November 28, 2001 Exhibit 99.1
Investors May Contact:
Susan Carr, 704.386.8059
Kevin Stitt, 704.386.5667
Reporters May Contact:
Eloise Hale, 704.387.0013
eloise.hale@bankofamerica.com
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Bank of America sets long-term goal of more than
10 percent annual EPS growth
Management shares strategic vision at Investor Day;
Gives short- and long-term financial outlook
CHARLOTTE -- Bank of America Corporation told investors today that it has the
strategies and initiatives in place to pursue its goal of achieving long-term
annual earnings per share growth of more than 10 percent.
Kenneth D. Lewis, chairman and chief executive officer, kicked off the company's
Investor Day with his strategic vision. "Our goal today is to help you see in
Bank of America what we see - a company that has posted strong financial results
in recent quarters, a company that is building financial momentum, and a company
that has in place the right businesses, the right people and the right plan to
achieve both our short-term and long-term financial goals.
"We're taking bold steps to shift our perspective operationally from an internal
focus to an external focus - in other words, to organize businesses around the
customer's point of view. To that end, we've changed organizational reporting
structures, incentive plans and business processes throughout the enterprise to
reflect the customer's view."
More than 100 investors and analysts, as well as members of the media, gathered
in Charlotte to attend the Bank of America Investor Day. Members of the
company's senior management spent the day giving presentations about their
respective businesses and customer segments.
"I'd like to characterize the kind of long-term performance goals we are setting
for ourselves - not for next year, but the Bank of America we are working to
create," said James H. Hance, Jr., vice chairman and chief financial officer.
"Our corporate target is to provide annual earnings per share growth in excess
of 10 percent."
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"We expect to grow revenue by 6 to 9 percent, creating positive operating
leverage," he continued. "At the same time, we will be managing our capital
aggressively. We will push to reach our 20 percent-plus ROE goal, and the goal
Ken Lewis has stated of double-digit annual SVA growth."
Opening remarks were followed by a presentation from Risk Executives William
Vandiver and Amy Brinkley who discussed the company's new approach to risk
planning and management. Investors also heard a presentation about the company's
quality and productivity work by Chuck Goslee, the company's Quality and
Productivity executive.
Following these remarks were presentations from executives who manage the
company's four lines of business and customer segments.
"The Consumer and Small Business segments are the backbone of the company," said
Gene Taylor, president of Consumer and Commercial Banking. "These businesses are
the source of our most consistent and predictable earnings. But more important,
they hold exciting potential. Three words describe our strategy to unlock this
potential: attract, retain, deepen. To attract new customers, we are investing
in deposit growth strategies, as well as targeting marketing and advertising. To
retain the customers we have, we are making it easier for them to do business
with us by improving sales and service and re-engineering core business
processes. We have implemented an intuitive sales process as well as enhanced
tools that make it easier for associates to deepen customer relationships. And
we've aligned associate incentives across the franchise to support this
strategy."
During the Asset Management presentation, Richard M. DeMartini, president of the
asset management group said, "Bank of America is the right company in the right
place at the right time. Our opportunity to grow the Asset Management business
is clear, even in an environment of intense competition. Our strategy to capture
this growth involves expanding our distribution capability, focusing our
financial advisors on capturing more investments business from our customer
base, becoming our clients' trusted financial advisor and strengthening our
sales culture."
Global Corporate and Investment Banking President Edward J. Brown said, "In less
than three years, we've created a business that has annual revenues of $9.2
billion. We believe we have the right business model and the right business
strategies to deliver long-term growth. We're differentiating our business with
a set of highly focused strategies and, even more important, a disciplined
approach to implementing them. These strategies include focusing on our client
strategy, building our franchise with institutional investors, transforming our
product mix, reducing loans on the balance sheet and implementing a new
governance process."
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Hance closed the day with remarks about the company's current financial position
and 2002 outlook. "In the fourth quarter, we expect to deliver solid revenue and
earnings, similar to the first three quarters of the year," he said. "As a
result, we are comfortable with the consensus estimate of $1.25 per share."
"We believe our business mix and focus on execution will distinguish us in 2002,
just as it has this year. And that our business model, franchise and operating
plans position us to deliver earnings per share in 2002 in the area of the
current consensus of $5.62 under new GAAP accounting. As you know, this
accounting change will add an estimated 37 cents to EPS next year. We believe
that this earnings performance will again set our company apart from our
competitors, as we again deliver attractive results in difficult times.
"We believe that our financial goals are attainable. If you take nothing more
away from this conference, I hope you get the message that our entire management
team is on a mission to unlock for our shareholders the true value of our unique
franchise."
Investors and analysts also had the opportunity to demo the company's innovative
products at a technology exhibit. Investors were able to take a closer look at a
variety of products that are being designed to improve the customer experience
at Bank of America, like digital check imaging. Technology & Operations
Executive Tim Arnoult said, "Everything you see at the Expo is helping us
deliver better, faster, more efficient service to customers."
As previously announced, the conference was available to the public via a live
Webcast. A playback of the conference can be accessed for the next two weeks at
the Bank of America Web site at http://www.bankofamerica.com/investor.
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The company will report quarterly earnings in January, April, July and October
of 2002 and January of 2003.
One of the world's leading financial services companies, Bank of America is
committed to making banking work for customers like it never has before. Through
innovative technologies and the ingenuity of its people, Bank of America
provides individuals, small businesses and commercial, corporate and
institutional clients across the United States and around the world new and
better ways to manage their financial lives.
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Bank of America stock (ticker: BAC) is listed on the New York, Pacific and
London stock exchanges. The company's Web site is www.bankofamerica.com. News,
speeches and other corporate information can be found at
www.bankofamerica.com/newsroom.
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Forward-Looking Statements
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This press release contains forward-looking statements with respect to the
financial conditions and results of operations of Bank of America, including,
without limitation, statements relating to the earnings outlook of the company.
These forward-looking statements involve certain risks and uncertainties.
Factors that may cause actual results to differ materially from those
contemplated by such forward-looking statements include, among others, the
following possibilities: 1) increased credit and other costs; 2) projected
business increases following process changes and other investments are lower
than expected; 3) competitive pressure among financial services companies
increases significantly; 4) costs or difficulties related to the integration of
acquisitions are greater than expected; 5) general economic conditions,
internationally, nationally or in the states in which the company does business,
including the impact of the events of September 11, 2001 and the energy crisis,
are less favorable than expected; 6) changes in the interest rate environment
reduce interest margins and affect funding sources; 7) changes in market rates
and prices may adversely affect the value of financial products; 8) legislation
or regulatory requirements or changes adversely affect the businesses in which
the company is engaged; and 9) decisions to downsize, sell or close units or
otherwise change the business mix of the company. For further information,
please refer to the Bank of America reports filed with the SEC.