Will BofA Save $230 Million Quarterly Going Forward?
Bank of America (NYSE:BAC) will save roughly $230 million per quarter in interest payments if it reduces its long-term debt by $40 billion in the second quarter as planned, according to CFO Bruce Thompson.
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Reducing interest payments will help Bank of America reduce its overall expenses, Thompson said. Bank of America is also in the middle of a broad cost-cutting program called Project New BAC, and is working to reduce expenses in its unit that works with troubled borrowers.
When the bank reports earnings in July, Thompson says he will disclose more information about the second phase of New BAC. The first phase included cutting 30,000 jobs, which spanned both consumer and technology operations.
Thompson also said the bank has reduced its exposure to most troubled European countries by about two-thirds since 2010, and is now analyzing its counterparty risk with financial institutions outside the region.
Though second-quarter trading volumes were a “little bit slower” than in the first quarter, according to Thompson, they were “clearly much better” than what the bank experienced in the second half of last year, when concerns about Europe depressed markets.
Bank of America shares trading up 5 cents today at $$7.53 per share.
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