Tuesday, June 11, 2013

Bank of America done cutting revenue generators, CFO says

Make money for Bank of America? Your group shouldn't be on the chopping block anymore, Chief Financial Officer Bruce Thompson says.

Bank of America is done targeting revenue generators as the bank continues through its massive cost cutting plan known as Project New BAC, Thompson said at an investor conference early this morning at the Waldorf Astoria Hotel in New York City, according to a Bloomberg transcript.

Instead, the focus has shifted to back-office operations and support, he said.

"The remaining work to be done with the New BAC does not touch client facing people at all," Thompson said. "There should not be any revenue degradation because we're not touching the people that are responsible for originating revenues."

Expenses continue to be one of Bank of America's top priorities, nearly two years after launching Project New BAC. In an unscientific poll taken at the conference before Thompson spoke, more than half of the investors and analysts in attendance said costs were their top issue.

The bank is down more than 27,000 jobs since it began that September, including 4,000 in the first quarter. Bank of America has eliminated about $1 billion in quarterly expenses.

The company has also been under pressure to start increasing its revenue. To that end, the bank has added hundreds of small business bankers and bankers that deal with affluent customers.

"If we do this the way that we believe that we will, we should start to see revenues push forward not backward with the expense initiatives," Thompson said.