HOUSE_OVERSIGHT_014330.jpg
1.26 MB
Extraction Summary
1
People
5
Organizations
0
Locations
1
Events
2
Relationships
3
Quotes
Document Information
Type:
Financial research report page
File Size:
1.26 MB
Summary
This document is a page from a Bank of America Merrill Lynch research report dated November 17, 2016, for the 'Future of Financials Conference'. It analyzes a company referred to as 'C', focusing on its Institutional Clients Group (ICG), opportunities for market share growth, and factors that could improve its stock valuation. The document contains no information related to Jeffrey Epstein or associated individuals.
People (1)
| Name | Role | Context |
|---|---|---|
| management | Management of company 'C' |
Mentioned as providing opinions on business strategy, opportunities, and financial goals, such as achieving a 14% ROT...
|
Organizations (5)
| Name | Type | Context |
|---|---|---|
| Bank of America Merrill Lynch |
The authoring organization of the research report, as indicated by the logo and source attribution.
|
|
| BofA Merrill Lynch Global Research |
Cited as the source for the charts and data presented.
|
|
| C |
The subject company of the financial analysis. The report discusses its market share opportunities, regulatory positi...
|
|
| ICG |
Institutional Clients Group, a business division within company 'C'. The report analyzes its performance and opportun...
|
|
| European banks |
Mentioned as competitors from which company 'C' could take market share, particularly in Fixed Income.
|
Timeline (1 events)
2016-11-17
The document is a page from materials presented at the '2016 Future of Financials Conference'.
Relationships (2)
The document discusses company 'C' taking market share away from 'European banks'.
Bank of America Merrill Lynch authored the research report analyzing company 'C'.
Key Quotes (3)
"when asked where is C's biggest opportunity to take global market share within ICG, 47% of those polled said the biggest opportunity lied within the Equities business."Source
HOUSE_OVERSIGHT_014330.jpg
Quote #1
"management noted that European banks are more likely to cede share in Fixed Income and less so within Equity and Banking."Source
HOUSE_OVERSIGHT_014330.jpg
Quote #2
"Management believes that under a more normalized rate environment... ICG should be able to achieve a 14% ROTCE vs ~12% today."Source
HOUSE_OVERSIGHT_014330.jpg
Quote #3
Full Extracted Text
Complete text extracted from the document (2,005 characters)
expected to fall to the bottom line, management noted that achieving this would be accretive to its overall margin. We note that when asked where is C's biggest opportunity to take global market share within ICG, 47% of those polled said the biggest opportunity lied within the Equities business.
Chart 25: Where do you think C's biggest opportunity is to take global market share within its IGC business?
50%
47%
45%
40%
35%
31%
30%
25%
22%
20%
15%
10%
5%
0%
Fixed income markets
Equity markets
Banking (Treasury & Trade Solutions, advisory, ECM, DCM)
47%
45%
40%
35%
31%
30%
25%
22%
20%
15%
10%
5%
0%
Fixed income markets
Equity markets
Banking (Treasury & Trade Solutions, advisory, ECM, DCM)
Source: BofA Merrill Lynch Global Research
• Lower regulatory constraints versus peers present opportunity. Given C's strong regulatory position such as its above peer SLR ratio, management noted that it can compete in balance sheet intensive businesses such as Rates while more constrained peers are forced to pull back. In terms of its ability to take market share away from European banks, management noted that European banks are more likely to cede share in Fixed Income and less so within Equity and Banking.
• Longer term goal of 14% ROTCE in ICG. Management believes that under a more normalized rate environment and through its work towards improving efficiencies across ICG on back of its infrastructure refinements, ICG should be able to achieve a 14% ROTCE vs ~12% today.
Chart 26: Despite material progress, C shares still trade below TBV. What will drive shares to re-rate closer to TBV?
40%
34%
35%
30%
25%
20%
15%
10%
5%
0%
37%
12%
10%
7%
34%
35%
30%
25%
20%
15%
10%
5%
0%
37%
12%
10%
7%
Continued increase in capital return from the $10.4B expected return under the 2016 CCAR cycle
Consistent improvement in revenue momentum
Continued core cost control, with further reductions in legal & repositioning charges
Accelerated re-capture of its deferred tax asset (DTA)
Further simplification of its global business model
Consistent improvement in revenue momentum
Continued core cost control, with further reductions in legal & repositioning charges
Accelerated re-capture of its deferred tax asset (DTA)
Further simplification of its global business model
Source: BofA Merrill Lynch Global Research
16
2016 Future of Financials Conference | 17 November 2016
2016 Future of Financials Conference | 17 November 2016
Bank of America
Merrill Lynch
Merrill Lynch
HOUSE_OVERSIGHT_014330
Discussion 0
No comments yet
Be the first to share your thoughts on this epstein document