CHARLOTTE, North Carolina (Reuters) - Bank of America Corp Chief Executive Brian Moynihan said on Wednesday the company's latest decision to eliminate overdraft fees on debit card transactions will "give up a lot of revenue," for the largest U.S. bank by assets.
Late Tuesday, Bank of America announced plans to suspend overdraft fee charges on all debit card transactions, beginning this summer.
"The $35 cup of coffee at Bank of America is gone," Moynihan said, speaking at Citigroup Inc's Financial Services Conference in New York City, referring to the overdraft fee customers could be charged for overdrawing on small transactions.
The move is the latest in a series of changes the bank has made over the last year to clarify its mortgage and credit card agreements with customers since a first curb of overdraft fees last September.
Debit card overdraft charges accounted for 60 percent of all overdraft transactions, the company said on Tuesday.
Moynihan said the company will look to offset the lost revenue through reducing customer turnover, and pricing its deposit accounts appropriately.
After the first round of overdraft curbs, the company reported during its fourth quarter 2009 earnings presentation that fee income declined by $160 million.
(Reporting by Joe Rauch, editing by Matthew Lewis)
