Exhibit 99.2
Supplemental Information
Second Quarter 2005
This information is preliminary and based on company data available at the time of the presentation. It speaks only as of the particular date or dates included in the accompanying pages. Bank of America does not undertake an obligation to, and disclaims any duty to, correct or update any of the information provided. Any forward-looking statements in this information are subject to the forward-looking language contained in Bank of America's reports filed with the SEC pursuant to the Securities Exchange Act of 1934, which are available at the SEC's website (www.sec.gov) or at Bank of America's website (www.bankofamerica.com). Bank of America's future financial performance is subject to risks and uncertainties as described in its SEC filings.
Bank of America Corporation
Results Overview
Second Quarter 2005
• | Earnings of $4.3 billion or $1.06 per diluted share grew 14% over results in 2Q04 but fell 7% versus record 1Q05 results. Excluding merger and restructuring charges of $121 million, $80 million after tax, earnings were $1.08 per diluted share. |
• | Revenue on an FTE basis of $14.2 billion remained steady compared to 1Q05 despite the impact of a flattening yield curve and tough capital markets environment. |
• | Although net interest income was slightly above the previous year's quarter it declined 3% versus 1Q05. Impact of higher loan and deposit levels were more than offset by greater spread compression. |
• | Retail deposits grew another $11 billion or 3% versus 1Q05 and |
• | Average loans grew 2% (excluding residential mortgages held for asset liability management purposes). |
• | Noninterest income improved 4% from 1Q05 despite the tough trading environment experienced in the industry. |
• | Excluding trading results, noninterest income climbed 13% over 1Q05 led by strong card results, good service fee results as well as growth in investment banking and asset management fees. |
• | Second quarter also included $278 million in whole loan sale gains in other income. |
• | Securities gains recognized in 2Q05 were $325 million resulting primarily from the company repositioning for interest rate moves. Resolution of restructured government and corporate credits allowed for $70 million in securities gains in Latin America business. |
• | Noninterest expense, excluding merger and restructuring charges, of $6.9 billion was flat with 1Q05 and resulted in an efficiency ratio of 49%. |
• | Additional merger-related cost saves of $4 million brings current quarter run rate to $441 million. |
• | Provision expense was $875 million versus the $880 million net charge-offs recorded in the quarter. |
• | Includes establishment of $210 million reserve for estimated 2006 net charge-offs from implementing Phase 2 of minimum payment requirements. |
• | Also includes a reduction of $250 million in general reserves as credit integration uncertainties related to FleetBoston were reduced. |
• | Dividends of $1.8 billion and net share repurchases of $1.0 billion provided good capital returns to shareholders while the Tier 1 ratio remains above our 8.00% target rate. |
• | During the quarter Bank of America announced an 11% increase in quarterly dividend. |
• | Continuing momentum in business lines: |
• | 7.6 million product sales. |
• | Number ofnet new checking accounts grew by 629,000. |
• | Number ofnet new savings accounts grew by 568,000. |
• | Opened 1.6 million new credit card accounts. |
• | Active online banking users increased to 13.6 million while bill payers near 7 million. |
• | Bill payers are now paying $30 billion worth of bills per quarter with bill presenters growing to more than 300. |
• | Assets under management ended the quarter at $443 billion reflecting increases from market valuations as well as small inflows. |
• | 70,000 banking customers accepted invitations into premier banking relationships during the quarter. |
• | Integration of FleetBoston merger continues to go extremely well. |
• | Completed 1st phase Northeast retail platform conversion including 1.9 million customers in Rhode Island, Massachusetts, New Hampshire, Maine and Florida. |
1
Bank of America Corporation
Consolidated Financial Highlights
(Dollars in millions, except per share information; shares in thousands)
Year-to- 2005 | Year-to- 2004 | Second Quarter 2005 | First Quarter 2005 | Fourth Quarter 2004 | Third Quarter 2004 | Second Quarter 2004 | |||||||||||||||||||||
Income statement | |||||||||||||||||||||||||||
Total revenue | $ | 28,037 | $ | 22,579 | $ | 14,015 | $ | 14,022 | $ | 13,713 | $ | 12,587 | $ | 13,048 | |||||||||||||
Provision for credit losses | 1,455 | 1,413 | 875 | 580 | 706 | 650 | 789 | ||||||||||||||||||||
Gains on sales of debt securities | 984 | 1,290 | 325 | 659 | 101 | 732 | 795 | ||||||||||||||||||||
Noninterest expense | 14,076 | 12,658 | 7,019 | 7,057 | 7,333 | 7,021 | 7,228 | ||||||||||||||||||||
Income tax expense | 4,499 | 3,268 | 2,150 | 2,349 | 1,926 | 1,884 | 1,977 | ||||||||||||||||||||
Net income | 8,991 | 6,530 | 4,296 | 4,695 | 3,849 | 3,764 | 3,849 | ||||||||||||||||||||
Diluted earnings per common share | 2.20 | 1.85 | 1.06 | 1.14 | 0.94 | 0.91 | 0.93 | ||||||||||||||||||||
Average diluted common shares issued and outstanding | 4,081,921 | 3,531,038 | 4,065,355 | 4,099,062 | 4,106,040 | 4,121,375 | 4,131,290 | ||||||||||||||||||||
Dividends paid per common share | $ | 0.90 | $ | 0.80 | $ | 0.45 | $ | 0.45 | $ | 0.45 | $ | 0.45 | $ | 0.40 | |||||||||||||
Performance ratios | |||||||||||||||||||||||||||
Return on average assets | 1.46 | % | 1.36 | % | 1.35 | 1.59 | % | 1.33 | % | 1.37 | % | 1.41 | % | ||||||||||||||
Return on average common shareholders’ equity | 18.42 | 18.54 | 17.54 | 19.30 | 15.63 | 15.56 | 16.63 | ||||||||||||||||||||
Book value per share of common stock | $ | 24.96 | $ | 23.51 | $ | 24.96 | $ | 24.35 | $ | 24.56 | $ | 24.14 | $ | 23.51 | |||||||||||||
Market price per share of common stock: | |||||||||||||||||||||||||||
Closing price | $ | 45.61 | $ | 42.31 | $ | 45.61 | $ | 44.10 | $ | 46.99 | $ | 43.33 | $ | 42.31 | |||||||||||||
High closing price for the period | 47.08 | 42.72 | 47.08 | 47.08 | 47.44 | 44.98 | 42.72 | ||||||||||||||||||||
Low closing price for the period | 43.58 | 38.96 | 43.58 | 43.66 | 43.62 | 41.81 | 38.96 | ||||||||||||||||||||
Market capitalization | 183,202 | 171,891 | 183,202 | 177,958 | 190,147 | 175,446 | 171,891 | ||||||||||||||||||||
Number of banking centers - domestic | 5,880 | 5,774 | 5,880 | 5,889 | 5,885 | 5,829 | 5,774 | ||||||||||||||||||||
Number of ATMs - domestic | 16,687 | 16,672 | 16,687 | 16,798 | 16,771 | 16,728 | 16,672 | ||||||||||||||||||||
Full-time equivalent employees | 177,795 | 179,971 | 177,795 | 176,676 | 178,057 | 178,633 | 179,971 |
Certain prior period amounts have been reclassified to conform to current period presentation.
Information for periods after April 1, 2004 includes the FleetBoston acquisition; prior periods have not been restated.
2
Bank of America Corporation
Supplemental Financial Data
(Dollars in millions)
Fully taxable-equivalent basis data
Year-to- Date 2005 | Year-to- Date 2004 | Second Quarter 2005 | First Quarter 2005 | Fourth Quarter 2004 | Third Quarter 2004 | Second Quarter 2004 | ||||||||||||||||||||||
Net interest income | $ | 15,913 | $ | 13,721 | $ | 7,841 | $ | 8,072 | $ | 7,954 | $ | 7,836 | $ | 7,751 | ||||||||||||||
Total revenue | 28,427 | 22,918 | 14,206 | 14,221 | 13,920 | 12,758 | 13,218 | |||||||||||||||||||||
Net interest yield | 2.95 | % | 3.29 | % | 2.81 | % | 3.11 | % | 3.18 | % | 3.30 | % | 3.31 | % | ||||||||||||||
Efficiency ratio | 49.52 | 55.23 | 49.42 | 49.62 | 52.69 | 55.03 | 54.68 |
Reconciliation to GAAP financial measures
Supplemental financial data presented on an operating basis is a basis of presentation not defined by accounting principles generally accepted in the United States (GAAP) that excludes merger and restructuring charges. We believe that the exclusion of merger and restructuring charges, which represent events outside our normal operations, provides a meaningful period-to-period comparison and is more reflective of normalized operations.
Shareholder value added (SVA) is a key measure of performance not defined by GAAP that is used in managing our growth strategy orientation and strengthening our focus on generating long-term growth and shareholder value. SVA is used to evaluate the Corporation’s use of equity (i.e. capital) at the individual unit level and is an integral component in the analytics for resource allocation. Using SVA as a performance measure places specific focus on whether incremental investments generate returns in excess of the costs of capital associated with those investments. Each business segment has a goal for growth in SVA reflecting the individual segment’s business and customer strategy.
Other companies may define or calculate supplemental financial data differently. See the Tables below for supplemental financial data and corresponding reconciliations to GAAP financial measures for the quarters ended June 30, 2005, March 31, 2005, December 31, 2004, September 30, 2004 and June 30, 2004, and the six months ended June 30, 2005 and 2004.
Reconciliation of net income to operating earnings
Year-to- Date 2005 | Year-to- Date 2004 | Second Quarter 2005 | First Quarter 2005 | Fourth Quarter 2004 | Third Quarter 2004 | Second Quarter 2004 | ||||||||||||||||||||||
Net income | $ | 8,991 | $ | 6,530 | $ | 4,296 | $ | 4,695 | $ | 3,849 | $ | 3,764 | $ | 3,849 | ||||||||||||||
Merger and restructuring charges | 233 | 125 | 121 | 112 | 272 | 221 | 125 | |||||||||||||||||||||
Related income tax benefit | (78 | ) | (42 | ) | (41 | ) | (37 | ) | (91 | ) | (74 | ) | (42 | ) | ||||||||||||||
Operating earnings | $ | 9,146 | $ | 6,613 | $ | 4,376 | $ | 4,770 | $ | 4,030 | $ | 3,911 | $ | 3,932 | ||||||||||||||
Operating basis | ||||||||||||||||||||||||||||
Diluted earnings per common share | $ | 2.24 | $ | 1.87 | $ | 1.08 | $ | 1.16 | $ | 0.98 | $ | 0.95 | $ | 0.95 | ||||||||||||||
Return on average assets | 1.49 | % | 1.38 | % | 1.37 | % | 1.61 | % | 1.39 | % | 1.42 | % | 1.44 | % | ||||||||||||||
Return on avg common shareholders’ equity | 18.74 | 18.77 | 17.87 | 19.61 | 16.37 | 16.17 | 16.99 | |||||||||||||||||||||
Efficiency ratio | 48.70 | 54.68 | 48.56 | 48.83 | 50.73 | 53.30 | 53.73 | |||||||||||||||||||||
Reconciliation of net income to shareholder value added | ||||||||||||||||||||||||||||
Net income | $ | 8,991 | $ | 6,530 | $ | 4,296 | $ | 4,695 | $ | 3,849 | $ | 3,764 | $ | 3,849 | ||||||||||||||
Amortization of intangibles | 412 | 255 | 204 | 208 | 209 | 200 | 201 | |||||||||||||||||||||
Merger and restructuring charges, net of tax benefit | 155 | 83 | 80 | 75 | 181 | 147 | 83 | |||||||||||||||||||||
Capital charge | (5,364 | ) | (3,872 | ) | (2,691 | ) | (2,673 | ) | (2,705 | ) | (2,658 | ) | (2,542 | ) | ||||||||||||||
Shareholder value added | $ | 4,194 | $ | 2,996 | $ | 1,889 | $ | 2,305 | $ | 1,534 | $ | 1,453 | $ | 1,591 | ||||||||||||||
Certain prior period amounts have been reclassified to conform to current period presentation.
Information for periods after April 1, 2004 includes the FleetBoston acquisition; prior periods have not been restated.
3
Bank of America Corporation
Consolidated Statement of Income
(Dollars in millions, except per share information; shares in thousands)
Year-to- Date 2005 | Year-to- Date 2004 | Second Quarter 2005 | First Quarter 2005 | Fourth Quarter 2004 | Third Quarter 2004 | Second Quarter 2004 | ||||||||||||||||
Interest income | ||||||||||||||||||||||
Interest and fees on loans and leases | $ | 16,419 | $ | 12,786 | $ | 8,312 | $ | 8,107 | $ | 7,919 | $ | 7,508 | $ | 7,237 | ||||||||
Interest and dividends on securities | 5,333 | 3,119 | 2,799 | 2,534 | 2,065 | 2,078 | 1,907 | |||||||||||||||
Federal funds sold and securities purchased under agreements to resell | 2,145 | 847 | 1,252 | 893 | 712 | 484 | 413 | |||||||||||||||
Trading account assets | 2,608 | 2,021 | 1,426 | 1,182 | 1,035 | 960 | 1,009 | |||||||||||||||
Other interest income | 939 | 769 | 502 | 437 | 464 | 457 | 424 | |||||||||||||||
Total interest income | 27,444 | 19,542 | 14,291 | 13,153 | 12,195 | 11,487 | 10,990 | |||||||||||||||
Interest expense | ||||||||||||||||||||||
Deposits | 4,422 | 2,735 | 2,379 | 2,043 | 1,829 | 1,711 | 1,529 | |||||||||||||||
Short-term borrowings | 4,646 | 1,739 | 2,677 | 1,969 | 1,543 | 1,152 | 1,019 | |||||||||||||||
Trading account liabilities | 1,038 | 632 | 611 | 427 | 352 | 333 | 298 | |||||||||||||||
Long-term debt | 1,815 | 1,054 | 974 | 841 | 724 | 626 | 563 | |||||||||||||||
Total interest expense | 11,921 | 6,160 | 6,641 | 5,280 | 4,448 | 3,822 | 3,409 | |||||||||||||||
Net interest income | 15,523 | 13,382 | 7,650 | 7,873 | 7,747 | 7,665 | 7,581 | |||||||||||||||
Noninterest income | ||||||||||||||||||||||
Service charges | 3,697 | 3,199 | 1,920 | 1,777 | 1,891 | 1,899 | 1,783 | |||||||||||||||
Investment and brokerage services | 2,062 | 1,634 | 1,049 | 1,013 | 1,008 | 972 | 999 | |||||||||||||||
Mortgage banking income (loss) | 410 | 508 | 189 | 221 | 156 | (250 | ) | 299 | ||||||||||||||
Investment banking income | 797 | 951 | 431 | 366 | 497 | 438 | 547 | |||||||||||||||
Equity investment gains | 891 | 217 | 492 | 399 | 426 | 220 | 84 | |||||||||||||||
Card income | 2,726 | 1,954 | 1,437 | 1,289 | 1,380 | 1,258 | 1,159 | |||||||||||||||
Trading account profits | 1,045 | 416 | 285 | 760 | 269 | 184 | 413 | |||||||||||||||
Other income | 886 | 318 | 562 | 324 | 339 | 201 | 183 | |||||||||||||||
Total noninterest income | 12,514 | 9,197 | 6,365 | 6,149 | 5,966 | 4,922 | 5,467 | |||||||||||||||
Total revenue | 28,037 | 22,579 | 14,015 | 14,022 | 13,713 | 12,587 | 13,048 | |||||||||||||||
Provision for credit losses | 1,455 | 1,413 | 875 | 580 | 706 | 650 | 789 | |||||||||||||||
Gains on sales of debt securities | 984 | 1,290 | 325 | 659 | 101 | 732 | 795 | |||||||||||||||
Noninterest expense | ||||||||||||||||||||||
Personnel | 7,372 | 6,381 | 3,671 | 3,701 | 3,520 | 3,534 | 3,629 | |||||||||||||||
Occupancy | 1,251 | 1,109 | 615 | 636 | 648 | 622 | 621 | |||||||||||||||
Equipment | 594 | 579 | 297 | 297 | 326 | 309 | 318 | |||||||||||||||
Marketing | 683 | 648 | 346 | 337 | 337 | 364 | 367 | |||||||||||||||
Professional fees | 393 | 354 | 216 | 177 | 275 | 207 | 194 | |||||||||||||||
Amortization of intangibles | 412 | 255 | 204 | 208 | 209 | 200 | 201 | |||||||||||||||
Data processing | 732 | 617 | 368 | 364 | 371 | 341 | 333 | |||||||||||||||
Telecommunications | 402 | 334 | 196 | 206 | 216 | 180 | 183 | |||||||||||||||
Other general operating | 2,004 | 2,256 | 985 | 1,019 | 1,159 | 1,043 | 1,257 | |||||||||||||||
Merger and restructuring charges | 233 | 125 | 121 | 112 | 272 | 221 | 125 | |||||||||||||||
Total noninterest expense | 14,076 | 12,658 | 7,019 | 7,057 | 7,333 | 7,021 | 7,228 | |||||||||||||||
Income before income taxes | 13,490 | 9,798 | 6,446 | 7,044 | 5,775 | 5,648 | 5,826 | |||||||||||||||
Income tax expense | 4,499 | 3,268 | 2,150 | 2,349 | 1,926 | 1,884 | 1,977 | |||||||||||||||
Net income | $ | 8,991 | $ | 6,530 | $ | 4,296 | $ | 4,695 | $ | 3,849 | $ | 3,764 | $ | 3,849 | ||||||||
Net income available to common shareholders | $ | 8,982 | $ | 6,524 | $ | 4,292 | $ | 4,690 | $ | 3,844 | $ | 3,759 | $ | 3,844 | ||||||||
Per common share information | ||||||||||||||||||||||
Earnings | $ | 2.23 | $ | 1.88 | $ | 1.07 | $ | 1.16 | $ | 0.95 | $ | 0.93 | $ | 0.95 | ||||||||
Diluted earnings | $ | 2.20 | $ | 1.85 | $ | 1.06 | $ | 1.14 | $ | 0.94 | $ | 0.91 | $ | 0.93 | ||||||||
Dividends paid | $ | 0.90 | $ | 0.80 | $ | 0.45 | $ | 0.45 | $ | 0.45 | $ | 0.45 | $ | 0.40 | ||||||||
Average common shares issued and outstanding | 4,019,089 | 3,471,516 | 4,005,356 | 4,032,550 | 4,032,979 | 4,052,304 | 4,062,384 | |||||||||||||||
Average diluted common shares issued and outstanding | 4,081,921 | 3,531,038 | 4,065,355 | 4,099,062 | 4,106,040 | 4,121,375 | 4,131,290 | |||||||||||||||
Certain prior period amounts have been reclassified to conform to current period presentation.
Information for periods after April 1, 2004 includes the FleetBoston acquisition; prior periods have not been restated.
4
Bank of America Corporation
Consolidated Balance Sheet
(Dollars in millions) | June 30 2005 | March 31 2005 | June 30 2004 | |||||||||
Assets | ||||||||||||
Cash and cash equivalents | $ | 33,935 | $ | 28,698 | $ | 31,789 | ||||||
Time deposits placed and other short-term investments | 9,682 | 11,223 | 10,418 | |||||||||
Federal funds sold and securities purchased under agreements to resell | 149,287 | 139,396 | 81,437 | |||||||||
Trading account assets | 126,658 | 124,960 | 85,972 | |||||||||
Derivative assets | 26,019 | 26,182 | 25,908 | |||||||||
Securities: | ||||||||||||
Available-for-sale | 233,412 | 218,675 | 166,175 | |||||||||
Held-to-maturity, at cost | 174 | 275 | 478 | |||||||||
Total securities | 233,586 | 218,950 | 166,653 | |||||||||
Loans and leases | 529,418 | 529,466 | 498,481 | |||||||||
Allowance for loan and lease losses | (8,319 | ) | (8,313 | ) | (8,767 | ) | ||||||
Loans and leases, net of allowance | 521,099 | 521,153 | 489,714 | |||||||||
Premises and equipment, net | 7,602 | 7,531 | 7,797 | |||||||||
Mortgage servicing rights | 2,366 | 2,668 | 3,005 | |||||||||
Goodwill | 45,381 | 45,378 | 44,672 | |||||||||
Core deposit intangibles and other intangibles | 3,472 | 3,679 | 3,922 | |||||||||
Other assets | 87,243 | 82,421 | 73,444 | |||||||||
Total assets | $ | 1,246,330 | $ | 1,212,239 | $ | 1,024,731 | ||||||
Liabilities | ||||||||||||
Deposits in domestic offices: | ||||||||||||
Noninterest-bearing | $ | 175,427 | $ | 166,499 | $ | 154,061 | ||||||
Interest-bearing | 397,778 | 403,534 | 369,446 | |||||||||
Deposits in foreign offices: | ||||||||||||
Noninterest-bearing | 6,102 | 5,319 | 5,499 | |||||||||
Interest-bearing | 56,110 | 54,635 | 46,407 | |||||||||
Total deposits | 635,417 | 629,987 | 575,413 | |||||||||
Federal funds purchased and securities sold under agreements to repurchase | 207,710 | 187,652 | 119,264 | |||||||||
Trading account liabilities | 61,906 | 53,434 | 29,689 | |||||||||
Derivative liabilities | 15,630 | 15,363 | 14,381 | |||||||||
Commercial paper and other short-term borrowings | 93,763 | 93,440 | 63,162 | |||||||||
Accrued expenses and other liabilities (includes $383, $394 and $486 of reserve for unfunded lending commitments) | 34,470 | 35,081 | 28,682 | |||||||||
Long-term debt | 96,894 | 98,763 | 98,319 | |||||||||
Total liabilities | 1,145,790 | 1,113,720 | 928,910 | |||||||||
Shareholders’ equity | ||||||||||||
Preferred stock, $0.01 par value; authorized - 100,000,000 shares; issued and outstanding -1,090,189; 1,090,189 and 2,292,013 shares | 271 | 271 | 322 | |||||||||
Common stock and additional paid-in capital, $0.01 par value; authorized - 7,500,000,000 shares; issued and outstanding -4,016,703,839; 4,035,318,509 and 4,062,656,866 shares | 42,507 | 43,589 | 45,669 | |||||||||
Retained earnings | 63,328 | 60,843 | 54,030 | |||||||||
Accumulated other comprehensive income (loss) | (4,992 | ) | (5,559 | ) | (3,862 | ) | ||||||
Other | (574 | ) | (625 | ) | (338 | ) | ||||||
Total shareholders’ equity | 100,540 | 98,519 | 95,821 | |||||||||
Total liabilities and shareholders’ equity | $ | 1,246,330 | $ | 1,212,239 | $ | 1,024,731 | ||||||
Certain prior period amounts have been reclassified to conform to current period presentation.
Information for periods after April 1, 2004 includes the FleetBoston acquisition; prior periods have not been restated.
5
Bank of America Corporation
Capital Management
(Dollars in millions)
2Q05* | 1Q05 | 4Q04 | 3Q04 | 2Q04 | ||||||||||||||||
Tier 1 capital | $ | 68,806 | $ | 67,127 | $ | 64,281 | $ | 62,981 | $ | 61,883 | ||||||||||
Total capital | 94,933 | 93,774 | 92,266 | 91,326 | 90,267 | |||||||||||||||
Risk-weighted assets | 853,669 | 818,179 | 793,523 | 779,858 | 754,386 | |||||||||||||||
Tier 1 capital ratio | 8.06 | % | 8.20 | % | 8.10 | % | 8.08 | % | 8.20 | % | ||||||||||
Total capital ratio | 11.12 | 11.46 | 11.63 | 11.71 | 11.97 | |||||||||||||||
Ending equity / ending assets | 8.07 | 8.13 | 8.97 | 9.14 | 9.35 | |||||||||||||||
Ending capital / ending assets | 8.93 | 9.01 | 9.85 | 10.00 | 10.25 | |||||||||||||||
Average equity / average assets | 7.70 | 8.23 | 8.51 | 8.79 | 8.52 | |||||||||||||||
Leverage ratio | 5.59 | 5.82 | 5.82 | 5.92 | 5.83 |
*Preliminary data on risk-based capital
Share Repurchase Program
40.3 million common shares were repurchased in the second quarter of 2005 as a part of ongoing share repurchase programs.
197.1 million shares remain outstanding under the 2005 authorized program.
21.7 million shares were issued in the second quarter of 2005.
Information for periods after April 1, 2004 includes the FleetBoston acquisition; prior periods have not been restated.
6
Bank of America Corporation
Quarterly Average Balances and Interest Rates - Fully Taxable-equivalent Basis
(Dollars in millions)
Second Quarter 2005 | First Quarter 2005 | Second Quarter 2004 | |||||||||||||||||||||||||
Average Balance | Interest Income/ Expense | Yield/ Rate | Average Balance | Interest Income/ Expense | Yield/ Rate | Average Balance | Interest Income/ Expense | Yield/ Rate | |||||||||||||||||||
Earning assets | |||||||||||||||||||||||||||
Time deposits placed and other short-term investments | $ | 13,696 | $ | 113 | 3.31 | % | $ | 14,327 | $ | 101 | 2.87 | % | $ | 14,384 | $ | 59 | 1.65 | % | |||||||||
Federal funds sold and securities purchased under agreements to resell | 185,835 | 1,252 | 2.70 | 147,855 | 893 | 2.43 | 124,383 | 413 | 1.33 | ||||||||||||||||||
Trading account assets | 134,196 | 1,454 | 4.34 | 117,748 | 1,203 | 4.10 | 104,391 | 1,025 | 3.94 | ||||||||||||||||||
Securities | 227,182 | 2,829 | 4.98 | 204,574 | 2,561 | 5.01 | 159,797 | 1,925 | 4.82 | ||||||||||||||||||
Loans and leases(1): | |||||||||||||||||||||||||||
Residential mortgage | 167,272 | 2,271 | 5.43 | 178,098 | 2,412 | 5.43 | 173,158 | 2,284 | 5.29 | ||||||||||||||||||
Credit card | 52,474 | 1,481 | 11.32 | 51,310 | 1,373 | 10.85 | 43,160 | 1,167 | 10.88 | ||||||||||||||||||
Home equity lines | 54,941 | 799 | 5.83 | 51,477 | 692 | 5.45 | 40,424 | 450 | 4.48 | ||||||||||||||||||
Direct/Indirect consumer | 43,132 | 612 | 5.69 | 41,620 | 573 | 5.58 | 39,763 | 540 | 5.44 | ||||||||||||||||||
Other consumer(2) | 6,968 | 155 | 8.96 | 7,305 | 158 | 8.75 | 8,142 | 169 | 8.32 | ||||||||||||||||||
Total consumer | 324,787 | 5,318 | 6.56 | 329,810 | 5,208 | 6.37 | 304,647 | 4,610 | 6.07 | ||||||||||||||||||
Commercial - domestic | 123,927 | 1,969 | 6.37 | 123,803 | 1,983 | 6.49 | 123,970 | 1,843 | 5.98 | ||||||||||||||||||
Commercial real estate | 33,484 | 477 | 5.72 | 33,016 | 430 | 5.29 | 30,311 | 317 | 4.20 | ||||||||||||||||||
Commercial lease financing | 20,446 | 252 | 4.93 | 20,745 | 260 | 5.01 | 20,086 | 237 | 4.72 | ||||||||||||||||||
Commercial - foreign | 17,780 | 306 | 6.90 | 17,570 | 258 | 5.96 | 18,144 | 237 | 5.24 | ||||||||||||||||||
Total commercial | 195,637 | 3,004 | 6.16 | 195,134 | 2,931 | 6.08 | 192,511 | 2,634 | 5.50 | ||||||||||||||||||
Total loans and leases | 520,424 | 8,322 | 6.41 | 524,944 | 8,139 | 6.27 | 497,158 | 7,244 | 5.85 | ||||||||||||||||||
Other earning assets | 37,194 | 512 | 5.52 | 35,466 | 455 | 5.19 | 38,407 | 494 | 5.17 | ||||||||||||||||||
Total earning assets(3) | 1,118,527 | 14,482 | 5.19 | 1,044,914 | 13,352 | 5.15 | 938,520 | 11,160 | 4.77 | ||||||||||||||||||
Cash and cash equivalents | 34,731 | 31,382 | 30,320 | ||||||||||||||||||||||||
Other assets, less allowance for loan and lease losses | 124,231 | 124,587 | 125,619 | ||||||||||||||||||||||||
Total assets | $ | 1,277,489 | $ | 1,200,883 | $ | 1,094,459 | |||||||||||||||||||||
Interest-bearing liabilities | |||||||||||||||||||||||||||
Domestic interest-bearing deposits: | |||||||||||||||||||||||||||
Savings | $ | 38,043 | $ | 52 | 0.54 | % | $ | 37,000 | $ | 35 | 0.39 | % | $ | 35,864 | $ | 31 | 0.34 | % | |||||||||
NOW and money market deposit accounts | 229,174 | 723 | 1.27 | 233,392 | 651 | 1.13 | 233,702 | 488 | 0.84 | ||||||||||||||||||
Consumer CDs and IRAs | 127,169 | 974 | 3.07 | 118,989 | 769 | 2.62 | 93,017 | 587 | 2.54 | ||||||||||||||||||
Negotiable CDs, public funds and other time deposits | 7,751 | 87 | 4.49 | 10,291 | 96 | 3.73 | 4,737 | 66 | 5.60 | ||||||||||||||||||
Total domestic interest-bearing deposits | 402,137 | 1,836 | 1.83 | 399,672 | 1,551 | 1.57 | 367,320 | 1,172 | 1.28 | ||||||||||||||||||
Foreign interest-bearing deposits(4): | |||||||||||||||||||||||||||
Banks located in foreign countries | 25,546 | 335 | 5.26 | 22,084 | 316 | 5.81 | 18,945 | 287 | 6.10 | ||||||||||||||||||
Governments and official institutions | 7,936 | 59 | 2.97 | 6,831 | 43 | 2.58 | 5,739 | 23 | 1.58 | ||||||||||||||||||
Time, savings and other | 30,973 | 149 | 1.94 | 30,770 | 133 | 1.75 | 29,882 | 47 | 0.64 | ||||||||||||||||||
Total foreign interest-bearing deposits | 64,455 | 543 | 3.38 | 59,685 | 492 | 3.35 | 54,566 | 357 | 2.63 | ||||||||||||||||||
Total interest-bearing deposits | 466,592 | 2,379 | 2.04 | 459,357 | 2,043 | 1.80 | 421,886 | 1,529 | 1.46 | ||||||||||||||||||
Federal funds purchased, securities sold under agreements to repurchase and other short-term borrowings | 323,916 | 2,677 | 3.32 | 276,483 | 1,969 | 2.89 | 235,701 | 1,019 | 1.74 | ||||||||||||||||||
Trading account liabilities | 60,987 | 611 | 4.02 | 44,507 | 427 | 3.89 | 31,620 | 298 | 3.78 | ||||||||||||||||||
Long-term debt | 97,360 | 974 | 4.00 | 97,126 | 841 | 3.46 | 96,395 | 563 | 2.34 | ||||||||||||||||||
Total interest-bearing liabilities(3) | 948,855 | 6,641 | 2.81 | 877,473 | 5,280 | 2.43 | 785,602 | 3,409 | 1.74 | ||||||||||||||||||
Noninterest-bearing sources: | |||||||||||||||||||||||||||
Noninterest-bearing deposits | 174,001 | 168,062 | 160,419 | ||||||||||||||||||||||||
Other liabilities | 56,216 | 56,534 | 55,172 | ||||||||||||||||||||||||
Shareholders’ equity | 98,417 | 98,814 | 93,266 | ||||||||||||||||||||||||
Total liabilities and shareholders’ equity | $ | 1,277,489 | $ | 1,200,883 | $ | 1,094,459 | |||||||||||||||||||||
Net interest spread | 2.38 | 2.72 | 3.03 | ||||||||||||||||||||||||
Impact of noninterest-bearing sources | 0.43 | 0.39 | 0.28 | ||||||||||||||||||||||||
Net interest income/yield on earning assets | $ | 7,841 | 2.81 | % | $ | 8,072 | 3.11 | % | $ | 7,751 | 3.31 | % | |||||||||||||||
(1) | Nonperforming loans are included in the respective average loan balances. Income on these nonperforming loans is recognized on a cash basis. |
(2) | Includes consumer finance of $3,212 million and $3,362 million in the second and first quarters of 2005 and $3,828 million in the second quarter of 2004; foreign consumer of $3,505 million and $3,532 million in the second and first quarters of 2005 and $3,256 million in the second quarter of 2004; and consumer lease financing of $251 million and $411 million in the second and first quarters of 2005 and $1,058 million in the second quarter of 2004. |
(3) | Interest income includes the impact of interest rate risk management contracts, which increased interest income on the underlying assets $193 million and $437 million in the second and first quarters of 2005 and $658 million in the second quarter of 2004. These amounts were substantially offset by corresponding decreases in the income earned on the underlying assets. Interest expense includes the impact of interest rate risk management contracts, which increased interest expense on the underlying liabilities $314 million and $154 million in the second and first quarters of 2005 and $333 million in the second quarter of 2004. These amounts were substantially offset by corresponding decreases in the interest paid on the underlying liabilities. |
(4) | Primarily consists of time deposits in denominations of $100,000 or more. |
Information for periods after April 1, 2004 includes the FleetBoston acquisition; prior periods have not been restated.
7
Bank of America Corporation
Year-to-Date Average Balances and Interest Rates - Fully Taxable-equivalent Basis
(Dollars in millions)
Six Months Ended June 30 | ||||||||||||||||||
2005 | 2004 | |||||||||||||||||
Average Balance | Interest Income/ Expense | Yield/ Rate | Average Balance | Interest Income/ Expense | Yield/ Rate | |||||||||||||
Earning assets | ||||||||||||||||||
Time deposits placed and other short-term investments | $ | 14,010 | $ | 214 | 3.09 | % | $ | 13,326 | $ | 107 | 1.61 | % | ||||||
Federal funds sold and securities purchased under agreements to resell | 166,950 | 2,145 | 2.58 | 119,072 | 847 | 1.43 | ||||||||||||
Trading account assets | 126,017 | 2,657 | 4.23 | 104,712 | 2,050 | 3.92 | ||||||||||||
Securities | 215,940 | 5,390 | 4.99 | 129,776 | 3,148 | 4.85 | ||||||||||||
Loans and leases(1): | ||||||||||||||||||
Residential mortgage | 172,655 | 4,683 | 5.43 | 157,528 | 4,244 | 5.40 | ||||||||||||
Credit card | 51,895 | 2,854 | 11.09 | 39,232 | 2,037 | 10.44 | ||||||||||||
Home equity lines | 53,219 | 1,491 | 5.65 | 32,402 | 712 | 4.42 | ||||||||||||
Direct/Indirect consumer | 42,380 | 1,184 | 5.63 | 36,904 | 1,004 | 5.47 | ||||||||||||
Other consumer(2) | 7,136 | 314 | 8.86 | 7,810 | 289 | 7.41 | ||||||||||||
Total consumer | 327,285 | 10,526 | 6.47 | 273,876 | 8,286 | 6.07 | ||||||||||||
Commercial - domestic | 123,865 | 3,952 | 6.43 | 107,457 | 3,354 | 6.28 | ||||||||||||
Commercial real estate | 33,252 | 907 | 5.50 | 25,063 | 527 | 4.23 | ||||||||||||
Commercial lease financing | 20,594 | 512 | 4.97 | 14,773 | 332 | 4.49 | ||||||||||||
Commercial - foreign | 17,676 | 564 | 6.43 | 14,449 | 332 | 4.62 | ||||||||||||
Total commercial | 195,387 | 5,935 | 6.12 | 161,742 | 4,545 | 5.65 | ||||||||||||
Total loans and leases | 522,672 | 16,461 | 6.34 | 435,618 | 12,831 | 5.91 | ||||||||||||
Other earning assets | 36,335 | 967 | 5.36 | 34,160 | 898 | 5.28 | ||||||||||||
Total earning assets(3) | 1,081,924 | 27,834 | 5.17 | 836,664 | 19,881 | 4.77 | ||||||||||||
Cash and cash equivalents | 33,065 | 26,754 | ||||||||||||||||
Other assets, less allowance for loan and lease losses | 124,409 | 100,407 | ||||||||||||||||
Total assets | $ | 1,239,398 | $ | 963,825 | ||||||||||||||
Interest-bearing liabilities | ||||||||||||||||||
Domestic interest-bearing deposits: | ||||||||||||||||||
Savings | $ | 37,525 | $ | 87 | 0.47 | % | $ | 31,012 | $ | 48 | 0.31 | % | ||||||
NOW and money market deposit accounts | 231,271 | 1,375 | 1.20 | 194,768 | 809 | 0.84 | ||||||||||||
Consumer CDs and IRAs | 123,101 | 1,743 | 2.86 | 84,179 | 1,154 | 2.76 | ||||||||||||
Negotiable CDs, public funds and other time deposits | 9,014 | 181 | 4.06 | 5,338 | 140 | 5.28 | ||||||||||||
Total domestic interest-bearing deposits | 400,911 | 3,386 | 1.70 | 315,297 | 2,151 | 1.37 | ||||||||||||
Foreign interest-bearing deposits(4): | ||||||||||||||||||
Banks located in foreign countries | 23,824 | 651 | 5.51 | 18,950 | 458 | 4.86 | ||||||||||||
Governments and official institutions | 7,387 | 102 | 2.79 | 5,220 | 42 | 1.60 | ||||||||||||
Time, savings and other | 30,873 | 283 | 1.84 | 25,468 | 84 | 0.67 | ||||||||||||
Total foreign interest-bearing deposits | 62,084 | 1,036 | 3.36 | 49,638 | 584 | 2.37 | ||||||||||||
Total interest-bearing deposits | 462,995 | 4,422 | 1.93 | 364,935 | 2,735 | 1.51 | ||||||||||||
Federal funds purchased, securities sold under agreements to repurchase and other short-term borrowings | 300,330 | 4,646 | 3.12 | 215,783 | 1,739 | 1.62 | ||||||||||||
Trading account liabilities | 52,792 | 1,038 | 3.97 | 33,082 | 632 | 3.84 | ||||||||||||
Long-term debt | 97,244 | 1,815 | 3.73 | 87,623 | 1,054 | 2.41 | ||||||||||||
Total interest-bearing liabilities(3) | 913,361 | 11,921 | 2.63 | 701,423 | 6,160 | 1.76 | ||||||||||||
Noninterest-bearing sources: | ||||||||||||||||||
Noninterest-bearing deposits | 171,048 | 138,755 | ||||||||||||||||
Other liabilities | 56,375 | 52,671 | ||||||||||||||||
Shareholders’ equity | 98,614 | 70,976 | ||||||||||||||||
Total liabilities and shareholders’ equity | $ | 1,239,398 | $ | 963,825 | ||||||||||||||
Net interest spread | 2.54 | 3.01 | ||||||||||||||||
Impact of noninterest-bearing sources | 0.41 | 0.28 | ||||||||||||||||
Net interest income/yield on earning assets | $ | 15,913 | 2.95 | % | $ | 13,721 | 3.29 | % | ||||||||||
(1) | Nonperforming loans are included in the respective average loan balances. Income on such nonperforming loans is recognized on a cash basis. |
(2) | Includes consumer finance of $3,287 million and $3,913 million; foreign consumer of $3,519 million and $2,622 million; and consumer lease financing of $330 million and $1,275 million for the six months ended June 30, 2005 and 2004. |
(3) | Interest income includes the impact of interest rate risk management contracts, which increased interest income on the underlying assets $630 million and $1,373 million in the six months ended June 30, 2005 and 2004. These amounts were substantially offset by corresponding decreases in the income earned on the underlying assets. Interest expense includes the impact of interest rate risk management contracts, which increased interest expense on the underlying liabilities $468 million and $516 million in the six months ended June 30, 2005 and 2004. These amounts were substantially offset by corresponding decreases in the interest paid on the underlying liabilities. |
(4) | Primarily consists of time deposits in denominations of $100,000 or more. |
Information for periods after April 1, 2004 includes the FleetBoston acquisition; prior periods have not been restated.
8
Bank of America Corporation
Business Segment View
Net Income
Second Quarter 2005
Revenue*
Second Quarter 2005
*Fully taxable-equivalent basis
9
Bank of America Corporation
Global Consumer and Small Business Banking Segment Results (1)
(Dollars in millions)
Year-to-Date | Quarterly | ||||||||||||||||||||||||||
2005 | 2004 | 2 Qtr 05 | 1 Qtr 05 | 4 Qtr 04 | 3 Qtr 04 | 2 Qtr 04 | |||||||||||||||||||||
Key Measures | |||||||||||||||||||||||||||
Total revenue (2) | $ | 14,024 | $ | 11,448 | $ | 7,062 | $ | 6,962 | $ | 7,107 | $ | 6,566 | $ | 6,723 | |||||||||||||
Provision for credit losses | 1,857 | 1,069 | 1,143 | 714 | 1,218 | 1,005 | 641 | ||||||||||||||||||||
Net income | 3,494 | 2,810 | 1,595 | 1,899 | 1,604 | 1,483 | 1,740 | ||||||||||||||||||||
Shareholder value added | 1,982 | 1,739 | 828 | 1,154 | 803 | 711 | 1,022 | ||||||||||||||||||||
Return on average equity | 21.43 | % | 24.96 | % | 19.36 | 23.55 | % | 18.70 | % | 18.07 | % | 22.51 | % | ||||||||||||||
Efficiency ratio(2) | 48.01 | 51.86 | 48.45 | 47.55 | 47.74 | 50.93 | 49.61 | ||||||||||||||||||||
Selected Average Balance Sheet Components | |||||||||||||||||||||||||||
Total loans and leases | $ | 139,467 | $ | 107,731 | $ | 140,255 | $ | 138,670 | $ | 137,193 | $ | 133,489 | $ | 129,379 | |||||||||||||
Total deposits | 303,486 | 262,638 | 306,399 | 300,540 | 301,828 | 306,367 | 307,700 | ||||||||||||||||||||
Total earning assets | 302,928 | 268,543 | 300,671 | 305,212 | 312,038 | 315,449 | 314,907 | ||||||||||||||||||||
Period End(in billions) | |||||||||||||||||||||||||||
Mortgage servicing portfolio | $ | 280.1 | $ | 267.8 | $ | 280.1 | $ | 275.5 | $ | 273.1 | $ | 268.5 | $ | 267.8 | |||||||||||||
Mortgage originations: | |||||||||||||||||||||||||||
Retail | 27.0 | 33.2 | 15.1 | 11.9 | 12.7 | 11.7 | 19.2 | ||||||||||||||||||||
Wholesale | 11.6 | 19.1 | 6.0 | 5.6 | 5.7 | 5.2 | 9.3 |
(1) | Global Consumer and Small Business Banking’s most significant product lines are Card Services, Consumer Real Estate and Consumer Deposit Products. |
(2) | Fully taxable-equivalent basis |
Certain prior period amounts have been reclassified among the segments to conform to the current period presentation.
Information for periods after April 1, 2004 includes the FleetBoston acquisition; prior periods have not been restated.
10
Bank of America Corporation
E-Commerce & BankofAmerica.com
Bank of America has the largest active online banking customer base with 13.6 million subscribers.
Bank of America uses a strict Active User standard - customers must have used our online services within the last 90 days.
6.6 millionactive bill pay users paid $30.1 billion worth of bills this quarter. The number of customers who sign up and use Bank of America's Bill Pay Service continues to far surpass that of any other financial institution.
Currently, approximately 300 companies are presenting 16.3 million e-bills per quarter.
![]() | ![]() |
11
Bank of America Corporation
Card Services Results(1)
(Dollars in millions)
Year-to-Date | Quarterly | |||||||||||||||||||||||||||
2005 | 2004 | 2 Qtr 05 | 1 Qtr 05 | 4 Qtr 04 | 3 Qtr 04 | 2 Qtr 04 | ||||||||||||||||||||||
Key Measures | ||||||||||||||||||||||||||||
Consumer Credit Card | ||||||||||||||||||||||||||||
Outstandings | ||||||||||||||||||||||||||||
On-balance sheet (Period end) | $ | 53,863 | $ | 42,195 | $ | 53,863 | $ | 51,012 | $ | 51,726 | $ | 47,521 | $ | 42,195 | ||||||||||||||
Managed (Period end) | 59,283 | 51,990 | 59,283 | 57,920 | 58,629 | 55,399 | 51,990 | |||||||||||||||||||||
On-balance sheet (Average) | 51,895 | 39,240 | 52,474 | 51,310 | 49,366 | 45,589 | 43,177 | |||||||||||||||||||||
Managed (Average) | 58,342 | 44,996 | 58,537 | 58,145 | 56,444 | 54,419 | 53,136 | |||||||||||||||||||||
Managed Income Statement | ||||||||||||||||||||||||||||
Total revenue | $ | 4,581 | $ | 3,519 | $ | 2,338 | $ | 2,243 | $ | 2,354 | $ | 2,267 | $ | 2,173 | ||||||||||||||
Provision for credit losses(2) | 2,021 | 1,226 | 1,204 | 817 | 1,335 | 994 | 760 | |||||||||||||||||||||
Noninterest expense | 1,396 | 928 | 720 | 676 | 700 | 544 | 546 | |||||||||||||||||||||
Income before income taxes | $ | 1,164 | $ | 1,365 | $ | 414 | $ | 750 | $ | 319 | $ | 729 | $ | 867 | ||||||||||||||
Shareholder Value Added | $ | 524 | $ | 645 | $ | 143 | $ | 381 | $ | 89 | $ | 403 | $ | 407 | ||||||||||||||
Merchant Acquiring Business | ||||||||||||||||||||||||||||
Processing volume (millions) | 160,016 | 44,812 | 84,262 | 75,754 | 75,383 | 24,898 | 23,239 | |||||||||||||||||||||
Total transactions (millions) | 3,452 | 651 | 1,832 | 1,620 | 1,756 | 374 | 342 | |||||||||||||||||||||
Consumer Credit Card | ||||||||||||||||||||||||||||
Credit Quality | ||||||||||||||||||||||||||||
On-balance sheet | ||||||||||||||||||||||||||||
Charge-offs $ | $ | 1,514 | $ | 1,028 | $ | 774 | $ | 740 | $ | 691 | $ | 586 | $ | 585 | ||||||||||||||
Charge-offs % | 5.88 | % | 5.31 | % | 5.91 | % | 5.85 | % | 5.57 | % | 5.09 | % | 5.45 | % | ||||||||||||||
Managed | ||||||||||||||||||||||||||||
Losses $ | $ | 1,793 | $ | 1,239 | $ | 909 | $ | 884 | $ | 837 | $ | 753 | $ | 776 | ||||||||||||||
Losses % | 6.20 | % | 5.54 | % | 6.23 | % | 6.17 | % | 5.90 | % | 5.48 | % | 5.88 | % | ||||||||||||||
Managed delinquency % | ||||||||||||||||||||||||||||
30+ | n/a | n/a | 4.25 | % | 4.20 | % | 4.37 | % | 4.30 | % | 3.86 | % | ||||||||||||||||
90+ | n/a | n/a | 1.96 | 2.10 | 2.13 | 1.98 | 1.76 |
n/a = not applicable
(1) | Card Services includes Consumer and Small Business Credit Card and Merchant Services. |
(2) | Includes $210 million for the three and six months ended June 30, 2005, and $165 million for the three months ended December 31, 2004 related to minimum payment requirements. |
Represents financial statement presentation with certain reclassifications to reflect securitization activity.
Certain prior period amounts have been reclassified among the segments to conform to the current period classification.
Information for periods after April 1, 2004 includes the FleetBoston acquisition; prior periods have not been restated.
12
Bank of America Corporation
Global Business and Financial Services Segment Results(1)
(Dollars in millions)
Year-to-Date | Quarterly | |||||||||||||||||||||||||||
2005 | 2004 | 2 Qtr 05 | 1 Qtr 05 | 4 Qtr 04 | 3 Qtr 04 | 2 Qtr 04 | ||||||||||||||||||||||
Key Measures | ||||||||||||||||||||||||||||
Total revenue (2) | $ | 5,425 | $ | 3,999 | $ | 2,691 | $ | 2,734 | $ | 2,720 | $ | 2,522 | $ | 2,430 | ||||||||||||||
Provision for credit losses | (221 | ) | 86 | (164 | ) | (57 | ) | (248 | ) | (222 | ) | (5 | ) | |||||||||||||||
Net income | 2,339 | 1,441 | 1,217 | 1,122 | 1,205 | 1,181 | 849 | |||||||||||||||||||||
Shareholder value added | 810 | 479 | 458 | 352 | 414 | 393 | 83 | |||||||||||||||||||||
Return on average equity | 16.12 | % | 15.77 | % | 16.90 | % | 15.36 | % | 16.04 | % | 15.78 | % | 11.66 | % | ||||||||||||||
Efficiency ratio(2) | 36.95 | 40.86 | 37.55 | 36.36 | 36.70 | 36.66 | 44.55 | |||||||||||||||||||||
Selected Average Balance | ||||||||||||||||||||||||||||
Sheet Components | ||||||||||||||||||||||||||||
Total loans and leases | $ | 174,019 | $ | 136,551 | $ | 176,505 | $ | 171,505 | $ | 167,726 | $ | 164,603 | $ | 163,905 | ||||||||||||||
Total deposits | 105,782 | 82,053 | 106,271 | 105,287 | 105,401 | 101,926 | 102,201 | |||||||||||||||||||||
Total earning assets | 184,444 | 143,121 | 187,099 | 181,760 | 177,763 | 174,339 | 172,854 |
(1) | Global Business and Financial Services major businesses are Global Treasury Services, Middle Market Banking, Business Banking, Commercial Real Estate Banking, Leasing, Business Capital, Dealer Financial Services and Latin America. |
(2) | Fully taxable-equivalent basis |
Certain prior period amounts have been reclassified among the segments to conform to the current period presentation.
Information for periods after April 1, 2004 includes the FleetBoston acquisition; prior periods have not been restated.
13
Bank of America Corporation
Global Capital Markets and Investment Banking Segment Results(1)
(Dollars in millions)
Year-to-Date | Quarterly | |||||||||||||||||||||||||||
2005 | 2004 | 2 Qtr 05 | 1 Qtr 05 | 4 Qtr 04 | 3 Qtr 04 | 2 Qtr 04 | ||||||||||||||||||||||
Key Measures | ||||||||||||||||||||||||||||
Total revenue (2) | $ | 4,753 | $ | 4,808 | $ | 2,121 | $ | 2,632 | $ | 2,206 | $ | 2,074 | $ | 2,634 | ||||||||||||||
Provision for credit losses | (170 | ) | (95 | ) | (73 | ) | (97 | ) | (209 | ) | (158 | ) | 4 | |||||||||||||||
Net income | 1,182 | 864 | 461 | 721 | 597 | 478 | 411 | |||||||||||||||||||||
Shareholder value added | 644 | 381 | 195 | 449 | 309 | 190 | 128 | |||||||||||||||||||||
Return on average equity | 23.13 | % | 18.96 | % | 18.24 | % | 27.91 | % | 21.84 | % | 17.47 | % | 15.28 | % | ||||||||||||||
Efficiency ratio(2) | 66.73 | 74.28 | 71.92 | 62.55 | 69.60 | 72.82 | 76.27 | |||||||||||||||||||||
Selected Average Balance | ||||||||||||||||||||||||||||
Sheet Components | ||||||||||||||||||||||||||||
Total loans and leases | $ | 34,065 | $ | 33,905 | $ | 32,639 | $ | 35,508 | $ | 34,726 | $ | 36,285 | $ | 38,476 | ||||||||||||||
Total deposits | 85,136 | 73,147 | 87,261 | 82,987 | 81,376 | 72,550 | 78,854 | |||||||||||||||||||||
Total earning assets | 348,815 | 265,498 | 376,322 | 321,002 | 307,611 | 271,782 | 276,022 |
(1) | Global Capital Markets and Investment Banking offers clients a comprehensive range of global capabilities through three financial services: Global Investment Banking, Global Credit Products and Global Treasury Services. |
(2) | Fully taxable-equivalent basis |
Certain prior period amounts have been reclassified among the segments to conform to the current period presentation.
Information for periods after April 1, 2004 includes the FleetBoston acquisition; prior periods have not been restated.
14
Bank of America Corporation
Global Capital Markets and Investment Banking
(Dollars in millions)
Year-to-Date | Quarterly | ||||||||||||||||||||||||
2005 | 2004 | 2 Qtr 05 | 1 Qtr 05 | 4 Qtr 04 | 3 Qtr 04 | 2 Qtr 04 | |||||||||||||||||||
Trading-related Revenue | |||||||||||||||||||||||||
Net interest income(1) | $ | 828 | $ | 1,174 | $ | 414 | $ | 414 | $ | 417 | $ | 448 | $ | 597 | |||||||||||
Trading account profits | 960 | 656 | 256 | 704 | 231 | 136 | 389 | ||||||||||||||||||
Total trading-related revenue | $ | 1,788 | $ | 1,830 | $ | 670 | $ | 1,118 | $ | 648 | $ | 584 | $ | 986 | |||||||||||
Trading-related revenue by product | |||||||||||||||||||||||||
Fixed income | $ | 558 | $ | 965 | $ | 107 | $ | 451 | $ | 283 | $ | 299 | $ | 456 | |||||||||||
Interest rate(1) | 410 | 456 | 183 | 227 | 93 | 118 | 289 | ||||||||||||||||||
Foreign exchange | 386 | 358 | 190 | 196 | 231 | 163 | 170 | ||||||||||||||||||
Equities (2) | 208 | 80 | 60 | 148 | 75 | 40 | 83 | ||||||||||||||||||
Commodities | 88 | (6 | ) | 67 | 21 | 33 | 18 | (4 | ) | ||||||||||||||||
Market-based trading-related revenue | 1,650 | 1,853 | 607 | 1,043 | 715 | 638 | 994 | ||||||||||||||||||
Credit portfolio hedges(3) | 138 | (23 | ) | 63 | 75 | (67 | ) | (54 | ) | (8 | ) | ||||||||||||||
Total trading-related revenue | $ | 1,788 | $ | 1,830 | $ | 670 | $ | 1,118 | $ | 648 | $ | 584 | $ | 986 | |||||||||||
Year-to-Date | Quarterly | ||||||||||||||||||||||||
2005 | 2004 | 2 Qtr 05 | 1 Qtr 05 | 4 Qtr 04 | 3 Qtr 04 | 2 Qtr 04 | |||||||||||||||||||
Investment Banking Income | |||||||||||||||||||||||||
Securities underwriting | $ | 337 | $ | 492 | $ | 180 | $ | 157 | $ | 209 | $ | 219 | $ | 275 | |||||||||||
Syndications | 237 | 253 | 125 | 112 | 140 | 128 | 174 | ||||||||||||||||||
Advisory services | 170 | 150 | 95 | 75 | 94 | 66 | 73 | ||||||||||||||||||
Other | 13 | 18 | 7 | 6 | 7 | 7 | 10 | ||||||||||||||||||
Total investment banking income | $ | 757 | $ | 913 | $ | 407 | $ | 350 | $ | 450 | $ | 420 | $ | 532 | |||||||||||
(1) | Fully taxable-equivalent basis |
(2) | Does not include commissions from equity transactions which were $394 million and $341 million for the six months ended June 30, 2005 and 2004, and $205 million, $189 million, $173 million, $153 million and $168 million for the three months ended June 30, 2005, March 31, 2005, December 31, 2004, September 30, 2004 and June 30, 2004, respectively. |
(3) | Includes credit default swaps and related products used for credit risk management. |
Certain prior period amounts have been reclassified among the segments to conform to the current period presentation.
Information for periods after April 1, 2004 includes the FleetBoston acquisition; prior periods have not been restated.
15
Bank of America Corporation
Global Capital Markets & Investment Banking Strategic Progress Continues
![]() |
Source: Thomson Financial except Syndicated Loans and Leveraged Loans from Loan Pricing Corporation.
|
Significant US market share gains
Banc of America Securities increased market share in M&A, high yield, investment grade and public finance.
• | #1 in syndicated loans and leveraged loans, ranked by number of deals |
• | #1 in high yield |
• | Investment grade rank rose to #4 from #8 in 1st Half 04 |
• | M&A market share increased over YTD04, from 7.2% to 16.8% |
• | Top 5 rankings in: |
Syndicated loans
Leveraged loans
High yield
Mortgage-backed securities
Investment grade
16
Bank of America Corporation
Global Wealth and Investment Management Segment Results(1)
(Dollars in millions)
Year-to-Date | Quarterly | |||||||||||||||||||||||||||
2005 | 2004 | 2 Qtr 05 | 1 Qtr 05 | 4 Qtr 04 | 3 Qtr 04 | 2 Qtr 04 | ||||||||||||||||||||||
Key Measures | ||||||||||||||||||||||||||||
Total revenue (2) | $ | 3,631 | $ | 2,647 | $ | 1,837 | $ | 1,794 | $ | 1,681 | $ | 1,606 | $ | 1,546 | ||||||||||||||
Provision for credit losses | (7 | ) | 2 | (9 | ) | 2 | (4 | ) | (18 | ) | 10 | |||||||||||||||||
Net income | 1,166 | 645 | 590 | 576 | 482 | 475 | 398 | |||||||||||||||||||||
Shareholder value added | 657 | 290 | 329 | 328 | 227 | 235 | 163 | |||||||||||||||||||||
Return on average equity | 23.45 | % | 18.70 | % | 23.18 | 23.74 | % | 19.33 | % | 20.15 | % | 17.20 | % | |||||||||||||||
Efficiency ratio(2) | 50.24 | 61.61 | 50.17 | 50.31 | 55.35 | 54.55 | 58.93 | |||||||||||||||||||||
Selected Average Balance | ||||||||||||||||||||||||||||
Sheet Components | ||||||||||||||||||||||||||||
Total loans and leases | $ | 51,869 | $ | 41,280 | $ | 52,967 | $ | 50,759 | $ | 47,956 | $ | 45,654 | $ | 44,117 | ||||||||||||||
Total deposits | 116,177 | 70,773 | 118,234 | 114,098 | 102,489 | 87,909 | 77,075 | |||||||||||||||||||||
Total earning assets | 118,380 | 72,862 | 120,474 | 116,263 | 104,929 | 90,135 | 79,254 | |||||||||||||||||||||
Period End(in billions) | ||||||||||||||||||||||||||||
Assets under management | $ | 442.8 | $ | 439.6 | $ | 442.8 | $ | 433.4 | $ | 451.5 | $ | 429.5 | $ | 439.6 | ||||||||||||||
Client brokerage assets | 150.9 | 144.9 | 150.9 | 150.7 | 149.9 | 141.9 | 144.9 | |||||||||||||||||||||
Assets in custody | 101.7 | 105.2 | 101.7 | 100.8 | 107.0 | 104.0 | 105.2 | |||||||||||||||||||||
Total client assets | $ | 695.4 | $ | 689.7 | $ | 695.4 | $ | 684.9 | $ | 708.4 | $ | 675.4 | $ | 689.7 | ||||||||||||||
(1) | Global Wealth and Investment Management services clients through five major businesses: Premier Banking, Banc of America Investments, The Private Bank, Columbia Management Group and Other Services. |
(2) | Fully taxable-equivalent basis |
Certain prior period amounts have been reclassified among the segments to conform to the current period presentation.
Information for periods after April 1, 2004 includes the FleetBoston acquisition; prior periods have not been restated.
17
Bank of America Corporation
All Other Results(1)
(Dollars in millions)
Year-to-Date | Quarterly | |||||||||||||||||||||||||
2005 | 2004 | 2 Qtr 05 | 1 Qtr 05 | 4 Qtr 04 | 3 Qtr 04 | 2 Qtr 04 | ||||||||||||||||||||
Key Measures | ||||||||||||||||||||||||||
Total revenue (2) | $ | 594 | $ | 16 | $ | 495 | $ | 99 | $ | 206 | $ | (10 | ) | $ | (115 | ) | ||||||||||
Provision for credit losses | (4 | ) | 351 | (22 | ) | 18 | (51 | ) | 43 | 139 | ||||||||||||||||
Net income(3) | 810 | 770 | 433 | 377 | (39 | ) | 147 | 451 | ||||||||||||||||||
Shareholder value added | 101 | 107 | 79 | 22 | (219 | ) | (76 | ) | 195 | |||||||||||||||||
Selected Average Balance | ||||||||||||||||||||||||||
Sheet Components | ||||||||||||||||||||||||||
Total loans and leases | $ | 123,252 | $ | 116,151 | $ | 118,058 | $ | 128,502 | $ | 127,862 | $ | 123,047 | $ | 121,281 | ||||||||||||
Total deposits | 23,462 | 15,079 | 22,428 | 24,507 | 18,842 | 19,126 | 16,475 | |||||||||||||||||||
Total earning assets | 127,357 | 86,640 | 133,961 | 120,677 | 95,663 | 96,678 | 95,483 |
(1) | All Other consists primarily of Equity Investments, noninterest income and expense amounts associated with the Asset and Liability (ALM) process, including gains on sales of debt securities, the allowance for credit losses process residual, the residual impact of allocation methodologies, merger and restructuring charges, intersegment eliminations, and the results of certain consumer finance and commercial lending businesses that are being liquidated. |
(2) | Fully taxable-equivalent basis |
(3) | Includes merger and restructuring charges, net of taxes, $155 million and $83 million for the six months ended June 30, 2005 and 2004, and $80 million, $75 million, $181 million, $147 million and $83 million for the three months ended June 30, 2005, March 31, 2005, December 31, 2004, September 30, 2004 and June 30, 2004, respectively. |
Certain prior period amounts have been reclassified among the segments to conform to the current period presentation.
Information for periods after April 1, 2004 includes the FleetBoston acquisition; prior periods have not been restated.
18
Bank of America Corporation
Outstanding Loans and Leases
(Dollars in millions)
June 30 2005 | March 31 2005 | Increase (Decrease) from 3/31/05 | |||||||
Residential mortgage | $ | 170,057 | $ | 178,978 | $(8,921 | ) | |||
Credit card | 53,863 | 51,012 | 2,851 | ||||||
Home equity lines | 56,839 | 52,891 | 3,948 | ||||||
Direct/Indirect consumer | 43,247 | 42,694 | 553 | ||||||
Other consumer(1) | 6,829 | 7,167 | (338 | ) | |||||
Total consumer | 330,835 | 332,742 | (1,907 | ) | |||||
Commercial - domestic | 124,080 | 124,779 | (699 | ) | |||||
Commercial real estate(2) | 34,537 | 33,434 | 1,103 | ||||||
Commercial lease financing | 20,628 | 20,638 | (10 | ) | |||||
Commercial - foreign | 19,338 | 17,873 | 1,465 | ||||||
Total commercial | 198,583 | 196,724 | 1,859 | ||||||
Total | $ | 529,418 | $ | 529,466 | $ (48 | ) | |||
(1) | Includes consumer finance of $3,144 million and $3,288 million; foreign consumer of $3,505 million and $3,549 million; and consumer lease financing of $180 million and $330 million at June 30, 2005 and March 31, 2005. |
(2) | Includes domestic commercial real estate loans of $34,020 million and $32,978 million; and foreign commercial real estate loans of $517 million and $456 million at June 30, 2005 and March 31, 2005. |
Information for periods after April 1, 2004 includes the FleetBoston acquisition; prior periods have not been restated.
19
Bank of America Corporation
Commercial Utilized Credit Exposure by Industry(1)
(Dollars in millions)
% Increase (Decrease) from 12/31/04 | |||||||||
June 30 2005 | December 31 2004 | ||||||||
Real estate(2) | $ | 39,233 | $ | 36,672 | 7 | % | |||
Retailing | 24,294 | 23,149 | 5 | ||||||
Diversified financials | 23,361 | 25,932 | (10 | ) | |||||
Banks | 22,332 | 25,265 | (12 | ) | |||||
Education and government | 19,207 | 17,429 | 10 | ||||||
Individuals and trusts | 16,468 | 16,110 | 2 | ||||||
Materials | 14,607 | 14,123 | 3 | ||||||
Leisure and sports, hotels and restaurants | 14,002 | 13,331 | 5 | ||||||
Consumer durables and apparel | 13,921 | 13,427 | 4 | ||||||
Transportation | 13,188 | 13,234 | (0 | ) | |||||
Capital goods | 13,097 | 12,633 | 4 | ||||||
Commercial services and supplies | 12,627 | 11,944 | 6 | ||||||
Healthcare equipment and services | 11,895 | 12,196 | (2 | ) | |||||
Food, beverage and tobacco | 10,508 | 11,687 | (10 | ) | |||||
Energy | 9,079 | 7,579 | 20 | ||||||
Media | 5,834 | 6,232 | (6 | ) | |||||
Religious and social organizations | 5,812 | 5,710 | 2 | ||||||
Insurance | 5,151 | 5,851 | (12 | ) | |||||
Utilities | 4,739 | 5,615 | (16 | ) | |||||
Food and staples retailing | 3,495 | 3,610 | (3 | ) | |||||
Telecommunication services | 3,383 | 3,030 | 12 | ||||||
Technology hardware and equipment | 2,998 | 3,398 | (12 | ) | |||||
Software and services | 2,828 | 3,292 | (14 | ) | |||||
Automobiles and components | 1,789 | 1,894 | (6 | ) | |||||
Pharmaceuticals and biotechnology | 1,334 | 1,441 | (7 | ) | |||||
Household and personal products | 319 | 371 | (14 | ) | |||||
Other | 2,868 | 3,132 | (8 | ) | |||||
Total | $ | 298,369 | $ | 298,287 | 0 | ||||
(1) | Includes loans and leases, standby letters of credit and financial guarantees, derivative assets, assets held for sale and commercial letters of credit. Derivative assets are reported on a mark-to-market basis and have not been reduced by the amount of collateral applied, which totaled $17.4 billion and $17.7 billion at June 30, 2005 and December 31, 2004. |
(2) | Industries are viewed from a variety of perspectives to best isolate the perceived risks. For purposes of this table, the real estate industry is defined based upon the borrowers' or counterparties' primary business activity using operating cash flow and primary source of repayment as key factors. |
Certain prior period amounts have been reclassified to conform to current period presentation.
Information for periods after April 1, 2004 includes the FleetBoston acquisition; prior periods have not been restated.
20
Bank of America Corporation
Nonperforming Assets
(Dollars in millions)
2Q05 | 1Q05 | 4Q04 | 3Q04 | 2Q04 | ||||||||||||||||
Residential mortgage | $ | 494 | $ | 536 | $ | 554 | $ | 532 | $ | 537 | ||||||||||
Home equity lines | 75 | 70 | 66 | 51 | 42 | |||||||||||||||
Direct/Indirect consumer | 33 | 32 | 33 | 26 | 31 | |||||||||||||||
Other consumer | 76 | 83 | 85 | 94 | 99 | |||||||||||||||
Total consumer | 678 | 721 | 738 | 703 | 709 | |||||||||||||||
Commercial - domestic | 662 | 811 | 855 | 991 | 1,246 | |||||||||||||||
Commercial real estate | 60 | 64 | 87 | 136 | 164 | |||||||||||||||
Commercial lease financing | 282 | 249 | 266 | 243 | 257 | |||||||||||||||
Commercial - foreign | 88 | 228 | 267 | 473 | 503 | |||||||||||||||
Total commercial | 1,092 | 1,352 | 1,475 | 1,843 | 2,170 | |||||||||||||||
Total nonperforming loans and leases | 1,770 | 2,073 | 2,213 | 2,546 | 2,879 | |||||||||||||||
Nonperforming securities(1) | 14 | 153 | 140 | 157 | 156 | |||||||||||||||
Foreclosed properties | 111 | 112 | 102 | 133 | 144 | |||||||||||||||
Total nonperforming assets(2) | $ | 1,895 | $ | 2,338 | $ | 2,455 | $ | 2,836 | $ | 3,179 | ||||||||||
Loans past due 90 days or more and still accruing | $ | 1,235 | $ | 1,211 | $ | 1,294 | $ | 1,120 | $ | 939 | ||||||||||
Nonperforming assets / Total assets | 0.15 | % | 0.19 | % | 0.22 | % | 0.26 | % | 0.31 | % | ||||||||||
Nonperforming assets / Total loans, leases and foreclosed properties | 0.36 | 0.44 | 0.47 | 0.55 | 0.64 | |||||||||||||||
Nonperforming loans and leases / Total loans and leases | 0.33 | 0.39 | 0.42 | 0.50 | 0.58 | |||||||||||||||
Allowance for credit losses: | ||||||||||||||||||||
Allowance for loan and lease losses | $ | 8,319 | $ | 8,313 | $ | 8,626 | $ | 8,723 | $ | 8,767 | ||||||||||
Reserve for unfunded lending commitments | 383 | 394 | 402 | 446 | 486 | |||||||||||||||
Total | $ | 8,702 | $ | 8,707 | $ | 9,028 | $ | 9,169 | $ | 9,253 | ||||||||||
Allowance for loan and lease losses / Total loans and leases | 1.57 | % | 1.57 | % | 1.65 | % | 1.70 | % | 1.76 | % | ||||||||||
Allowance for loan and lease losses / Total nonperforming loans and leases | 470 | 401 | 390 | 343 | 305 | |||||||||||||||
Commercial criticized exposure | $ | 7,731 | $ | 8,858 | $ | 10,249 | $ | 12,025 | $ | 13,420 | ||||||||||
Commercial criticized exposure / Commercial utilized exposure | 2.59 | % | 2.95 | % | 3.44 | % | 4.13 | % | 4.73 | % |
Loans are classified as domestic or foreign based upon the domicile of the borrower.
(1) | Primarily related to international securities held in the available-for-sale securities portfolio. |
(2) | Balances do not include $49, $76, $151, $100 and $103 of nonperforming assets, primarily loans held-for-sale, included in Other Assets at June 30, 2005, March 31, 2005, December 31, 2004, September 30, 2004 and June 30, 2004, respectively. |
Information for periods after April 1, 2004 includes the FleetBoston acquisition; prior periods have not been restated.
21
Bank of America Corporation
Quarterly Net Charge-offs and Net Charge-off Ratios
(Dollars in millions)
2Q05 | 1Q05 | 4Q04 | 3Q04 | 2Q04 | |||||||||||||||||||||||||||||||
Amount | Percent | Amount | Percent | Amount | Percent | Amount | Percent | Amount | Percent | ||||||||||||||||||||||||||
Residential mortgage | $ | 11 | 0.03 | % | $ | 4 | 0.01 | % | $ | 6 | 0.01 | % | $ | 7 | 0.02 | % | $ | 12 | 0.03 | % | |||||||||||||||
Credit card | 774 | 5.91 | 740 | 5.85 | 691 | 5.57 | 586 | 5.09 | 585 | 5.45 | |||||||||||||||||||||||||
Home equity lines | 9 | 0.07 | 6 | 0.05 | 4 | 0.03 | 2 | 0.02 | 5 | 0.05 | |||||||||||||||||||||||||
Direct/Indirect consumer | 46 | 0.43 | 61 | 0.60 | 55 | 0.55 | 56 | 0.57 | 49 | 0.50 | |||||||||||||||||||||||||
Other consumer(1) | 43 | 2.48 | 56 | 3.12 | 45 | 2.39 | 49 | 2.53 | 42 | 2.10 | |||||||||||||||||||||||||
Total consumer | 883 | 1.09 | 867 | 1.07 | 801 | 0.98 | 700 | 0.89 | 693 | 0.92 | |||||||||||||||||||||||||
Commercial - domestic | (7 | ) | (0.02 | ) | 26 | 0.09 | 27 | 0.09 | 25 | 0.08 | 76 | 0.25 | |||||||||||||||||||||||
Commercial real estate | 1 | 0.01 | 0 | 0.00 | 1 | 0.02 | 1 | 0.02 | (3 | ) | (0.04 | ) | |||||||||||||||||||||||
Commercial lease financing | 9 | 0.19 | 25 | 0.48 | 11 | 0.21 | (3 | ) | (0.07 | ) | (3 | ) | (0.06 | ) | |||||||||||||||||||||
Commercial - foreign | (6 | ) | (0.15 | ) | (29 | ) | (0.66 | ) | 5 | 0.09 | (4 | ) | (0.09 | ) | 66 | 1.47 | |||||||||||||||||||
Total commercial | (3 | ) | (0.01 | ) | 22 | 0.05 | 44 | 0.09 | 19 | 0.04 | 136 | 0.28 | |||||||||||||||||||||||
Total net charge-offs | $ | 880 | 0.68 | $ | 889 | 0.69 | $ | 845 | 0.65 | $ | 719 | 0.57 | $ | 829 | 0.67 | ||||||||||||||||||||
By Business Segment: | |||||||||||||||||||||||||||||||||||
Global Consumer and Small Business Banking | $ | 849 | 2.43 | % | $ | 811 | 2.37 | % | $ | 748 | 2.17 | % | $ | 646 | 1.92 | % | $ | 643 | 2.00 | % | |||||||||||||||
Global Business and Financial Services | 12 | 0.03 | 88 | 0.21 | 79 | 0.19 | 41 | 0.10 | 85 | 0.21 | |||||||||||||||||||||||||
Global Capital Markets and Investment Banking | (5 | ) | (0.07 | ) | (43 | ) | (0.49 | ) | (25 | ) | (0.29 | ) | (6 | ) | (0.07 | ) | 69 | 0.72 | |||||||||||||||||
Global Wealth and Investment Management | 5 | 0.04 | 0 | 0.00 | 3 | 0.03 | 1 | 0.01 | (4 | ) | (0.04 | ) | |||||||||||||||||||||||
All Other | 19 | 0.06 | 33 | 0.10 | 40 | 0.12 | 37 | 0.12 | 36 | 0.12 | |||||||||||||||||||||||||
Total net charge-offs | $ | 880 | 0.68 | $ | 889 | 0.69 | $ | 845 | 0.65 | $ | 719 | 0.57 | $ | 829 | 0.67 | ||||||||||||||||||||
Loans are classified as domestic or foreign based upon the domicile of the borrower.
(1) | Includes lease financing of $2 million, $3 million, $5 million, $7 million and $5 million for the quarters ended June 30, 2005, March 31, 2005, December 31, 2004, September 30, 2004 and June 30, 2004, respectively. |
Information for periods after April 1, 2004 includes the FleetBoston acquisition; prior periods have not been restated.
22
Bank of America Corporation
Year-to-Date Net Charge-offs and Net Charge-off Ratios
(Dollars in millions)
Six Months Ended June 30 | ||||||||||||||
2005 | 2004 | |||||||||||||
Amount | Percent | Amount | Percent | |||||||||||
Residential mortgage | $ | 15 | 0.02 | % | $ | 23 | 0.03 | % | ||||||
Credit card | 1,514 | 5.88 | 1,028 | 5.27 | ||||||||||
Home equity lines | 15 | 0.06 | 9 | 0.05 | ||||||||||
Direct/Indirect consumer | 107 | 0.51 | 97 | 0.53 | ||||||||||
Other consumer(1) | 99 | 2.81 | 99 | 2.56 | ||||||||||
Total consumer | 1,750 | 1.08 | 1,256 | 0.92 | ||||||||||
Commercial - domestic | 19 | 0.03 | 125 | 0.23 | ||||||||||
Commercial real estate | 1 | — | (6 | ) | (0.05 | ) | ||||||||
Commercial lease financing | 34 | 0.34 | 1 | 0.02 | ||||||||||
Commercial - foreign | (35 | ) | (0.40 | ) | 173 | 2.40 | ||||||||
Total commercial | 19 | 0.02 | 293 | 0.36 | ||||||||||
Total net charge-offs | $ | 1,769 | 0.68 | $ | 1,549 | 0.72 | ||||||||
By Business Segment: | ||||||||||||||
Global Consumer and Small Business Banking | $ | 1,660 | 2.40 | % | $ | 1,129 | 2.11 | % | ||||||
Global Business and Financial Services | 100 | 0.12 | 163 | 0.24 | ||||||||||
Global Capital Markets and Investment Banking | (48 | ) | (0.29 | ) | 158 | 0.94 | ||||||||
Global Wealth and Investment Management | 5 | 0.02 | 1 | 0.01 | ||||||||||
All Other | 52 | 0.08 | 98 | 0.17 | ||||||||||
Total net charge-offs | $ | 1,769 | 0.68 | $ | 1,549 | 0.72 | ||||||||
Loans are classified as domestic or foreign based upon the domicile of the borrower.
(1) | Includes lease financing of $5 million and $15 million for the six months ended June 30, 2005 and 2004. |
Information for periods after April 1, 2004 includes the FleetBoston acquisition; prior periods have not been restated.
23
Bank of America Corporation
Selected Emerging Markets(1)
(Dollars in millions) | Loans and Leases, and Loan Commitments | Other Financing (2) | Derivative Assets (3) | Securities/ Other Investments (4,5) | Total Cross- border Exposure (6) | Local Country Exposure Net of Local Liabilities (7) | Total Foreign Exposure June 30, 2005 | Increase/ (Decrease) from December 31, 2004 | |||||||||||||||||
Region/Country | |||||||||||||||||||||||||
Latin America | |||||||||||||||||||||||||
Brazil (8) | $ | 913 | $ | 59 | $ | 7 | $ | 54 | $ | 1,033 | $ | 2,535 | $ | 3,568 | $ | 18 | |||||||||
Mexico | 784 | 162 | 105 | 2,260 | 3,311 | 0 | 3,311 | 445 | |||||||||||||||||
Chile | 296 | 64 | 0 | 7 | 367 | 610 | 977 | (203 | ) | ||||||||||||||||
Argentina | 90 | 27 | 0 | 35 | 152 | 8 | 160 | (231 | ) | ||||||||||||||||
Other Latin America (9) | 204 | 122 | 66 | 55 | 447 | 28 | 475 | (600 | ) | ||||||||||||||||
Total Latin America | 2,287 | 434 | 178 | 2,411 | 5,310 | 3,181 | 8,491 | (571 | ) | ||||||||||||||||
Asia Pacific | |||||||||||||||||||||||||
India | 376 | 198 | 201 | 414 | 1,189 | 285 | 1,474 | (18 | ) | ||||||||||||||||
South Korea | 274 | 472 | 31 | 603 | 1,380 | 0 | 1,380 | (3 | ) | ||||||||||||||||
Taiwan | 225 | 67 | 70 | 40 | 402 | 546 | 948 | (379 | ) | ||||||||||||||||
Hong Kong | 155 | 140 | 30 | 325 | 650 | 0 | 650 | (469 | ) | ||||||||||||||||
Singapore | 68 | 166 | 90 | 283 | 607 | 0 | 607 | 267 | |||||||||||||||||
China | 56 | 41 | 13 | 318 | 428 | 0 | 428 | 320 | |||||||||||||||||
Other Asia Pacific (9) | 34 | 48 | 33 | 435 | 550 | 157 | 707 | 161 | |||||||||||||||||
Total Asia Pacific | 1,188 | 1,132 | 468 | 2,418 | 5,206 | 988 | 6,194 | (121 | ) | ||||||||||||||||
Central and Eastern Europe (9) | 20 | 84 | 25 | 96 | 225 | 0 | 225 | (16 | ) | ||||||||||||||||
Total | $ | 3,495 | $ | 1,650 | $ | 671 | $ | 4,925 | $ | 10,741 | $ | 4,169 | $ | 14,910 | $ | (708 | ) | ||||||||
(1) | There is no generally accepted definition of emerging markets. The definition that we use includes all countries in Latin America excluding Cayman Islands and Bermuda; all countries in Asia Pacific excluding Japan, Australia and New Zealand; and all countries in Central and Eastern Europe excluding Greece. |
(2) | Includes acceptances, standby letters of credit, commercial letters of credit and formal guarantees. |
(3) | Derivative assets are reported on a mark-to-market basis and have not been reduced by the amount of collateral applied, which totaled $72 million and $361 million at June 30, 2005 and December 31, 2004. |
(4) | Amounts outstanding for Other Latin America and Other Asia Pacific have been reduced by $34 million and $15 million at June 30, 2005 and $196 million and $14 million at December 31, 2004. Such amounts represent the fair value of U.S. Treasury securities held as collateral outside the country of exposure. |
(5) | Cross-border resale agreements are presented based on the domicile of the counterparty because the counterparty has the legal obligation for repayment. For regulatory reporting under Federal Financial Institutions Examination Council (FFIEC) guidelines, cross-border resale agreements are presented based on the domicile of the issuer of the securities that are held as collateral. |
(6) | Cross-border exposure includes amounts payable to the Corporation by borrowers or counterparties with a country of residence other than the one in which the credit is booked, regardless of the currency in which the claim is denominated, consistent with FFIEC reporting rules. |
(7) | Local country exposure includes amounts payable to the Corporation by borrowers with a country of residence in which the credit is booked, regardless of the currency in which the claim is denominated. Management subtracts local funding or liabilities from local exposures as allowed by the FFIEC. Total amount of local country exposure funded by local liabilities at June 30, 2005 was $19,359 million compared to $17,189 million at December 31, 2004. Local country exposure funded by local liabilities at June 30, 2005 in Latin America and Asia Pacific was $10,113 million and $9,246 million, of which $5,019 million was in Brazil, $4,106 million in Hong Kong, $3,038 million in Singapore, $1,748 million in Argentina, $1,470 million in Mexico, $1,437 million in Chile and $556 million in India. There were no other countries with local country exposure funded by local liabilities greater than $500 million. |
(8) | The Corporation has risk mitigation instruments associated with certain exposures for Brazil, including structured trade related transfer risk mitigation of $837 million and $950 million, third party funding of $185 million and $286 million, and linked certificates of deposit of $78 million and $125 million at June 30, 2005 and December 31, 2004. The resulting total foreign exposure net of risk mitigation was $2.5 billion and $2.2 billion at June 30, 2005 and December 31, 2004. |
(9) | Other Latin America, Other Asia Pacific, and Central and Eastern Europe include countries each with total foreign exposure of less than $300 million. |
Information for periods after April 1, 2004 includes the FleetBoston acquisition; prior periods have not been restated.
24