美银CEO Moynihan：罚款已入账，上调净息收入增速预期

I'm pleased to say that the Bank of America Chairman and CEO, Brian Moynihan, joins us now for more. Brian, welcome to the program. It's good to see you as always. There's a couple of different stories in the mix today. We've got to start with that chunky fine from Treasury. A big regulatory find that we can address with you straight away this afternoon. The language from Treasury is quite damning. Brian, what's your interpretation of what went wrong here?

Look, at the end of the day, we had an examination a few years ago. Um, we we got a cease and desist order. We have to do that work. Um, this fine relates to that effort. They wanted there was a debate, a bit about what exactly we had to do that's resolved just behind us. 2,000,000,002 is going through. We've been expanding, uh, the money to in the run rate already to do the remediation. Uh, because, you know, we a few months ago, we started picking up the cost structure and putting it in.

So we we'll get it done. We take it seriously. And I think as time goes by is will people understand it better? I imagine you'll want to draw a line under the whole issue. But just to extend the conversation on this particular topic just a little bit further, Brian, I imagine you also don't want to be drawn into how much of this has already been completed, what is left to really fix here? But I think this afternoon, given where the stock is, there needs to be some confidence for investors that the costs associated with remedying this are in the baseline, and there won't be any more surprises in the future.

How confident can investors be the. That's the case for the operational costs to do the work. We've added a lot of expense and it's in our baseline and we will continue to operate that. Uh, and again, it's a few hundred million dollars in the in the quarter here. And it, it and so it's not an additional expense that we've been running through. So we we got an understanding a clear path forward. We've been completing a lot of tasks frankly, over the last several months.

Um, and we'll continue to finish it up. It came a lot about how how the thresholds are set and things like that. There's a lot of technical discussion about it. At the end of day, we understand what we need to do. We're doing it and will deliver it. Brian, could you take us inside the bank and just discuss accountability? Just accountability just a little bit. What are discussions like with the board around accountability?

And would you be open to aligning remuneration with the resolution of some of these difficulties? We we have accountability for everything we do in the company, including a fine. We've got, you know, gone through it before. In 2004, there was accountability for, uh, the examination, the order already taken. And so the board will decide that we get to the end of the year. Brian, of course, this is overshadowing what was otherwise a mixed quarter for the bank.

Trading capital markets, investment banking. That's one side of the business that you wanted to start with. The mainstream side of the business, which seems to be performing quite well, and I think otherwise we'd be talking about the fact that net interest income, the net interest income looks pretty good from here. Can we just sit on that for a moment, Brian? Do you see the path to that improving from here? Even more as durable?

Yeah. So we basically grew up $400 million in uh, uh, second quarter, third quarter, uh, the markets contribution, which other people, uh, you know, have to it was basically flat. And so as you look forward, what's happening is the core loan book is growing and a quarter of positive books growing. Our total cost of deposit, 149 basis points that grew, uh, 2% year over year. And the non-interest bearing grew 5%. The loans grew 6 or 7%, and the core businesses grew.

Commercial business grew 8%. That's great. Activity also bodes well for the U.S. economy because, uh, companies are borrowing. But if you look at that NII, what we said back last fall was this year, 26 would be 5 to 7% increase over to 25. We now have we've raised that now said we confirm 8% for the year. And then at that same time we sort of said 5 to 7 for 27 and we just raise that to 80% plus. And that is just the stair step, climbing those stair steps of more loans, more deposits, and then the repricing of the balance sheet.

And that just walking up are up 15 basis points and net interest yield, while others in the industry of falling. And that's just the efficiency the balance sheet coming through. And so that has a returns. You know we we made $8 billion absent the charge. It's almost $7 billion with the charge be the second highest earnings of the group. And so there's a lot of momentum. Our consumer bank made $3.5 billion. Our virtual bank made $2 billion, a wealth management company made a day and a half and grew faster and appears.

And so there's a lot of good things around the Main Street side. And frankly, even on the market side, you know, we have $5 billion trading revenue quarter against our peers. It did, uh, didn't hold up as well. But if it do the fixed income mix. But the reality is it was one of the stronger third quarters. We had trading and investment banking. We told people 3 or 4 weeks ago to be 1.6 to 1.8 came out of 1.8. So that again, that's a positive quarter.

So we feel good about the franchise, the pipelines are full, etc. but it's that good core engine of NII that's growing at 8% when others are not coming close to that. That's driving our our earnings forward. As you know, this is against the backdrop of much higher interest rates, a real repricing in the bond market as well. There was some discussion in the last month, and to some extent it was hitting bank stocks across the board.

Brian. To what extent with these higher rates eventually eat into net interest margin, how do you see the path the sequencing of things from here? So if you have 2 billion of deposits, which you pay 159 basis points, 449 basis points for it, rates go up and you go up a lot less because a substantial part of those deposits are not interest bearing. Uh, higher rates are beneficial, except if higher rates are because something really is bad in the economy that has other issues.

But if as the rates go up, we will make more money. That's the nature of having a zero interest thing when rates came down. And that's what crunches you because we have two zero interest and you don't go below zero. So simply put our exposure to higher rates is always positive. It's less than it is because we try to manage both the down and up. But the reality is that we just told people what we thought was 5 to 7 with a rate environment, you know, 12 months ago that was sort of flattish into 27.

We now are saying it because the rate increases, because we're seeing good core long grass core deposit growth and having $2 trillion of deposits that are very advantage. We can see we push a day percent plus for next year, which will lead the industry, we think. I was looking at the deposit growth, but I'm not sure how well understood this actually is for people outside of your world. But the growth and the overall mix is heavily skewed to a non-interest bearing accounts.

When people talk about how sticky those deposits are and the threat of technology disruption in the next couple of years, potentially pulling some of those deposits away. Brian, how do you think about things with that in mind? Are our customers in the customers industry generally have the ability every single day to move their money to a higher rate, off balance sheet money market funds, or even whether or not the rates we pay for, uh, higher balance deposits and CDs.

They could do that every day. The thing is, when you have the core operating account, that that's the money in motion, so-called. That's the money they're paying the household bills with. That's the money they're paying, the car payment, the house payment. So that's