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Three Ways Bank of America Just Saved $1 Billion

Bank of America headquarters in Charlotte, N.C.
Bank of America headquarters in Charlotte, N.C.Photograph by Davis Turner/Bloomberg

Frugality isn’t always in fashion in banking. There was a time not long ago when Wall Street executives would rather boost the bottom line by hiring a hot team of traders, wooing a particularly affluent investor, or landing a big mergers and acquisitions deal than laying off workers and dialing down how much junior analysts can spend on Seamless sushi orders.

But cutting costs, as much as anything else, helped Bank of America beat earnings expectations this morning. The company trimmed its non-interest expenses by 6 percent, to $16 billion, and those savings accounted for one-fourth of the bank’s $4 billion in net income for the quarter. “If they can lower their costs and maintain them, it will really help them down the road when revenues improve and the economy gets better,” Pri de Silva, senior banking analyst at CreditSights, told Bloomberg.