Summary
Execution and speed of merger results in significant savings. Addition of personnel indicates preference to accelerate earnings. BofA will be a major player in the Asian theater.
Analysis
Despite Bank of America's sale of its interest in China Construction Bank, the acquisition of the Merrill Lynch Asian Operation combined with the existing BofA Asia operations, will result in BofA remaining a significant player in the region while strengthening its market place position.
Bank of America has realized considerable cost savings in Asia by combining Merrill Lynch's Asian operation with BofA's existing Asian business. Most of the cost savings realized to date have been accomplished by combining office space of the two entities and a selective of personnel. It is believed that this strategy is well under way and cost savings have already materialized due to speed and execution of this strategy. In should be noted that BofA Asia recently added 100 personnel to its Asian staff, which serves to emphasize the importance of human capital to the bank and importance of the region's potential earnings for the bank.
