Bank of America (BAC.N: Quote) has launched a full line of initiatives to increase revenue, but Chief Executive Brian Moynihan has his work cut out to prove he can get the strong growth of the bank, because It is past its the mobile mortgage bond problems.
His great challenge is underlined on Wednesday when the bank, the second largest U.S. bank assets, reported in the first quarter adjusted income fell 8.4% to $ 2.385 billion, the principal business of the Bank, addition to the Ministry of decline in wealth management. The Bank's income, has dropped by more than a quarter, from ? Moynihan came into the office since.
? Moynihan has spent his first three years, the CEO fixing price of mortgage payments as arising from the bank's Countrywide Financial, the disastrous purchase in 2008, and cutting spending to boost the bottom line. He said that the first and foremost task is to build income.
Away as other measures, which is to focus on what's team, "Moynihan Wall Street analysts in a conference call Wednesday.
This month, he met with about 100 Bank of America Bank executives to talk about strategy, and win more business. These measures include existing customers, sell more products, increase referrals between the various units and reconstruction mortgage origination business.
Bank requirements, For example, the commercial bankers entrepreneurs in the wealth management sector financial adviser and investment banker, who can help them raise funds for their business.
Bank of America (Bank of America) plans to increase referrals between business units, up to 50% per year, Moynihan said. He added that so far, it is expected to reach these goals.
Ideas, and the attractiveness of many executives in the industry is notoriously difficult to achieve. It requires that the system easily send and track referrals to the staff salary structure incentive to send customers to other units and management to ensure that all the work. For a firm with about 263,000 of the employees and the broad, global, of the operation, which can be surprisingly tricky to get right the.
Moynihan can decide his future and banks to increase cross-selling success. Within the bank's executives had previously said Moynihan is regarded as internal problems to solve, but still need to prove their credentials, may also lead to the people on the bank's growth path.
Moynihan is now under real pressure. Bank of America's profits lagged behind rivals, including Citigroup (CN), have enough trouble of its own needs three government rescue in the financial crisis.
A bank spokesman declined to comment.
U.S. bank shares rose 1% compared to 16% of this year, Citigroup climb. Citigroup Cadogan two banks has left almost the same share price valuation.
As long as the Bank of America business executive with competitors, Moynihan may have time to fix the banks, Marshall said the former chairman of the former Barnett in Chicago, with nearly $ 6 million Bank of America shares. But the bank is far from the problems of the past, he said.
"They have a lot of work to do," the former said, noting that banks are shrinking underperforming part of the banking and investment business can grow.
The bank said its cross-selling some signs of progress is obvious first quarter results.
The increase in wealth management and mortgage loan income, bank money convince more retail banking customers investment brokerage accounts, refinancing their mortgage Bank of America (Bank of America).
Problems lingering from Countrywide, but also hurt the bank or even billions of dollars in legal expenses, investors, borrowers, regulators and others. In the first quarter, the bank is set to a $ 500 million dollar legal settlement announced (Wednesday) on the mortgage bond investors believe that maintaining a reserve.
U.S. bank shares fell 4.7%, to close at $ 11.70 on Wednesday.
Enjoy a comeback?
In the mortgage market, Bank of America (Bank of America), is being rebuilt to streamline operations, to take huge losses after purchase with Countrywide. In 2011, it cut half of its volume, when it stopped buying loans from other banks, through their own branches and mortgage offices, focusing on providing customers with services.
However, in the past year, the bank has added nearly 1,000 mortgage loan officers (many of them are in the branch office), to help it boost lending. Housing loans amounted to $ 2.4 billion in the first quarter, an increase of 57% from a year ago.
Moynihan said that over time, the bank may seize the market share of 10-11%, equivalent to its share of deposits. At the end of the fourth quarter, the bank holds a 4.1% market share, according to Inside Mortgage Finance. Shortly before the end of 2007, Bank of America (Bank of America) agreed to acquire Countrywide, the two lenders have a combined market share of 24.6%.
Bank housing loans, more than 90% of the customers in the quarter from the refinancing in the bank, such as Wells Fargo (WFC.N: Quote), the No. 1 U.S. mortgage banking activities has been on the decline.
States of America Chief Financial Officer Bruce Thompson Bank told, while the refinancing Reporter said, accounted for a dominant position in the bank's business, he expects loans for the purchase, in order to increase, as the housing market ", continue to heal." , and become a larger part of the total homes.
Retail banking customers are more and more use of the Merrill Lynch brokerage services. At the bank in the Merrill Edge. Merrill Edge business, its main goal is the brokerage assets of the online consumer banking customers, up 13 from a year ago per cent, from the new client part because of money over the next few .
Investors need to be patient, but Bank of America (Bank of America) is preparing to take advantage of the recovery in the U.S. economy and housing market in the coming years, Germany in Seattle, Washington Capital Management Chief Investment Officer Bill said. Smead Capital count between $ 41 billion of assets under management of approximately $ 15.6 billion, Bank of America shares.
Smead said: "It will take another year or two years of litigation, freed from the previously completed. Then they ready to enjoy a comeback. "
 



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