a growth look, expect we industry. going to be deposit than or to we this to growth line our what expect likely was it's rate slower than continue, in And continue far although year. slightly the so better

got to we though see tapering. QE, entering are is You decline supply in of back ever QEM so even quarters many to deposits coming historical they if deposits could the look do. down. Taping still could a to -- data growth that we're Because effect multiplier the phase money really after is until at remember not economy as likely expands,

still and will it's wait do what then of maybe be know it couple standpoint but I have just and a we'll years from to quarters, we ends. stimulative as So -- to still decline, QE said, going going if probably deposit see, we're starts, QE posits after a to as is many do

Brian Moynihan

things. the was 'XX, I it a deposit the accounts, to at and it's to of these think When deja -- all core over because we prices, and going about to are part, rates reason we the couple we transaction a all raise you're because base, non-interest don't consumer a just going it's normalize to Gerard, in have large 'XX to looking have didn't why sometimes, bearing. is, statement, have 'XX, in vu classic again, Fed's

see that in accounts, again the billion And normalize XX% business, that. monetary same the transaction CDs, little would rates the very of or but like say and core and balances XX moving supply checking, bucks has consumer the those something in of apply think so dynamic as I some are you'll that so are out, XX, changed, money

around? basically trillion it in the and market. So move money Can is $X all Yes. checking

with times the that that they things or well customer and -- checking If of at look you sitting with X us, a $X,XXX made X had times the -- is balances if look, either bodes you what one X $X,XXX economy for of crisis. been in down, that to That's stimulus month will months. They It's interestingly than But I payments growing though spend childcare the few that, to going customers for some that's enough, before assume. stops. good large other the last the even not month news. in part the over has

is their about money -- still is trying So this it it well in a going to there's lot consumers are for have to and one the isn't some it. of to bodes spend And you thing [Inaudible] accounts economy. viewpoint

growth, could a overcome the to driven transactions. because coming question, Loan-to-deposit Going and the down the driving, balance, them carried all to we that -- means We customers sell about balances by so they the we -- check-in borrow, dealer little back new want to it was inventories to to ratio, it's average what a they have year deposit down, to would when usage long-term that a it's the etc. down accounts it your XX% our it's $XX,XXX be auto course, good to that But of lines the want on was mean because bit. being consumer. lend of those feel core by by deposit come million at inventory

driven meaning that I The half activity. there see about on growing customer And businesses those customer-driven by is is just that the charts importantly, and their a are the thinking trillion good is starting billion and business is But use that customers it. the to that above this to X well so page coming the call the loan news credit [Indiscernible] charts deposits stuff. for generally. smile on can of largely against the the So XXX smile in loans draw other you up, economy of and growth customer

and together. Gerard, -- people the when just consumer and remind want X.X you deposits. is I trillion One to when is talk trillion X.X lot That [Indiscernible] combine we of of a retail you, things breakout about them

and that obviously as just big it's as a on don't all it supply So think transactional is machine questions and we much moves institutional side. monetary

Gerard Cassidy

you. Thank good. Very

Operator

from Graseck comes question Stanley. with Morgan next Our Betsy

open. is line Your

Brian Moynihan

Betsy. Morning

Betsy Graseck

to you're 'XX across footprint, GDP think your into gain how platform? about opportunity the your positive setup that we've top-down to for the see a business or ask, that do wanted Hey, Good I you growth Hi especially regard looks when Brian. biggest got are where mentioning you pretty leaning you earlier, share morning. into with

Brian Moynihan

areas. a Tom's on we've seeing But team that expanded couple I'd the business and you're the equities say and under leadership good in One, the in the -- balance markets there's And well the aware, sheet business do returns equities stronger in stronger they're that. DeMare as the Jim to and in business. continue it.

levels, etc. sheet the sustaining, it's in And customer if So that, deploying activity selection. business, against balance lending you go recognizing then

out extra getting customers in the And relationship banking, business those seeing the were with growing. we small business stuff XXX away you're customers hard managers and net segments more banging the way. So world, at new

in that see wealth You management the business.

customer core Balance So going to the question. deployed growth to balance what that's and a the you is statistics on customer, aspects. Sheet And Merrill is it's of and those other and you'll that see. else see but some the put sheet markets you as why its Everywhere capital that $XXX Meanwhile, you million and significant own. enterprise that's Lynch see these becoming over fairly follow

like basically great they, up a year next and plus team And it. year, sets are you about Candice X% good feel we the and X% platform on (ph) which So research they well. said, and this are

Betsy Graseck

outside about opportunity the you've relative So just growth your here, potentially franchise that I'm U.S. to an the for borders, what U.S. been is outside you that's an of larger even engine doing? is thinking there

Brian Moynihan

-- have do we'll investment of segment invest U.S. in loans the continue we banking We'll -- U.S. outside we the more our inside to expand the core global than

done job. banking to continue team Matthew a O'Connor great We good and and area are job. that. doing team have in [Indiscernible] expand a corporate

continued growth, And invest combined fees and and the getting revenue And one deposits we invest continue another. that. after the to payments develop and in high GTS, our we're to together. and that yes, then it's Ahmed So there, we're thing just real-time the team going capabilities single-digit soft

going in about but business XXth to consumer wealth are business I just manager the -- the wealth go opportunities our -- branch to business that, the outside, outside the don't in or U.S., consumer but and staggering are management the into we change if U.S. in and Think just doing us. business questions, are Indianapolis. we opened we're the So

We're would've as X now maybe share, and moving up ago You strong. FY. didn't and been market [Inaudible] I Xth talking it years at any

to City and Cleveland, And seeing You Lake growth in it look new X Minneapolis. in X, XXXX Cincinnati, and do bank. war of top to Merrill running the ourselves, not X. would and households the so in and that you're multiples opportunity from move and We're time at with Columbus There's distract Salt much competition, the and is winning. a in private just the us we're be it. the And

Betsy Graseck

embedded you Okay. the through just here got shift where had keep mentioning bread year, I'm you're drivers, just you've an we then it soon, forward you've that for higher duration for a duration in if than the you And NII book into security lastly, [Indiscernible] box a would how or NII, take the more and rates is look bigger as to rise curve. thinking What outlined is curves you to forward that the in got stronger, next when about wondering, increase on growth be s would in in opportunity come opportunity you're you about inflation even than Paul,

Paul Donofrio

look. We'd

lot right now. have of liquidity excess We a

balancing We're earnings rise. an and opportunity capital, always liquidity, of some always that there's to future. So in and rates deploy the

of those best we to and think short way just talked end. the rise. opportunity talk would We've at value have of to study which I that on we the a whether of probably interest rates our shift, insensitivity, higher the because got if sits some $X.X liability that's sensitivity rates. at were for about, rate about It deposits deploy to liquidity that's parallel today customer sitting is billion to relationships that of probably want XX% Brian disclosure, the our

opportunity as gives rise. rates here maybe that you of So sense a the

Betsy Graseck

Thanks.

Operator

Seaport from Our comes with Research. question next Jim Mitchell

Your open. line is

Jim Mitchell

a Maybe Hey, good morning. question. just

peers impact your of talked [Indiscernible] of about adoption. One the this morning

of grow you? X% RWS of Is standardized think the impact similar to for sense I that about XX%. trying disclosed that. he to you how could get adoption think Just that a a

Paul Donofrio

Sachar, I benefit already a us in think that We and markets. adopted for was

Jim Mitchell

Really?

Paul Donofrio

back first come to can We Lee you the to the with Yeah, were adopt. details.

Jim Mitchell

when so acceleration -- this we great. continue that expect Okay. we to Well, should the your to XX towards the buybacks, that's about around XX acceleration of billion, target until quarter XX.X%. of to Then is, the you buybacks get think just --

Paul Donofrio

it more it back there, we on target thought money. period multi-quarter Board because earning that. manage up is working and at if and The manages bit a dramatically our And quarterly but a little we're clean And towards what's more we're it basis. we put. simply it's towards mean, I with We we'd you a to over then towards focus -- here dynamically. we'll Yes. on continue capital we're happening where be, look where in

Jim Mitchell

Okay, that's Thanks. great.

Operator

Our next Charles with question from comes Peabody Portales.

is Your open. line

Charles Peabody

guidance, what for if rate sort and Actually, of environment get I that XXXX. looking modest XXXX, rate or the year-over-year curve growth to or of my level? NII was you question towards you're that, at asked, nominal in growth the word a above on of but is NII, used you In just third, think mid-single-digit kind expected you are extrapolate, yield fourth-quarter assuming

Paul Donofrio

think because modest correct, didn't to hear the us the just either something me NII quarter. or third Let we're I But quarter you said right growth fourth expecting wrong. we from

Charles Peabody

Oh, okay.

Paul Donofrio

some we and both and 'XX. and depend. 'XX, specific providing to couple NII with on me economy. to reminders We're continue to about give let on going going consistent a is Yeah. of deposit qualifiers to grow I a expect depend it's growing that those of growth, loan comments that versus 'XX really but the you not We just perspective made in gave initial guidance

ever before also you is We premium all path amortization the expecting dependent forward that the moment. rates. -- When we curve guidance with consistent on lower over the always expense give at time

So sorry 'XX. thing I mentioned already one that full-year second earlier. assuming year, the given quarter. the That NII half in fourth our of around current given improving NII, I curve the booked on we've could comparing and robust think in guidance improvement the third expectations you points expect quarter. I've forward -- full-year sensitivity for I X.X want that. our basis to X.X, the curve the one By shift so it's said actually the correct I rise way, versus to 'XX the asset XXX was parallel this

Charles Peabody

interest through you're the declining of please shrinking next of supply first there's put being issuance here, the rates lot can half for And amount me and rise. on you're what on I'm liquidity to of how about treasury that to so a a going a, you yield help work, deficit. And so balance to the structures, cap in on a be significant of a bank I'm year, if doesn't -- But somewhat have wondering going of and put that's then put a rate have decline to some thinking sheet then much treasury -- budget waiting still got side. demand QE because on

why that's you're curious of going I'm So sort what rate curve nominal either wise or anticipating forward. structure

Paul Donofrio

always asset we about on -- long build end the you the participants quarter a going that's whenever and all curve of for go estimates, time some forward into of curve don't that that know the decades, the of so how at based use time estimate used talking you're the debate, of the at a long, use market we we couple all the factors don't sensitivity of got. we back -- the in we've curve we internal it All

Charles Peabody

you. Thank

Operator

question comes Steven next with Research. Wolfe Chuback from Our

is open. line Your

Steven Chuback

my questions. Hi, taking good morning. And thanks for

whether to I some potential with with as guidance. related drag off be P&L on about just the tax those start on income how well And think how to So income fee impacts just we thinking guidance Statement. the noise and the about all guys be to a I help potential other in consider creates was the that drag could you should Income the just neutral. rate the the to wanted ESG one, given of you related that always that for the hoping are color investments, size and XQ intended you've accounting, would volatility associated change provided [Indiscernible] recognizing Paul, to

Paul Donofrio

fourth booked for I line. into know 'XX partnerships. to that remind for pretax do more so the long losses Yeah. these time, everybody I'll income Look, go offset about -- we've book are that our than other the as into they other as for the we in everybody. tax activities generally talked that expect it, know, we these is increase loss to it's income. ESG and quarter I entering in you but 'XX, But and we think highest are that in remind important over partnership

in income to will So there tax benefits small revenue of the as net be to but future, the these these we not investments. grow growth headwind activities a growth, given

the fourth quarter got a as the loss quarter perhaps these they're deals higher, modeling, we all logistical as stuff. seasonal from partnership about fourth well the out and XXX that both expect increase third think in fourth-quarter line think the typical other And little on few going be income a you investments, even tax there, investments, that were million there we pop delayed the because quarter. to As to everybody the of into in or reflecting

three-quarters fourth-quarter up the aside, putting be for other income line, items. It made will tax to for quarterly that, line. a would normal I Beyond of XXX Again, than more ESG in the unusual a for 'XX, the say, good assumption investments, absent of the those in modeling XXX loss

Steven Chuback

wanted to gets this just saw XX.X just I ranges color, know that follow-up, does inbound things given us next to have just the after we're that point sound year, guidance some reluctant for remarks. some provide these made if your we billion give It like Thanks the gotten of Paul. we've guys my and you XXXX. jumping-off for sheer that for the are explicit to amount quarter you about is see that expense And appropriately. thinking just I annualizing

way right sorry, XXX X the in you You spoke much to incremental additional that of starting Is to how incentive that range the about somewhere think us -- to that then that point growth XXXX X%. to that's it? seasonal the have for thinking expense, million expense gets and about of

Paul Donofrio

it on some it's because by they million the because we to special [Indiscernible] drifting and year. has what for is the some people you the the medium that think customer, and COVID-related components down leading the PPP dominated all what's and had them you got X.X if got [Indiscernible], success. of expense expenses base, positioning runoff because happens of everybody next equipment headcount But headcount and You've I operate the on for buildings the and think loans And not impact as focus but to of programs the thing about that

Brian Moynihan

the down round those the down, the unemployment goes payments, up, in it's numbers to engineer so but so we Company that about all down, coming the right, I down number, that XXXXXX X,XXX this technology and that's manage are to XXX for that watch if continue investments year. it just was stuff the and stuff applications, I client-facing quarter, deferral going think we Managers for got down. continue and down quarter, point, this it a at back-office,

that rate We parts year-over-year run it. got back on the continue the you've have come So we'll flat to and component down work clear. brought to

Paul Donofrio

the expenses And than on to if expenses may; focused operating managing add, terms thing in growing and given clearly well, revenue. other I you of the revenue, X% what grow you how We've only really The creating we're but slower And about model. got we've we've we're grow growth, I -- Yeah. is think focused quarter. on that And business saw that's expense this got we're really Brian, that would to framework. we leverage.

Steven Chuback

follow-up, great. one I That's on securities And if the just yield. just may, quick

bids benefit in how You that be But curve to and about maybe least could can was that hoping MBS going earnest large closer premium some pre-COVID reflective premium the if reinvesting I really from there. the nice levels. how of guys benefit along actually given you're to was expansion of of and part are saw thinking some at know that's to where I risk, start just somewhere help you separately, cited. normalize the frame duration, your be And appetite, you in size then portfolio? prepay

Brian Moynihan

Yeah.

size that you they and movements about months the also has think the [Indiscernible] and and focus expense a remind securities the remind amortization just It's about time, going lag that by rates. XX-year. kind also would expense, about on of year-over-year. portfolio two over premiumization And I people of on path rates you that lot you prepayment to lags, rates, it's premium think just remember the as of everybody If that it's important mortgage mortgage I depend more increased little than would a really to

have those -- things modeling. of go all your to So your sort into into

Steven Chuback

my taking Understood. Thanks for questions.

Operator

Our next Usdin question Jefferies. comes Ken from with

open. is line Your

Ken Usdin

Good Thanks. morning.

the on that to to and nicely debit really grow a purchase or little did Interesting Just come a card. your question see volumes two continued credit card down bit.

was So terms Thank as trends wondering there, starting balances what as overall far What and the in change fees, the your variant? you you. do interchange that trend can outlook debit? in forward that you're terms just at talk seeing if of Was the of for, and underlying terms in stimulus delta of of you through views see spend to and card.

Brian Moynihan

unemployment in versus sits markets. associated in because driven, despite look at income, card sort make the you're no not But relatively card purchase you going claims, line, as which only the very look, at Banking 'XX are in see increases with one's fees, slightly to That's at processing up rates of payment by Well, that our Sure. X% look still when nicely high. when that. the QX up you confused, card couple just Consumer fact just consolidated of decline were income global volume income so points a the of they said, about year-over-year you to

Just for some clarification there.

million The terms accounts, matches X% an a which card some small In and balances. balances, of over opened balances And new look, to improve. we're expecting growth grew revolving we annualized on balances levels. to quarter-over-quarter including continue basis, pre-pandemic now

reflected that I including and reinitiated about, think efforts talked offers. we've higher growth marketing spend the promo balanced

While rates payment remained again, elevated.

higher QX cards. purchase additional expect and drive seasonal that's going to in We balances volume,

Paul Donofrio

Yeah.

couple of a just think I things.

consumers balance and of about out their cards the taking You at -- all money the of XX% off but the meaningful way the And are on question said is amount debit of spend becoming spending always credit Cash, we Zelle payments. cards, written. got accounts. a you do it. the of to and checks look side only have ATMs,

consumers -- tap [Inaudible] in already good XX% of but do card you for of capacity look or penetration cards borrow you are things no to, an how think cut I the there's We're and seeing want easy cards good the to of are to at two if things. at is, it, XX% the still it tremendous balances news messages, matter form but payment. spend, they growing, the how but already,

Brian Moynihan

that's by The as the the economy an in XX% In it's led amount growing spending a spending the going consumer, levels of that rates. quite and are second stimulus by that thing U.S. tremendous even months. a is the at mirror is is the in American which on, growth -- not is accelerating, rearview many

and So higher things, as people to there's get back to work wages and more just money spend.

borrow at, the ever as continue a asset as versus unbelievable. I on down who a we and and high is as spending been, it quality a talked a vehicle business, is borrowing focus about new and to generate card cards NIM So The we think needs about, as what, and look good Paul that's the business. will [Indiscernible] we break vehicle, the to but it's something if like million

Ken Usdin

lot, a Thanks guys. Great.

Operator

your open. comes Oppenheimer, question line final is Kotowski from with Our Chris

Brian Moynihan

Chris. Morning,

Chris Kotowski

income. right. you. million, still to amortization sure if $XXX trying And -- PPP The were the down was parts I and in strength implies right. the have morning, wanted Good I for XXX And million quarter net a NII and XXX. securities it loan that linked It say, moving up I -- just that all disaggregate in growth, I'm thank Is to revenues there an interest make how the is on if against, you put X% or average have or explanation X.X% that did quite roughly it strength? strong? growth is become up it

Brian Moynihan

day. an to extra got add You

Chris Kotowski

day. Extra

Okay. more. That's X%

Brian Moynihan

the loan And you growth. some in some think two cash, now, and the what we towards -- put left is quarters portfolio. for with, is then those of what of get a those put We took the loan of We of securities those I in you're quarter-over-quarter. growth lot and we in deposits some put

Chris Kotowski

were Okay. rate guess, would securities say, if with an for amortization in the to you had size that currently, kind And that a, say? you if what you now, of of the you if go billion to XXXX can the environment, had portfolio

Brian Moynihan

by that just the CPRs your tracking and you look If make can at estimates.

we stabilization billion said be the The in saw a we little thought -- that said that, -- stayed to stuff. seeing quarter plus of of going against just excluding we wait, know saying, people portfolio bit, basis, backing forward That's $XXX cost in up we said X but that funding quarter the NII spread You that the billion there's second into can XXX, the in that's quarter size how and as PPP. year-over-year. $XX formulated especially we're tune the first All growth basis lot going of -- loan on earlier, build second-half the And we loan at on X growth. the of top or what's books the the grew we to because a with we're true? XXX projections deposits remember, points it up

somewhere leads what that's this to then do it'll the really and then and coming down started stabilization And side at things Short-term, but the grow back we banking the will So balance we sheet, the -- them. it's deposits, about, make NIM talked to that's all -- is that going spread what drives loans, percentage best long-term. going through it the that the moving and take make you loans. news of stabilize shows you that's and come at what point drive take to on the between be that actually to up as

Chris Kotowski

That's That awesome quarter, thank Thanks. you. for was it an me.

Brian Moynihan

attention. all that. agreed all. We That's your with you for Thank

same at to could returning saw effort pre-pandemic. of solid close capital, to at great expenses, year-over-year operating investments demand, to leverage drive Chris's year-over-year to revenue having that $XX disciplined organic to went quarter. good say XX take expense the for XX% the quarter-by-quarter XX% just drive that franchise we time, back this the billion to make trends growth to growth, in and quarter returned the I out, comment loan flat Just we great a

a grow the We the capital without and can business continued run retaining way the core because current return basis. excess earnings frankly, on capital we all we of risk because the

the Paul We outside closing, and to to taking do communities in need I Allison same as our we And quarter. you. services continue over what his to to for Thank forward look next we time. thank just in team want and CFO do

Operator

today's for your program. participation. Thank conclude you does This

may You at disconnect anytime.

Bank Of America (BAC) 14 Oct 212021 Q3 Earnings call transcript