CHARLOTTE, N.C. _ Bank of America executives said Tuesday they remain focused on shedding expenses to meet targets outlined a year ago _ and are open the possibility that the Charlotte-based company could go beyond those goals.
The bank disclosed plans last July to reduce annual noninterest expenses to $53 billion by the end of 2018. On Tuesday, in reviewing the bank's latest quarterly financial results with analysts, CEO Brian Moynihan did not rule out cuts exceeding that target once it's reached.
Moynihan's comments came as Bank of America reported $5.3 billion in second-quarter profit, an increase of 10 percent from the same quarter last year.
The bank said it had $22.8 billion in revenue, up 7 percent, while expenses rose, in part due to severance pay and the sale of data centers as Moynihan pushes to slash costs and further streamline the company.
Moynihan, now in his eighth year as chief executive, has been under pressure to improve key profitability measures at Bank of America. The chief executive for years has been cutting away at expenses at a bank that grew unwieldy after decades of acquisitions. Such efforts have involved shedding branches and employees in Charlotte and elsewhere.
Bank of America said employment fell by 371 people in the recent quarter while branches declined by 17.
On Tuesday, the bank touted hitting a target on an efficiency measure closely tracked by investors. The bank said its efficiency ratio, which shows how much it costs to generate one dollar of revenue, had reached its 60 percent goal.
Results from the recent quarter were also helped by the sale of Bank of America's U.K. consumer credit card business to Lloyds Banking Group, which resulted in a $103 million after-tax gain.
As the Federal Reserve continues to raise interest rates, investors have been keeping a close eye on Bank of America, seen as the most sensitive to higher rates among the biggest U.S. banks. Last month, the Fed raised interest rates for the fourth time since the financial crisis. On Tuesday, Bank of America cited higher interest rates in reporting 9 percent growth in net interest income.
Tuesday's results included profit of 46 cents a share, compared with 41 cents a year earlier. The average estimate among 24 analysts surveyed by Bloomberg was 43 cents.
Bank of America became the latest large U.S. bank to report second-quarter financial results.
Last week, Wells Fargo disclosed a 4.5 percent increase in profit. Also last week, JPMorgan Chase announced a 13 percent rise in profit, while Citigroup reported a 3 percent decline.
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