CEO Brian Moynihan is leading Bank of America through a long-term cost-cutting program called "Project New BAC." The company expects to achieve annual savings of $1.5 billion per quarter by the end of this year, with annual savings of $2 billion a quarter by the middle of 2015.
Noninterest expenses for the first quarter totaled $18.152 billion, declining from $18.360 billion in the fourth quarter and $19.142 billion in the first quarter of 2012. The year-over-year savings of nearly $1 billion resulted mainly from Project New BAC initiatives.
The clearing out of repossessed property and general improvement in credit quality are also expected to continue leading to reduced expenses for the company. Bank of America said that excluding litigation costs and the fourth-quarter expenses from the foreclosure settlement, Legacy Assets and Servicing expenses -- that is, expenses from servicing nonperforming mortgage loans and maintaining repossessed homes -- declined to $2.6 billion in the first quarter from $3.1 billion the previous quarter and $2.7 billion a year earlier.
Deutsche Bank analyst Matt O'Connor in a note to clients on Tuesday said "while excluding litigation, one could argue that EPS was in-line, other banks were able to overcome higher one-off costs this quarter and still beat
Time to BuyWhen discussing the timing of her upgrade of the stock, Graseck wrote that "we see accelerating
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