Page 159 - Flip Banks TG

Diagram 5: Ref 3

There is little doubt that organic growth has led to efficiency
gains (Diagram 5) and that Global Markets offer future

potential. BofA has as such moved its strategy from
investment banking to retail banking with the focus on

customer experience resulting in what it might claim to be

‘doing the right things’ and ‘doing things right’ to the extent

that it has gone through the traumas of fine after fine but is

now facing a more secure financial future. (Ref 2, 3)

Diagram 6 gives a representation of the volatility of BofA’s

earnings per share where from 2010 to 2014 there was high

volatility but thereafter followed a period of stabilisation.

Perhaps this can be taken as reflecting the performance of

BofA’s strategic management and the strategies they have

followed since the financial crisis and Buffett’s foresight?