Bank of America Corp Q2 2023 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Erika Najarian - UBS Investment Bank, Research Division - Analyst : I'm sorry I missed the earlier call. On the net interest income trajectory, Alastair, clearly a big focus for your shareholders. You mentioned when you were responding to Gerard's first question that you narrowed the volatility of net interest income. And I think that investors, I'm sure, are going to start asking you guys and us about the starting point of $14 billion for NII next year. I guess we're wondering, if the Fed stays higher for longer, doesn't move, how does that impact that $14 billion run rate? Does that $14 billion capture a cumulative deposit beta that would sort of fully reflect what you would expect to experience through the cycle? And then I have a follow-up question from there. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. JULY 18, 2023 / 12:30PM, BAC.N - Q2 2023 Bank of America Corp Earnings Call

Question: Erika Najarian - UBS Investment Bank, Research Division - Analyst : Totally understand. So going back to the down 100 basis point disclosure that would yield to down $3 billion for full year basis. How much of that -- given that you have exposure to the shape of the curve, not just the short end of the curve because of your securities book, how much of that is short rates versus long rates in terms of that drop? I guess what I'm trying to figure out is, if I simply divide $3 billion by 4, right, that would get me a run rate of $13.25 billion on a quarterly basis. And you mentioned that there are about 5 cuts in next year. But if it's not on the short end, right, and if it's half-half, then it could get to a run rate of $13.75 billion. So just -- I know there's a lot in there, so I would just love your thoughts on everything I just said.