“We should run better.”
Bloomberg News reports that profitability at the bank, which generates about half its revenue from interest income, has been weighed down as the Federal Reserve keeps benchmark interest rates at 0.5%. Rates have been below 1% for nearly a decade.
“What do you do? In that environment, you drive down expenses,” Moynihan, 56, said Wednesday at the bank’s annual meeting. “We should run better.”
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 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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