Exhibit 99.2
Bank of America
Supplemental Information
Second Quarter 2002
July 15, 2002
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.
Results Overview
* Solid quarter with diluted earnings per common share of $1.40, up 6%
annualized linked quarter and 5% over second quarter 2001 after
adjusting for elimination of goodwill amortization.
* All three core businesses posted revenue growth over prior quarter.
* Efficiency ratio improved as expenses remain controlled.
* Nonperforming assets down 1% from prior quarter.
* Net charge-offs up from first quarter 2002 as a result of lower
recoveries.
* Deposit growth continues to show steady growth in part due to net new
account growth.
1
Bank of America
Consolidated Financial Highlights
- ------------------------------------------------------------------------------------------------------------------------------------
(Dollars in millions, except per share information; shares in thousands)
Year-to- Year-to- Second First Fourth
Date Date Quarter Quarter Quarter
2002 2001 2002 2002 2001
----------------------------------------------------------------------------
Operating Basis /(1)/
Income statement (taxable-equivalent basis)
Total revenue $ 17,430 $ 17,359 $ 8,743 $ 8,687 $ 8,903
Provision for credit losses 1,728 1,635 888 840 1,401
Gains (losses) on sales of securities 137 (15) 93 44 393
Other noninterest expense 8,984 9,475 4,490 4,494 5,324
Income tax expense 2,455 2,341 1,237 1,218 514
Net income 4,400 3,893 2,221 2,179 2,057
Average diluted common shares issued and outstanding 1,586,836 1,631,892 1,592,250 1,581,848 1,602,886
Diluted earnings per common share /(2)/ $ 2.77 $ 2.39 $ 1.40 $ 1.38 $ 1.28
Performance ratios
Return on average assets 1.38 % 1.20 % 1.38 % 1.39 % 1.25 %
Return on average common shareholders' equity 18.55 16.27 18.47 18.64 16.70
Efficiency ratio 51.54 54.58 51.34 51.74 59.80
Shareholder value added $ 1,666 $ 1,470 $ 834 $ 832 $ 793
- ------------------------------------------------------------------------------------------------------------------------------------
As Reported
Income statement (taxable-equivalent basis)
Total revenue $ 17,430 $ 17,359 $ 8,743 $ 8,687 $ 8,903
Provision for credit losses 1,728 1,635 888 840 1,401
Gains (losses) on sales of securities 137 (15) 93 44 393
Business exit costs - - - - -
Other noninterest expense 8,984 9,475 4,490 4,494 5,324
Income tax expense 2,455 2,341 1,237 1,218 514
Net income 4,400 3,893 2,221 2,179 2,057
Diluted earnings per common share /(2)/ 2.77 2.39 1.40 1.38 1.28
Cash dividends paid per common share 1.20 1.12 0.60 0.60 0.60
Performance ratios
Return on average assets 1.38 % 1.20 % 1.38 % 1.39 % 1.25 %
Return on average common shareholders' equity 18.55 16.27 18.47 18.64 16.70
Net interest yield 3.80 3.50 3.75 3.85 3.95
Book value per share $ 31.47 $ 30.75 $ 31.47 $ 31.15 $ 31.07
- ------------------------------------------------------------------------------------------------------------------------------------
Market price per share of common stock:
High for the period $ 77.08 $ 62.18 $ 77.08 $ 69.61 $ 64.99
Low for the period 57.51 45.00 66.82 57.51 52.10
Closing price 70.36 60.03 70.36 68.02 62.95
Market capitalization 106,642 96,116 106,642 105,058 98,158
Number of banking centers 4,232 4,259 4,232 4,246 4,253
Number of ATM's 12,827 12,860 12,827 13,161 13,113
Full-time equivalent employees 135,489 144,287 135,489 137,240 142,670
-------------------------------
Third Second
Quarter Quarter
2001 2001
-------------------------------
Operating Basis /(1)/
Income statement (taxable-equivalent basis)
Total revenue $ 8,719 $ 8,858
Provision for credit losses 856 800
Gains (losses) on sales of securities 97 (7)
Other noninterest expense 4,606 4,821
Income tax expense 1,263 1,207
Net income 2,091 2,023
Average diluted common shares issued and outstanding 1,634,063 1,632,964
Diluted earnings per common share /(2)/ $ 1.28 $ 1.24
Performance ratios
Return on average assets 1.29 % 1.24 %
Return on average common shareholders' equity 16.87 16.67
Efficiency ratio 52.82 54.44
Shareholder value added $ 824 $ 791
- ----------------------------------------------------------------------------------------
As Reported
Income statement (taxable-equivalent basis)
Total revenue $ 8,719 $ 8,858
Provision for credit losses 1,251 800
Gains (losses) on sales of securities 97 (7)
Business exit costs 1,305 -
Other noninterest expense 4,606 4,821
Income tax expense 813 1,207
Net income 841 2,023
Diluted earnings per common share /(2)/ 0.51 1.24
Cash dividends paid per common share 0.56 0.56
Performance ratios
Return on average assets 0.52 % 1.24 %
Return on average common shareholders' equity 6.78 16.67
Net interest yield 3.78 3.61
Book value per share $ 31.66 $ 30.75
- ----------------------------------------------------------------------------------------
Market price per share of common stock:
High for the period $ 65.54 $ 62.18
Low for the period 50.25 48.65
Closing price 58.40 60.03
Market capitalization 92,396 96,116
Number of banking centers 4,259 4,259
Number of ATM's 12,986 12,860
Full-time equivalent employees 143,824 144,287
(1) Operating basis excludes the following: provision for credit losses of $395
million and noninterest expense of $1.3 billion related to the exit of
certain consumer finance businesses in the third quarter of 2001.
(2) Includes goodwill amortization of $.19 per share for year-to-date 2001 and
$.09 per share in the fourth, third and second quarters of 2001.
Certain prior period amounts have been reclassified to conform to current period
classifications.
2
Capital Management
(Dollars in millions)
2Q01 3Q01 4Q01 1Q02 2Q02*
---- ---- ---- ---- -----
Tier 1 capital $ 41,794 $ 41,517 $ 41,979 $ 42,078 $ 41,097
Total capital 63,967 63,311 64,124 64,158 63,108
Net risk-weighted assets 529,201 522,291 506,020 496,227 508,008
Tier 1 capital ratio 7.90% 7.95% 8.30% 8.48% 8.09%
Total capital ratio 12.09 12.12 12.67 12.93 12.42
Ending equity / ending assets 7.88 7.83 7.80 7.77 7.48
Ending capital / ending assets 8.67 8.61 8.69 8.66 8.35
Average equity / average assets 7.43 7.66 7.50 7.44 7.47
*Preliminary
Share Repurchase Program
- --------------------------------------------------------------------------------
82 million common shares were repurchased in the first six months of 2002 as a
part of ongoing share repurchase programs.
51 million common shares were repurchased during the second quarter of 2002.
50 million shares remain outstanding under current authorized program.
39 million shares were issued in the first half of 2002 with 22 million shares
issued during the second quarter, as part of stock option plans.
Capital Management
(Shares in millions)
[GRAPHIC]
2Q01 3Q01 4Q01 1Q02 2Q02
---- ---- ---- ---- ----
Shares outstanding at period end 1,601 1,582 1,559 1,545 1,516
Tier 1 capital ratio 7.90% 7.95% 8.30% 8.48% 8.09%*
* Tier 1 ratio decline due to share repurchases and higher risk-weighted assets.
3
Bank of America Corporation
Average Balances and Interest Rates - Taxable-Equivalent Basis
- --------------------------------------------------------------------------------
(Dollars in millions)
Second Quarter 2002 First Quarter 2002
------------------------------------ ----------------------------------
Interest Interest
Average Income/ Yield/ Average Income/ Yield/
Balance Expense Rate Balance Expense Rate
-------------- ------------ -------- ---------- ---------- ------------
Earning assets
Time deposits placed and other short-term investments $ 10,673 $ 63 2.37% $ 10,242 $ 61 2.43%
Federal funds sold and securities purchased under
agreements to resell 48,426 270 2.23 44,682 215 1.94
Trading account assets 78,113 961 4.93 70,613 888 5.06
Total securities/(1)/ 67,291 939 5.59 73,542 963 5.24
Loans and leases/(2)/
Commercial - domestic 111,522 1,887 6.78 116,160 1,978 6.90
Commercial - foreign 21,454 212 3.97 21,917 226 4.17
Commercial real estate - domestic 21,486 258 4.83 22,251 275 5.01
Commercial real estate - foreign 393 5 5.14 389 4 4.00
----------------------------------- ----------------------------------
Total commercial 154,855 2,362 6.12 160,717 2,483 6.26
----------------------------------- ----------------------------------
Residential mortgage 94,726 1,602 6.77 81,104 1,389 6.88
Home equity lines 22,579 305 5.41 22,010 294 5.42
Direct/Indirect consumer 30,021 542 7.25 30,360 550 7.34
Consumer finance 11,053 226 8.20 12,134 255 8.46
Bankcard 20,402 510 10.01 19,383 490 10.26
Foreign consumer 2,048 19 3.71 2,093 19 3.71
----------------------------------- -----------------------------------
Total consumer 180,829 3,204 7.10 167,084 2,997 7.24
----------------------------------- -----------------------------------
Total loans and leases 335,684 5,566 6.65 327,801 5,480 6.76
----------------------------------- -----------------------------------
Other earning assets 22,005 353 6.42 22,231 358 6.52
----------------------------------- -----------------------------------
Total earning assets/(3)/ 562,192 8,152 5.81 549,111 7,965 5.86
----------------------------------- -----------------------------------
Cash and cash equivalents 21,200 22,037
Other assets, less allowance for credit losses 63,207 66,530
----------------------------------- -----------------------------------
Total assets $646,599 $637,678
----------------------------------- -----------------------------------
Interest-bearing liabilities
Domestic interest-bearing deposits:
Savings $ 21,841 34 0.64 $ 20,716 33 0.64
NOW and money market deposit accounts 129,856 346 1.07 127,218 335 1.07
Consumer CDs and IRAs 68,015 764 4.51 69,359 730 4.27
Negotiable CDs, public funds and other time deposits 4,635 30 2.43 4,671 32 2.82
------------------------------------ -----------------------------------
Total domestic interest-bearing deposits 224,347 1,174 2.10 221,964 1,130 2.06
------------------------------------ -----------------------------------
Foreign interest-bearing deposits/(4)/
Banks located in foreign countries 14,048 108 3.10 15,464 107 2.79
Governments and official institutions 2,449 12 1.89 2,904 14 1.96
Time, savings, and other 18,860 90 1.91 19,620 93 1.93
------------------------------------ -----------------------------------
Total foreign interest-bearing deposits 35,357 210 2.38 37,988 214 2.29
------------------------------------ -----------------------------------
Total interest-bearing deposits 259,704 1,384 2.14 259,952 1,344 2.10
------------------------------------ -----------------------------------
Federal funds purchased, securities sold under agreements
to repurchase and other short-term borrowings 97,579 529 2.17 86,870 477 2.23
Trading account liabilities 31,841 344 4.34 31,066 285 3.72
Long-term debt and trust preferred securities 65,940 633 3.84 67,694 612 3.62
------------------------------------ -----------------------------------
Total interest-bearing liabilities/(3)/ 455,064 2,890 2.55 445,582 2,718 2.47
------------------------------------ -----------------------------------
Noninterest-bearing sources:
Noninterest-bearing deposits 106,282 104,451
Other liabilities 36,979 40,189
Shareholders' equity 48,274 47,456
------------------------------------ -----------------------------------
Total liabilities and shareholders' equity $646,599 $637,678
------------------------------------ -----------------------------------
Net interest spread 3.26 3.39
Impact of noninterest-bearing sources 0.49 0.46
------------------------------------ -----------------------------------
Net interest income/yield on earning assets/(4)/ $5,262 3.75% $5,247 3.85%
------------------------------------ -----------------------------------
Second Quarter 2001
-------------------------------
Interest
Average Income/ Yield/
Balance Expense Rate
-------------------------------
Earning assets
Time deposits placed and other short-term investments $ 7.085 $ 81 4.58%
Federal funds sold and securities purchased under
agreements to resell 33,859 405 4.79
Trading account assets 67,311 944 5.62
Total securities/(1)/ 55,719 909 6.53
Loans and leases/(2)/
Commercial - domestic 139,096 2,585 7.45
Commercial - foreign 27,449 421 6.14
Commercial real estate - domestic 25,293 459 7.28
Commercial real estate - foreign 352 5 6.64
-------------------------------
Total commercial 192,190 3,470 7.24
-------------------------------
Residential mortgage 84,346 1,546 7.34
Home equity lines 21,958 424 7.75
Direct/Indirect consumer 30,352 637 8.42
Consumer finance 36,608 707 7.72
Bankcard 15,755 445 11.32
Foreign consumer 2,291 35 6.20
-------------------------------
Total consumer 191,310 3,794 7.94
-------------------------------
Total loans and leases 383,500 7,264 7.59
-------------------------------
Other earning assets 20,154 409 8.11
-------------------------------
Total earning assets/(3)/ 567,628 10,012 7.07
-------------------------------
Cash and cash equivalents 23,232
Other assets, less allowance for credit losses 64,697
-------------------------------
Total assets $ 655,557
-------------------------------
Interest-bearing liabilities
Domestic interest-bearing deposits:
Savings $ 20,222 57 1.14
NOW and money market deposit accounts 113,031 676 2.40
Consumer CDs and IRAs 74,777 969 5.20
Negotiable CDs, public funds and other time deposits 6,005 81 5.37
-------------------------------
Total domestic interest-bearing deposits 214,035 1,783 3.34
-------------------------------
Foreign interest-bearing deposits/(4)/
Banks located in foreign countries 24,395 294 4.82
Governments and official institutions 3,983 45 4.53
Time, savings, and other 23,545 241 4.13
-------------------------------
Total foreign interest-bearing deposits 51,923 580 4.49
-------------------------------
Total interest-bearing deposits 265,958 2,363 3.57
-------------------------------
Federal funds purchased, securities sold under agreements
to repurchase and other short-term borrowings 98,898 1,221 4.95
Trading account liabilities 30,710 312 4.07
Long-term debt and trust preferred securities 69,416 999 5.76
-------------------------------
Total interest-bearing liabilities/(3)/ 464,982 4,895 4.22
-------------------------------
Noninterest-bearing sources:
Noninterest-bearing deposits 97,390
Other liabilities 44,476
Shareholders' equity 48,709
-------------------------------
Total liabilities and shareholders' equity $ 655,557
-------------------------------
Net interest spread 2.85
Impact of noninterest-bearing sources .76
-------------------------------
Net interest income/yield on earning assets/(4)/ $ 5,117 3.61%
-------------------------------
(1) The average balance and yield on securities are based on the average of
historical amortized cost balances.
(2) Nonperforming loans are included in the respective average loan balances.
Income on such nonperforming loans is recognized on a cash basis.
(3) Interest income also includes the impact of interest rate risk management
contracts, which increased interest income by $505 million and $560 million
in the second and first quarters of 2002 and $194 million in the second
quarter of 2001, 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) decreased interest expense by $(76) million
and $49 million in the second and first quarters of 2002 and $49 million in
the second quarter of 2001, respectively. These amounts were substantially
offset by corresponding decreases (increases) in the interest paid on the
underlying liabilities.
(4) Primarily consists of time deposits in denominations of $100,000 or more.
4
Bank of America Corporation
Average Balances and Interest Rates - Taxable-Equivalent Basis
- -------------------------------------------------------------------------------------------------------------------------------
(Dollars in millions)
Year-to-Date 2002 Year-to-Date 2001
----------------------------- ----------------------------
Interest Interest
Average Income/ Yield/ Average Income/ Yield/
Balance Expense Rate Balance Expense Rate
--------- --------- ------ -------- -------- ------
Earning assets
Time deposits placed and other short-term investments $ 10,459 $ 124 2.40% $ 6,881 $ 183 5.35%
Federal funds sold and securities purchased under
agreements to resell 46,564 485 2.09 32,886 840 5.13
Trading account assets 74,384 1,849 4.99 64,914 1,796 5.56
Total securities/(1)/ 70,399 1,902 5.41 55,472 1,769 6.39
Loans and leases/(2)/
Commercial - domestic 113,829 3,865 6.84 141,735 5,398 7.68
Commercial - foreign 21,684 438 4.07 28,489 935 6.61
Commercial real estate - domestic 21,866 533 4.92 25,639 989 7.78
Commercial real estate - foreign 391 9 4.57 326 12 7.18
----------------------------- ----------------------------
Total commercial 157,770 4,845 6.19 196,189 7,334 7.54
----------------------------- ----------------------------
Residential mortgage 87,953 2,991 6.82 83,533 3,078 7.38
Home equity lines 22,296 599 5.42 21,852 891 8.22
Direct/Indirect consumer 30,191 1,092 7.30 30,228 1,276 8.51
Consumer finance 11,590 481 8.34 36,458 1,440 7.91
Bankcard 19,895 1,000 10.13 15,113 888 11.84
Foreign consumer 2,070 38 3.71 2,310 79 6.87
----------------------------- ----------------------------
Total consumer 173,995 6,201 7.17 189,494 7,652 8.11
----------------------------- ----------------------------
Total loans and leases 331,765 11,046 6.70 385,683 14,986 7.82
----------------------------- ----------------------------
Other earning assets 22,117 711 6.47 18,708 761 8.19
----------------------------- ----------------------------
Total earning assets/(3)/ 555,688 16,117 5.83 564,544 20,335 7.24
----------------------------- ----------------------------
Cash and cash equivalents 21,616 23,127
Other assets, less allowance for credit losses 64,859 64,476
----------------------------- ----------------------------
Total assets $642,163 $652,147
============================= ============================
Interest-bearing liabilities
Domestic interest-bearing deposits:
Savings $ 21,281 67 0.64 $ 20,314 118 1.18
NOW and money market deposit accounts 128,544 681 1.07 110,039 1,484 2.72
Consumer CDs and IRAs 68,683 1,494 4.39 76,267 2,037 5.39
Negotiable CDs, public funds and other time deposits 4,654 62 2.63 6,567 189 5.80
----------------------------- ----------------------------
Total domestic interest-bearing deposits 223,162 2,304 2.08 213,187 3,828 3.62
----------------------------- ----------------------------
Foreign interest-bearing deposits/(4)/
Banks located in foreign countries 14,752 215 2.94 24,377 626 5.18
Governments and official institutions 2,675 26 1.93 3,988 97 4.90
Time, savings, and other 19,238 183 1.92 23,028 525 4.61
----------------------------- ----------------------------
Total foreign interest-bearing deposits 36,665 424 2.33 51,393 1,248 4.90
----------------------------- ----------------------------
Total interest-bearing deposits 259,827 2,728 2.12 264,580 5,076 3.87
----------------------------- ----------------------------
Federal funds purchased, securities sold under agreements
to repurchase and other short-term borrowings 92,255 1,006 2.20 96,856 2,598 5.41
Trading account liabilities 31,455 629 4.03 29,565 602 4.10
Long-term debt and trust preferred securities 66,812 1,245 3.73 71,572 2,221 6.21
----------------------------- ----------------------------
Total interest-bearing liabilities/(3)/ 450,349 5,608 2.51 462,573 10,497 4.57
----------------------------- ----------------------------
Noninterest-bearing sources:
Noninterest-bearing deposits 105,371 94,924
Other liabilities 38,576 46,360
Shareholders' equity 47,867 48,290
----------------------------- ----------------------------
Total liabilities and shareholders' equity $642,163 $652,147
----------------------------- ----------------------------
Net interest spread 3.32 2.67
Impact of noninterest-bearing sources 0.48 0.83
----------------------------- ----------------------------
Net interest income/yield on earning assets/(4)/ $10,509 3.80% $ 9,838 3.50%
============================= ============================
(1) The average balance and yield on securities are based on the average of
historical amortized cost balances.
(2) Nonperforming loans are included in the respective average loan balances.
Income on such nonperforming loans is recognized on a cash basis.
(3) Interest income also includes the impact of interest rate risk management
contracts, which increased interest income by $1.1 billion and $222 million
in 2002 and 2001, respectively. These amounts were substantially offset by
corresponding decreases in the income earned on the underlying assets.
Interest expense also includes the impact of interest rate risk management
contracts, which (increased) decreased interest expense by $(27) million
and $73 million in 2002 and 2001, respectively. These amounts were
substantially offset by corresponding decreases (increases) in the interest
paid on the underlying liabilities.
(4) Primarily consists of time deposits in denominations of $100,000 or more.
5
Business Segment Total Revenue
Second Quarter 2002
(Dollars in millions)
[GRAPHIC]
Business Segment
---------------------------------------------------------
Consumer & Commercial Banking $ 5,527 63%
Asset Management $ 624 7%
Global Corporate & Investment Banking $ 2,359 27%
Equity Investments $ (78) -1%
Corporate Other $ 311 4%
-----------------
$ 8,743 100%
=================
[GRAPHIC] [GRAPHIC]
Consumer & Commercial Banking Global Corporate & Investment Banking
----------------------------------------- ----------------------------------------------
Banking Regions $ 3,288 60% Global Investment Banking $1,252 53%
Consumer Products $ 1,397 25% Global Credit Products $ 658 28%
Commercial Banking $ 842 15% Global Treasury Services $ 449 19%
------------------ ----------------
Total CCB $ 5,527 100% Total GCIB $2,359 100%
================== ================
6
Consumer and Commercial Banking Segment
Consumer and Commercial Banking Segment Results
- ------------------------------------------------------------------------------------------------------------------------------------
(Dollars in millions)
Year-to-Date Quarterly
--------------------- ------------------------------------------------------------------------
Key Measures 2002 2001 2 Qtr 02 1 Qtr 02 4 Qtr 01 3 Qtr 01 2 Qtr 01
- ------------- ---------- --------- ----------- ----------- ----------- ---------- ------------
Total Revenue $ 11,002 $10,196 $ 5,527 $ 5,475 $ 5,546 $ 5,305 $ 5,212
Provision for Credit Losses 876 656 449 427 536 389 329
Operating Net Income/(1)/ 2,860 2,407 1,443 1,417 1,255 1,283 1,241
Shareholder Value Added 1,844 1,578 936 908 837 862 823
Return on Average Equity 31.1 % 25.2 % 31.4 % 30.7 % 26.2 % 26.6 % 25.9 %
Efficiency Ratio 50.7 54.8 50.4 51.1 54.3 53.1 54.6
Selected Average Balance
Sheet Components
- ----------------
Total Loans and Leases $182,552 $176,832 $182,863 $182,237 $179,541 $179,186 $178,534
Total Deposits 278,425 262,210 280,168 276,662 273,256 266,339 264,658
Total Earning Assets 276,196 260,230 278,135 274,234 270,615 265,169 263,470
Period end (in billions)
- ----------
Mortgage Servicing Portfolio $ 287.8 $ 337.3 $ 287.8 $ 308.6 $ 320.8 $ 338.4 $ 337.3
- ------------------------------------------------------------------------------------------------------------------------------------
Consumer and Commercial Banking Sub-Segment Results
- ------------------------------------------------------------------------------------------------------------------------------------
Year-to-Date Quarterly
--------------------- ------------------------------------------------------------------------
Key Measures 2002 2001 2 Qtr 02 1 Qtr 02 4 Qtr 01 3 Qtr 01 2 Qtr 01
- ------------- ---------- --------- ----------- ----------- ----------- ---------- ------------
Banking Regions
- ---------------
Total Revenue $ 6,465 $ 6,044 $ 3,288 $ 3,177 $ 3,203 $ 3,156 $ 3,088
Operating Net Income/(2)/ 1,562 $ 1,260 815 747 654 702 655
Shareholder Value Added 975 845 519 456 440 489 445
Efficiency Ratio 59.1 % 63.0 % 57.6 % 60.7 % 63.0 % 60.9 % 62.7 %
Consumer Products
- -----------------
Total Revenue $ 2,836 $ 2,433 $ 1,397 $ 1,439 $ 1,432 $ 1,266 $ 1,245
Operating Net Income/(3)/ 747 $ 632 350 397 368 316 320
Shareholder Value Added 573 478 263 310 286 234 241
Efficiency Ratio 38.4 % 42.7 % 40.5 % 36.5 % 38.4 % 41.4 % 42.5 %
Commercial Banking
- ------------------
Total Revenue $ 1,701 $ 1,719 $ 842 $ 859 $ 911 $ 883 $ 879
Operating Net Income/(4)/ 551 $ 515 278 273 233 265 266
Shareholder Value Added 296 255 154 142 111 139 137
Efficiency Ratio 39.5 % 42.9 % 39.0 % 39.9 % 48.5 % 41.7 % 43.5 %
- ------------------------------------------------------------------------------------------------------------------------------------
(1) Includes goodwill amortization of $210 million in year-to-date 2001; $105
million, $106 million and $103 million in the fourth, third and second
quarters of 2001, respectively.
(2) Includes goodwill amortization of $174 million in year-to-date 2001; $87
million in the fourth and third quarters of 2001 and $85 in the second
quarter of 2001, respectively.
(3) Includes goodwill amortization of $14 million in year-to-date 2001; $7
million per quarter of 2001, respectively.
(4) Includes goodwill amortization of $22 million in year-to-date 2001; $11
million in the fourth quarter of 2001, $12 million in the third quarter of
2001 and $11 million in the second quarter of 2001, respectively.
Certain prior period amounts have been reclassified between segments to conform
to the current period presentation.
7
E-Commerce & BankofAmerica.com
- --------------------------------------------------------------------------------
Active On-line Banking Subscribers
(in thousands)
[GRAPHIC]
- --------------------------------------------------------------------------------
Bill-payers On-line Only Total
- --------------------------------------------------------------------------------
Jun-01 680 1,628 2,308
Sep-01 753 1,786 2,539
Dec-01 847 2,059 2,906
Mar-02 945 2,369 3,314
Jun-02 1,130 2,661 3,791
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Net Increase in Customer Profitability
after Going On-line
[GRAPHIC]
19 months 14%
31 months 21%
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
% Reduction in 1-Year Attrition Rates
On-line vs. Off-line Customers
[GRAPHIC]
On-line Only Customers 55%
On-line & Bill-pay Customers 80%
- --------------------------------------------------------------------------------
Bank of America has the largest active online banking customer base with nearly
3.8 million subscribers. This represents an active customer penetration rate of
27%.
Bank of America uses the strictest Active User standard in the industry -
customers must have used our online services within the last 90 days.
1.1 million active bill pay users pay $5.8 billion worth of bills quarterly.
Bank of America has further tightened this definition to include only those
customers who have used the bank's online services to pay a bill within the last
90 days.
Currently, nearly 200 companies are presenting over 1.2 million e-bills per
quarter.
- --------------------------------------------------------------------------------
Bill payment Volume
(Dollars in millions)
[GRAPHIC]
- --------------------------------------------------------------------------------
$ Volume % Electronic
- --------------------------------------------------------------------------------
2Q01 3,614 73%
3Q01 4,038 74%
4Q01 4,386 74%
1Q02 5,087 78%
2Q02 5,825 79%
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Bank of America Direct Clients
at period end
[GRAPHIC]
Companies Users
2Q01 4,950 32,134
3Q01 5,770 38,614
4Q01 6,746 46,062
1Q02 7,476 53,452
2Q02 8,918 61,883
- --------------------------------------------------------------------------------
8
Consumer Credit Card Results
Included within Consumer Products
- -------------------------------------------------------------------------------------------------------------------
(Dollars in millions)
Year-to-Date Quarterly
------------------ -----------------------------------------------------------
Key Measures 2002 2001 2 Qtr 02 1 Qtr 02 4 Qtr 01 3 Qtr 01 2 Qtr 01
- ------------ ------- -------- ---------- ---------- ---------- ---------- ----------
Outstandings:
- ------------
Held (Period-End) $21,155 $16,799 $21,155 $19,535 $19,884 $18,052 $16,799
Managed (Period-End) 27,089 24,871 27,089 26,558 27,185 25,513 24,871
Held (Average) 19,895 15,113 20,402 19,383 18,656 17,632 15,755
Managed (Average) 26,721 23,583 26,902 26,539 26,040 25,310 24,122
Managed Income Statement:
- ------------------------
Total Revenue $ 1,666 $ 1,451 $ 821 $ 845 $ 835 $ 794 $ 742
Provision Expense 764 673 393 371 350 357 340
Noninterest Expense 473 422 239 234 228 216 219
------- -------- ---------- ---------- ---------- ---------- ----------
Net Income Before Taxes 429 356 189 240 257 221 183
Shareholder Value Added (SVA) $ 182 $ 139 $ 75 $ 107 $ 109 $ 94 $ 71
- -----------------------------
Credit Quality:
- --------------
Charge-off $:
Held $ 510 $ 283 $ 269 $ 241 $ 208 $ 181 $ 158
Managed 730 545 375 355 322 307 297
Charge-off %:
Held 5.17 % 3.77 % 5.28 % 5.05 % 4.43 % 4.08 % 4.01 %
Managed 5.51 4.66 5.59 5.43 4.90 4.81 4.94
Managed Delinquency %:
30+ 3.78 % 3.81 % 3.78 % 4.16 % 4.12 % 3.95 % 3.81 %
90+ 1.76 1.64 1.76 1.95 1.75 1.68 1.64
- -------------------------------------------------------------------------------------------------------------------
Global Corporate and Investment Banking Segment
Global Corporate and Investment Banking Segment Results
- --------------------------------------------------------------------------------
(Dollars in millions)
Year-to-Date Quarterly
------------------------- -------------------------------------------------------------
Key Measures 2002 2001 2 Qtr 02 1 Qtr 02 4 Qtr 01 3 Qtr 01 2 Qtr 01
- ------------- ----------- ------------ ---------- ---------- ---------- ---------- ---------
Total Revenue $ 4,696 $ 4,909 $ 2,359 $ 2,337 $ 2,390 $ 2,286 $ 2,446
Provision for Credit Losses 480 502 216 264 498 292 255
Operating Net Income /(1)/ 1,065 1,030 560 505 435 491 472
Shareholder Value Added 407 280 236 171 102 136 99
Return on Average Equity 18.9 % 15.1 % 20.2 % 17.7 % 14.2 % 15.1 % 13.8 %
Efficiency Ratio 54.3 56.7 53.9 54.7 56.6 53.9 58.9
Selected Average Balance
Sheet Components
- ----------------
Total Loans and Leases $ 65,376 $ 89,801 $ 63,927 $ 66,841 $ 71,711 $ 78,220 $ 86,528
Total Deposits 63,491 66,687 63,767 63,212 66,076 68,472 67,439
Total Earning Assets 196,828 197,246 201,214 192,393 186,446 191,764 197,316
- --------------------------------------------------------------------------------
Global Corporate and Investment Banking Sub-Segment Results
- --------------------------------------------------------------------------------
Year-to-Date Quarterly
------------------------- -------------------------------------------------------------
Key Measures 2002 2001 2 Qtr 02 1 Qtr 02 4 Qtr 01 3 Qtr 01 2 Qtr 01
- ------------ ----------- ------------ ---------- ---------- ---------- ---------- ---------
Global Investment Banking
- -------------------------
Total Revenue $2,594 $2,937 $1,252 $1,342 $1,259 $1,190 $1,449
Operating Net Income /(2)/ 498 616 222 276 197 214 261
Shareholder Value Added 293 394 118 175 97 106 152
Efficiency Ratio 68.1 % 66.5 % 70.7 % 65.8 % 74.4 % 68.8 % 70.5 %
Global Credit Products
- ----------------------
Total Revenue $1,218 $1,256 $ 658 $ 560 $ 726 $ 702 $ 627
Operating Net Income /(3)/ 330 300 209 121 154 192 149
Shareholder Value Added (96) (203) 2 (98) (67) (43) (103)
Efficiency Ratio 21.9 % 23.8 % 20.6 % 23.5 % 19.3 % 21.2 % 24.5 %
Global Treasury Services
- ------------------------
Total Revenue $ 884 $ 716 $ 449 $ 435 $ 405 $ 394 $ 370
Operating Net Income /(4)/ 237 114 129 108 84 85 62
Shareholder Value Added 210 89 116 94 72 73 50
Efficiency Ratio 58.4 % 74.3 % 56.0 % 61.0 % 67.8 % 66.8 % 72.0 %
- --------------------------------------------------------------------------------
(1) Includes goodwill amortization of $54 million in year-to-date 2001; $27
million per quarter in 2001, respectively.
(2) Includes goodwill amortization of $28 million in year-to-date 2001; $14
million per quarter in 2001, respectively.
(3) Includes goodwill amortization of $21 million in year-to-date 2001; $11
million per quarter in 2001, respectively.
(4) Includes goodwill amortization of $5 million in year-to-date 2001; $2
million per quarter in 2001, respectively.
Certain prior period amounts have been reclassified between segments to conform
to the current period presentation.
10
Asset Management Segment
Asset Management Segment Results
- ------------------------------------------------------------------------------------------------------------------------------------
(Dollars in millions)
Year-to-Date Quarterly
---------------------- --------------------------------------------------------------------
Key Measures 2002 2001 2 Qtr 02 1 Qtr 02 4 Qtr 01 3 Qtr 01 2 Qtr 01
- ------------ ------- ------- --------- --------- --------- --------- ---------
Total Revenue $ 1,225 $ 1,240 $ 624 $ 601 $ 625 $ 610 $ 631
Provision for Credit Losses 170 71 144 26 34 16 63
Operating Net Income/(1)/ 213 241 72 141 133 148 113
Shareholder Value Added 78 137 3 75 80 95 61
Return on Average Equity 18.6 % 21.9 % 12.4 % 24.9 % 23.7 % 26.4 % 20.3
Efficiency Ratio 59.6 63.6 60.1 59.0 61.7 59.5 62.4
Selected Average Balance
Sheet Components
- ----------------
Total Loans and Leases $23,917 $24,174 $23,666 $24,171 $24,537 $24,631 $24,352
Total Deposits 11,808 11,907 11,780 11,837 11,936 11,837 11,999
Total Earning Assets 24,542 25,361 24,266 24,822 25,285 25,820 25,563
Period end (in billions)
- ----------
Assets under Management $ 297.1 $ 290.8 $ 297.1 $ 314.9 $ 314.2 $ 281.8 $ 290.8
Client Brokerage Assets 90.5 101.9 90.5 96.6 99.4 93.6 101.9
Assets in Custody 41.0 49.6 41.0 46.0 46.9 43.1 49.6
------- ------- ------- ------- ------- ------- -------
Total Client Assets $ 428.6 $ 442.3 $ 428.6 $ 457.5 $ 460.5 $ 418.5 $ 442.3
- -----------------------------------------------------------------------------------------------------------------------------------
(1) Includes goodwill amortization of $24 million in year-to-date 2001; $12
million per quarter in 2001, respectively.
Certain prior period amounts have been reclassified between segments to conform
to the current period presentation.
11
Equity Investments Segment
Equity Investments Segment Results
- ------------------------------------------------------------------------------------------------------------------------------------
(Dollars in millions)
Year-to-Date Quarterly
------------------ ----------------------------------------------------------------
Key Measures 2002 2001 2 Qtr 02 1 Qtr 02 4 Qtr 01 3 Qtr 01 2 Qtr 01
- ------------ ------- ------- --------- --------- --------- --------- ---------
Total Revenue ($102) $ 180 ($78) ($24) ($86) ($54) $ 78
Provision for Credit Losses - - - - 9 - -
Operating Net Income/(1)/ (85) 69 (53) (32) (96) (81) 36
Shareholder Value Added (211) (65) (118) (93) (162) (151) (34)
Return on Average Equity (8.1) % 5.9 % (9.9) % (6.2) % (17.0) % (13.3) % 5.9 %
Efficiency Ratio (36.7) 40.1 (12.1) (117.5) (72.2) (144.5) 27.9
Selected Average Balance
Sheet Components
- ----------------
Total Loans and Leases $ 437 $ 497 $ 448 $ 427 $ 444 $ 468 $ 491
Total Deposits - 26 - - - - 15
Total Earning Assets 441 508 448 433 453 489 513
Period end
- ----------
Investment Balances for Principal Investing $5,337 $5,399 $5,337 $ 5,431 $5,376 $ 5,483 $5,399
- ------------------------------------------------------------------------------------------------------------------------------------
(1) Includes goodwill amortization of $4 million in year-to-date 2001; $2
million per quarter in 2001, respectively.
Certain prior period amounts have been reclassified between segments to conform
to the current period presentation.
12
Corporate Other /(1)/
Corporate Other Results(/2)/
- --------------------------------------------------------------------------------------------------------------------------
(Dollars in millions)
Year-to-Date Quarterly
----------------------- --------------------------------------------------------------
Key Measures 2002 2001 2 Qtr 02 1 Qtr 02 4 Qtr 01 3 Qtr 01 2 Qtr 01
- ------------ ---------- ---------- ---------- ---------- ---------- ---------- ----------
Total Revenue $ 609 $ 834 $ 311 $ 298 $ 428 $ 572 $ 491
Provision for Credit Losses 202 406 79 123 324 159 153
Operating Net Income/(3)/ 347 146 199 148 330 250 161
Shareholder Value Added (452) (460) (223) (229) (64) (118) (158)
Selected Average Balance
Sheet Components
- ----------------
Total Loans and Leases $ 59,483 $ 94,379 $ 64,780 $ 54,125 $ 57,121 $ 75,221 $ 93,595
Total Deposits 11,474 18,674 10,271 12,692 16,903 16,680 19,237
Total Earning Assets 135,513 144,822 138,750 132,241 145,367 141,854 145,403
- --------------------------------------------------------------------------------------------------------------------------
(1) Corporate Other consists primarily of gains and losses associated with
managing the balance sheet of the Corporation, certain consumer finance and
commercial lending businesses being liquidated, and certain residential
mortgages originated by the mortgage group or otherwise acquired and held
for asset/liability management purposes.
(2) Excludes the following: provision for credit losses of $395 million and
noninterest expense of $1.3 billion related to the exit of certain consumer
finance businesses in the third quarter of 2001.
(3) Includes goodwill amortization of $22 million in year-to-date 2001; $3
million, $7 million and $11 million in the fourth, third, and second
quarters of 2001, respectively.
Certain prior period amounts have been reclassified between segments to conform
to the current period presentation.
13
Net Charge-offs and Net Charge-off Ratios
(Dollars in millions)
2Q01 3Q01 4Q01 1Q02 2Q02
----------------- ------------------- --------------- --------------- ---------------
Amt. Ratio Amt. Ratio Amt. Ratio Amt. Ratio Amt. Ratio
-------- -------- ---------- -------- ------- ------- ------- ------- ------- -------
Commercial - domestic /(1)/ $ 408 1.18% $ 412 1.26% $ 714 2.33% $ 370 1.29% $ 383 1.38%
Commercial - foreign 57 0.84 57 0.89 60 1.00 49 0.90 119 2.23
Commercial real estate - domestic 12 0.18 4 0.07 17 0.29 14 0.25 8 0.14
------ ------ ------ ------ ------
Total Commercial 477 1.00 473 1.05 791 1.86 433 1.09 510 1.32
------ ------ ------ ------ ------
Residential mortgage 7 0.03 7 0.04 6 0.03 11 0.05 8 0.03
Home equity lines 4 0.07 4 0.07 5 0.10 8 0.15 7 0.12
Direct/indirect consumer 44 0.58 68 0.87 83 1.08 64 0.86 38 0.50
Consumer finance /(2)/ 88 0.97 746 11.75 81 2.46 75 2.49 49 1.77
Bankcard 158 4.01 181 4.08 208 4.43 241 5.05 269 5.28
Other consumer domestic 8 n/m 11 n/m 18 n/m 7 n/m 7 n/m
Foreign consumer 1 0.24 1 0.21 2 0.25 1 0.16 - -
------ ------ ------ ------ ------
Total Consumer /(2)/ 310 0.65 1,018 2.27 403 0.97 407 0.99 378 0.84
------ ------ ------ ------ ------
Total Net Charge-offs (2) $ 787 0.82 $1,491 1.65 $1,194 1.42 $ 840 1.04 $ 888 1.06
------ ------ ------ ------ ------
By Business Segment:
Consumer & Commercial Banking $ 329 0.74% $ 389 0.86% $ 536 1.18% $427 0.94% $ 449 0.99%
Global Corporate & Investment
Banking /(1)/ 255 1.18 292 1.48 498 2.76 264 1.60 216 1.35
Asset Management 63 1.03 16 0.26 34 0.55 26 0.44 143 2.43
Equity Investments - - - - 9 7.76 - - - -
Corporate Other /(2)/ 140 0.60 794 4.19 117 0.81 123 0.92 80 0.50
------ ------ ------ ----- ------
Total Net Charge-offs $ 787 0.82 $1,491 1.65 $1,194 1.42 $840 1.04 $ 888 1.06
------ ------ ------ ----- ------
Loans are classified as domestic or foreign based upon the domicile of the
borrower.
(1) Fourth quarter 2001 includes $210 million related to Enron.
(2) Third quarter 2001 includes $635 million related to the exit of certain
consumer finance businesses. Excluding these net charge-offs, the ratios
would be 1.75% for Consumer Finance, 0.85% for Total Consumer, and 0.95%
for Total Net Charge-offs.
Net Charge-offs
[GRAPHIC]
2Q01 3Q01 4Q01 1Q02 2Q02
--------- -------- -------- ------- -------
Total Net Charge-offs, excl. exited cons. fin. businesses $ 787 $ 856 $1,194 $ 840 $ 888
Net Charge-off Ratio, excl. exited cons. fin. businesses 0.95
Charge-offs - exited consumer finance business $ 635
Total Net Charge-offs incl. exited cons. fin. businesses $ 787 $1,491 $1,194 $ 840 $ 888
Net Charge-off Ratio, incl. exited cons. fin. businesses 0.82% 1.65% 1.42% 1.04 1.06%
14
Nonperforming Assets
(Dollars in millions)
2Q01 3Q01 4Q01 1Q02 2Q02
---------- --------- ----------- ---------- ---------
Commercial - domestic $3,209 $2,705 $3,123 $3,207 $2,847
Commercial - foreign 562 566 461 583 980
Commercial real estate - domestic 201 257 240 216 202
Commercial real estate - foreign 3 2 3 2 3
---------- --------- ----------- ---------- ---------
Total Commercial 3,975 3,530 3,827 4,008 4,032
---------- --------- ----------- ---------- ---------
Residential mortgage 573 491 556 477 503
Home equity lines 42 61 80 73 64
Direct/Indirect consumer 17 20 27 26 27
Consumer finance 1,234 9 9 8 8
Foreign consumer 8 8 7 9 8
---------- --------- ----------- ---------- ---------
Total Consumer 1,874 589 679 593 610
---------- --------- ----------- ---------- ---------
Total Nonperforming Loans 5,849 4,119 4,506 4,601 4,642
Foreclosed properties 346 404 402 391 297
---------- --------- ----------- ---------- ---------
Total Nonperforming Assets/(1)/ $6,195 $4,523 $4,908 $4,992 $4,939
========== ========= =========== ========== =========
Loans past due 90 days or more and still accruing $ 608 $ 691 $ 680 $ 662 $ 605
Nonperforming Assets/ Total Assets 0.99 % 0.71 % 0.79 % 0.81 % 0.77 %
Nonperforming Assets/ Total Loans, Leases and
Foreclosed Properties 1.63 1.33 1.49 1.51 1.45
Nonperforming Loans/Total Loans and Leases 1.54 1.22 1.37 1.39 1.36
Allowance for Loan Losses $6,911 $6,665 $6,875 $6,869 $6,873
Allowance / Total Loans 1.82 % 1.97 % 2.09 % 2.07 % 2.02 %
Allowance / Total Nonperforming Loans 118 162 153 149 148
Loans are classified as domestic or foreign based upon the domicile of the
borrower.
(1) Balances do not include $221 million, $304 million, $1.0 billion, $1.3
billion and $120 million of loans held for sale, included in other assets at
June 30, 2002, March 31, 2002, December 31, 2001, September 30, 2001 and
June 30, 2001, respectively, which would have been classified as
nonperforming had they been included in loans. In the third quarter of 2001,
$1.2 billion of nonperforming subprime real estate loans were transferred to
loans held for sale as a result of the exit of certain consumer finance
businesses.
[GRAPHIC]
2Q01 3Q01 4Q01 1Q02 2Q02
---------- --------- ----------- ---------- ---------
Total Allowance to Total Loans 1.82% 1.97% 2.09% 2.07% 2.02%
Total Allowance to Total Nonperforming Loans 118% 162% 153% 149% 148%
15
Bank of America Corporation
Consolidated Statement of Income - Operating Basis/(1)/
- --------------------------------------------------------------------------------
(Dollars in millions, except per share information; shares in thousands)
Year-to- Year-to- Second First Fourth
Date Date Quarter Quarter Quarter
2002 2001 2002 2002 2001
---------- ----------- ------------------------------------------
Interest income
Interest and fees on loan and leases $ 10,975 $ 14,912 $ 5,530 $ 5,445 $ 5,824
Interest and dividends on securities 1,870 1,739 924 946 1,075
Federal funds sold and securities purchased
under agreements to resell 485 840 270 215 254
Trading account assets 1,826 1,782 948 878 912
Other interest income 699 893 312 387 740
---------- ----------- -----------------------------------------
Total interest income 15,855 20,166 7,984 7,871 8,805
---------- ----------- -----------------------------------------
Interest expense
Deposits 2,728 5,076 1,384 1,344 1,713
Short-term borrowings 1,006 2,598 529 477 700
Trading account liabilities 629 602 344 285 268
Long-term debt 1,245 2,221 633 612 707
---------- ---------- -----------------------------------------
Total interest expense 5,608 10,497 2,890 2,718 3,388
---------- ---------- -----------------------------------------
Net interest income 10,247 9,669 5,094 5,153 5,417
Noninterest income
Consumer service charges 1,426 1,408 734 692 746
Corporate service charges 1,132 1,010 565 567 540
---------- ---------- -----------------------------------------
Total service charges 2,558 2,418 1,299 1,259 1,286
---------- ---------- -----------------------------------------
Consumer investment and brokerage services 801 778 420 381 382
Corporate investment and brokerage services 348 273 178 170 151
---------- ---------- -----------------------------------------
Total investment and brokerage services 1,149 1,051 598 551 533
---------- ---------- -----------------------------------------
Mortgage banking income 327 317 135 192 167
Investment banking income 805 801 464 341 473
Equity investment gains/(losses) (10) 318 (36) 26 (49)
Card income 1,196 1,174 620 576 629
Trading account profits/(2)/ 608 1,075 263 345 334
Other income 288 367 138 150 25
---------- ---------- -----------------------------------------
Total noninterest income 6,921 7,521 3,481 3,440 3,398
---------- ---------- -----------------------------------------
Total revenue 17,168 17,190 8,575 8,593 8,815
Provision for credit losses 1,728 1,635 888 840 1,401
Gains/(losses) on sales of securities 137 (15) 93 44 393
Other noninterest expense
Personnel 4,832 4,935 2,386 2,446 2,590
Occupancy 873 861 441 432 465
Equipment 541 562 279 262 280
Marketing 340 351 170 170 166
Professional fees 213 267 122 91 153
Amortization of intangibles 110 446 55 55 213
Data processing 431 377 226 205 224
Telecommunications 242 247 123 119 116
Other general operating 1,402 1,429 688 714 1,117
---------- ---------- -----------------------------------------
Total other noninterest expense 8,984 9,475 4,490 4,494 5,324
---------- ---------- -----------------------------------------
Operating income before income taxes 6,593 6,065 3,290 3,303 2,483
Income tax expense 2,193 2,172 1,069 1,124 426
---------- ---------- -----------------------------------------
Operating net income $ 4,400 $ 3,893 $ 2,221 $ 2,179 $ 2,057
---------- ---------- -----------------------------------------
Operating income available to common shareholders 4,398 3,891 2,220 2,178 2,056
---------- ---------- -----------------------------------------
Per common share information
Operating earnings 2.86 2.42 1.45 1.41 1.31
---------- ---------- -----------------------------------------
Diluted operating earnings/(3)/ 2.77 2.39 1.40 1.38 1.28
---------- ---------- -----------------------------------------
Dividends 1.20 1.12 0.60 0.60 0.60
---------- ---------- -----------------------------------------
Average common shares issued and outstanding 1,538,600 1,605,193 1,533,783 1,543,471 1,570,083
---------- ---------- -----------------------------------------
Average diluted common shares issued and outstanding 1,586,836 1,631,892 1,592,250 1,581,848 1,602,886
---------- ---------- -----------------------------------------
As reported
Net income $ 4,400 $ 3,893 $ 2,221 $ 2,179 $ 2,057
Net income available to common shareholders 4,398 3,891 2,220 2,178 2,056
Earnings per common share 2.86 2.42 1.45 1.41 1.31
Diluted earnings per common share 2.77 2.39 1.40 1.38 1.28
Third Second
Quarter Quarter
2001 2001
Interest income
Interest and fees on loan and leases $ 6,543 $ 7,227
Interest and dividends on securities 892 894
Federal funds sold and securities purchased
under agreements to resell 321 405
Trading account assets 930 936
Other interest income 636 463
-----------------------------
Total interest income 9,322 9,925
-----------------------------
Interest expense
Deposits 2,097 2,363
Short-term borrowings 869 1,221
Trading account liabilities 285 312
Long-term debt 867 999
-----------------------------
Total interest expense 4,118 4,895
-----------------------------
Net interest income 5,204 5,030
Noninterest income
Consumer service charges 712 714
Corporate service charges 528 511
-----------------------------
Total service charges 1,240 1,225
-----------------------------
Consumer investment and brokerage services 386 399
Corporate investment and brokerage services 142 137
-----------------------------
Total investment and brokerage services 528 536
-----------------------------
Mortgage banking income 109 196
Investment banking income 305 455
Equity investment gains/(losses) 22 171
Card income 618 601
Trading account profits/(2)/ 433 376
Other income 174 181
-----------------------------
Total noninterest income 3,429 3,741
-----------------------------
Total revenue 8,633 8,771
Provision for credit losses 856 800
Gains/(losses) on sales of securities 97 (7)
Other noninterest expense
Personnel 2,304 2,534
Occupancy 448 428
Equipment 273 271
Marketing 165 174
Professional fees 144 141
Amortization of intangibles 219 223
Data processing 175 187
Telecommunications 121 128
Other general operating 757 735
-----------------------------
Total other noninterest expense 4,606 4,821
-----------------------------
Operating income before income taxes 3,268 3,143
Income tax expense 1,177 1,120
-----------------------------
Operating net income $ 2,091 $ 2,023
-----------------------------
Operating income available to common shareholders 2,089 2,022
-----------------------------
Per common share information
Operating earnings 1.31 1.26
-----------------------------
Diluted operating earnings/(3)/ 1.28 1.24
-----------------------------
Dividends 0.56 0.56
-----------------------------
Average common shares issued and outstanding 1,599,692 1,601,537
-----------------------------
Average diluted common shares issued and outstanding 1,634,063 1,632,964
-----------------------------
As reported
Net income $ 841 $ 2,023
Net income available to common shareholders 839 2,022
Earnings per common share 0.52 1.26
Diluted earnings per common share 0.51 1.24
(1) Operating basis excludes the following: provision for credit losses of $395
million and noninterest expense of $1.3 billion related to the exit of
certain consumer finance businesses in the third quarter of 2001.
(2) Trading account profits for year-to-date 2001 included $83 million
transition adjustment loss resulting from adoption of Statement of
Financial Accounting Standards No.133, "Accounting for Derivative
Instruments and Hedging Activities," on January 1, 2001.
(3) Includes goodwill amortization of $.19 per share in year-to-date 2001 and
$.09 per share in the fourth, third and second quarters of 2001.
Certain prior period amounts have been reclassified to conform to current period
presentations.
16
Bank of America Corporation
Consolidated Balance Sheet
- --------------------------------------------------------------------------------
(Dollars in millions)
June 30 March 31 June 30,
2002 2002 2001
- --------------------------------------------------------------------------------------------------------------------------
Assets
Cash and cash equivalents $ 21,309 $ 22,444 $ 25,405
Time deposits placed and other short-term investments 6,307 7,056 4,452
Federal funds sold and securities purchased under agreements to resell 35,449 40,771 28,317
Trading account assets 63,466 58,569 50,740
Derivative assets 24,809 19,116 16,881
Securities:
Available-for-sale 82,143 74,306 53,410
Held-to-maturity 1,020 1,037 1,167
- --------------------------------------------------------------------------------------------------------------------------
Total securities 83,163 75,343 54,577
- --------------------------------------------------------------------------------------------------------------------------
Loans and leases 340,394 331,210 380,425
Allowance for credit losses (6,873) (6,869) (6,911)
- --------------------------------------------------------------------------------------------------------------------------
Loans and leases, net of allowance for credit losses 333,521 324,341 373,514
- --------------------------------------------------------------------------------------------------------------------------
Premises and equipment, net 6,755 6,748 6,371
Mortgage banking assets 3,404 4,104 4,337
Goodwill 10,950 10,950 11,864
Core deposits and other intangibles 1,184 1,256 1,392
Other assets 48,131 49,223 47,675
- --------------------------------------------------------------------------------------------------------------------------
Total assets $638,448 $619,921 $625,525
==========================================================================================================================
Liabilities
Deposits in domestic offices:
Noninterest-bearing $101,163 $108,409 $100,199
Interest-bearing 224,582 224,630 213,036
Deposits in foreign offices:
Noninterest-bearing 1,750 1,677 1,490
Interest-bearing 33,274 32,484 48,761
- --------------------------------------------------------------------------------------------------------------------------
Total deposits 360,769 367,200 363,486
- --------------------------------------------------------------------------------------------------------------------------
Federal funds purchased and securities sold under agreements to repurchase 56,678 48,545 52,189
Trading account liabilities 25,751 25,258 20,866
Derivative liabilities 17,800 12,053 13,078
Commercial paper 1,946 363 3,156
Other short-term borrowings 31,027 21,629 32,348
Accrued expenses and other liabilities 32,002 31,138 22,902
Long-term debt 59,181 60,036 63,243
Trust preferred securities 5,530 5,530 4,955
- --------------------------------------------------------------------------------------------------------------------------
Total liabilities 590,684 571,752 576,223
- --------------------------------------------------------------------------------------------------------------------------
Shareholders' equity
Preferred stock, $0.01 par value; authorized - 100,000,000 shares; issued and
outstanding 1,411,750; 1,452,249 and 1,587,066 shares 60 62 68
Common stock, $0.01 par value; authorized - 5,000,000,000 shares; issued and
outstanding 1,515,667,160; 1,544,521,073 and 1,601,126,336 shares 1,499 3,949 7,629
Retained earnings 45,546 44,245 41,912
Accumulated other comprehensive income/(loss) 660 (72) (262)
Other (1) (15) (45)
- --------------------------------------------------------------------------------------------------------------------------
Total shareholders' equity 47,764 48,169 49,302
- --------------------------------------------------------------------------------------------------------------------------
Total liabilities and shareholders' equity $638,448 $619,921 $625,525
==========================================================================================================================
17