Bank of America CEO says more cuts to come unless revenues improve

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'We’ll have to keep working that expense base down'.

Bank of America will have to reduce expenses further in its markets trading division unless revenue improves, Chief Executive Officer Brian Moynihan said.

'If the environment stays sort of flattish, less volatility, we’ll have to keep working that expense base down', Moynihan said Wednesday at a conference in New York. 'We’ve got to probably work it down again in the next couple of years if the business stays where it is'.

Bloomberg News reports that Global markets, the firm’s trading operations overseen by Chief Operating Officer Thomas Montag, posted a 28% drop in first-quarter profit to $945m on declines in fixed-income trading revenue at the bank.

Revenue in the fixed-income, currency and commodities sales and trading division decreased 7% to $2.75bn on declines in credit and mortgages. That trailed JPMorgan’s 5% increase, and compared with estimates of $3bn from Nomura Holdings’ Steven Chubak and $2.9bn from Macquarie Group’s David Konrad.

To access the complete Bloomberg News article hit the link below:

BofA’s Moynihan Says Trading Unit Faces Further Cost Cuts

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