Bank of America (BAC) Q1 2023 Earnings call Transcript

Prepared Remarks

Questions and Answers

Call Participants

Prepared Remarks:

Katherine - Operator

Welcome to the Bank of America earnings announcement. At this time, I'd like to turn the program over to Lee McIntyre. Please go ahead, sir.

Lee McIntyre

Thank you, Katherine. Good morning. Thank you for joining the call to review our first quarter results. I trust everybody has had a chance to review our earnings release documents. They are available, including the earnings presentation that we'll be referring to during this call, on the investor relations section of the Bank of America website. I'm going to turn the call over to CEO Brian Moynihan and Alastair Borthwick, our CFO, to discuss the quarter. But before I do, let me just remind you that we may make forward-looking statements and refer to non-GAAP financial measures during this call. Our forward-looking statements are based on management's current expectations and assumptions and are subject to risks and uncertainties. Factors that might cause those actual results to differ materially from those expectations are detailed in our earnings materials and the SEC filings that are available on our website. Information about the non-GAAP financial measures, including reconciliations to US GAAP, can also be found in our earnings materials, and those are available on our website. So with that, we'll turn it over to Brian. Thank you.

Brian Moynihan - CEO

Good morning, and thank you all for joining us. I'm starting on slide two of the materials. The company produced one of its highest score EPS earnings numbers in a challenging operating environment in the first quarter. Simply put, we navigated that environment well. The preparedness and strength of Bank of America and the trust of our clients reflect a decade-long responsible growth model and the relationship nature of our franchise. In quarter one, importantly, the organic growth engine continued to perform. Let me first summarize some points, and then I'll turn it over to Alastair to take you through the details of the quarter.

If you go to slide two of the materials, Bank of America delivered strong earnings, growing EPS 18% over the first quarter of 2022. Every business segment performed well. We grew clients and accounts organically and at a strong pace. We delivered our seventh straight quarter of operating leverage led by 13% year-over-year revenue growth. We further strengthened our balance sheet with our CET1 ratio increasing to 11.4%. Regulatory capital ended at the highest nominal level in our history, $184 billion. We maintained strong liquidity, and we ended the quarter with more than $900 billion in global liquidity sources. You're in good returns for you as our shareholders with a return on tangible common equity of 17% 107 basis points. Return on average assets tend to book value per share grew 9% year over year. We did this as the economy slowed. And remember, our research team continues to predict a shallow recession that will occur beginning in the third quarter of 2023.