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The Bank of America will be looking to push its 2016 success until this year with the announcement from the Fed that they will be bumping up the prices of interest hikes. Two more things that BofA can cling to this year are the lower bank expenses and the bank’s trading revenue.

BofA will be directly and positively affected by the recent interest hikes, to simplify it, banks like the Bank of America earn money through loans and how high-interest rates are. The recent financial crisis had made interest rates plummet over the last eight years, but with the recent Fed decisions, banks are slowly showing a good outlook because higher rates will equate to higher revenue.

Bank of America’s shares has skyrocketed ever since the announcement for the interest hikes are made, making 2016 a total turn around that started in November continuing its bullish streak until today.

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Moynihan Plans More Cost Cutting for BofA

Ever since BofA’s CEO Brian Moynihan took the high seat last 2010, the bank has been trimming a lot of its expenses. Like any other companies, the less it spends on operating expenses mean more revenue at the end of the day. Moynihan has been really serious with the pruning of operating expenses, BofA now sits with an estimated of $20 billion annual cuts on its expenses.

 One more thing that the bank benefits from the cost cutting is; it is open to being distributed to shareholders because of the increasing revenue and lessens the pressure for the bank on taking a fall back in other areas of their operations.

CEO Moynihan also announced that it will be adding more initiative on cost cutting by reporting an addition $4 billion slashes on its annual operating expenses by $3 billion more in the coming 2 years. One more thing BofA can root its success for this year is in its service of purchasing and sales of securities. But the downside of the trading operations is the innately volatile price; meaning if events in the markets that can cause a potential investor recession, banks such as BofA won’t be making any money from trading because of the lack of securities changing hands.

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BofA Introduces Employee-Less Branches

The bank’s technological advancements are really raging this year, as BofA announced three branches that are wholly automated and are employee-less with its operations. Customers can make transactions with ATMs and can even conduct video conferences with the bank’s employees that are located at other branches.

According to the bank’s spokeswoman Anne Pace, the fully automated branches are part of the brigade of the cost cutting process of the banks and that these branches are smaller and rely heavily on technology. They are also directed at selling mortgages, credit cards, and auto loans rather than what other expectations of cashing checks. The Bank’s co-head on consumer banking unit Dean Athanasia said that they will be expecting to open more of this type of banks in the future; the estimated amount is at 50 to 60 over next year.

The current tally of financial center BofA has is at 4,579 at the end of 2016’s fourth quarter in contrast to 2015’s 4,726 by the fourth quarter, and 2010’s 5,900. A significant move to cut its operations expenses along with providing more technological options for its customers. Analysts have been eyeing on BofA to continue its 2016 comeback, seeing that the Fed’s hike is yet to be felt, positive future is tagged along with the bank’s continuous effort to lessen its operations cost.

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