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Technology Investments Could Boost BAC’s Operating Efficiency

Andrew Brunton
Technology Investments Could Boost BAC’s Operating Efficiency

Since the 2007–2009 Great Recession, Bank of America (BAC) and other major bankers (XLF) have continued to focus on lower administrative expenditure and higher spending on technology to improve operating efficiency. Bank of America’s non-interest spending fell 5% to $13.3 billion in the second quarter, giving it an efficiency ratio of 58.36%. The bank’s efficiency ratio marked a sequential improvement of 135 basis points and 226 basis points on a YoY basis.