CHARLOTTE, Carolina North - Bank of America Corp. (BAC).(N) is working to improve profits by reducing its number of problem mortgages and by cutting other expenditures, Chief Executive Brian Moynihan said shareholders Wednesday.
Moynihan, speaking at the annual meeting of the company, in downtown Charlotte said mortgage lending of the largest U.S. Bank by assets is "still from wrong powerfully" as it slowly ramp under billion in mortgage loans bitter.
"There is still much work to come to pass through it," Moynihan said shareholders.
At the meeting, shareholders elected all candidates of 13 Director on the Board of Directors. No shareholder proposal has gained sufficient support to pass, including one by the controller of the city of New York seeking a review of the practices of the BofA foreclosure.
Annual meeting of the Bank - in which the shareholders asked some contentious issues, particularly on mortgage of the company operations - was the slugfests between shareholders and management in recent years.
The meeting was held in a smaller auditorium that seats approximately 450 in a downtown Charlotte office tower adjacent to the headquarters of the company.
Unlike the two previous annual meetings since the financial crisis of 2008, seats empty throughout the auditorium, and investors began to leave before the conclusion of the meeting.
Two years earlier, blown shareholders for the purchase of Merrill Lynch and management performance of time-CEO Kenneth Lewis. Since then, the company brought in almost a whole new Council and changed much of its management team.
During the almost three-hour meeting of this year, the shareholders were as free Executive Moynihan and the BofA as they were critical.
"You were able to perform an impossible task," said Jim Connelly, shareholder of the Bank, which then must Barbara Desoer, mortgage of the Bank of America Chief, based in Washington, D.C. for his work with the problems of mortgage loans of the Bank.
Moynihan, in his remarks prepared for the shareholders, describes the Bank as a tale of two companies.
Most of the Bank is beginning to return to normal, as the Bank strives to build "more uniform and predictable statements."
But the BofA mortgage woes that are crimping of earnings will not the overnight disappear, he said.
"Its obvious that we have to get the mortgage crisis behind us," said.
Two primary risks to the business of Mortgage Corporation are regulatory requirements and the potential cost of the main impairment losses, he said.
Moynihan, who replaced Lewis as CEO in January 2010, initially produced a string of profits of the Bank. But bad mortgages held Bank of America of the levels of profitability that some competitors have been reported in recent quarters.
In the second half of 2010, the loss of Bank of America came surprised some investors. While significant non-cash charges weighed on the bottom line of the Bank, its mortgage lending activity also hindered base results.
Bank of America reported a profit in the first quarter of 2 billion dollars, earnings missed analyst expectations and below the year earlier profit of the Bank of $ 3.2 billion.
As BofA works to combat the problems of the legacy of loan, find new business was difficult as well. Its income and loan portfolio continued to shrink in recent quarters as the United States economic recovery has slowed.
Investors are afraid that the Bank could be on the hook for billions more bitter mortgage held by foreign investors, and that its foreclosure problems show no sign of abating.
Business real estate loans from Bank of America lost 2.39 billion in the first quarter only.
BofA was also one of the few banks which proposed dividend increase was rejected by the Federal Reserve this year, after a second of stress tests. The Corporation paid only 1 cent per share quarterly.
The meeting of Wednesday, Moynihan reiterated his assertion that BofA is going to pay a higher dividend as soon as it receives regulatory approval and redemptions of shares are a "priority".
Counsel General Edward O'Keefe also said that the Bank paid the legal costs, with a value of $ 1.4 billion last year.
Moynihan said Bank of America must decide how a dispute of redemption of mortgage loan will be "damages you on the other side" when considering a settlement. Comment of the Moynihan was softer than the tone of his remarks last year, when he said that the Bank would engage in "hand-to-hand combat" in the battles of redemption.
BofA shares remained unchanged at $12.28 Wednesday afternoon trade.
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