Bank of America sees more room for cost cuts after bigger-than expected reductions in the first quarter helped blunt declines in profit and revenue, sending the stock higher for a fifth straight day.
“There’s a lot more to do,” Chief Executive Officer Brian Moynihan said Thursday on a conference call with analysts.
Bloomberg News reports that expenses dropped 6.4% to $14.8bn, below the $15.1bn predicted by Matthew Burnell, an analyst at Wells Fargo, who said the results “showed solid expense management.” Lower costs helped mitigate a 6.7% drop in revenue for the quarter.
Bank of America cut more than 10,000 jobs in 2015, and Moynihan has said he will eliminate more this year as the industry gets squeezed by sluggish trading, low interest rates and rising losses on loans to energy companies. The firm’s efficiency ratio, which measures how much costs consume revenue, was 75% in the quarter, worse than rivals including Wells Fargo, which was 59% for the period.
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