Exhibit 99.2
Supplemental Information
Third 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
Third Quarter 2005
• | Earnings of $4.1 billion or $1.02 per diluted share grew 12% over results in 3Q04 but fell 4% versus 2Q05 results. Excluding merger and restructuring charges of $120 million, $80 million after tax, earnings were $1.04 per diluted share. |
• | Revenue increased at a double digit pace in all business segments versus 3Q04 |
• | Global Consumer & Business Banking increased 13% |
• | Global Wealth & Investment Management increased 14% |
• | Global Business & Financial Services increased 13% |
• | Global Capital Markets & Investment Banking increased 12% |
• | Revenue on an FTE basis of $14.8 billion grew 4% compared to 2Q05 and 16% over 3Q04 |
Net interest income improved 1.7% versus 2Q05 while the net interest yield declined 1 bp to 2.80%
• | Increasing loan and deposit levels drove the improvement offsetting compression from the flattening yield curve. |
• | Retail deposits grew another $6.4 billion or 1% versus 2Q05 |
• | Average loans grew 4% (excluding residential mortgages held for asset liability management purposes) |
• | Noninterest income improved 7% from 2Q05 with continuing consumer strength aided by good market sensitive revenue. |
• | Service charges grew 8% versus 2Q05 while credit card income increased 6% in the quarter. |
• | Trading-related revenue improved 14% and investment banking climbed 21%. |
• | Equity investment gains showed continued strength reaching $668 million in 3Q05 versus $492 million in 2Q05. |
• | Securities gains recognized in 3Q05 were $29 million versus $325 million in 2Q05. |
• | Noninterest expense, excluding merger and restructuring charges, of $7.2 billion increased 4% versus 2Q05 and resulted in an efficiency ratio of 48%. |
• | Personnel costs rose 5% driven by revenue growth and higher legal costs were offset by lower marketing expenses. |
• | Provision expense was $1,159 million versus the $1,145 million net charge-offs recorded in the quarter |
• | Charge-offs include $209 million domestic airline exposure reserved in prior periods. |
• | Also contributing to decreased commercial reserves was improvement in the risk profile of Argentine exposure. |
• | Partially offsetting these reductions in commercial reserves was increased consumer reserves for card portfolio growth, including securitizations returning to the balance sheet, and continued portfolio seasoning. |
• | A $50 million reserve was established for estimated losses associated with Hurricane Katrina. |
• | Tier 1 ratio rose to 8.21% versus 2Q05 ratio at 8.06%. |
• | Continuing momentum in business lines: |
• | 8.5 million product sales. |
• | Number ofnet new checking accounts grew by 635,000. |
• | Number ofnet new savings accounts grew by 294,000. |
• | Opened 1.5 million new credit card accounts. |
• | 1.1 million of retail product sales delivered through the Ecommerce channel, up 79% versus 3Q04. |
• | Active online banking users increased to 14.3 million while bill payers reached 7 million. |
• | Bill payers are now paying $33 billion worth of bills per quarter with bill presenters growing to more than 300. |
• | Assets under management ended the quarter at $457 billion reflecting increases from market valuations as well as net inflows. |
• | Fleet merger all but completed. |
• | MBNA integration underway as closing is expected in January 2006. |
1
Bank of America Corporation
Fleet Merger Accomplishments
• | Converted 10.6 million cardholder accounts |
• | Converted 6 million retail accounts to the Model Bank platform |
• | Opened over 380,000 net new checking accounts in Northeast |
• | More than 2.5 million unit sales of products so far in 2005 |
• | Converted 902,000 Quick & Reilly accounts |
• | Placed 455 Premier bankers in Northeast markets |
• | Welcomed 187,000 Premier customers |
• | Opened 5 Premier banking and investment centers |
• | Installed Loan Solutions capabilities in 1,500 banking centers |
• | Achieved total cost savings of $1.85 billion in 2005 |
2
Bank of America Corporation
Consolidated Financial Highlights
(Dollars in millions, except per share information; shares in thousands)
Year-to-Date September 30 | Third 2005 | Second 2005 | First Quarter 2005 | Fourth 2004 | Third Quarter 2004 | |||||||||||||||||||||||
2005 | 2004 | |||||||||||||||||||||||||||
Income statement | ||||||||||||||||||||||||||||
Total revenue | $ | 42,644 | $ | 35,166 | $ | 14,607 | $ | 14,015 | $ | 14,022 | $ | 13,713 | $ | 12,587 | ||||||||||||||
Provision for credit losses | 2,614 | 2,063 | 1,159 | 875 | 580 | 706 | 650 | |||||||||||||||||||||
Gains on sales of debt securities | 1,013 | 2,022 | 29 | 325 | 659 | 101 | 732 | |||||||||||||||||||||
Noninterest expense | 21,361 | 19,679 | 7,285 | 7,019 | 7,057 | 7,333 | 7,021 | |||||||||||||||||||||
Income tax expense | 6,564 | 5,152 | 2,065 | 2,150 | 2,349 | 1,926 | 1,884 | |||||||||||||||||||||
Net income | 13,118 | 10,294 | 4,127 | 4,296 | 4,695 | 3,849 | 3,764 | |||||||||||||||||||||
Diluted earnings per common share | 3.22 | 2.76 | 1.02 | 1.06 | 1.14 | 0.94 | 0.91 | |||||||||||||||||||||
Average diluted common shares issued and outstanding | 4,072,991 | 3,729,120 | 4,054,659 | 4,065,355 | 4,099,062 | 4,106,040 | 4,121,375 | |||||||||||||||||||||
Dividends paid per common share | $ | 1.40 | $ | 1.25 | $ | 0.50 | $ | 0.45 | $ | 0.45 | $ | 0.45 | $ | 0.45 | ||||||||||||||
Performance ratios | ||||||||||||||||||||||||||||
Return on average assets | 1.39 | % | 1.36 | % | 1.26 | % | 1.35 | % | 1.59 | % | 1.33 | % | 1.37 | % | ||||||||||||||
Return on average common shareholders’ equity | 17.70 | 17.32 | 16.33 | 17.54 | 19.30 | 15.63 | 15.56 | |||||||||||||||||||||
At period end | ||||||||||||||||||||||||||||
Book value per share of common stock | $ | 25.16 | $ | 24.14 | $ | 25.16 | $ | 24.96 | $ | 24.35 | $ | 24.56 | $ | 24.14 | ||||||||||||||
Market price per share of common stock: | ||||||||||||||||||||||||||||
Closing price | $ | 42.10 | $ | 43.33 | $ | 42.10 | $ | 45.61 | $ | 44.10 | $ | 46.99 | $ | 43.33 | ||||||||||||||
High closing price for the period | 47.08 | 44.98 | 45.98 | 47.08 | 47.08 | 47.44 | 44.98 | |||||||||||||||||||||
Low closing price for the period | 41.60 | 38.96 | 41.60 | 44.01 | 43.66 | 43.62 | 41.81 | |||||||||||||||||||||
Market capitalization | 168,950 | 175,446 | 168,950 | 183,202 | 177,958 | 190,147 | 175,446 | |||||||||||||||||||||
Number of banking centers - domestic | 5,844 | 5,829 | 5,844 | 5,880 | 5,889 | 5,885 | 5,829 | |||||||||||||||||||||
Number of ATMs - domestic | 16,714 | 16,728 | 16,714 | 16,687 | 16,798 | 16,771 | 16,728 | |||||||||||||||||||||
Full-time equivalent employees | 177,236 | 178,632 | 177,236 | 177,795 | 176,675 | 178,053 | 178,632 |
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
Supplemental Financial Data
(Dollars in millions)
Fully taxable-equivalent basis data
Year-to-Date September 30 | Third 2005 | Second 2005 | First 2005 | Fourth 2004 | Third 2004 | |||||||||||||||||||||||
2005 | 2004 | |||||||||||||||||||||||||||
Net interest income | $ | 23,886 | $ | 21,557 | $ | 7,973 | $ | 7,841 | $ | 8,072 | $ | 7,954 | $ | 7,836 | ||||||||||||||
Total revenue | 43,234 | 35,676 | 14,807 | 14,206 | 14,221 | 13,920 | 12,758 | |||||||||||||||||||||
Net interest yield | 2.90 | % | 3.29 | % | 2.80 | % | 2.81 | % | 3.11 | % | 3.18 | % | 3.30 | % | ||||||||||||||
Efficiency ratio | 49.41 | 55.16 | 49.20 | 49.42 | 49.62 | 52.69 | 55.03 |
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 September 30, 2005, June 30, 2005, March 31, 2005, December 31, 2004 and September 30, 2004, and the nine months ended September 30, 2005 and 2004.
Reconciliation of net income to operating earnings
Year-to-Date September 30 | Third 2005 | Second 2005 | First 2005 | Fourth 2004 | Third 2004 | |||||||||||||||||||||||
2005 | 2004 | |||||||||||||||||||||||||||
Net income | $ | 13,118 | $ | 10,294 | $ | 4,127 | $ | 4,296 | $ | 4,695 | $ | 3,849 | $ | 3,764 | ||||||||||||||
Merger and restructuring charges | 353 | 346 | 120 | 121 | 112 | 272 | 221 | |||||||||||||||||||||
Related income tax benefit | (118 | ) | (116 | ) | (40 | ) | (41 | ) | (37 | ) | (91 | ) | (74 | ) | ||||||||||||||
Operating earnings | $ | 13,353 | $ | 10,524 | $ | 4,207 | $ | 4,376 | $ | 4,770 | $ | 4,030 | $ | 3,911 | ||||||||||||||
Operating basis | ||||||||||||||||||||||||||||
Diluted earnings per common share | $ | 3.28 | $ | 2.82 | $ | 1.04 | $ | 1.08 | $ | 1.16 | $ | 0.98 | $ | 0.95 | ||||||||||||||
Return on average assets | 1.42 | % | 1.39 | % | 1.29 | % | 1.37 | % | 1.61 | % | 1.39 | % | 1.42 | % | ||||||||||||||
Return on avg common shareholders’ equity | 18.02 | 17.71 | 16.64 | 17.87 | 19.61 | 16.37 | 16.17 | |||||||||||||||||||||
Efficiency ratio | 48.59 | 54.19 | 48.39 | 48.56 | 48.83 | 50.73 | 53.30 | |||||||||||||||||||||
Reconciliation of net income to shareholder value added | ||||||||||||||||||||||||||||
Net income | $ | 13,118 | $ | 10,294 | $ | 4,127 | $ | 4,296 | $ | 4,695 | $ | 3,849 | $ | 3,764 | ||||||||||||||
Amortization of intangibles | 613 | 455 | 201 | 204 | 208 | 209 | 200 | |||||||||||||||||||||
Merger and restructuring charges, net of tax benefit | 235 | 230 | 80 | 80 | 75 | 181 | 147 | |||||||||||||||||||||
Capital charge | (8,142 | ) | (6,530 | ) | (2,778 | ) | (2,691 | ) | (2,673 | ) | (2,705 | ) | (2,658 | ) | ||||||||||||||
Shareholder value added | $ | 5,824 | $ | 4,449 | $ | 1,630 | $ | 1,889 | $ | 2,305 | $ | 1,534 | $ | 1,453 | ||||||||||||||
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 Statement of Income
(Dollars in millions, except per share information; shares in thousands)
Year-to-Date September 30 | Third 2005 | Second 2005 | First 2005 | Fourth 2004 | Third 2004 | |||||||||||||||||
2005 | 2004 | |||||||||||||||||||||
Interest income | ||||||||||||||||||||||
Interest and fees on loans and leases | $ | 25,375 | $ | 20,294 | $ | 8,956 | $ | 8,312 | $ | 8,107 | $ | 7,919 | $ | 7,508 | ||||||||
Interest and dividends on securities | 8,130 | 5,197 | 2,797 | 2,799 | 2,534 | 2,065 | 2,078 | |||||||||||||||
Federal funds sold and securities purchased under agreements to resell | 3,504 | 1,331 | 1,359 | 1,252 | 893 | 712 | 484 | |||||||||||||||
Trading account assets | 4,158 | 2,981 | 1,550 | 1,426 | 1,182 | 1,035 | 960 | |||||||||||||||
Other interest income | 1,486 | 1,226 | 547 | 502 | 437 | 464 | 457 | |||||||||||||||
Total interest income | 42,653 | 31,029 | 15,209 | 14,291 | 13,153 | 12,195 | 11,487 | |||||||||||||||
Interest expense | ||||||||||||||||||||||
Deposits | 6,831 | 4,446 | 2,409 | 2,379 | 2,043 | 1,829 | 1,711 | |||||||||||||||
Short-term borrowings | 7,971 | 2,891 | 3,325 | 2,677 | 1,969 | 1,543 | 1,152 | |||||||||||||||
Trading account liabilities | 1,745 | 965 | 707 | 611 | 427 | 352 | 333 | |||||||||||||||
Long-term debt | 2,810 | 1,680 | 995 | 974 | 841 | 724 | 626 | |||||||||||||||
Total interest expense | 19,357 | 9,982 | 7,436 | 6,641 | 5,280 | 4,448 | 3,822 | |||||||||||||||
Net interest income | 23,296 | 21,047 | 7,773 | 7,650 | 7,873 | 7,747 | 7,665 | |||||||||||||||
Noninterest income | ||||||||||||||||||||||
Service charges | 5,777 | 5,098 | 2,080 | 1,920 | 1,777 | 1,891 | 1,899 | |||||||||||||||
Investment and brokerage services | 3,122 | 2,606 | 1,060 | 1,049 | 1,013 | 1,008 | 972 | |||||||||||||||
Mortgage banking income (loss) | 590 | 258 | 180 | 189 | 221 | 156 | (250 | ) | ||||||||||||||
Investment banking income | 1,319 | 1,389 | 522 | 431 | 366 | 497 | 438 | |||||||||||||||
Equity investment gains | 1,559 | 437 | 668 | 492 | 399 | 426 | 220 | |||||||||||||||
Card income | 4,246 | 3,212 | 1,520 | 1,437 | 1,289 | 1,380 | 1,258 | |||||||||||||||
Trading account profits | 1,559 | 600 | 514 | 285 | 760 | 269 | 184 | |||||||||||||||
Other income | 1,176 | 519 | 290 | 562 | 324 | 339 | 201 | |||||||||||||||
Total noninterest income | 19,348 | 14,119 | 6,834 | 6,365 | 6,149 | 5,966 | 4,922 | |||||||||||||||
Total revenue | 42,644 | 35,166 | 14,607 | 14,015 | 14,022 | 13,713 | 12,587 | |||||||||||||||
Provision for credit losses | 2,614 | 2,063 | 1,159 | 875 | 580 | 706 | 650 | |||||||||||||||
Gains on sales of debt securities | 1,013 | 2,022 | 29 | 325 | 659 | 101 | 732 | |||||||||||||||
Noninterest expense | ||||||||||||||||||||||
Personnel | 11,209 | 9,915 | 3,837 | 3,671 | 3,701 | 3,520 | 3,534 | |||||||||||||||
Occupancy | 1,889 | 1,731 | 638 | 615 | 636 | 648 | 622 | |||||||||||||||
Equipment | 894 | 888 | 300 | 297 | 297 | 326 | 309 | |||||||||||||||
Marketing | 990 | 1,012 | 307 | 346 | 337 | 337 | 364 | |||||||||||||||
Professional fees | 647 | 561 | 254 | 216 | 177 | 275 | 207 | |||||||||||||||
Amortization of intangibles | 613 | 455 | 201 | 204 | 208 | 209 | 200 | |||||||||||||||
Data processing | 1,093 | 958 | 361 | 368 | 364 | 371 | 341 | |||||||||||||||
Telecommunications | 608 | 514 | 206 | 196 | 206 | 216 | 180 | |||||||||||||||
Other general operating | 3,065 | 3,299 | 1,061 | 985 | 1,019 | 1,159 | 1,043 | |||||||||||||||
Merger and restructuring charges | 353 | 346 | 120 | 121 | 112 | 272 | 221 | |||||||||||||||
Total noninterest expense | 21,361 | 19,679 | 7,285 | 7,019 | 7,057 | 7,333 | 7,021 | |||||||||||||||
Income before income taxes | 19,682 | 15,446 | 6,192 | 6,446 | 7,044 | 5,775 | 5,648 | |||||||||||||||
Income tax expense | 6,564 | 5,152 | 2,065 | 2,150 | 2,349 | 1,926 | 1,884 | |||||||||||||||
Net income | $ | 13,118 | $ | 10,294 | $ | 4,127 | $ | 4,296 | $ | 4,695 | $ | 3,849 | $ | 3,764 | ||||||||
Net income available to common shareholders | $ | 13,104 | $ | 10,283 | $ | 4,122 | $ | 4,292 | $ | 4,690 | $ | 3,844 | $ | 3,759 | ||||||||
Per common share information | ||||||||||||||||||||||
Earnings | $ | 3.27 | $ | 2.80 | $ | 1.03 | $ | 1.07 | $ | 1.16 | $ | 0.95 | $ | 0.93 | ||||||||
Diluted earnings | $ | 3.22 | $ | 2.76 | $ | 1.02 | $ | 1.06 | $ | 1.14 | $ | 0.94 | $ | 0.91 | ||||||||
Dividends paid | $ | 1.40 | $ | 1.25 | $ | 0.50 | $ | 0.45 | $ | 0.45 | $ | 0.45 | $ | 0.45 | ||||||||
Average common shares issued and outstanding | 4,012,924 | 3,666,298 | 4,000,573 | 4,005,356 | 4,032,550 | 4,032,979 | 4,052,304 | |||||||||||||||
Average diluted common shares issued and outstanding | 4,072,991 | 3,729,120 | 4,054,659 | 4,065,355 | 4,099,062 | 4,106,040 | 4,121,375 | |||||||||||||||
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
Consolidated Balance Sheet
(Dollars in millions) | September 30 2005 | June 30 2005 | September 30 2004 | |||||||||
Assets | ||||||||||||
Cash and cash equivalents | $ | 32,771 | $ | 33,935 | $ | 29,252 | ||||||
Time deposits placed and other short-term investments | 11,236 | 9,682 | 11,021 | |||||||||
Federal funds sold and securities purchased under agreements to resell | 135,409 | 149,287 | 104,570 | |||||||||
Trading account assets | 121,256 | 126,658 | 102,925 | |||||||||
Derivative assets | 26,005 | 26,019 | 25,398 | |||||||||
Securities: | ||||||||||||
Available-for-sale | 227,349 | 233,412 | 163,438 | |||||||||
Held-to-maturity, at cost | 136 | 174 | 420 | |||||||||
Total securities | 227,485 | 233,586 | 163,858 | |||||||||
Loans and leases | 554,603 | 529,418 | 511,639 | |||||||||
Allowance for loan and lease losses | (8,326 | ) | (8,319 | ) | (8,723 | ) | ||||||
Loans and leases, net of allowance | 546,277 | 521,099 | 502,916 | |||||||||
Premises and equipment, net | 7,659 | 7,602 | 7,884 | |||||||||
Mortgage servicing rights | 2,764 | 2,366 | 2,453 | |||||||||
Goodwill | 45,298 | 45,381 | 44,709 | |||||||||
Core deposit intangibles and other intangibles | 3,356 | 3,472 | 3,726 | |||||||||
Other assets | 92,743 | 87,243 | 74,117 | |||||||||
Total assets | $ | 1,252,259 | $ | 1,246,330 | $ | 1,072,829 | ||||||
Liabilities | ||||||||||||
Deposits in domestic offices: | ||||||||||||
Noninterest-bearing | $ | 174,990 | $ | 175,427 | $ | 155,406 | ||||||
Interest-bearing | 390,973 | 397,778 | 380,956 | |||||||||
Deposits in foreign offices: | ||||||||||||
Noninterest-bearing | 6,750 | 6,102 | 5,632 | |||||||||
Interest-bearing | 53,764 | 56,110 | 49,264 | |||||||||
Total deposits | 626,477 | 635,417 | 591,258 | |||||||||
Federal funds purchased and securities sold under agreements to repurchase | 217,053 | 207,710 | 142,992 | |||||||||
Trading account liabilities | 51,244 | 61,906 | 36,825 | |||||||||
Derivative liabilities | 15,711 | 15,630 | 12,721 | |||||||||
Commercial paper and other short-term borrowings | 107,655 | 93,763 | 61,585 | |||||||||
Accrued expenses and other liabilities (includes $390, $383 and $446 of reserve for unfunded lending commitments) | 32,976 | 34,470 | 28,851 | |||||||||
Long-term debt | 99,885 | 96,894 | 100,586 | |||||||||
Total liabilities | 1,151,001 | 1,145,790 | 974,818 | |||||||||
Shareholders’ equity | ||||||||||||
Preferred stock, $0.01 par value; authorized - 100,000,000 shares; issued and outstanding - 1,090,189 shares | 271 | 271 | 271 | |||||||||
Common stock and additional paid-in capital, $0.01 par value; authorized - 7,500,000,000 shares; issued and outstanding - 4,013,063,444; 4,016,703,839 and 4,049,062,685 shares | 42,548 | 42,507 | 44,756 | |||||||||
Retained earnings | 65,439 | 63,328 | 55,979 | |||||||||
Accumulated other comprehensive income (loss) | (6,509 | ) | (4,992 | ) | (2,669 | ) | ||||||
Other | (491 | ) | (574 | ) | (326 | ) | ||||||
Total shareholders’ equity | 101,258 | 100,540 | 98,011 | |||||||||
Total liabilities and shareholders’ equity | $ | 1,252,259 | $ | 1,246,330 | $ | 1,072,829 | ||||||
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.
6
Bank of America Corporation
Capital Management
(Dollars in millions)
Third Quarter 2005(1) | Second Quarter 2005 | First Quarter 2005 | Fourth Quarter 2004 | Third Quarter 2004 | ||||||||||||||||
Tier 1 capital | $ | 73,030 | $ | 68,806 | $ | 67,127 | $ | 64,281 | $ | 62,981 | ||||||||||
Total capital | 98,989 | 94,933 | 93,774 | 92,266 | 91,326 | |||||||||||||||
Risk-weighted assets | 889,979 | 853,669 | 818,179 | 793,523 | 779,858 | |||||||||||||||
Tier 1 capital ratio | 8.21 | % | 8.06 | % | 8.20 | % | 8.10 | % | 8.08 | % | ||||||||||
Total capital ratio | 11.12 | 11.12 | 11.46 | 11.63 | 11.71 | |||||||||||||||
Tangible equity ratio(2) | 4.37 | 4.32 | 4.25 | 4.76 | 4.84 | |||||||||||||||
Leverage ratio | 5.85 | 5.59 | 5.82 | 5.82 | 5.92 |
(1) | Preliminary data on risk-based capital |
(2) | Tangible equity ratio equals shareholders’ equity less goodwill, core deposit intangibles and other intangibles divided by total assets less goodwill, core deposit intangibles and other intangibles. |
Share Repurchase Program
10.6 million common shares were repurchased in the third quarter of 2005 as a part of ongoing share repurchase programs.
186.4 million shares remain outstanding under the 2005 authorized program.
7.0 million shares were issued in the third quarter of 2005.
Captial Management
Information for periods after April 1, 2004 includes the FleetBoston acquisition; prior periods have not been restated.
7
Bank of America Corporation
Core Net Interest Income
(Dollars in millions)
Year-to-Date September 30 | Third Quarter 2005 | Second Quarter 2005 | First Quarter 2005 | Fourth Quarter 2004 | Third Quarter 2004 | |||||||||||||||||||||||
2005 | 2004 | |||||||||||||||||||||||||||
Net Interest Income | ||||||||||||||||||||||||||||
As reported (fully taxable-equivalent basis) | $ | 23,886 | $ | 21,557 | $ | 7,973 | $ | 7,841 | $ | 8,072 | $ | 7,954 | $ | 7,836 | ||||||||||||||
Trading-related net interest income | (1,144 | ) | (1,622 | ) | (316 | ) | (414 | ) | (414 | ) | (417 | ) | (448 | ) | ||||||||||||||
Core net interest income | 22,742 | 19,935 | 7,657 | 7,427 | 7,658 | 7,537 | 7,388 | |||||||||||||||||||||
Impact of revolving securitizations | 615 | 637 | 168 | 209 | 238 | 244 | 290 | |||||||||||||||||||||
Core net interest income - managed basis | $ | 23,357 | $ | 20,572 | $ | 7,825 | $ | 7,636 | $ | 7,896 | $ | 7,781 | $ | 7,678 | ||||||||||||||
Average Earning Assets | ||||||||||||||||||||||||||||
As reported | $ | 1,100,693 | $ | 874,176 | $ | 1,137,619 | $ | 1,118,527 | $ | 1,044,914 | $ | 998,004 | $ | 948,383 | ||||||||||||||
Trading-related earning assets | (297,426 | ) | (218,840 | ) | (312,441 | ) | (315,716 | ) | (263,583 | ) | (252,217 | ) | (222,042 | ) | ||||||||||||||
Core average earning assets | 803,267 | 655,336 | 825,178 | 802,811 | 781,331 | 745,787 | 726,341 | |||||||||||||||||||||
Impact of revolving securitizations | 9,484 | 9,866 | 7,723 | 9,973 | 10,791 | 11,112 | 13,253 | |||||||||||||||||||||
Core average earning assets - managed basis | $ | 812,751 | $ | 665,202 | $ | 832,901 | $ | 812,784 | $ | 792,122 | $ | 756,899 | $ | 739,594 | ||||||||||||||
Net Interest Yield Contribution | ||||||||||||||||||||||||||||
As reported (fully taxable-equivalent basis) | 2.90 | % | 3.29 | % | 2.80 | % | 2.81 | % | 3.11 | % | 3.18 | % | 3.30 | % | ||||||||||||||
Impact of trading-related activities | 0.88 | 0.77 | 0.91 | 0.90 | 0.84 | 0.85 | 0.76 | |||||||||||||||||||||
Core net interest yield on earning assets | 3.78 | 4.06 | 3.71 | 3.71 | 3.95 | 4.03 | 4.06 | |||||||||||||||||||||
Impact of revolving securitizations | 0.05 | 0.06 | 0.04 | 0.05 | 0.06 | 0.06 | 0.08 | |||||||||||||||||||||
Core net interest yield on earning assets - managed basis | 3.83 | % | 4.12 | % | 3.75 | % | 3.76 | % | 4.01 | % | 4.09 | % | 4.14 | % | ||||||||||||||
Certain prior period amounts have been restated reflecting realignment of business segments.
Information for periods after April 1, 2004 includes the FleetBoston acquisition; prior periods have not been restated.
8
Bank of America Corporation
Quarterly Average Balances and Interest Rates - Fully Taxable-equivalent Basis
(Dollars in millions)
Third Quarter 2005 | Second Quarter 2005 | First Quarter 2005 | |||||||||||||||||||||||||
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 | $ | 14,498 | $ | 125 | 3.43 | % | $ | 13,696 | $ | 113 | 3.31 | % | $ | 14,327 | $ | 101 | 2.87 | % | |||||||||
Federal funds sold and securities purchased under agreements to resell | 176,650 | 1,359 | 3.07 | 185,835 | 1,252 | 2.70 | 147,855 | 893 | 2.43 | ||||||||||||||||||
Trading account assets | 142,287 | 1,578 | 4.42 | 134,196 | 1,454 | 4.34 | 117,748 | 1,203 | 4.10 | ||||||||||||||||||
Securities | 225,952 | 2,824 | 5.00 | 227,182 | 2,829 | 4.98 | 204,574 | 2,561 | 5.01 | ||||||||||||||||||
Loans and leases(1): | |||||||||||||||||||||||||||
Residential mortgage | 171,002 | 2,294 | 5.36 | 167,272 | 2,271 | 5.43 | 178,098 | 2,412 | 5.43 | ||||||||||||||||||
Credit card | 55,271 | 1,651 | 11.85 | 52,474 | 1,481 | 11.32 | 51,310 | 1,373 | 10.85 | ||||||||||||||||||
Home equity lines | 58,046 | 910 | 6.22 | 54,941 | 799 | 5.83 | 51,477 | 692 | 5.45 | ||||||||||||||||||
Direct/Indirect consumer | 47,900 | 702 | 5.81 | 43,132 | 612 | 5.69 | 41,620 | 573 | 5.58 | ||||||||||||||||||
Other consumer(2) | 6,715 | 170 | 10.05 | 6,968 | 155 | 8.96 | 7,305 | 158 | 8.75 | ||||||||||||||||||
Total consumer | 338,934 | 5,727 | 6.72 | 324,787 | 5,318 | 6.56 | 329,810 | 5,208 | 6.37 | ||||||||||||||||||
Commercial - domestic | 127,044 | 2,124 | 6.63 | 123,927 | 1,969 | 6.37 | 123,803 | 1,983 | 6.49 | ||||||||||||||||||
Commercial real estate | 34,663 | 542 | 6.20 | 33,484 | 477 | 5.72 | 33,016 | 430 | 5.29 | ||||||||||||||||||
Commercial lease financing | 20,402 | 239 | 4.69 | 20,446 | 252 | 4.93 | 20,745 | 260 | 5.01 | ||||||||||||||||||
Commercial - foreign | 18,444 | 349 | 7.50 | 17,780 | 306 | 6.90 | 17,570 | 258 | 5.96 | ||||||||||||||||||
Total commercial | 200,553 | 3,254 | 6.44 | 195,637 | 3,004 | 6.16 | 195,134 | 2,931 | 6.08 | ||||||||||||||||||
Total loans and leases | 539,487 | 8,981 | 6.62 | 520,424 | 8,322 | 6.41 | 524,944 | 8,139 | 6.27 | ||||||||||||||||||
Other earning assets | 38,745 | 542 | 5.57 | 37,194 | 512 | 5.52 | 35,466 | 455 | 5.19 | ||||||||||||||||||
Total earning assets(3) | 1,137,619 | 15,409 | 5.39 | 1,118,527 | 14,482 | 5.19 | 1,044,914 | 13,352 | 5.15 | ||||||||||||||||||
Cash and cash equivalents | 32,969 | 34,731 | 31,382 | ||||||||||||||||||||||||
Other assets, less allowance for loan and lease losses | 124,157 | 124,231 | 124,587 | ||||||||||||||||||||||||
Total assets | $ | 1,294,745 | $ | 1,277,489 | $ | 1,200,883 | |||||||||||||||||||||
Interest-bearing liabilities | |||||||||||||||||||||||||||
Domestic interest-bearing deposits: | |||||||||||||||||||||||||||
Savings | $ | 35,853 | $ | 56 | 0.62 | % | $ | 38,043 | $ | 52 | 0.54 | % | $ | 37,000 | $ | 35 | 0.39 | % | |||||||||
NOW and money market deposit accounts | 224,341 | 743 | 1.31 | 229,174 | 723 | 1.27 | 233,392 | 651 | 1.13 | ||||||||||||||||||
Consumer CDs and IRAs | 130,975 | 1,048 | 3.17 | 127,169 | 974 | 3.07 | 118,989 | 769 | 2.62 | ||||||||||||||||||
Negotiable CDs, public funds and other time deposits | 4,414 | 50 | 4.54 | 7,751 | 87 | 4.49 | 10,291 | 96 | 3.73 | ||||||||||||||||||
Total domestic interest-bearing deposits | 395,583 | 1,897 | 1.90 | 402,137 | 1,836 | 1.83 | 399,672 | 1,551 | 1.57 | ||||||||||||||||||
Foreign interest-bearing deposits(4): | |||||||||||||||||||||||||||
Banks located in foreign countries | 19,707 | 273 | 5.50 | 25,546 | 335 | 5.26 | 22,084 | 316 | 5.81 | ||||||||||||||||||
Governments and official institutions | 7,317 | 62 | 3.37 | 7,936 | 59 | 2.97 | 6,831 | 43 | 2.58 | ||||||||||||||||||
Time, savings and other | 32,024 | 177 | 2.19 | 30,973 | 149 | 1.94 | 30,770 | 133 | 1.75 | ||||||||||||||||||
Total foreign interest-bearing deposits | 59,048 | 512 | 3.44 | 64,455 | 543 | 3.38 | 59,685 | 492 | 3.35 | ||||||||||||||||||
Total interest-bearing deposits | 454,631 | 2,409 | 2.10 | 466,592 | 2,379 | 2.04 | 459,357 | 2,043 | 1.80 | ||||||||||||||||||
Federal funds purchased, securities sold under agreements to repurchase and other short-term borrowings | 339,980 | 3,325 | 3.88 | 323,916 | 2,677 | 3.32 | 276,483 | 1,969 | 2.89 | ||||||||||||||||||
Trading account liabilities | 68,132 | 707 | 4.12 | 60,987 | 611 | 4.02 | 44,507 | 427 | 3.89 | ||||||||||||||||||
Long-term debt | 99,576 | 995 | 4.00 | 97,360 | 974 | 4.00 | 97,126 | 841 | 3.46 | ||||||||||||||||||
Total interest-bearing liabilities(3) | 962,319 | 7,436 | 3.07 | 948,855 | 6,641 | 2.81 | 877,473 | 5,280 | 2.43 | ||||||||||||||||||
Noninterest-bearing sources: | |||||||||||||||||||||||||||
Noninterest-bearing deposits | 178,140 | 174,001 | 168,062 | ||||||||||||||||||||||||
Other liabilities | 53,832 | 56,216 | 56,534 | ||||||||||||||||||||||||
Shareholders’ equity | 100,454 | 98,417 | 98,814 | ||||||||||||||||||||||||
Total liabilities and shareholders’ equity | $ | 1,294,745 | $ | 1,277,489 | $ | 1,200,883 | |||||||||||||||||||||
Net interest spread | 2.32 | 2.38 | 2.72 | ||||||||||||||||||||||||
Impact of noninterest-bearing sources | 0.48 | 0.43 | 0.39 | ||||||||||||||||||||||||
Net interest income/yield on earning assets | $ | 7,973 | 2.80 | % | $ | 7,841 | 2.81 | % | $ | 8,072 | 3.11 | % | |||||||||||||||
(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 $3,063 million, $3,212 million and $3,362 million in the third, second and first quarters of 2005, respectively; foreign consumer of $3,541 million, $3,505 million and $3,532 million in third, second and first quarters of 2005, respectively; and consumer lease financing of $111 million, $251 million and $411 million in the third, second and first quarters of 2005, respectively. |
(3) | Interest income includes the impact of interest rate risk management contracts, which increased interest income on the underlying assets $91 million, $193 million and $437 million in the third, second and first quarters of 2005. 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 $239 million, $314 million and $154 million in the third, second and first quarters of 2005. 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.
9
Bank of America Corporation
Quarterly Average Balances and Interest Rates - Fully Taxable-equivalent Basis (continued)
(Dollars in millions)
Fourth Quarter 2004 | Third Quarter 2004 | 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 | $ | 15,620 | $ | 128 | 3.24 | % | $ | 14,726 | $ | 127 | 3.45 | % | $ | 14,384 | $ | 59 | 1.65 | % | |||||||||
Federal funds sold and securities purchased under agreements to resell | 149,226 | 712 | 1.90 | 128,339 | 484 | 1.50 | 124,383 | 413 | 1.33 | ||||||||||||||||||
Trading account assets | 110,585 | 1,067 | 3.85 | 98,459 | 975 | 3.96 | 104,391 | 1,025 | 3.94 | ||||||||||||||||||
Securities | 171,173 | 2,083 | 4.87 | 169,515 | 2,095 | 4.94 | 159,797 | 1,925 | 4.82 | ||||||||||||||||||
Loans and leases(1): | |||||||||||||||||||||||||||
Residential mortgage | 178,879 | 2,459 | 5.49 | 175,046 | 2,371 | 5.41 | 173,158 | 2,284 | 5.29 | ||||||||||||||||||
Credit card | 49,366 | 1,351 | 10.88 | 45,818 | 1,265 | 10.98 | 43,160 | 1,167 | 10.88 | ||||||||||||||||||
Home equity lines | 48,336 | 609 | 5.01 | 44,309 | 514 | 4.62 | 40,424 | 450 | 4.48 | ||||||||||||||||||
Direct/Indirect consumer | 39,526 | 551 | 5.55 | 38,951 | 538 | 5.49 | 39,763 | 540 | 5.44 | ||||||||||||||||||
Other consumer(2) | 7,557 | 153 | 8.07 | 7,693 | 152 | 7.91 | 8,142 | 169 | 8.32 | ||||||||||||||||||
Total consumer | 323,664 | 5,123 | 6.31 | 311,817 | 4,840 | 6.19 | 304,647 | 4,610 | 6.07 | ||||||||||||||||||
Commercial - domestic | 121,412 | 1,914 | 6.27 | 122,093 | 1,855 | 6.04 | 123,970 | 1,843 | 5.98 | ||||||||||||||||||
Commercial real estate | 31,355 | 392 | 4.98 | 30,792 | 344 | 4.44 | 30,311 | 317 | 4.20 | ||||||||||||||||||
Commercial lease financing | 20,204 | 254 | 5.01 | 20,125 | 233 | 4.64 | 20,086 | 237 | 4.72 | ||||||||||||||||||
Commercial - foreign | 18,828 | 272 | 5.76 | 18,251 | 245 | 5.34 | 18,144 | 237 | 5.24 | ||||||||||||||||||
Total commercial | 191,799 | 2,832 | 5.88 | 191,261 | 2,677 | 5.57 | 192,511 | 2,634 | 5.50 | ||||||||||||||||||
Total loans and leases | 515,463 | 7,955 | 6.15 | 503,078 | 7,517 | 5.95 | 497,158 | 7,244 | 5.85 | ||||||||||||||||||
Other earning assets | 35,937 | 457 | 5.08 | 34,266 | 460 | 5.33 | 38,407 | 494 | 5.17 | ||||||||||||||||||
Total earning assets(3) | 998,004 | 12,402 | 4.96 | 948,383 | 11,658 | 4.90 | 938,520 | 11,160 | 4.77 | ||||||||||||||||||
Cash and cash equivalents | 31,028 | 29,469 | 30,320 | ||||||||||||||||||||||||
Other assets, less allowance for loan and lease losses | 123,519 | 118,831 | 125,619 | ||||||||||||||||||||||||
Total assets | $ | 1,152,551 | $ | 1,096,683 | $ | 1,094,459 | |||||||||||||||||||||
Interest-bearing liabilities | |||||||||||||||||||||||||||
Domestic interest-bearing deposits: | |||||||||||||||||||||||||||
Savings | $ | 36,927 | $ | 36 | 0.39 | % | $ | 36,823 | $ | 35 | 0.38 | % | $ | 35,864 | $ | 31 | 0.34 | % | |||||||||
NOW and money market deposit accounts | 234,596 | 589 | 1.00 | 233,602 | 523 | 0.89 | 233,702 | 488 | 0.84 | ||||||||||||||||||
Consumer CDs and IRAs | 109,243 | 711 | 2.59 | 101,250 | 668 | 2.63 | 93,017 | 587 | 2.54 | ||||||||||||||||||
Negotiable CDs, public funds and other time deposits | 7,563 | 81 | 4.27 | 5,654 | 69 | 4.85 | 4,737 | 66 | 5.60 | ||||||||||||||||||
Total domestic interest-bearing deposits | 388,329 | 1,417 | 1.45 | 377,329 | 1,295 | 1.37 | 367,320 | 1,172 | 1.28 | ||||||||||||||||||
Foreign interest-bearing deposits(4): | |||||||||||||||||||||||||||
Banks located in foreign countries | 17,953 | 275 | 6.11 | 17,864 | 307 | 6.83 | 18,945 | 287 | 6.10 | ||||||||||||||||||
Governments and official institutions | 5,843 | 33 | 2.21 | 5,021 | 22 | 1.80 | 5,739 | 23 | 1.58 | ||||||||||||||||||
Time, savings and other | 30,459 | 104 | 1.36 | 29,513 | 87 | 1.17 | 29,882 | 47 | 0.64 | ||||||||||||||||||
Total foreign interest-bearing deposits | 54,255 | 412 | 3.02 | 52,398 | 416 | 3.16 | 54,566 | 357 | 2.63 | ||||||||||||||||||
Total interest-bearing deposits | 442,584 | 1,829 | 1.64 | 429,727 | 1,711 | 1.58 | 421,886 | 1,529 | 1.46 | ||||||||||||||||||
Federal funds purchased, securities sold under agreements to repurchase and other short-term borrowings | 252,384 | 1,543 | 2.43 | 226,025 | 1,152 | 2.03 | 235,701 | 1,019 | 1.74 | ||||||||||||||||||
Trading account liabilities | 37,387 | 352 | 3.74 | 37,706 | 333 | 3.51 | 31,620 | 298 | 3.78 | ||||||||||||||||||
Long-term debt | 99,588 | 724 | 2.91 | 98,361 | 626 | 2.54 | 96,395 | 563 | 2.34 | ||||||||||||||||||
Total interest-bearing liabilities(3) | 831,943 | 4,448 | 2.13 | 791,819 | 3,822 | 1.92 | 785,602 | 3,409 | 1.74 | ||||||||||||||||||
Noninterest-bearing sources: | |||||||||||||||||||||||||||
Noninterest-bearing deposits | 167,352 | 158,151 | 160,419 | ||||||||||||||||||||||||
Other liabilities | 55,156 | 50,321 | 55,172 | ||||||||||||||||||||||||
Shareholders’ equity | 98,100 | 96,392 | 93,266 | ||||||||||||||||||||||||
Total liabilities and shareholders' equity | $ | 1,152,551 | $ | 1,096,683 | $ | 1,094,459 | |||||||||||||||||||||
Net interest spread | 2.83 | 2.98 | 3.03 | ||||||||||||||||||||||||
Impact of noninterest-bearing sources | 0.35 | 0.32 | 0.28 | ||||||||||||||||||||||||
Net interest income/yield on earning assets | $ | 7,954 | 3.18 | % | $ | 7,836 | 3.30 | % | $ | 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 $3,473 million, $3,644 million and $3,828 million in the fourth, third and second quarters of 2004, respectively; foreign consumer of $3,523 million, $3,304 million and $3,256 million in the fourth, third and second quarters of 2004, respectively; and consumer lease financing of $561 million, $745 million and $1,058 million in the fourth, third and second quarters of 2004, respectively. |
(3) | Interest income includes the impact of interest rate risk management contracts, which increased interest income on the underlying assets $496 million, $531 million and $658 million in the fourth, third and second quarters of 2004, respectively. 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 $155 million, $217 million and $333 million in the fourth, third and second quarters 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.
10
Bank of America Corporation
Quarterly Average Balances and Interest Rates - Fully Taxable-equivalent Basis - Isolating Derivative Hedge Income/Expense(1)
(Dollars in millions)
Third Quarter 2005 | Second Quarter 2005 | First Quarter 2005 | |||||||||||||||||||||||||||
Average Balance | Interest Income/ Expenses | Yield/ Rate | Average Balance | Interest Income/ Expenses | Yield/ Rate | Average Balance | Interest Income/ Expenses | Yield/ Rate | |||||||||||||||||||||
Earning assets | |||||||||||||||||||||||||||||
Time deposits placed and other short-term investments (2) | $ | 14,498 | $ | 126 | 3.46 | % | $ | 13,696 | $ | 114 | 3.33 | % | $ | 14,327 | $ | 101 | 2.88 | % | |||||||||||
Federal funds sold and securities purchased under agreements to resell (2) | 176,650 | 1,459 | 3.29 | 185,835 | 1,267 | 2.73 | 147,855 | 851 | 2.32 | ||||||||||||||||||||
Trading account assets | 142,287 | 1,578 | 4.42 | 134,196 | 1,454 | 4.34 | 117,748 | 1,203 | 4.10 | ||||||||||||||||||||
Securities(2) | 225,952 | 2,823 | 4.99 | 227,182 | 2,829 | 4.98 | 204,574 | 2,563 | 5.01 | ||||||||||||||||||||
Loans and leases(3): | |||||||||||||||||||||||||||||
Residential mortgage (2) | 171,002 | 2,301 | 5.37 | 167,272 | 2,268 | 5.43 | 178,098 | 2,409 | 5.43 | ||||||||||||||||||||
Credit card | 55,271 | 1,651 | 11.85 | 52,474 | 1,481 | 11.32 | 51,310 | 1,373 | 10.85 | ||||||||||||||||||||
Home equity lines | 58,046 | 910 | 6.22 | 54,941 | 799 | 5.83 | 51,477 | 692 | 5.45 | ||||||||||||||||||||
Direct/Indirect consumer | 47,900 | 702 | 5.81 | 43,132 | 612 | 5.69 | 41,620 | 573 | 5.58 | ||||||||||||||||||||
Other consumer(4) | 6,715 | 170 | 10.05 | 6,968 | 155 | 8.96 | 7,305 | 158 | 8.75 | ||||||||||||||||||||
Total consumer | 338,934 | 5,734 | 6.73 | 324,787 | 5,315 | 6.56 | 329,810 | 5,205 | 6.37 | ||||||||||||||||||||
Commercial - domestic (2) | 127,044 | 1,897 | 5.93 | 123,927 | 1,721 | 5.57 | 123,803 | 1,539 | 5.04 | ||||||||||||||||||||
Commercial real estate | 34,663 | 542 | 6.20 | 33,484 | 477 | 5.72 | 33,016 | 430 | 5.29 | ||||||||||||||||||||
Commercial lease financing | 20,402 | 239 | 4.69 | 20,446 | 252 | 4.93 | 20,745 | 260 | 5.01 | ||||||||||||||||||||
Commercial - foreign(2) | 18,444 | 349 | 7.50 | 17,780 | 305 | 6.88 | 17,570 | 257 | 5.94 | ||||||||||||||||||||
Total commercial | 200,553 | 3,027 | 5.99 | 195,637 | 2,755 | 5.65 | 195,134 | 2,486 | 5.16 | ||||||||||||||||||||
Total loans and leases | 539,487 | 8,761 | 6.46 | 520,424 | 8,070 | 6.22 | 524,944 | 7,691 | 5.92 | ||||||||||||||||||||
Other earning assets | 38,745 | 571 | 5.87 | 37,194 | 555 | 5.98 | 35,466 | 506 | 5.77 | ||||||||||||||||||||
Total earning assets - Excluding hedge impact | 1,137,619 | 15,318 | 5.36 | 1,118,527 | 14,289 | 5.12 | 1,044,914 | 12,915 | 4.98 | ||||||||||||||||||||
Net derivative income (expense) on assets | 91 | 193 | 437 | ||||||||||||||||||||||||||
Total earning assets - Including hedge impact | 1,137,619 | 15,409 | 5.39 | 1,118,527 | 14,482 | 5.19 | 1,044,914 | 13,352 | 5.15 | ||||||||||||||||||||
Cash and cash equivalents | 32,969 | 34,731 | 31,382 | ||||||||||||||||||||||||||
Other assets, less allowance for loan and lease losses | 124,157 | 124,231 | 124,587 | ||||||||||||||||||||||||||
Total assets | $ | 1,294,745 | $ | 1,277,489 | $ | 1,200,883 | |||||||||||||||||||||||
Interest-bearing liabilities | |||||||||||||||||||||||||||||
Domestic interest-bearing deposits: | |||||||||||||||||||||||||||||
Savings | $ | 35,853 | $ | 56 | 0.62 | % | $ | 38,043 | $ | 52 | 0.54 | % | $ | 37,000 | $ | 35 | 0.39 | % | |||||||||||
NOW and money market deposit accounts (2) | 224,341 | 743 | 1.31 | 229,174 | 722 | 1.26 | 233,392 | 634 | 1.10 | ||||||||||||||||||||
Consumer CDs and IRAs (2) | 130,975 | 889 | 2.69 | 127,169 | 786 | 2.48 | 118,989 | 649 | 2.21 | ||||||||||||||||||||
Negotiable CDs, public funds and other time deposits (2) | 4,414 | 33 | 3.02 | 7,751 | 63 | 3.22 | 10,291 | 67 | 2.61 | ||||||||||||||||||||
Total domestic interest-bearing deposits | 395,583 | 1,721 | 1.73 | 402,137 | 1,623 | 1.62 | 399,672 | 1,385 | 1.41 | ||||||||||||||||||||
Foreign interest-bearing deposits(5): | |||||||||||||||||||||||||||||
Banks located in foreign countries (2) | 19,707 | 259 | 5.21 | 25,546 | 270 | 4.24 | 22,084 | 199 | 3.66 | ||||||||||||||||||||
Governments and official institutions | 7,317 | 62 | 3.37 | 7,936 | 59 | 2.97 | 6,831 | 43 | 2.58 | ||||||||||||||||||||
Time, savings and other | 32,024 | 177 | 2.19 | 30,973 | 149 | 1.94 | 30,770 | 133 | 1.75 | ||||||||||||||||||||
Total foreign interest-bearing deposits | 59,048 | 498 | 3.35 | 64,455 | 478 | 2.98 | 59,685 | 375 | 2.55 | ||||||||||||||||||||
Total interest-bearing deposits | 454,631 | 2,219 | 1.94 | 466,592 | 2,101 | 1.81 | 459,357 | 1,760 | 1.55 | ||||||||||||||||||||
Federal funds purchased, securities sold under agreements to repurchase and other short-term borrowings(2) | 339,980 | 3,085 | 3.60 | 323,916 | 2,478 | 3.07 | 276,483 | 1,837 | 2.69 | ||||||||||||||||||||
Trading account liabilities | 68,132 | 707 | 4.12 | 60,987 | 611 | 4.02 | 44,507 | 427 | 3.89 | ||||||||||||||||||||
Long-term debt (2) | 99,576 | 1,186 | 4.76 | 97,360 | 1,136 | 4.67 | 97,126 | 1,102 | 4.54 | ||||||||||||||||||||
Total interest-bearing liabilities - Excluding hedge impact | 962,319 | 7,197 | 2.97 | 948,855 | 6,326 | 2.67 | 877,473 | 5,126 | 2.36 | ||||||||||||||||||||
Net derivative (income) expense on liabilities | 239 | 315 | 154 | ||||||||||||||||||||||||||
Total interest-bearing liabilities - Including hedge impact | 962,319 | 7,436 | 3.07 | 948,855 | 6,641 | 2.81 | 877,473 | 5,280 | 2.43 | ||||||||||||||||||||
Noninterest-bearing sources: | |||||||||||||||||||||||||||||
Noninterest-bearing deposits | 178,140 | 174,001 | 168,062 | ||||||||||||||||||||||||||
Other liabilities | 53,832 | 56,216 | 56,534 | ||||||||||||||||||||||||||
Shareholders’ equity | 100,454 | 98,417 | 98,814 | ||||||||||||||||||||||||||
Total liabilities and shareholders’ equity | $ | 1,294,745 | $ | 1,277,489 | $ | 1,200,883 | |||||||||||||||||||||||
Net interest spread | 2.39 | 2.45 | 2.62 | ||||||||||||||||||||||||||
Impact of noninterest-bearing sources | 0.46 | 0.40 | 0.38 | ||||||||||||||||||||||||||
Net interest income/yield on earning assets - excluding hedge impact | $ | 8,121 | 2.85 | $ | 7,963 | 2.85 | $ | 7,789 | 3.00 | ||||||||||||||||||||
Net impact of derivative hedge income/(expense) | (148 | ) | (0.05 | ) | (122 | ) | (0.04 | ) | 283 | 0.11 | |||||||||||||||||||
Net interest income/yield on earning assets | $ | 7,973 | 2.80 | % | $ | 7,841 | 2.81 | % | $ | 8,072 | 3.11 | % | |||||||||||||||||
(1) | This table presents a non-GAAP financial measure. The impact of interest rate risk management derivatives is shown separately. Interest income and interest expense amounts, and the yields and rates have been adjusted. Management believes this presentation is useful to investors because it adjusts for the impact of our hedging decisions and provides a better understanding of our hedging activities. |
(2) | Interest income excludes the impact of interest rate risk management contracts, which increased(decreased) interest income on time deposits placed and other short-term investments $(1) million, federal funds sold and securities purchased under agreements to resell $(100) milllion, securities $1 million, residential mortgage $(7) million, commercial—domestic $227 million and other earning assets $(29) million in the three months ended September 30, 2005. Interest expense excludes the impact of interest rate risk management contracts which increased(decreased) interest expense on consumer CDs and IRAs $159 million, negotiable CDs, public funds and other time deposits $17 million, banks located in foreign countries $14 million, federal funds purchased, securities sold under agreements to repurchase and other short-term borrowings $240 million and long-term debt $(191) million in the three months ended September 30, 2005. |
Interest income excludes the impact of interest rate risk management contracts, which increased(decreased) interest income on time deposits placed and other short-term investments $(1) million, federal funds sold and securities purchased under agreements to resell $(15) milllion, residential mortgage $3 million, commercial - domestic $248 million, commercial - foreign $1 million and other earning assets $(43) million in the three months ended June 30, 2005. Interest expense excludes the impact of interest rate risk management contracts which increased(decreased) interest expense on NOW and money market deposit accounts $1 million, consumer CDs and IRAs $188 million, negotiable CDs, public funds and other time deposits $24 million, banks located in foreign countries $65 million, federal funds purchased, securities sold under agreements to repurchase and other short-term borrowings $199 million and long-term debt $(162) million in the three months ended June 30, 2005.
Interest income excludes the impact of interest rate risk management contracts, which increased(decreased) interest income on federal funds sold and securities purchased under agreements to resell $42 million, securities $(2) million, residential mortgage $3 million, commercial - domestic $444 million, commercial - foreign $1 million and other earning assets $(51) million in the three months ended March 31, 2005. Interest expense excludes the impact of interest rate risk management contracts which increased(decreased) interest expense on NOW and money market deposit accounts $17 million, consumer CDs and IRAs $120 million, negotiable CDs, public funds and other time deposits $29 million, banks located in foreign countries $117 million, federal funds purchased, securities sold under agreements to repurchase and other short-term borrowings $132 million and long-term debt $(261) million in the three months ended March 31, 2005.
(3) | Nonperforming loans are included in the respective average loan balances. Income on these nonperforming loans is recognized on a cash basis. |
(4) | Includes consumer finance of $3,063 million, $3,212 million and $3,362 million in the third, second and first quarters of 2005, respectively; foreign consumer of $3,541 million, $3,505 million and $3,532 million in third, second and first quarters of 2005, respectively; and consumer lease financing of $111 million, $251 million and $411 million in the third, second and first quarters of 2005, respectively. |
(5) | 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.
11
Bank of America Corporation
Quarterly Average Balances and Interest Rates - Fully Taxable-equivalent Basis - Isolating Derivative Hedge
Income/Expense(1)(continued)
(Dollars in millions)
Fourth Quarter 2004 | Third Quarter 2004 | Second Quarter 2004 | |||||||||||||||||||||||||
Average Balance | Interest Income/ Expenses | Yield/ Rate | Average Balance | Interest Income/ Expenses | Yield/ Rate | Average Balance | Interest Income/ Expenses | Yield/ Rate | |||||||||||||||||||
Earning assets | |||||||||||||||||||||||||||
Time deposits placed and other short-term investments (2) | $ | 15,620 | $ | 119 | 3.01 | % | $ | 14,726 | $ | 127 | 3.44 | % | $ | 14,384 | $ | 59 | 1.65 | % | |||||||||
Federal funds sold and securities purchased under agreements to resell (2) | 149,226 | 674 | 1.80 | 128,339 | 421 | 1.31 | 124,383 | 303 | 0.98 | ||||||||||||||||||
Trading account assets | 110,585 | 1,067 | 3.85 | 98,459 | 975 | 3.96 | 104,391 | 1,025 | 3.94 | ||||||||||||||||||
Securities(2) | 171,173 | 2,084 | 4.87 | 169,515 | 2,103 | 4.96 | 159,797 | 1,929 | 4.83 | ||||||||||||||||||
Loans and leases(3): | |||||||||||||||||||||||||||
Residential mortgage (2) | 178,879 | 2,447 | 5.46 | 175,046 | 2,389 | 5.45 | 173,158 | 2,269 | 5.25 | ||||||||||||||||||
Credit card | 49,366 | 1,351 | 10.88 | 45,818 | 1,265 | 10.98 | 43,160 | 1,167 | 10.88 | ||||||||||||||||||
Home equity lines | 48,336 | 609 | 5.01 | 44,309 | 514 | 4.62 | 40,424 | 450 | 4.48 | ||||||||||||||||||
Direct/Indirect consumer | 39,526 | 551 | 5.55 | 38,951 | 538 | 5.49 | 39,763 | 540 | 5.44 | ||||||||||||||||||
Other consumer(4) | 7,557 | 153 | 8.07 | 7,693 | 152 | 7.91 | 8,142 | 169 | 8.32 | ||||||||||||||||||
Total consumer | 323,664 | 5,111 | 6.29 | 311,817 | 4,858 | 6.21 | 304,647 | 4,595 | 6.05 | ||||||||||||||||||
Commercial - domestic (2) | 121,412 | 1,418 | 4.65 | 122,093 | 1,300 | 4.24 | 123,970 | 1,237 | 4.02 | ||||||||||||||||||
Commercial real estate | 31,355 | 392 | 4.98 | 30,792 | 344 | 4.44 | 30,311 | 317 | 4.20 | ||||||||||||||||||
Commercial lease financing | 20,204 | 254 | 5.01 | 20,125 | 233 | 4.64 | 20,086 | 237 | 4.72 | ||||||||||||||||||
Commercial - foreign(2) | 18,828 | 271 | 5.73 | 18,251 | 242 | 5.29 | 18,144 | 235 | 5.19 | ||||||||||||||||||
Total commercial | 191,799 | 2,335 | 4.85 | 191,261 | 2,119 | 4.41 | 192,511 | 2,026 | 4.23 | ||||||||||||||||||
Total loans and leases | 515,463 | 7,446 | 5.76 | 503,078 | 6,977 | 5.53 | 497,158 | 6,621 | 5.35 | ||||||||||||||||||
Other earning assets | 35,937 | 516 | 5.73 | 34,266 | 524 | 6.07 | 38,407 | 564 | 5.90 | ||||||||||||||||||
Total earning assets - Excluding hedge impact | 998,004 | 11,906 | 4.76 | 948,383 | 11,127 | 4.68 | 938,520 | 10,501 | 4.49 | ||||||||||||||||||
Net derivative income (expense) on assets | 496 | 531 | 659 | ||||||||||||||||||||||||
Total earning assets- Including hedge impact | 998,004 | 12,402 | 4.96 | 948,383 | 11,658 | 4.90 | 938,520 | 11,160 | 4.77 | ||||||||||||||||||
Cash and cash equivalents | 31,028 | 29,469 | 30,320 | ||||||||||||||||||||||||
Other assets, less allowance for loan and lease losses | 123,519 | 118,831 | 125,619 | ||||||||||||||||||||||||
Total assets | $ | 1,152,551 | $ | 1,096,683 | $ | 1,094,459 | |||||||||||||||||||||
Interest-bearing liabilities | |||||||||||||||||||||||||||
Domestic interest-bearing deposits: | |||||||||||||||||||||||||||
Savings | $ | 36,927 | $ | 36 | 0.39 | % | $ | 36,823 | $ | 35 | 0.38 | % | $ | 35,864 | $ | 31 | 0.34 | % | |||||||||
NOW and money market deposit accounts (2) | 234,596 | 547 | 0.93 | 233,602 | 475 | 0.81 | 233,702 | 412 | 0.71 | ||||||||||||||||||
Consumer CDs and IRAs (2) | 109,243 | 539 | 1.96 | 101,250 | 447 | 1.76 | 93,017 | 350 | 1.51 | ||||||||||||||||||
Negotiable CDs, public funds and other time deposits (2) | 7,563 | 38 | 2.03 | 5,654 | 20 | 1.43 | 4,737 | 13 | 1.09 | ||||||||||||||||||
Total domestic interest-bearing deposits | 388,329 | 1,160 | 1.19 | 377,329 | 977 | 1.03 | 367,320 | 806 | 0.88 | ||||||||||||||||||
Foreign interest-bearing deposits(5): | |||||||||||||||||||||||||||
Banks located in foreign countries (2) | 17,953 | 157 | 3.47 | 17,864 | 160 | 3.55 | 18,945 | 138 | 2.95 | ||||||||||||||||||
Governments and official institutions | 5,843 | 33 | 2.21 | 5,021 | 22 | 1.80 | 5,739 | 23 | 1.58 | ||||||||||||||||||
Time, savings and other | 30,459 | 104 | 1.36 | 29,513 | 87 | 1.17 | 29,882 | 47 | 0.64 | ||||||||||||||||||
Total foreign interest-bearing deposits | 54,255 | 294 | 2.15 | 52,398 | 269 | 2.04 | 54,566 | 208 | 1.54 | ||||||||||||||||||
Total interest-bearing deposits | 442,584 | 1,454 | 1.31 | 429,727 | 1,246 | 1.15 | 421,886 | 1,014 | 0.97 | ||||||||||||||||||
Federal funds purchased, securities sold under agreements to repurchase and other short-term borrowings(2) | 252,384 | 1,386 | 2.18 | 226,025 | 987 | 1.74 | 235,701 | 769 | 1.31 | ||||||||||||||||||
Trading account liabilities | 37,387 | 352 | 3.74 | 37,706 | 333 | 3.51 | 31,620 | 298 | 3.78 | ||||||||||||||||||
Long-term debt (2) | 99,588 | 1,101 | 4.42 | 98,361 | 1,038 | 4.22 | 96,395 | 995 | 4.13 | ||||||||||||||||||
Total interest-bearing liabilities - Excluding hedge impact | 831,943 | 4,293 | 2.05 | 791,819 | 3,604 | 1.81 | 785,602 | 3,076 | 1.57 | ||||||||||||||||||
Net derivative (income) expense on liabilities | 155 | 218 | 333 | ||||||||||||||||||||||||
Total interest-bearing liabilities - Including hedge impact | 831,943 | 4,448 | 2.13 | 791,819 | 3,822 | 1.92 | 785,602 | 3,409 | 1.74 | ||||||||||||||||||
Noninterest-bearing sources: | |||||||||||||||||||||||||||
Noninterest-bearing deposits | 167,352 | 158,151 | 160,419 | ||||||||||||||||||||||||
Other liabilities | 55,156 | 50,321 | 55,172 | ||||||||||||||||||||||||
Shareholders’ equity | 98,100 | 96,392 | 93,266 | ||||||||||||||||||||||||
Total liabilities and shareholders’ equity | $ | 1,152,551 | $ | 1,096,683 | $ | 1,094,459 | |||||||||||||||||||||
Net interest spread | 2.71 | 2.87 | 2.92 | ||||||||||||||||||||||||
Impact of noninterest-bearing sources | 0.33 | 0.30 | 0.25 | ||||||||||||||||||||||||
Net interest income/yield on earning assets - excluding hedge impact | $ | 7,613 | 3.04 | $ | 7,523 | 3.17 | $ | 7,425 | 3.17 | ||||||||||||||||||
Net impact of derivative hedge income/(expense) | 341 | 0.14 | 313 | 0.13 | 326 | 0.14 | |||||||||||||||||||||
Net interest income/yield on earning assets | $ | 7,954 | 3.18 | % | $ | 7,836 | 3.30 | % | $ | 7,751 | 3.31 | % | |||||||||||||||
(1) | This table presents a non-GAAP financial measure. The impact of interest rate risk management derivatives is shown separately. Interest income and interest expense amounts, and the yields and rates have been adjusted. Management believes this presentation is useful to investors because it adjusts for the impact of our hedging decisions and provides a better understanding of our hedging activities. |
(2) | Interest income excludes the impact of interest rate risk management contracts, which increased(decreased) interest income on time deposits placed and other short-term investments $9 million, federal funds sold and securities purchased under agreements to resell $38 milllion, securities $(1) million, residential mortgage $12 million, commercial - domestic $496 million, commercial - foreign $1 million and other earning assets $(59) million in the three months ended December 31, 2004. Interest expense excludes the impact of interest rate risk management contracts which increased(decreased) interest expense on NOW and money market deposit accounts $42 million, consumer CDs and IRAs $172 million, negotiable CDs, public funds and other time deposits $43 million, banks located in foreign countries $118 million, federal funds purchased, securities sold under agreements to repurchase and other other short-term borrowings $157 million and long-term debt $(377) million in the three months ended December 31, 2004. |
Interest income excludes the impact of interest rate risk management contracts, which increased(decreased) interest income on federal funds sold and securities purchased under agreements to resell $63 million, securities $(8) million, residential mortgage $(18) million, commercial - domestic $555 million, commercial - foreign $3 million and other earning assets $(64) million in the three months ended September 30, 2004. Interest expense excludes the impact of interest rate risk management contracts which increased(decreased) interest expense on NOW and money market deposit accounts $48 million, consumer CDs and IRAs $221 million, negotiable CDs, public funds and other time deposits $49 million, banks located in foreign countries $147 million, federal funds purchased, securities sold under agreements to repurchase and other short-term borrowings $165 million and long-term debt $(412) million in the three months ended September 30, 2004.
Interest income excludes the impact of interest rate risk management contracts, which increased(decreased) interest income on federal funds sold and securities purchased under agreements to resell $110 million, securities $(4) million, residential mortgage $15 million, commercial - domestic $606 million, commercial - foreign $2 million and other earning assets $(70) million in the three months ended June 30, 2004. Interest expense excludes the impact of interest rate risk management contracts which increased(decreased) interest expense on NOW and money market deposit accounts $76 million, consumer CDs and IRAs $237 million, negotiable CDs, public funds and other time deposits $53 million, banks located in foreign countries $149 million, federal funds purchased, securities sold under agreements to repurchase and other short-term borrowings $250 million and long-term debt $(432) million in the three months ended June 30, 2004.
(3) | Nonperforming loans are included in the respective average loan balances. Income on these nonperforming loans is recognized on a cash basis. |
(4) | Includes consumer finance of $3,473 million, $3,644 million and $3,828 million in the fourth, third and second quarters of 2004, respectively; foreign consumer of $3,523 million, $3,304 million and $3,256 million in the fourth, third and second quarters of 2004, respectively; and consumer lease financing of $561 million, $745 million and $1,058 million in the fourth, third and second quarters of 2004, respectively. |
(5) | 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.
12
Bank of America Corporation
Year-to-Date Average Balances and Interest Rates - Fully Taxable-equivalent Basis
(Dollars in millions)
Nine Months Ended September 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 | $ | 14,175 | $ | 340 | 3.20 | % | $ | 13,796 | $ | 234 | 2.27 | % | ||||||
Federal funds sold and securities purchased under agreements to resell | 170,219 | 3,504 | 2.75 | 122,184 | 1,331 | 1.45 | ||||||||||||
Trading account assets | 131,500 | 4,234 | 4.30 | 102,612 | 3,026 | 3.93 | ||||||||||||
Securities | 219,314 | 8,214 | 4.99 | 143,119 | 5,243 | 4.88 | ||||||||||||
Loans and leases(1): | ||||||||||||||||||
Residential mortgage | 172,098 | 6,977 | 5.41 | 163,410 | 6,615 | 5.40 | ||||||||||||
Credit card | 53,033 | 4,506 | 11.36 | 41,443 | 3,302 | 10.64 | ||||||||||||
Home equity lines | 54,845 | 2,401 | 5.85 | 36,400 | 1,226 | 4.50 | ||||||||||||
Direct/Indirect consumer | 44,240 | 1,886 | 5.70 | 37,591 | 1,542 | 5.48 | ||||||||||||
Other consumer(2) | 6,995 | 483 | 9.24 | 7,771 | 441 | 7.58 | ||||||||||||
Total consumer | 331,211 | 16,253 | 6.55 | 286,615 | 13,126 | 6.11 | ||||||||||||
Commercial - domestic | 124,937 | 6,076 | 6.50 | 112,371 | 5,209 | 6.19 | ||||||||||||
Commercial real estate | 33,727 | 1,449 | 5.75 | 26,987 | 871 | 4.31 | ||||||||||||
Commercial lease financing | 20,529 | 751 | 4.88 | 16,570 | 565 | 4.55 | ||||||||||||
Commercial - foreign | 17,935 | 913 | 6.81 | 15,725 | 577 | 4.90 | ||||||||||||
Total commercial | 197,128 | 9,189 | 6.23 | 171,653 | 7,222 | 5.62 | ||||||||||||
Total loans and leases | 528,339 | 25,442 | 6.43 | 458,268 | 20,348 | 5.93 | ||||||||||||
Other earning assets | 37,146 | 1,509 | 5.43 | 34,197 | 1,357 | 5.30 | ||||||||||||
Total earning assets(3) | 1,100,693 | 43,243 | 5.25 | 874,176 | 31,539 | 4.82 | ||||||||||||
Cash and cash equivalents | 33,033 | 27,665 | ||||||||||||||||
Other assets, less allowance for loan and lease losses | 124,324 | 106,593 | ||||||||||||||||
Total assets | $ | 1,258,050 | $ | 1,008,434 | ||||||||||||||
Interest-bearing liabilities | ||||||||||||||||||
Domestic interest-bearing deposits: | ||||||||||||||||||
Savings | $ | 36,961 | $ | 143 | 0.52 | % | $ | 32,963 | $ | 83 | 0.33 | % | ||||||
NOW and money market deposit accounts | 228,936 | 2,117 | 1.24 | 207,808 | 1,332 | 0.86 | ||||||||||||
Consumer CDs and IRAs | 125,755 | 2,791 | 2.97 | 89,911 | 1,822 | 2.71 | ||||||||||||
Negotiable CDs, public funds and other time deposits | 7,463 | 232 | 4.15 | 5,444 | 209 | 5.12 | ||||||||||||
Total domestic interest-bearing deposits | 399,115 | 5,283 | 1.77 | 336,126 | 3,446 | 1.37 | ||||||||||||
Foreign interest-bearing deposits(4): | ||||||||||||||||||
Banks located in foreign countries | 22,437 | 924 | 5.51 | 18,585 | 765 | 5.50 | ||||||||||||
Governments and official institutions | 7,363 | 165 | 2.99 | 5,153 | 64 | 1.67 | ||||||||||||
Time, savings and other | 31,261 | 459 | 1.96 | 26,826 | 171 | 0.85 | ||||||||||||
Total foreign interest-bearing deposits | 61,061 | 1,548 | 3.39 | 50,564 | 1,000 | 2.64 | ||||||||||||
Total interest-bearing deposits | 460,176 | 6,831 | 1.98 | 386,690 | 4,446 | 1.54 | ||||||||||||
Federal funds purchased, securities sold under agreements to repurchase and other short-term borrowings | 313,692 | 7,971 | 3.40 | 219,222 | 2,891 | 1.76 | ||||||||||||
Trading account liabilities | 57,962 | 1,745 | 4.03 | 34,634 | 965 | 3.72 | ||||||||||||
Long-term debt | 98,030 | 2,810 | 3.82 | 91,229 | 1,680 | 2.46 | ||||||||||||
Total interest-bearing liabilities(3) | 929,860 | 19,357 | 2.78 | 731,775 | 9,982 | 1.82 | ||||||||||||
Noninterest-bearing sources: | ||||||||||||||||||
Noninterest-bearing deposits | 173,438 | 145,268 | ||||||||||||||||
Other liabilities | 55,518 | 51,881 | ||||||||||||||||
Shareholders’ equity | 99,234 | 79,510 | ||||||||||||||||
Total liabilities and shareholders’ equity | $ | 1,258,050 | $ | 1,008,434 | ||||||||||||||
Net interest spread | 2.47 | 3.00 | ||||||||||||||||
Impact of noninterest-bearing sources | 0.43 | 0.29 | ||||||||||||||||
Net interest income/yield on earning assets | $ | 23,886 | 2.90 | % | $ | 21,557 | 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 $3,212 million and $3,823 million; foreign consumer of $3,526 million and $2,851 million; and consumer lease financing of $257 million and $1,097 million for the nine months ended September 30, 2005 and 2004. |
(3) | Interest income includes the impact of interest rate risk management contracts, which increased interest income on the underlying assets $721 million and $1,904 million in the nine months ended September 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 $708 million and $733 million in the nine months ended September 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.
13
Bank of America Corporation
Year-to-Date Average Balances and Interest Rates - Fully Taxable-equivalent Basis - Isolating Derivative Hedge Income/Expense(1)
(Dollars in millions)
Nine Months Ended September 30 | ||||||||||||||||||
2005 | 2004 | |||||||||||||||||
Average Balance | Interest Income/ Expenses | Yield/ Rate | Average Balance | Interest Income/ Expenses | Yield/ Rate | |||||||||||||
Earning assets | ||||||||||||||||||
Time deposits placed and other short-term investments (2) | $ | 14,175 | $ | 342 | 3.23 | % | $ | 13,796 | $ | 234 | 2.26 | % | ||||||
Federal funds sold and securities purchased under agreements to resell (2) | 170,219 | 3,577 | 2.81 | 122,184 | 985 | 1.08 | ||||||||||||
Trading account assets | 131,500 | 4,234 | 4.30 | 102,612 | 3,026 | 3.93 | ||||||||||||
Securities(2) | 219,314 | 8,215 | 4.99 | 143,119 | 5,259 | 4.90 | ||||||||||||
Loans and leases(3): | ||||||||||||||||||
Residential mortgage (2) | 172,098 | 6,978 | 5.41 | 163,410 | 6,602 | 5.39 | ||||||||||||
Credit card | 53,033 | 4,506 | 11.36 | 41,443 | 3,302 | 10.64 | ||||||||||||
Home equity lines | 54,845 | 2,401 | 5.85 | 36,400 | 1,226 | 4.50 | ||||||||||||
Direct/Indirect consumer | 44,240 | 1,886 | 5.70 | 37,591 | 1,542 | 5.48 | ||||||||||||
Other consumer(4) | 6,995 | 483 | 9.24 | 7,771 | 441 | 7.58 | ||||||||||||
Total consumer | 331,211 | 16,254 | 6.56 | 286,615 | 13,113 | 6.11 | ||||||||||||
Commercial - domestic (2) | 124,937 | 5,157 | 5.52 | 112,371 | 3,452 | 4.10 | ||||||||||||
Commercial real estate | 33,727 | 1,449 | 5.75 | 26,987 | 871 | 4.31 | ||||||||||||
Commercial lease financing | 20,529 | 751 | 4.88 | 16,570 | 565 | 4.55 | ||||||||||||
Commercial - foreign(2) | 17,935 | 911 | 6.79 | 15,725 | 570 | 4.84 | ||||||||||||
Total commercial | 197,128 | 8,268 | 5.61 | 171,653 | 5,458 | 4.25 | ||||||||||||
Total loans and leases | 528,339 | 24,522 | 6.20 | 458,268 | 18,571 | 5.41 | ||||||||||||
Other earning assets (2) | 37,146 | 1,632 | 5.87 | 34,197 | 1,560 | 6.09 | ||||||||||||
Total earning assets - Excluding hedge impact | 1,100,693 | 42,522 | 5.16 | 874,176 | 29,635 | 4.52 | ||||||||||||
Net derivative income (expense) on assets | 721 | 1,904 | ||||||||||||||||
Total earning assets - Including hedge impact | 1,100,693 | 43,243 | 5.25 | 874,176 | 31,539 | 4.82 | ||||||||||||
Cash and cash equivalents | 33,033 | 27,665 | ||||||||||||||||
Other assets, less allowance for loan and lease losses | 124,324 | 106,593 | ||||||||||||||||
Total assets | $ | 1,258,050 | $ | 1,008,434 | ||||||||||||||
Interest-bearing liabilities | ||||||||||||||||||
Domestic interest-bearing deposits: | ||||||||||||||||||
Savings | $ | 36,961 | $ | 143 | 0.52 | % | $ | 32,963 | $ | 83 | 0.34 | % | ||||||
NOW and money market deposit accounts (2) | 228,936 | 2,099 | 1.24 | 207,808 | 1,132 | 0.73 | ||||||||||||
Consumer CDs and IRAs (2) | 125,755 | 2,324 | 2.47 | 89,911 | 1,121 | 1.66 | ||||||||||||
Negotiable CDs, public funds and other time deposits (2) | 7,463 | 162 | 2.90 | 5,444 | 54 | 1.33 | ||||||||||||
Total domestic interest-bearing deposits | 399,115 | 4,728 | 1.59 | 336,126 | 2,390 | 0.96 | ||||||||||||
Foreign interest-bearing deposits(5): | ||||||||||||||||||
Banks located in foreign countries (2) | 22,437 | 728 | 4.34 | 18,585 | 382 | 2.75 | ||||||||||||
Governments and official institutions | 7,363 | 165 | 2.99 | 5,153 | 64 | 1.67 | ||||||||||||
Time, savings and other | 31,261 | 459 | 1.96 | 26,826 | 171 | 0.85 | ||||||||||||
Total foreign interest-bearing deposits | 61,061 | 1,352 | 2.96 | 50,564 | 617 | 1.63 | ||||||||||||
Total interest-bearing deposits | 460,176 | 6,080 | 1.78 | 386,690 | 3,007 | 1.04 | ||||||||||||
Federal funds purchased, securities sold under agreements to repurchase and other short-term borrowings(2) | 313,692 | 7,400 | 3.15 | 219,222 | 2,360 | 1.44 | ||||||||||||
Trading account liabilities | 57,962 | 1,745 | 4.03 | 34,634 | 965 | 3.72 | ||||||||||||
Long-term debt (2) | 98,030 | 3,424 | 4.66 | 91,229 | 2,917 | 4.26 | ||||||||||||
Total interest-bearing liabilities - Excluding hedge impact | 929,860 | 18,649 | 2.69 | 731,775 | 9,249 | 1.69 | ||||||||||||
Net derivative (income) expense on liabilities | 0 | 708 | 733 | |||||||||||||||
Total interest-bearing liabilities - Including hedge impact | 929,860 | 19,357 | 2.79 | 731,775 | 9,982 | 1.82 | ||||||||||||
Noninterest-bearing sources: | ||||||||||||||||||
Noninterest-bearing deposits | 173,438 | 145,268 | ||||||||||||||||
Other liabilities | 55,518 | 51,881 | ||||||||||||||||
Shareholders’ equity | 99,234 | 79,510 | ||||||||||||||||
Total liabilities and shareholders’ equity | $ | 1,258,050 | $ | 1,008,434 | ||||||||||||||
Net interest spread | 2.47 | 2.83 | ||||||||||||||||
Impact of noninterest-bearing sources | 0.43 | 0.29 | ||||||||||||||||
Net interest income/yield on earning assets - excluding hedge impact | $ | 23,873 | 2.90 | % | $ | 20,386 | 3.12 | % | ||||||||||
Net impact of derivative hedge income/(expense) | 13 | 0.00 | 1,171 | 0.17 | ||||||||||||||
Net interest income/yield on earning assets | $ | 23,886 | 2.90 | % | $ | 21,557 | 3.29 | % | ||||||||||
(1) | This table presents a non-GAAP financial measure. The impact of interest rate risk management derivatives is shown separately. Interest income and interest expense amounts, and the yields and rates have been adjusted. Management believes this presentation is useful to investors because it adjusts for the impact of our hedging decisions and provides a better understanding of our hedging activities. |
(2) | Interest income excludes the impact of interest rate risk management contracts, which increased(decreased) interest income on time deposits placed and other short-term investments $(2) million, federal funds sold and securites purchased under agreements to resell $(73) milllion, securities $(1) million, residential mortgage $(1) million, commercial - domestic $919 million, commercial - foreign $2 million and other earning assets $(123) million in the nine months ended September 30, 2005. Interest expense excludes the impact of interest rate risk management contracts which increased(decreased) interest expense on NOW and money market deposit accounts $18 million, consumer CDs and IRAs $467 million, negotiable CDs, public funds and other time deposits $70 million, banks located in foreign countries $196 million, federal funds purchased, securities sold under agreements to repurchase and other short-term borrowings $571 million and long-term debt $(614) million in the nine months ended September 30, 2005. |
Interest income excludes the impact of interest rate risk management contracts, which increased(decreased) interest income on federal funds sold and securities purchased under agreements to resell $346 million, securities $(16) million, residential mortgage $13 million, commercial - domestic $1,757 million, commercial - foreign $7 million and other earning assets $(203) million in the nine months ended September 30, 2004. Interest expense excludes the impact of interest rate risk management contracts which increased(decreased) interest expense on NOW and money market deposit accounts $200 million, consumer CDs and IRAs $701 million, negotiable CDs, public funds and other time deposits $155 million, banks located in foreign countries $383 million, federal funds purchased, securities sold under agreements to repurchase and other short term borrowings $531 million and long-term debt $(1,237) million in the nine months ended September 30, 2004.
(3) | Nonperforming loans are included in the respective average loan balances. Income on such nonperforming loans is recognized on a cash basis. |
(4) | Includes consumer finance of $3,212 million and $3,823 million; foreign consumer of $3,526 million and $2,851 million; and consumer lease financing of $257 million and $1,097 million for the nine months ended September 30, 2005 and 2004. |
(5) | 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.
14
Bank of America Corporation
Business Segment View
Net Income
Third Quarter 2005
Revenue*
Third Quarter 2005
* | Fully taxable-equivalent basis |
15
Bank of America Corporation
Global Consumer and Small Business Banking Segment Results(1)
(Dollars in millions)
Year-to-Date September 30 | Third 2005 | Second 2005 | First 2005 | Fourth 2004 | Third 2004 | |||||||||||||||||||||||
2005 | 2004 | |||||||||||||||||||||||||||
Key Measures | ||||||||||||||||||||||||||||
Net interest income(2) | $ | 12,679 | $ | 11,610 | $ | 4,270 | $ | 4,142 | $ | 4,267 | $ | 4,301 | $ | 4,346 | ||||||||||||||
Noninterest income | ||||||||||||||||||||||||||||
Service charges | 3,735 | 3,137 | 1,386 | 1,244 | 1,105 | 1,192 | 1,159 | |||||||||||||||||||||
Mortgage banking income | 741 | 384 | 229 | 238 | 274 | 206 | (199 | ) | ||||||||||||||||||||
Card income | 4,049 | 3,043 | 1,447 | 1,372 | 1,230 | 1,316 | 1,194 | |||||||||||||||||||||
All other income | 243 | (139 | ) | 70 | 63 | 110 | 105 | 78 | ||||||||||||||||||||
Total noninterest income | 8,768 | 6,425 | 3,132 | 2,917 | 2,719 | 2,819 | 2,232 | |||||||||||||||||||||
Total revenue(2) | $ | 21,447 | $ | 18,035 | $ | 7,402 | $ | 7,059 | $ | 6,986 | $ | 7,120 | $ | 6,578 | ||||||||||||||
Provision for credit losses | $ | 2,972 | $ | 2,088 | $ | 1,107 | $ | 1,155 | $ | 710 | $ | 1,244 | $ | 1,012 | ||||||||||||||
Net income | 5,394 | 4,361 | 1,884 | 1,591 | 1,919 | 1,609 | 1,503 | |||||||||||||||||||||
Shareholder value added | 3,108 | 2,517 | 1,113 | 822 | 1,173 | 807 | 731 | |||||||||||||||||||||
Return on average equity | 21.94 | % | 22.40 | % | 22.81 | % | 19.29 | % | 23.77 | % | 18.75 | % | 18.30 | % | ||||||||||||||
Efficiency ratio(2) | 46.85 | 50.91 | 44.96 | 48.34 | 47.35 | 47.37 | 50.43 | |||||||||||||||||||||
Selected Average Balance Sheet Components | ||||||||||||||||||||||||||||
Total loans and leases | $ | 142,260 | $ | 116,822 | $ | 145,715 | $ | 141,353 | $ | 139,644 | $ | 138,010 | $ | 134,201 | ||||||||||||||
Total deposits | 305,848 | 277,321 | 310,495 | 306,399 | 300,541 | 301,829 | 306,367 | |||||||||||||||||||||
Total earning assets | 303,542 | 284,234 | 304,783 | 300,668 | 305,179 | 311,991 | 315,409 | |||||||||||||||||||||
Period End(in billions) | ||||||||||||||||||||||||||||
Mortgage servicing portfolio | $ | 288.5 | $ | 268.5 | $ | 288.5 | $ | 280.1 | $ | 275.5 | $ | 273.1 | $ | 268.5 | ||||||||||||||
Mortgage originations: | ||||||||||||||||||||||||||||
Retail | 45.6 | 44.9 | 18.6 | 15.1 | 11.9 | 12.7 | 11.7 | |||||||||||||||||||||
Wholesale | 20.5 | 24.3 | 8.9 | 6.0 | 5.6 | 5.7 | 5.2 |
(1) | Global Consumer and Small Business Banking's most significant product groups 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.
16
Bank of America Corporation
E-Commerce & BankofAmerica.com
Bank of America has the largest active online banking customer base with 14.3 million subscribers.
Bank of America uses a strict Active User standard - customers must have used our online services within the last 90 days.
7.0 millionactive bill pay users paid $33.1 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 316 companies are presenting 17.4 million e-bills per quarter.
17
Bank of America Corporation
Card Services Results(1)
(Dollars in millions)
Year-to-Date September 30 | Third 2005 | Second 2005 | First 2005 | Fourth 2004 | Third 2004 | |||||||||||||||||||||||
2005 | 2004 | |||||||||||||||||||||||||||
Key Measures | ||||||||||||||||||||||||||||
Consumer Credit Card | ||||||||||||||||||||||||||||
Outstandings | ||||||||||||||||||||||||||||
On-balance sheet (Period end) | $ | 56,079 | $ | 47,554 | $ | 56,079 | $ | 53,863 | $ | 51,012 | $ | 51,726 | $ | 47,554 | ||||||||||||||
Managed (Period end) | 59,701 | 55,432 | 59,701 | 59,283 | 57,920 | 58,629 | 55,432 | |||||||||||||||||||||
On-balance sheet (Average) | 53,033 | 41,443 | 55,271 | 52,474 | 51,310 | 49,366 | 45,818 | |||||||||||||||||||||
Managed (Average) | 58,821 | 48,231 | 59,762 | 58,537 | 58,145 | 56,444 | 54,648 | |||||||||||||||||||||
Managed Income Statement | ||||||||||||||||||||||||||||
Total revenue | $ | 7,009 | $ | 5,786 | $ | 2,428 | $ | 2,338 | $ | 2,243 | $ | 2,354 | $ | 2,267 | ||||||||||||||
Provision for credit losses(2) | 3,080 | 2,220 | 1,059 | 1,204 | 817 | 1,335 | 994 | |||||||||||||||||||||
Noninterest expense | 2,031 | 1,472 | 635 | 720 | 676 | 700 | 544 | |||||||||||||||||||||
Income before income taxes | $ | 1,898 | $ | 2,094 | $ | 734 | $ | 414 | $ | 750 | $ | 319 | $ | 729 | ||||||||||||||
Shareholder Value Added | $ | 859 | $ | 1,048 | $ | 335 | $ | 143 | $ | 381 | $ | 89 | $ | 403 | ||||||||||||||
Merchant Acquiring Business | ||||||||||||||||||||||||||||
Processing volume (millions) | 251,337 | 69,710 | 91,321 | 84,262 | 75,754 | 75,383 | 24,898 | |||||||||||||||||||||
Total transactions (millions) | 5,358 | 1,025 | 1,906 | 1,832 | 1,620 | 1,756 | 374 | |||||||||||||||||||||
Consumer Credit Card | ||||||||||||||||||||||||||||
Credit Quality | ||||||||||||||||||||||||||||
On-balance sheet | ||||||||||||||||||||||||||||
Charge-offs $ | $ | 2,286 | $ | 1,614 | $ | 772 | $ | 774 | $ | 740 | $ | 691 | $ | 586 | ||||||||||||||
Charge-offs % | 5.76 | % | 5.20 | % | 5.55 | % | 5.91 | % | 5.85 | % | 5.57 | % | 5.09 | % | ||||||||||||||
Managed | ||||||||||||||||||||||||||||
Losses $ | $ | 2,657 | $ | 1,992 | $ | 864 | $ | 909 | $ | 884 | $ | 837 | $ | 753 | ||||||||||||||
Losses % | 6.04 | % | 5.52 | % | 5.74 | % | 6.23 | % | 6.17 | % | 5.90 | % | 5.48 | % | ||||||||||||||
Managed delinquency % | ||||||||||||||||||||||||||||
30+ | n/a | n/a | 4.59 | % | 4.25 | % | 4.20 | % | 4.37 | % | 4.30 | % | ||||||||||||||||
90+ | n/a | n/a | 2.17 | 1.96 | 2.10 | 2.13 | 1.98 |
n/a = not applicable
(1) | Card Services includes Consumer and Small Business Credit Card and Merchant Services. |
(2) | Includes $210 million for the nine months ended September 30, 2005, and three 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.
18
Bank of America Corporation
Global Business and Financial Services Segment Results(1)
(Dollars in millions)
Year-to-Date September 30 | Third 2005 | Second 2005 | First 2005 | Fourth 2004 | Third 2004 | |||||||||||||||||||||||
2005 | 2004 | |||||||||||||||||||||||||||
Key Measures | ||||||||||||||||||||||||||||
Net interest income(2) | $ | 5,761 | $ | 4,673 | $ | 1,959 | $ | 1,896 | $ | 1,906 | $ | 1,861 | $ | 1,780 | ||||||||||||||
Noninterest income | ||||||||||||||||||||||||||||
Service charges | 1,106 | 925 | 377 | 362 | 367 | 362 | 373 | |||||||||||||||||||||
Investment & brokerage services | 161 | 117 | 64 | 49 | 48 | 51 | 48 | |||||||||||||||||||||
Investment banking income | 97 | 83 | 41 | 34 | 22 | 49 | 25 | |||||||||||||||||||||
Equity investment gains | 60 | 37 | 34 | 8 | 18 | 15 | 6 | |||||||||||||||||||||
Card income | 80 | 54 | 28 | 26 | 26 | 29 | 22 | |||||||||||||||||||||
Trading account profits | 110 | 91 | 44 | 36 | 30 | 37 | 47 | |||||||||||||||||||||
All other income | 885 | 553 | 307 | 272 | 306 | 314 | 218 | |||||||||||||||||||||
Total noninterest income | 2,499 | 1,860 | 895 | 787 | 817 | 857 | 739 | |||||||||||||||||||||
Total revenue(2) | $ | 8,260 | $ | 6,533 | $ | 2,854 | $ | 2,683 | $ | 2,723 | $ | 2,718 | $ | 2,519 | ||||||||||||||
Provision for credit losses | $ | (154 | ) | $ | (156 | ) | $ | 79 | $ | (189 | ) | $ | (44 | ) | $ | (286 | ) | $ | (236 | ) | ||||||||
Net income | 3,427 | 2,629 | 1,102 | 1,226 | 1,099 | 1,215 | 1,190 | |||||||||||||||||||||
Shareholder value added | 1,127 | 874 | 333 | 466 | 328 | 423 | 400 | |||||||||||||||||||||
Return on average equity | 15.71 | % | 15.77 | % | 15.13 | % | 17.00 | % | 15.03 | % | 16.15 | % | 15.86 | % | ||||||||||||||
Efficiency ratio(2) | 37.17 | 39.51 | 36.85 | 37.78 | 36.92 | 37.43 | 36.58 | |||||||||||||||||||||
Selected Average Balance | ||||||||||||||||||||||||||||
Sheet Components | ||||||||||||||||||||||||||||
Total loans and leases | $ | 177,264 | $ | 146,347 | $ | 183,937 | $ | 176,371 | $ | 171,347 | $ | 167,741 | $ | 164,811 | ||||||||||||||
Total deposits | 106,740 | 89,063 | 107,963 | 106,625 | 105,607 | 105,737 | 102,252 | |||||||||||||||||||||
Total earning assets | 188,796 | 154,844 | 195,735 | 188,019 | 182,490 | 178,582 | 175,381 |
(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.
19
Bank of America Corporation
Global Capital Markets and Investment Banking Segment Results(1)
(Dollars in millions)
Year-to-Date September 30 | Third 2005 | Second 2005 | First 2005 | Fourth 2004 | Third 2004 | |||||||||||||||||||||||
2005 | 2004 | |||||||||||||||||||||||||||
Key Measures | ||||||||||||||||||||||||||||
Net interest income(2) | $ | 2,571 | $ | 3,101 | $ | 772 | $ | 868 | $ | 931 | $ | 957 | $ | 952 | ||||||||||||||
Noninterest income | ||||||||||||||||||||||||||||
Service charges | 868 | 967 | 293 | 293 | 282 | 320 | 343 | |||||||||||||||||||||
Investment & brokerage services | 599 | 526 | 198 | 208 | 193 | 179 | 163 | |||||||||||||||||||||
Investment banking income | 1,248 | 1,333 | 491 | 407 | 350 | 449 | 420 | |||||||||||||||||||||
Equity investment gains | 160 | 49 | 39 | 5 | 116 | 9 | 31 | |||||||||||||||||||||
Card income | 117 | 115 | 44 | 40 | 33 | 36 | 42 | |||||||||||||||||||||
Trading account profits | 1,448 | 790 | 484 | 258 | 706 | 233 | 136 | |||||||||||||||||||||
All other income | 52 | (29 | ) | 2 | 35 | 15 | 11 | (21 | ) | |||||||||||||||||||
Total noninterest income | 4,492 | 3,751 | 1,551 | 1,246 | 1,695 | 1,237 | 1,114 | |||||||||||||||||||||
Total revenue(2) | $ | 7,063 | $ | 6,852 | $ | 2,323 | $ | 2,114 | $ | 2,626 | $ | 2,194 | $ | 2,066 | ||||||||||||||
Provision for credit losses | $ | (236 | ) | $ | (247 | ) | $ | (69 | ) | $ | (60 | ) | $ | (107 | ) | $ | (198 | ) | $ | (152 | ) | |||||||
Net income | 1,613 | 1,335 | 434 | 449 | 730 | 589 | 471 | |||||||||||||||||||||
Shareholder value added | 808 | 570 | 163 | 185 | 460 | 303 | 185 | |||||||||||||||||||||
Return on average equity | 21.11 | % | 18.45 | % | 16.90 | % | 17.91 | % | 28.46 | % | 21.73 | % | 17.34 | % | ||||||||||||||
Efficiency ratio(2) | 69.03 | 73.81 | 73.86 | 72.10 | 62.30 | 69.46 | 72.99 | |||||||||||||||||||||
Selected Average Balance | ||||||||||||||||||||||||||||
Sheet Components | ||||||||||||||||||||||||||||
Total loans and leases | $ | 32,865 | $ | 33,889 | $ | 32,280 | $ | 31,647 | $ | 34,693 | $ | 33,896 | $ | 35,370 | ||||||||||||||
Total deposits | 84,207 | 72,609 | 83,042 | 86,907 | 82,667 | 81,078 | 72,224 | |||||||||||||||||||||
Total earning assets | 355,125 | 265,360 | 371,229 | 374,277 | 319,299 | 305,976 | 270,033 |
(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.
20
Bank of America Corporation
Global Capital Markets and Investment Banking
(Dollars in millions)
Year-to-Date September 30 | Third 2005 | Second 2005 | First 2005 | Fourth 2004 | Third 2004 | ||||||||||||||||||||
2005 | 2004 | ||||||||||||||||||||||||
Revenue | |||||||||||||||||||||||||
Trading-related revenue: | |||||||||||||||||||||||||
Debt | $ | 2,069 | $ | 2,358 | $ | 711 | $ | 482 | $ | 876 | $ | 609 | $ | 580 | |||||||||||
Equity | 965 | 613 | 363 | 265 | 337 | 249 | 193 | ||||||||||||||||||
Other | 148 | (65 | ) | (78 | ) | 130 | 96 | (35 | ) | (36 | ) | ||||||||||||||
Total market-based trading related revenue | 3,182 | 2,906 | 996 | 877 | 1,309 | 823 | 737 | ||||||||||||||||||
Investment banking fees: | |||||||||||||||||||||||||
Debt | 828 | 956 | 308 | 271 | 249 | 309 | 313 | ||||||||||||||||||
Equity | 188 | 220 | 94 | 57 | 37 | 83 | 54 | ||||||||||||||||||
Mergers and acquisitions | 223 | 137 | 89 | 73 | 61 | 52 | 47 | ||||||||||||||||||
Total investment banking | 1,239 | 1,313 | 491 | 401 | 347 | 444 | 414 | ||||||||||||||||||
Other | 405 | 111 | 106 | 140 | 159 | 74 | 36 | ||||||||||||||||||
Capital Markets Revenue | 4,826 | 4,330 | 1,593 | 1,418 | 1,815 | 1,341 | 1,187 | ||||||||||||||||||
Other revenue: | |||||||||||||||||||||||||
Credit-related revenue | 671 | 880 | 195 | 198 | 278 | 271 | 293 | ||||||||||||||||||
Global treasury services | 1,651 | 1,631 | 539 | 548 | 564 | 583 | 587 | ||||||||||||||||||
Total other revenue | 2,322 | 2,511 | 734 | 746 | 842 | 854 | 880 | ||||||||||||||||||
Total revenue including debt securities gains | $ | 7,148 | $ | 6,841 | $ | 2,327 | $ | 2,164 | $ | 2,657 | $ | 2,195 | $ | 2,067 | |||||||||||
Information for periods after April 1, 2004 includes the FleetBoston acquisition; prior periods have not been restated.
21
Bank of America Corporation
Global Capital Markets and Investment Banking
(Dollars in millions)
Year-to-Date September 30 | Third 2005 | Second 2005 | First 2005 | Fourth 2004 | Third 2004 | ||||||||||||||||||||
2005 | 2004 | ||||||||||||||||||||||||
Trading-related Revenue and Equity Commissions | |||||||||||||||||||||||||
Net interest income(1) | $ | 1,144 | $ | 1,622 | $ | 316 | $ | 414 | $ | 414 | $ | 417 | $ | 448 | |||||||||||
Trading account profits | 1,448 | 790 | 484 | 258 | 706 | 233 | 136 | ||||||||||||||||||
Total trading-related revenue | 2,592 | 2,412 | 800 | 672 | 1,120 | 650 | 584 | ||||||||||||||||||
Equity commissions(2) | 590 | 494 | 196 | 205 | 189 | 173 | 153 | ||||||||||||||||||
Total | $ | 3,182 | $ | 2,906 | $ | 996 | $ | 877 | $ | 1,309 | $ | 823 | $ | 737 | |||||||||||
Trading-related revenue by product and equity commissions | |||||||||||||||||||||||||
Fixed income | $ | 894 | $ | 1,264 | $ | 336 | $ | 107 | $ | 451 | $ | 283 | $ | 299 | |||||||||||
Interest rate(1) | 590 | 572 | 176 | 185 | 229 | 95 | 118 | ||||||||||||||||||
Foreign exchange | 585 | 521 | 199 | 190 | 196 | 231 | 163 | ||||||||||||||||||
Equities | 375 | 120 | 167 | 60 | 148 | 75 | 40 | ||||||||||||||||||
Equity commissions(2) | 590 | 494 | 196 | 205 | 189 | 173 | 153 | ||||||||||||||||||
Commodities | 53 | 12 | (35 | ) | 67 | 21 | 33 | 18 | |||||||||||||||||
Market-based trading-related revenue and equity commissions | 3,087 | 2,983 | 1,039 | 814 | 1,234 | 890 | 791 | ||||||||||||||||||
Credit portfolio hedges(3) | 95 | (77 | ) | (43 | ) | 63 | 75 | (67 | ) | (54 | ) | ||||||||||||||
Total | $ | 3,182 | $ | 2,906 | $ | 996 | $ | 877 | $ | 1,309 | $ | 823 | $ | 737 | |||||||||||
Year-to-Date September 30 | Third 2005 | Second 2005 | First 2005 | Fourth 2004 | Third 2004 | ||||||||||||||||||||
2005 | 2004 | ||||||||||||||||||||||||
Investment Banking Income | |||||||||||||||||||||||||
Securities underwriting | $ | 583 | $ | 711 | $ | 245 | $ | 181 | $ | 157 | $ | 209 | $ | 219 | |||||||||||
Syndications | 341 | 381 | 104 | 125 | 112 | 140 | 128 | ||||||||||||||||||
Advisory services | 305 | 216 | 135 | 95 | 75 | 94 | 66 | ||||||||||||||||||
Other | 19 | 25 | 7 | 6 | 6 | 7 | 7 | ||||||||||||||||||
Total investment banking income | $ | 1,248 | $ | 1,333 | $ | 491 | $ | 407 | $ | 350 | $ | 450 | $ | 420 | |||||||||||
(1) | Fully taxable-equivalent basis |
(2) | Included in Investment and Brokerage Services in the Consolidated Statement of Income. |
(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.
22
Bank of America Corporation
Global Capital Markets & Investment Banking Strategic Progress Continues
Banc of America Securities Market Share and Industry Ranking
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 and investment grade.
• | #1 in syndicated loans and leveraged loans, ranked by number of deals |
• | #1 in leveraged loans |
• | #1 in high yield |
• | Investment grade rank rose to #4 from #8 in YTD 04 |
• | Top 5 rankings in: |
Leveraged loans
High yield
Syndicated loans
Investment grade
Mortgage-backed securities
23
Bank of America Corporation
Global Wealth and Investment Management Segment Results(1)
(Dollars in millions)
Year-to-Date September 30 | Third 2005 | Second 2005 | First 2005 | Fourth 2004 | Third 2004 | |||||||||||||||||||||||
2005 | 2004 | |||||||||||||||||||||||||||
Key Measures | ||||||||||||||||||||||||||||
Net interest income(2) | $ | 2,777 | $ | 2,034 | $ | 926 | $ | 910 | $ | 941 | $ | 834 | $ | 757 | ||||||||||||||
Noninterest income | ||||||||||||||||||||||||||||
Service charges | 65 | 61 | 23 | 21 | 21 | 21 | 21 | |||||||||||||||||||||
Investment & brokerage services | 2,334 | 1,962 | 788 | 783 | 763 | 767 | 760 | |||||||||||||||||||||
Equity investment gains | 96 | 3 | 31 | 65 | — | 1 | 1 | |||||||||||||||||||||
Trading account profits | 71 | 62 | 20 | 19 | 32 | 23 | 23 | |||||||||||||||||||||
All other income | 122 | 130 | 47 | 38 | 37 | 35 | 43 | |||||||||||||||||||||
Total noninterest income | 2,688 | 2,218 | 909 | 926 | 853 | 847 | 848 | |||||||||||||||||||||
Total revenue(2) | $ | 5,465 | $ | 4,252 | $ | 1,835 | $ | 1,836 | $ | 1,794 | $ | 1,681 | $ | 1,605 | ||||||||||||||
Provision for credit losses | $ | (6 | ) | $ | (16 | ) | $ | 1 | $ | (9 | ) | $ | 2 | $ | (4 | ) | $ | (18 | ) | |||||||||
Net income | 1,752 | 1,122 | 583 | 592 | 577 | 483 | 476 | |||||||||||||||||||||
Shareholder value added | 985 | 527 | 326 | 330 | 329 | 228 | 236 | |||||||||||||||||||||
Return on average equity | 23.42 | % | 19.33 | % | 23.23 | % | 23.24 | % | 23.79 | % | 19.38 | % | 20.21 | % | ||||||||||||||
Efficiency ratio(2) | 50.03 | 58.86 | 49.85 | 50.04 | 50.20 | 55.23 | 54.40 | |||||||||||||||||||||
Selected Average Balance | ||||||||||||||||||||||||||||
Sheet Components | ||||||||||||||||||||||||||||
Total loans and leases | $ | 52,983 | $ | 42,749 | $ | 55,175 | $ | 52,967 | $ | 50,759 | $ | 47,956 | $ | 45,654 | ||||||||||||||
Total deposits | 116,140 | 76,527 | 116,068 | 118,234 | 114,098 | 102,489 | 87,909 | |||||||||||||||||||||
Total earning assets | 118,189 | 78,662 | 117,810 | 120,474 | 116,263 | 104,929 | 90,135 | |||||||||||||||||||||
Period End (in billions) | ||||||||||||||||||||||||||||
Assets under management | $ | 457.4 | $ | 429.5 | $ | 457.4 | $ | 442.8 | $ | 433.4 | $ | 451.5 | $ | 429.5 | ||||||||||||||
Client brokerage assets | 155.6 | 141.9 | 155.6 | 150.9 | 150.7 | 149.9 | 141.9 | |||||||||||||||||||||
Assets in custody | 96.1 | 104.0 | 96.1 | 101.7 | 100.8 | 107.0 | 104.0 | |||||||||||||||||||||
Total client assets | $ | 709.1 | $ | 675.4 | $ | 709.1 | $ | 695.4 | $ | 684.9 | $ | 708.4 | $ | 675.4 | ||||||||||||||
(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.
24
Bank of America Corporation
All Other Results(1)
(Dollars in millions)
Year-to-Date September 30 | Third 2005 | Second 2005 | First 2005 | Fourth 2004 | Third 2004 | |||||||||||||||||||||||
2005 | 2004 | |||||||||||||||||||||||||||
Key Measures | ||||||||||||||||||||||||||||
Net interest income(2) | $ | 98 | $ | 139 | $ | 46 | $ | 25 | $ | 27 | $ | 1 | $ | 1 | ||||||||||||||
Noninterest income | ||||||||||||||||||||||||||||
Investment & brokerage services | 28 | 1 | 10 | 9 | 9 | 11 | 1 | |||||||||||||||||||||
Mortgage banking income | (195 | ) | (182 | ) | (68 | ) | (65 | ) | (62 | ) | (65 | ) | (62 | ) | ||||||||||||||
Equity investment gains | 1,243 | 348 | 564 | 414 | 265 | 401 | 182 | |||||||||||||||||||||
Trading account profits | (59 | ) | 16 | (29 | ) | (25 | ) | (5 | ) | (21 | ) | (19 | ) | |||||||||||||||
All other income | (116 | ) | (318 | ) | (130 | ) | 156 | (142 | ) | (120 | ) | (113 | ) | |||||||||||||||
Total noninterest income | 901 | (135 | ) | 347 | 489 | 65 | 206 | (11 | ) | |||||||||||||||||||
Total revenue(2) | $ | 999 | $ | 4 | $ | 393 | $ | 514 | $ | 92 | $ | 207 | $ | (10 | ) | |||||||||||||
Provision for credit losses | $ | 38 | $ | 394 | $ | 41 | $ | (22 | ) | $ | 19 | $ | (50 | ) | $ | 44 | ||||||||||||
Net income(3) | 932 | 847 | 124 | 438 | 370 | (47 | ) | 124 | ||||||||||||||||||||
Shareholder value added | (204 | ) | (39 | ) | (305 | ) | 86 | 15 | (227 | ) | (99 | ) | ||||||||||||||||
Selected Average Balance | ||||||||||||||||||||||||||||
Sheet Components | ||||||||||||||||||||||||||||
Total loans and leases | $ | 122,967 | $ | 118,461 | $ | 122,380 | $ | 118,086 | $ | 128,501 | $ | 127,860 | $ | 123,041 | ||||||||||||||
Total deposits | 20,679 | 16,438 | 15,203 | 22,428 | 24,507 | 18,803 | 19,126 | |||||||||||||||||||||
Total earning assets | 135,041 | 91,076 | 148,062 | 135,089 | 121,683 | 96,526 | 97,425 |
(1) | All Other consists primarily of Equity Investments, noninterest income and expense amounts associated with the Asset and Liability Management process (including gains on sales of debt securities), the residual impact of the allowance for credit losses processes and funds transfer pricing 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, $235 million and $230 million for the nine months ended September 30, 2005 and 2004, $80 million, $80 million, $75 million, $181 million and $147 million for the three months ended September 30, 2005, June 30, 2005, March 31, 2005, December 31, 2004 and September 30, 2004. |
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.
25
Bank of America Corporation
Outstanding Loans and Leases
(Dollars in millions)
September 30 2005 | June 30 2005 | Increase (Decrease) from 6/30/05 | ||||||||
Residential mortgage | $ | 177,317 | $ | 170,057 | $ | 7,260 | ||||
Credit card | 56,079 | 53,863 | 2,216 | |||||||
Home equity lines | 59,337 | 56,839 | 2,498 | |||||||
Direct/Indirect consumer | 49,585 | 43,247 | 6,338 | |||||||
Other consumer(1) | 6,639 | 6,829 | (190 | ) | ||||||
Total consumer | 348,957 | 330,835 | 18,122 | |||||||
Commercial - domestic | 130,730 | 124,080 | 6,650 | |||||||
Commercial real estate(2) | 35,794 | 34,537 | 1,257 | |||||||
Commercial lease financing | 20,284 | 20,628 | (344 | ) | ||||||
Commercial - foreign | 18,838 | 19,338 | (500 | ) | ||||||
Total commercial | 205,646 | 198,583 | 7,063 | |||||||
Total | $ | 554,603 | $ | 529,418 | $ | 25,185 | ||||
(1) | Includes consumer finance of $2,988 million and $3,144 million; foreign consumer of $3,575 million and $3,505 million; and consumer lease financing of $76 million and $180 million at September 30, 2005 and June 30, 2005. |
(2) | Includes domestic commercial real estate loans of $35,116 million and $34,020 million; and foreign commercial real estate loans of $678 million and $517 million at September 30, 2005 and June 30, 2005. |
Information for periods after April 1, 2004 includes the FleetBoston acquisition; prior periods have not been restated.
26
Bank of America Corporation
Commercial Utilized Credit Exposure by Industry(1)
(Dollars in millions)
September 30 2005 | June 30 2005 | % Increase (Decrease) from 6/30/05 | |||||||
Real estate(2) | $ | 42,839 | $ | 39,233 | 9 | % | |||
Retailing | 25,046 | 24,294 | 3 | ||||||
Banks | 23,831 | 22,332 | 7 | ||||||
Diversified financials | 22,167 | 23,361 | (5 | ) | |||||
Education and government | 21,436 | 19,207 | 12 | ||||||
Individuals and trusts | 17,230 | 16,468 | 5 | ||||||
Consumer durables and apparel | 14,501 | 13,921 | 4 | ||||||
Materials | 13,914 | 14,607 | (5 | ) | |||||
Transportation | 12,904 | 13,188 | (2 | ) | |||||
Capital goods | 12,750 | 13,097 | (3 | ) | |||||
Commercial services and supplies | 12,667 | 12,627 | 0 | ||||||
Leisure and sports, hotels and restaurants | 12,657 | 14,002 | (10 | ) | |||||
Healthcare equipment and services | 11,985 | 11,895 | 1 | ||||||
Food, beverage and tobacco | 11,150 | 10,508 | 6 | ||||||
Energy | 10,769 | 9,079 | 19 | ||||||
Religious and social organizations | 6,140 | 5,812 | 6 | ||||||
Media | 5,727 | 5,834 | (2 | ) | |||||
Utilities | 5,362 | 4,739 | 13 | ||||||
Insurance | 4,760 | 5,151 | (8 | ) | |||||
Food and staples retailing | 3,531 | 3,495 | 1 | ||||||
Telecommunication services | 3,486 | 3,383 | 3 | ||||||
Technology hardware and equipment | 3,378 | 2,998 | 13 | ||||||
Software and services | 2,483 | 2,828 | (12 | ) | |||||
Automobiles and components | 1,874 | 1,789 | 5 | ||||||
Pharmaceuticals and biotechnology | 1,384 | 1,334 | 4 | ||||||
Household and personal products | 457 | 319 | 43 | ||||||
Other | 2,864 | 2,868 | (0 | ) | |||||
Total | $ | 307,292 | $ | 298,369 | 3 | ||||
(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. Derivative asset collateral totaled $17.8 billion and $17.4 billion at September 30, 2005 and June 30, 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.
27
Bank of America Corporation
Net Credit Default Swaps
(Dollars in millions)
Summary by Debt Rating at September 30, 2005
Ratings | Notional | Percent | ||||
AAA | $ | 4 | 0.0 | % | ||
AA | 637 | 3.8 | ||||
A | 4,941 | 29.2 | ||||
BBB | 8,396 | 49.7 | ||||
BB | 2,158 | 12.8 | ||||
B | 341 | 2.0 | ||||
CCC/CC | 103 | 0.6 | ||||
Indices | 325 | 1.9 | ||||
Total | $ | 16,905 | 100.0 | % | ||
28
Bank of America Corporation
Nonperforming Assets
(Dollars in millions)
September 30 2005 | June 30 2005 | March 31 2005 | December 31 2004 | September 30 2004 | ||||||||||||||||
Residential mortgage | $ | 493 | $ | 494 | $ | 536 | $ | 554 | $ | 532 | ||||||||||
Home equity lines | 88 | 75 | 70 | 66 | 51 | |||||||||||||||
Direct/Indirect consumer | 32 | 33 | 32 | 33 | 26 | |||||||||||||||
Other consumer | 75 | 76 | 83 | 85 | 94 | |||||||||||||||
Total consumer | 688 | 678 | 721 | 738 | 703 | |||||||||||||||
Commercial - domestic | 641 | 662 | 811 | 855 | 991 | |||||||||||||||
Commercial real estate | 44 | 60 | 64 | 87 | 136 | |||||||||||||||
Commercial lease financing | 61 | 282 | 249 | 266 | 243 | |||||||||||||||
Commercial - foreign | 64 | 88 | 228 | 267 | 473 | |||||||||||||||
Total commercial | 810 | 1,092 | 1,352 | 1,475 | 1,843 | |||||||||||||||
Total nonperforming loans and leases | 1,498 | 1,770 | 2,073 | 2,213 | 2,546 | |||||||||||||||
Nonperforming securities(1) | — | 14 | 153 | 140 | 157 | |||||||||||||||
Foreclosed properties | 99 | 111 | 112 | 102 | 133 | |||||||||||||||
Total nonperforming assets(2) | $ | 1,597 | $ | 1,895 | $ | 2,338 | $ | 2,455 | $ | 2,836 | ||||||||||
Loans past due 90 days or more and still accruing | $ | 1,417 | $ | 1,235 | $ | 1,211 | $ | 1,294 | $ | 1,120 | ||||||||||
Nonperforming assets / Total assets | 0.13 | % | 0.15 | % | 0.19 | % | 0.22 | % | 0.26 | % | ||||||||||
Nonperforming assets / Total loans, leases and foreclosed properties | 0.29 | 0.36 | 0.44 | 0.47 | 0.55 | |||||||||||||||
Nonperforming loans and leases / Total loans and leases | 0.27 | 0.33 | 0.39 | 0.42 | 0.50 | |||||||||||||||
Allowance for credit losses: | ||||||||||||||||||||
Allowance for loan and lease losses | $ | 8,326 | $ | 8,319 | $ | 8,313 | $ | 8,626 | $ | 8,723 | ||||||||||
Reserve for unfunded lending commitments | 390 | 383 | 394 | 402 | 446 | |||||||||||||||
Total | $ | 8,716 | $ | 8,702 | $ | 8,707 | $ | 9,028 | $ | 9,169 | ||||||||||
Allowance for loan and lease losses / Total loans and leases | 1.50 | % | 1.57 | % | 1.57 | % | 1.65 | % | 1.70 | % | ||||||||||
Allowance for loan and lease losses / Total nonperforming loans and leases | 556 | 470 | 401 | 390 | 343 | |||||||||||||||
Commercial criticized exposure | $ | 7,632 | $ | 7,731 | $ | 8,858 | $ | 10,249 | $ | 12,025 | ||||||||||
Commercial criticized exposure / Commercial utilized exposure | 2.48 | % | 2.59 | % | 2.95 | % | 3.44 | % | 4.13 | % |
Loans are classified as domestic or foreign based upon the domicile of the borrower.
(1) | The decline in nonperforming securities at June 30, 2005 was primarily driven by an exchange of nonperforming securities for a combination of performing securities and performing guaranteed loans. |
(2) | Balances do not include $93, $49, $76, $151 and $100 of nonperforming assets, primarily loans held-for-sale, included in Other Assets at September 30, 2005, June 30, 2005, March 31, 2005, December 31, 2004 and September 30, 2004, respectively. |
Information for periods after April 1, 2004 includes the FleetBoston acquisition; prior periods have not been restated.
29
Bank of America Corporation
Quarterly Net Charge-offs and Net Charge-off Ratios
(Dollars in millions)
Third Quarter 2005 | Second Quarter 2005 | First Quarter 2005 | Fourth Quarter 2004 | Third Quarter 2004 | |||||||||||||||||||||||||||||||
Amount | Percent | Amount | Percent | Amount | Percent | Amount | Percent | Amount | Percent | ||||||||||||||||||||||||||
Residential mortgage | $ | 7 | 0.02 | % | $ | 11 | 0.03 | % | $ | 4 | 0.01 | % | $ | 6 | 0.01 | % | $ | 7 | 0.02 | % | |||||||||||||||
Credit card | 772 | 5.55 | 774 | 5.91 | 740 | 5.85 | 691 | 5.57 | 586 | 5.09 | |||||||||||||||||||||||||
Home equity lines | 9 | 0.06 | 9 | 0.07 | 6 | 0.05 | 4 | 0.03 | 2 | 0.02 | |||||||||||||||||||||||||
Direct/Indirect consumer | 60 | 0.50 | 46 | 0.43 | 61 | 0.60 | 55 | 0.55 | 56 | 0.57 | |||||||||||||||||||||||||
Other consumer(1) | 58 | 3.42 | 43 | 2.48 | 56 | 3.12 | 45 | 2.39 | 49 | 2.53 | |||||||||||||||||||||||||
Total consumer | 906 | 1.06 | 883 | 1.09 | 867 | 1.07 | 801 | 0.98 | 700 | 0.89 | |||||||||||||||||||||||||
Commercial - domestic | 54 | 0.17 | (7 | ) | (0.02 | ) | 26 | 0.09 | 27 | 0.09 | 25 | 0.08 | |||||||||||||||||||||||
Commercial real estate | 2 | 0.02 | 1 | 0.01 | 0 | 0.00 | 1 | 0.02 | 1 | 0.02 | |||||||||||||||||||||||||
Commercial lease financing | 209 | 4.06 | 9 | 0.19 | 25 | 0.48 | 11 | 0.21 | (3 | ) | (0.07 | ) | |||||||||||||||||||||||
Commercial - foreign | (26 | ) | (0.55 | ) | (6 | ) | (0.15 | ) | (29 | ) | (0.66 | ) | 5 | 0.09 | (4 | ) | (0.09 | ) | |||||||||||||||||
Total commercial | 239 | 0.47 | (3 | ) | (0.01 | ) | 22 | 0.05 | 44 | 0.09 | 19 | 0.04 | |||||||||||||||||||||||
Total net charge-offs | $ | 1,145 | 0.84 | $ | 880 | 0.68 | $ | 889 | 0.69 | $ | 845 | 0.65 | $ | 719 | 0.57 | ||||||||||||||||||||
By Business Segment: | |||||||||||||||||||||||||||||||||||
Global Consumer and Small Business Banking | $ | 887 | 2.42 | % | $ | 861 | 2.44 | % | $ | 817 | 2.38 | % | $ | 756 | 2.18 | % | $ | 652 | 1.94 | % | |||||||||||||||
Global Business and Financial Services | 292 | 0.63 | (8 | ) | (0.02 | ) | 82 | 0.19 | 72 | 0.17 | 36 | 0.09 | |||||||||||||||||||||||
Global Capital Markets and Investment Banking | (52 | ) | (0.63 | ) | 3 | 0.04 | (43 | ) | (0.50 | ) | (25 | ) | (0.29 | ) | (8 | ) | (0.09 | ) | |||||||||||||||||
Global Wealth and Investment Management | (1 | ) | (0.01 | ) | 5 | 0.04 | 0 | 0.00 | 3 | 0.03 | 1 | 0.01 | |||||||||||||||||||||||
All Other | 19 | 0.06 | 19 | 0.07 | 33 | 0.10 | 39 | 0.12 | 38 | 0.12 | |||||||||||||||||||||||||
Total net charge-offs | $ | 1,145 | 0.84 | $ | 880 | 0.68 | $ | 889 | 0.69 | $ | 845 | 0.65 | $ | 719 | 0.57 | ||||||||||||||||||||
Loans are classified as domestic or foreign based upon the domicile of the borrower.
(1) | Includes lease financing of $2 million, $2 million, $3 million, $5 million and $7 million for the quarters ended September 30, 2005, June 30, 2005, March 31, 2005, December 31, 2004 and September 30, 2004, respectively. |
Net Charge-offs
Information for periods after April 1, 2004 includes the FleetBoston acquisition; prior periods have not been restated.
30
Bank of America Corporation
Year-to-Date Net Charge-offs and Net Charge-off Ratios
(Dollars in millions)
Nine Months Ended September 30 | ||||||||||||||
2005 | 2004 | |||||||||||||
Amount | Percent | Amount | Percent | |||||||||||
Residential mortgage | $ | 22 | 0.02 | % | $ | 30 | 0.02 | % | ||||||
Credit card | 2,286 | 5.76 | 1,614 | 5.20 | ||||||||||
Home equity lines | 24 | 0.06 | 11 | 0.04 | ||||||||||
Direct/Indirect consumer | 167 | 0.50 | 153 | 0.54 | ||||||||||
Other consumer(1) | 157 | 3.00 | 148 | 2.55 | ||||||||||
Total consumer | 2,656 | 1.07 | 1,956 | 0.91 | ||||||||||
Commercial - domestic | 73 | 0.08 | 150 | 0.18 | ||||||||||
Commercial real estate | 3 | 0.01 | (5 | ) | (0.02 | ) | ||||||||
Commercial lease financing | 243 | 1.58 | (1 | ) | (0.02 | ) | ||||||||
Commercial - foreign | (61 | ) | (0.45 | ) | 168 | 1.43 | ||||||||
Total commercial | 258 | 0.18 | 312 | 0.24 | ||||||||||
Total net charge-offs | $ | 2,914 | 0.74 | $ | 2,268 | 0.66 | ||||||||
By Business Segment: | ||||||||||||||
Global Consumer and Small Business Banking | $ | 2,565 | 2.41 | % | $ | 1,786 | 2.04 | % | ||||||
Global Business and Financial Services | 366 | 0.28 | 194 | 0.18 | ||||||||||
Global Capital Markets and Investment Banking | (92 | ) | (0.37 | ) | 151 | 0.59 | ||||||||
Global Wealth and Investment Management | 4 | 0.01 | 2 | 0.01 | ||||||||||
All Other | 71 | 0.08 | 135 | 0.15 | ||||||||||
Total net charge-offs | $ | 2,914 | 0.74 | $ | 2,268 | 0.66 | ||||||||
Loans are classified as domestic or foreign based upon the domicile of the borrower.
(1) | Includes lease financing of $7 million and $22 million for the nine months ended September 30, 2005 and 2004. |
Information for periods after April 1, 2004 includes the FleetBoston acquisition; prior periods have not been restated.
31
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 (4,5,6) | Total Cross- border Exposure (7) | Local Country Exposure Net of Local Liabilities (8) | Total Foreign Exposure September 30, 2005 | Increase/ (Decrease) from December 31, 2004 | |||||||||||||||||
Region/Country | |||||||||||||||||||||||||
Latin America | |||||||||||||||||||||||||
Brazil(9) | $ | 741 | $ | 164 | $ | 121 | $ | 48 | $ | 1,074 | $ | 2,768 | $ | 3,842 | $ | 292 | |||||||||
Mexico | 790 | 157 | 58 | 2,218 | 3,223 | 0 | 3,223 | 357 | |||||||||||||||||
Chile | 234 | 14 | 37 | 5 | 290 | 615 | 905 | (275 | ) | ||||||||||||||||
Argentina | 114 | 18 | 0 | 81 | 213 | 0 | 213 | (178 | ) | ||||||||||||||||
Other Latin America(10) | 205 | 109 | 9 | 91 | 414 | 11 | 425 | (650 | ) | ||||||||||||||||
Total Latin America | 2,084 | 462 | 225 | 2,443 | 5,214 | 3,394 | 8,608 | (454 | ) | ||||||||||||||||
Asia Pacific | |||||||||||||||||||||||||
China(6) | 69 | 72 | 23 | 2,561 | 2,725 | 0 | 2,725 | 2,617 | |||||||||||||||||
South Korea | 392 | 499 | 51 | 725 | 1,667 | 0 | 1,667 | 284 | |||||||||||||||||
India | 416 | 107 | 276 | 452 | 1,251 | 178 | 1,429 | (63 | ) | ||||||||||||||||
Taiwan | 259 | 104 | 104 | 30 | 497 | 327 | 824 | (503 | ) | ||||||||||||||||
Hong Kong | 270 | 51 | 44 | 342 | 707 | 0 | 707 | (412 | ) | ||||||||||||||||
Singapore | 211 | 7 | 55 | 185 | 458 | 0 | 458 | 118 | |||||||||||||||||
Other Asia Pacific(10) | 27 | 67 | 37 | 423 | 554 | 162 | 716 | 170 | |||||||||||||||||
Total Asia Pacific | 1,644 | 907 | 590 | 4,718 | 7,859 | 667 | 8,526 | 2,211 | |||||||||||||||||
Central and Eastern Europe(10) | 20 | 58 | 19 | 78 | 175 | 0 | 175 | (66 | ) | ||||||||||||||||
Total | $ | 3,748 | $ | 1,427 | $ | 834 | $ | 7,239 | $ | 13,248 | $ | 4,061 | $ | 17,309 | $ | 1,691 | |||||||||
(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. Derivative asset collateral totaled $13 million and $361 million at September 30, 2005 and December 31, 2004. |
(4) | Amounts outstanding for Other Latin America and Other Asia Pacific have been reduced by $35 million and $15 million at September 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) | Includes $2.5 billion investment in CCB made in the third quarter of 2005. |
(7) | 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. |
(8) | 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 available local liabilities funding local country exposure at September 30, 2005 was $19.9 billion compared to $17.2 billion at December 31, 2004. Local liabilities at September 30, 2005 in Latin America and Asia Pacific was $10.6 billion and $9.2 billion, of which $5.0 billion was in Brazil, $4.2 billion in Hong Kong, $2.5 billion in Singapore, $2.0 billion in Argentina, $1.5 billion in Chile, $1.3 billion in Mexico, $0.8 billion in Uruguay and $0.6 billion each in India and Korea. There were no other countries with available local liabilities funding local country exposure greater than $0.5 billion. |
(9) | The Corporation has risk mitigation instruments associated with certain exposures for Brazil, including structured trade related transfer risk mitigation of $865 million and $950 million, third party funding of $382 million and $286 million, and linked certificates of deposit of $66 million and $125 million at September 30, 2005 and December 31, 2004. The resulting total foreign exposure net of risk mitigation was $2.5 billion and $2.2 billion at September 30, 2005 and December 31, 2004. |
(10) | 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.
32