UPDATE 1-Bank of America CEO sees no reason to cut dividend

(Adds details on what Lewis said, background)

BOSTON, June 2 (Reuters) - Bank of America Corp (BAC.N) Chief Executive Officer Ken Lewis said on Monday the second-largest U.S. bank has no plans to cut its dividend.

"You have to do what is in the best interest of the company, but we see no reason to cut the dividend," Lewis said on a conference call with research analysts from Deutsche Bank and some Deutsche clients.

That view comes even after the company said first-quarter profit tumbled 77 percent and several rivals have cut their payouts amid heavy losses triggered by the credit crisis.

Citigroup Inc (C.N), Wachovia Corp WB.N, Washington Mutual Inc (WM.N) and National City Corp NCC.N have all cut their dividends this year.

Lewis also said the bank plans to return to its targeted 8 percent Tier-1 capital ratio over time, stressing that "liquidity abounds in our company."

He defended paying $4 billion to take over ailing mortgage company Countrywide Financial Corp CFC.N as several analysts probed him on the move, wondering if Bank of America was jeopardizing its reputation with the deal and also whether the bank could not have begun originating loans on its own.

"There is a risk to it, but we are not paying $22 billion for it either," Lewis said, adding that the existing sales force would give Bank of America a head start.

The takeover is scheduled to close in the third quarter.

In the coming years, Lewis is confident of delivering 6 percent to 9 percent revenue growth, with the biggest growth coming from retail banking.

He also said Bank of America is staying close to its roots instead of expanding abroad as many rivals are doing. "We are a bet on the U.S.," Lewis said. (Reporting by Svea Herbst-Bayliss; Editing by Braden Reddall)