Bank of America Reports First-Quarter 2013 Net Income of $2.6 Billion, or $0.20 per Diluted Share
Business Momentum Continues
- Deposit Balances up 5 Percent From Q1-12 to
$1.1 Trillion - First-lien Mortgage Production up 57 Percent From Q1-12 to
$24 Billion Global Wealth and Investment Management Reports Record Post -merger Revenue, Net Income and Long-term Assets Under Management Flows- Consumer Credit Loss Rates Reaching Five-year Lows
- Commercial Loan Balances up 17 Percent From Q1-12 to
$367 Billion - Maintains No. 2 Ranking in Global Investment Bank Fees; up 26 Percent From Q1-12 to
$1.5 Billion - Noninterest Expense Down Nearly
$1.0 Billion From Q1-12, Driven Primarily by Project New BAC Initiatives - Significant
Progress in Legacy Assets and Servicing; Number of 60+ Days Delinquent Mortgage Loans Down 39 Percent From Q1-12 to 667,000 Loans
Capital and Liquidity Remain Strong
Basel 1 with Market Risk Final Rule Tier 1 Common Capital Ratio of 10.58 Percent, up From Pro Forma 10.38 Percent in Prior QuarterA- Estimated
Basel 3 Tier 1 Common Capital Ratio of 9.42 Percent, up From 9.25 Percent in Prior QuarterB - Long-term Debt Down
$75.3 Billion FromYear-ago Quarter , Driven by Maturities and Liability Management Actions; Time-to-required Funding Remains Strong at 30 Months - 2013 Capital Plan Actions Expected to Begin in Q2-13; Approved Actions Include
$5.5 Billion of Preferred Stock Redemptions and$5 Billion of Common Stock Repurchases
Relative to the same period a year ago, the results for the first quarter of 2013 were driven by increased brokerage income, higher investment banking fees, and improved credit quality across all major portfolios, partially offset by lower mortgage banking income and lower net gains on the sales of debt securities. The first quarter of 2013 included
"Our strategy of connecting our customers to all we can do for them is working," said Chief Executive Officer
"There were many examples of progress this quarter," said Chief Financial Officer
Selected Financial Highlights
Three Months Ended | ||||||||||||||
(Dollars in millions, except per share data) | March 31 2013 |
December 31 2012 |
March 31 2012 | |||||||||||
Net interest income, FTE basis1 | $ | 10,875 | $ | 10,555 | $ | 11,053 | ||||||||
Noninterest income | 12,833 | 8,336 | 11,432 | |||||||||||
Total revenue, net of interest expense, FTE basis | 23,708 | 18,891 | 22,485 | |||||||||||
Total revenue, net of interest expense, FTE basis, excluding DVA, FVO and gains on exchanges2 | 23,852 | 19,610 | 26,040 | |||||||||||
Provision for credit losses | 1,713 | 2,204 | 2,418 | |||||||||||
Noninterest expense | 18,152 | 18,360 | 19,141 | |||||||||||
Net income | 2,623 | 732 | 653 | |||||||||||
Diluted earnings per common share | $ | 0.20 | $ | 0.03 | $ | 0.03 |
1 Fully taxable-equivalent (FTE) basis is a non-GAAP financial measure. For reconciliation to GAAP financial measures, refer to pages 22-25 of this press release. Net interest income on a GAAP basis was
2 Total revenue, net of interest expense, on an FTE basis excluding DVA, FVO and gains on exchanges are non-GAAP financial measures. DVA losses, net of hedges, were
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Revenue, net of interest expense, on an FTE basis rose
Net interest income, on an FTE basis, totaled
The decline in net interest income from the year-ago quarter was due to the impact of lower consumer loan balances as well as lower asset yields driven by the low rate environment, partially offset by reductions in long-term debt balances and lower rates paid on deposits.
Net interest margin was 2.43 percent in the first quarter of 2013, compared to 2.35 percent in the fourth quarter of 2012 and 2.51 percent in the first quarter of 2012.
Noninterest income increased
Noninterest expense decreased
As previously announced,
Litigation expense was
The first of these class action lawsuits was filed in
Under the settlement in principle, the lawsuits will be dismissed in their entirety, and defendants will receive a global release in exchange for a settlement payment of
The settlement is subject to final court approval. If approved, and all class members who have not already filed or threatened individual suits participate, the settlement is expected to resolve approximately 80 percent of the unpaid principal balance of the Countrywide-issued RMBS as to which securities disclosure claims have been filed or threatened, and approximately 70 percent of the unpaid principal balance of all RMBS as to which securities disclosure claims have been filed or threatened as to all
Income tax expense for the first quarter of 2013 was
At March 31, 2013, the company had 262,812 full-time employees, down from 267,190 at December 31, 2012 and 278,688 at March 31, 2012.
Business Segment Results
The company reports results through five business segments: Consumer and Business Banking (CBB), Consumer Real Estate Services (CRES), Global Wealth and Investment Management (GWIM), Global Banking, and Global Markets, with the remaining operations recorded in All Other.
Unless otherwise noted, business segment revenue, on an FTE basis, is net of interest expense.
Consumer and Business Banking (CBB)
Three Months Ended | |||||||||||||||||
(Dollars in millions) | March 31 2013 |
December 31 2012 |
March 31 2012 | ||||||||||||||
Total revenue, net of interest expense, FTE basis | $ | 7,214 | $ | 7,212 | $ | 7,422 | |||||||||||
Provision for credit losses | 906 | 961 | 877 | ||||||||||||||
Noninterest expense | 4,108 | 4,141 | 4,263 | ||||||||||||||
Net income | $ | 1,382 | $ | 1,421 | $ | 1,445 | |||||||||||
Return on average allocated capital1, 2 | 20.05 | % | - | - | |||||||||||||
Return on average economic capital1, 2 | - | 23.90 | % | 26.05 | % | ||||||||||||
Average loans | $ | 129,570 | $ | 131,217 | $ | 140,341 | |||||||||||
Average deposits | 502,483 | 484,062 | 464,023 | ||||||||||||||
At period-end | |||||||||||||||||
Brokerage assets | $ | 82,616 | $ | 75,946 | $ | 73,422 |
1 Effective
2 Return on average allocated capital and return on average economic capital are non-GAAP financial measures. The Corporation believes the use of these non-GAAP financial measures provides additional clarity in assessing the results of the segments. Other companies may define or calculate these measures differently. For reconciliation to GAAP financial measures, refer to pages 22-25 of this press release.
Business Highlights
- Average deposit balances of
$502.5 billion increased$38.5 billion , or 8 percent, from the same period a year ago. The increase was driven by growth in liquid products in a low-rate environment and a$7 billion average impact of migration of deposits from Global Wealth and Investment Management. The average rate paid on deposits declined 7 basis points in the first quarter of 2013 to 13 basis points from 20 basis points in the year-ago quarter due to pricing discipline and a shift in the mix of deposits. - The number of mobile banking customers increased 30 percent from the year-ago quarter to 12.6 million, and 9.3 million checks were deposited this quarter via Mobile Check Deposits, reflecting a continued focus on enhancing the customer experience.
- U.S. consumer credit card retail spending per average active account increased 7 percent from the first quarter of 2012.
Merrill Edge brokerage assets increased 13 percent from the same period a year ago due to positive account flows and market growth.- The company had
$2.2 billion in small business loan originations and commitments in the first quarter of 2013, up 29 percent from the year-ago quarter. - The company's specialized sales force of financial solutions advisors, mortgage loan officers and small business bankers increased 28 percent in the first quarter of 2013 to nearly 6,400 specialists.
Financial Overview
Consumer and Business Banking reported net income of
Net interest income of
Noninterest expense was down
Provision for credit losses increased
Consumer Real Estate Services (CRES)
Three Months Ended | |||||||||||||||
(Dollars in millions) | March 31 2013 |
December 31 2012 |
March 31 2012 | ||||||||||||
Total revenue, net of interest expense, FTE basis | $ | 2,312 | $ | 475 | $ | 2,664 | |||||||||
Provision for credit losses | 335 | 485 | 507 | ||||||||||||
Noninterest expense | 4,059 | 5,607 | 3,884 | ||||||||||||
Net loss | $ | (1,308 | ) | $ | (3,704 | ) | $ | (1,138 | ) | ||||||
Average loans and leases | 92,963 | 96,605 | 109,601 | ||||||||||||
At period-end | |||||||||||||||
Loans and leases | $ | 90,971 | $ | 94,660 | $ | 108,063 |
Business Highlights
Bank of America funded$25 billion in residential home loans and home equity loans during the first quarter of 2013, up 11 percent from the fourth quarter of 2012, and 56 percent higher than the first quarter of 2012.- The residential fundings helped more than 106,000 homeowners either refinance an existing mortgage or purchase a home through our retail channels, including more than 2,700 first-time homebuyer mortgages and more than 37,000 mortgages to low- and moderate-income borrowers.
- The number of 60+ days delinquent first mortgage loans serviced by Legacy Assets and Servicing declined during the first quarter of 2013 to 667,000 loans from 773,000 loans at the end of the fourth quarter of 2012, and 1.09 million loans at the end of the first quarter of 2012.
Financial Overview
Consumer Real Estate Services reported a net loss of
Approximately 91 percent of funded first mortgages were refinances, and 9 percent were for home purchases.
Representations and warranties provision was
The provision for credit losses decreased
Noninterest expense increased to
Global Wealth and Investment Management (GWIM)
Three Months Ended | |||||||||||||||||
(Dollars in millions) | March 31 2013 |
December 31 2012 |
March 31 2012 | ||||||||||||||
Total revenue, net of interest expense, FTE basis | $ | 4,421 | $ | 4,193 | $ | 4,147 | |||||||||||
Provision for credit losses | 22 | 112 | 46 | ||||||||||||||
Noninterest expense | 3,253 | 3,196 | 3,232 | ||||||||||||||
Net income | $ | 720 | $ | 576 | $ | 550 | |||||||||||
Return on average allocated capital1, 2 | 29.38 | % | - | - | |||||||||||||
Return on average economic capital1, 2 | - | 28.36 | % | 34.85 | % | ||||||||||||
Average loans and leases | $ | 106,082 | $ | 103,785 | $ | 98,016 | |||||||||||
Average deposits | 253,413 | 249,658 | 239,859 | ||||||||||||||
At period-end (Dollars in billions) | |||||||||||||||||
Assets under management | $ | 745.3 | $ | 698.1 | $ | 677.6 | |||||||||||
Total client balances3 | 2,248.7 | 2,166.7 | 2,123.6 |
1 Effective
2 Return on average allocated capital and return on average economic capital are non-GAAP financial measures. The Corporation believes the use of these non-GAAP financial measures provides additional clarity in assessing the results of the segments. Other companies may define or calculate these measures differently. For reconciliation to GAAP financial measures, refer to pages 22-25 of this press release.
3 Total client balances are defined as assets under management, assets in custody, client brokerage assets, client deposits and loans (including margin receivables).
Business Highlights
- Record quarterly results in revenue, pretax margin, net income, asset management fees, long-term assets under management (AUM) flows and client balances.
- Record asset management fees of
$1.6 billion , up 9 percent from the year-ago quarter. - Long-term AUM flows were a record
$20.4 billion , marking the 15th consecutive quarter of positive flows. - Period-end deposit balances of
$240 billion were flat from the year-ago quarter as organic growth was offset by$19 billion of net migration of deposits to Consumer and Business Banking during the first quarter of 2013. Period-end loan balances grew$9.1 billion , or 9 percent, to a record$107.0 billion .
Financial Overview
Global Wealth and Investment Management net income rose 31 percent from the first quarter of 2012 to
Revenue increased 7 percent from the year-ago quarter to
The provision for credit losses decreased
Client balances rose 6 percent from the year-ago quarter to
Global Banking
Three Months Ended | |||||||||||||
(Dollars in millions) | March 31 2013 |
December 31 2012 |
March 31 2012 | ||||||||||
Total revenue, net of interest expense, FTE basis | $ | 4,225 | $ | 4,138 | $ | 4,236 | |||||||
Provision for credit losses | 195 | 179 | (245 | ) | |||||||||
Noninterest expense | 1,900 | 1,796 | 1,997 | ||||||||||
Net income | $ | 1,338 | $ | 1,409 | $ | 1,573 | |||||||
Return on average allocated capital1, 2 | 21.72 | % | - | - | |||||||||
Return on average economic capital1, 2 | - | 28.09 | % | 31.34 | % | ||||||||
Average loans and leases | $ | 280,305 | $ | 268,364 | $ | 266,206 | |||||||
Average deposits | 221,492 | 242,241 | 210,940 |
1 Effective
2 Return on average allocated capital and return on average economic capital are non-GAAP financial measures. The Corporation believes the use of these non-GAAP financial measures provides additional clarity in assessing the results of the segments. Other companies may define or calculate these measures differently. For reconciliation to GAAP financial measures, refer to pages 22-25 of this press release.
Business Highlights
Bank of America Merrill Lynch (BAML) maintained its No. 2 ranking in global net investment banking fees in the first quarter of 2013, based on reported competitor results as ofApril 17, 2013 .- According to Dealogic, BAML was ranked among the top three financial institutions in leveraged loans, investment-grade corporate debt, asset-backed securities, convertible debt, mortgage-backed securities and syndicated loans during the first quarter.
- Average loan and lease balances increased
$14.1 billion , or 5 percent, from the year-ago quarter to$280.3 billion with growth in the U.S. and non-U.S. commercial and industrial, leasing and commercial real estate portfolios. Higher period-end balances of$287.3 billion reflect solid loan growth.
- Average international loans grew 11 percent from the year-ago quarter, driven by gains in the Emerging Markets and
Asia Pacific regions. Average international deposits grew 24 percent from the year-ago quarter particularly inEurope andAsia , reflecting the strength of the international franchise. - Average deposits rose
$10.6 billion , or 5 percent, from the year-ago quarter to$221.5 billion , due to client liquidity. Compared to the prior quarter, average deposits were down$20.7 billion due to the expiration of the Transaction Account Guarantee (TAG) Program, as well as acceleration of certain corporate payments such as dividends.
Financial Overview
Global Banking reported net income of
Firmwide investment banking fees of
Global Corporate Banking revenue of
The provision for credit losses increased
Global Markets
Three Months Ended | |||||||||||||||
(Dollars in millions) | March 31 2013 |
December 31 2012 |
March 31 2012 | ||||||||||||
Total revenue, net of interest expense, FTE basis | $ | 5,172 | $ | 3,023 | $ | 4,411 | |||||||||
Total revenue, net of interest expense, FTE basis, excluding DVA1 | 5,227 | 3,299 | 5,845 | ||||||||||||
Provision for credit losses | 5 | 17 | (13 | ) | |||||||||||
Noninterest expense | 3,076 | 2,627 | 3,239 | ||||||||||||
Net income | $ | 1,358 | $ | 183 | $ | 828 | |||||||||
Net income, excluding DVA1 | 1,393 | 357 | 1,731 | ||||||||||||
Return on average allocated capital2, 3 | 18.38 | % | - | - | |||||||||||
Return on average economic capital2, 3 | - | 5.18 | % | 23.22 | % | ||||||||||
Total average assets | $ | 666,629 | $ | 642,252 | $ | 573,305 |
1 Total revenue, net of interest expense, on an FTE basis excluding DVA and net income excluding DVA are non-GAAP financial measures. DVA losses were
2 Effective
3 Return on average allocated capital and return on average economic capital are non-GAAP financial measures. The Corporation believes the use of these non-GAAP financial measures provides additional clarity in assessing the results of the segments. Other companies may define or calculate these measures differently. For reconciliation to GAAP financial measures, refer to pages 22-25 of this press release.
Business Highlights
- Return on average allocated capital was 18.38 percent in the first quarter of 2013, reflecting stable revenues and continued expense discipline.
- Equities revenue, excluding DVAF, rose 8 percent from the first quarter of 2012, driven by expanding market share and continued growth in client balances.
Financial Overview
Global Markets reported net income of
Global Markets revenue increased
Fixed Income, Currency and Commodities sales and trading revenue, excluding DVAF, was
Noninterest expense declined
All Other1
Three Months Ended | ||||||||||||||||
(Dollars in millions) | March 31 2013 |
December 31 2012 |
March 31 2012 | |||||||||||||
Total revenue, net of interest expense, FTE basis | $ | 364 | $ | (150 | ) | $ | (395 | ) | ||||||||
Provision for credit losses | 250 | 450 | 1,246 | |||||||||||||
Noninterest expense | 1,756 | 993 | 2,526 | |||||||||||||
Net income (loss) | $ | (867 | ) | $ | 847 | $ | (2,605 | ) | ||||||||
Total average loans | 244,557 | 247,128 | 270,228 |
1 All Other consists of ALM activities, equity investments, liquidating businesses and other. ALM activities encompass the whole-loan residential mortgage portfolio and investment securities, interest rate and foreign currency risk management activities including the residual net interest income allocation, gains/losses on structured liabilities, and the impact of certain allocation methodologies and accounting hedge ineffectiveness. Equity Investments includes Global Principal Investments (GPI), strategic and certain other investments. Other includes certain residential mortgage loans that are managed by Legacy Assets and Servicing within CRES.
All Other reported a net loss of
The provision for credit losses declined
Credit Quality
Three Months Ended | |||||||||||||||
(Dollars in millions) | March 31 2013 |
December 31 2012 |
March 31 2012 | ||||||||||||
Provision for credit losses | $ | 1,713 | $ | 2,204 | $ | 2,418 | |||||||||
Net charge-offs1 | 2,517 | 3,104 | 4,056 | ||||||||||||
Net charge-off ratio1, 2 | 1.14 | % | 1.40 | % | 1.80 | % | |||||||||
Net charge-off ratio, excluding the PCI loan portfolio2, 3 | 1.18 | 1.44 | 1.87 | ||||||||||||
Net charge-off ratio, including PCI write-offs2, 3 | 1.52 | 1.90 | 1.80 | ||||||||||||
At period-end | |||||||||||||||
Nonperforming loans, leases and foreclosed properties | $ | 22,842 | $ | 23,555 | $ | 27,790 | |||||||||
Nonperforming loans, leases and foreclosed properties ratio4 | 2.53 | % | 2.62 | % | 3.10 | % | |||||||||
Allowance for loan and lease losses | $ | 22,441 | $ | 24,179 | $ | 32,211 | |||||||||
Allowance for loan and lease losses ratio5 | 2.49 | % | 2.69 | % | 3.61 | % |
1 Excludes write-offs of PCI loans of
2 Net charge-off ratios are calculated as net charge-offs divided by average outstanding loans and leases during the period; quarterly results are annualized.
3 Represents a non-GAAP financial measure.
4 Nonperforming loans, leases and foreclosed properties ratios are calculated as nonperforming loans, leases and foreclosed properties divided by outstanding loans, leases and foreclosed properties at the end of the period.
5 Allowance for loan and lease losses ratios are calculated as allowance for loan and lease losses divided by loans and leases outstanding at the end of the period.
Note: Ratios do not include loans measured under the fair value option.
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Credit quality continued to improve in first quarter of 2013, with net charge-offs declining across nearly all major portfolios and the provision for credit losses decreasing from the fourth quarter of 2012 as well as the year-ago quarter. Additionally, 30+ days performing delinquent loans, excluding fully-insured loans, declined across all consumer portfolios, and reservable criticized balances also continued to decline, down 39 percent from the year-ago period.
Net charge-offs were
The provision for credit losses was
The allowance for loan and lease losses to annualized net charge-off coverage ratio was 2.20 times in the first quarter of 2013, compared with 1.96 times in the fourth quarter of 2012 and 1.97 times in the first quarter of 2012. The increase was due to the improvement in net charge-offs discussed above. The allowance to annualized net charge-off coverage ratio, excluding PCI, was 1.76 times, 1.51 times and 1.43 times for the same periods, respectively.
Nonperforming loans, leases and foreclosed properties were
Capital and Liquidity Management
(Dollars in millions, except per share information) | At March 31 2013 |
At December 31 2012 |
At March 31 2012 | |||||||||||
Total shareholders' equity |
$ | 238,433 | $ | 236,956 | $ | 232,499 | ||||||||
Tier 1 common capital | 137,540 | 133,403 | 131,602 | |||||||||||
Pro forma2 |
||||||||||||||
Tier 1 common capital ratio including Market Risk Final Rule1 | 10.58 | % | 10.38 | % | - | |||||||||
Tangible common equity ratio3 | 6.94 | 6.74 | 6.58 | |||||||||||
Common equity ratio | 10.10 | 9.87 | 9.80 | |||||||||||
Tangible book value per share3 | $ | 13.46 | $ | 13.36 | $ | 12.87 | ||||||||
Book value per share | 20.30 | 20.24 | 19.83 |
1 Includes the Market Risk Final Rule at
2 Pro forma
3 Tangible common equity ratio and tangible book value per share are non-GAAP financial measures. For reconciliation to GAAP financial measures, refer to pages 22-25 of this press release.
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Prior to
As of March 31, 2013, the company's Tier 1 common capital ratio on a
At both March 31, 2013 and December 31, 2012, the company's total Global Excess Liquidity Sources were
During the first quarter of 2013, a cash dividend of
As previously announced, the company plans to repurchase up to
Tangible book value per shareG increased to
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A As of
B
C Fully taxable-equivalent (FTE) basis is a non-GAAP financial measure. Revenue, net of interest expense, on an FTE basis excluding debit valuation adjustments and fair value option adjustments are non-GAAP financial measures. For reconciliation to GAAP financial measures, refer to pages 22-25 of this press release. Net interest income on a GAAP basis was
D Represents a non-GAAP financial measure. Excludes mortgage-related litigation expense of
E Sales and trading revenue, excluding the impact of DVA and net income excluding DVA losses, are non-GAAP financial measures. DVA losses were
F Fixed Income, Currency and Commodities (FICC) sales and trading revenue, excluding DVA, and Equity sales and trading revenue, excluding DVA, are non-GAAP financial measures. FICC DVA losses were
G Tangible book value per share of common stock is a non-GAAP measure. Other companies may define or calculate this measure differently. For reconciliation to GAAP measures, refer to pages 22-25 of this press release.
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Note: Chief Executive Officer
A replay will be available via webcast through the
You should not place undue reliance on any forward-looking statement and should consider all of the following uncertainties and risks, as well as those more fully discussed under Item 1A. “Risk Factors” of
Forward-looking statements speak only as of the date they are made, and
For more
Bank of America Corporation and Subsidiaries | |||||||||||||||||
Selected Financial Data | |||||||||||||||||
(Dollars in millions, except per share data; shares in thousands) | |||||||||||||||||
Summary Income Statement |
First Quarter 2013 |
Fourth Quarter 2012 |
First Quarter 2012 | ||||||||||||||
Net interest income | $ | 10,664 | $ | 10,324 | $ | 10,846 | |||||||||||
Noninterest income | 12,833 | 8,336 | 11,432 | ||||||||||||||
Total revenue, net of interest expense | 23,497 | 18,660 | 22,278 | ||||||||||||||
Provision for credit losses | 1,713 | 2,204 | 2,418 | ||||||||||||||
Noninterest expense | 18,152 | 18,360 | 19,141 | ||||||||||||||
Income (loss) before income taxes | 3,632 | (1,904 | ) | 719 | |||||||||||||
Income tax expense (benefit) | 1,009 | (2,636 | ) | 66 | |||||||||||||
Net income | $ | 2,623 | $ | 732 | $ | 653 | |||||||||||
Preferred stock dividends | 373 | 365 | 325 | ||||||||||||||
Net income applicable to common shareholders | $ | 2,250 | $ | 367 | $ | 328 | |||||||||||
Earnings per common share | $ | 0.21 | $ | 0.03 | $ | 0.03 | |||||||||||
Diluted earnings per common share | 0.20 | 0.03 | 0.03 | ||||||||||||||
Summary Average Balance Sheet |
First Quarter 2013 |
Fourth Quarter 2012 |
First Quarter 2012 | ||||||||||||||
Total loans and leases | $ | 906,259 | $ | 893,166 | $ | 913,722 | |||||||||||
Debt securities | 356,399 | 360,213 | 341,619 | ||||||||||||||
Total earning assets | 1,800,786 | 1,788,936 | 1,768,105 | ||||||||||||||
Total assets | 2,212,427 | 2,210,365 | 2,187,174 | ||||||||||||||
Total deposits | 1,075,280 | 1,078,076 | 1,030,112 | ||||||||||||||
Common shareholders' equity |
218,238 | 219,744 | 214,150 | ||||||||||||||
Total shareholders' equity |
237,008 | 238,512 | 232,566 | ||||||||||||||
Performance Ratios |
First Quarter 2013 |
Fourth Quarter 2012 |
First Quarter 2012 | ||||||||||||||
Return on average assets | 0.48 | % | 0.13 | % | 0.12 | % | |||||||||||
Return on average tangible shareholders' equity (1) |
6.53 | 1.77 | 1.67 | ||||||||||||||
Credit Quality |
First Quarter 2013 |
Fourth Quarter 2012 |
First Quarter 2012 | ||||||||||||||
Total net charge-offs | $ | 2,517 | $ | 3,104 | $ | 4,056 | |||||||||||
Net charge-offs as a % of average loans and leases outstanding (2) | 1.14 | % | 1.40 | % | 1.80 | % | |||||||||||
Provision for credit losses | $ | 1,713 | $ | 2,204 | $ | 2,418 | |||||||||||
March 31 2013 |
December 31 2012 |
March 31 2012 | |||||||||||||||
Total nonperforming loans, leases and foreclosed properties (3) | $ | 22,842 | $ | 23,555 | $ | 27,790 | |||||||||||
Nonperforming loans, leases and foreclosed properties as a % of total loans, leases and foreclosed properties (2) | 2.53 | % | 2.62 | % | 3.10 | % | |||||||||||
Allowance for loan and lease losses | $ | 22,441 | $ | 24,179 | $ | 32,211 | |||||||||||
Allowance for loan and lease losses as a % of total loans and leases outstanding (2) | 2.49 | % | 2.69 | % | 3.61 | % | |||||||||||
This information is preliminary and based on company data available at the time of the presentation. | |||||||||||||||||
Bank of America Corporation and Subsidiaries | |||||||||||||||
Selected Financial Data (continued) | |||||||||||||||
(Dollars in millions, except per share data; shares in thousands) | |||||||||||||||
Capital Management |
March 31 2013 |
December 31 2012 |
March 31 2012 | ||||||||||||
Risk-based capital (4, 5): | |||||||||||||||
Tier 1 common capital | $ | 137,540 | $ | 133,403 | $ | 131,602 | |||||||||
Tier 1 common capital ratio (6, 7) | 10.58 | % | 11.06 | % | 10.78 | % | |||||||||
Tier 1 leverage ratio | 7.56 | 7.37 | 7.79 | ||||||||||||
Tangible equity ratio (8) | 7.83 | 7.62 | 7.48 | ||||||||||||
Tangible common equity ratio (8) | 6.94 | 6.74 | 6.58 | ||||||||||||
Period-end common shares issued and outstanding | 10,822,380 | 10,778,264 | 10,775,604 | ||||||||||||
Basel 1 to Basel 3 (fully phased-in) Reconciliation (5, 9) |
March 31 2013 |
December 31 2012 |
|||||||||||||
Regulatory capital – Basel 1 to Basel 3 (fully phased-in) | |||||||||||||||
Basel 1 Tier 1 capital | $ | 160,098 | $ | 155,461 | |||||||||||
Deduction of qualifying preferred stock and trust preferred securities | (22,558 | ) | (22,058 | ) | |||||||||||
Basel 1 Tier 1 common capital | 137,540 | 133,403 | |||||||||||||
Deduction of defined benefit pension assets | (776 | ) | (737 | ) | |||||||||||
Change in deferred tax assets and threshold deductions (deferred tax asset timing differences, MSRs and significant investments) | (3,983 | ) | (3,020 | ) | |||||||||||
Change in all other deductions, net | (2,032 | ) | (1,020 | ) | |||||||||||
Basel 3 (fully phased-in) Tier 1 common capital | $ | 130,749 | $ | 128,626 | |||||||||||
Risk-weighted assets – Basel 1 to Basel 3 (fully phased-in) | |||||||||||||||
Basel 1 risk-weighted assets | $ | 1,299,414 | $ | 1,205,976 | |||||||||||
Net change in credit and other risk-weighted assets | 89,313 | 103,085 | |||||||||||||
Increase due to Market Risk Final Rule | — | 81,811 | |||||||||||||
Basel 3 (fully phased-in) risk-weighted assets | $ | 1,388,727 | $ | 1,390,872 | |||||||||||
Tier 1 common capital ratios | |||||||||||||||
Basel 1 | 10.58 | % | 11.06 | % | |||||||||||
Basel 3 (fully phased-in) | 9.42 | 9.25 | |||||||||||||
First Quarter 2013 |
Fourth Quarter 2012 |
First Quarter 2012 | |||||||||||||
Common shares issued | 44,116 | 997 | 239,666 | ||||||||||||
Average common shares issued and outstanding | 10,798,975 | 10,777,204 | 10,651,367 | ||||||||||||
Average diluted common shares issued and outstanding | 11,154,778 | 10,884,921 | 10,761,917 | ||||||||||||
Dividends paid per common share | $ | 0.01 | $ | 0.01 | $ | 0.01 | |||||||||
Summary Period-End Balance Sheet |
March 31 2013 |
December 31 2012 |
March 31 2012 | ||||||||||||
Total loans and leases | $ | 911,592 | $ | 907,819 | $ | 902,294 | |||||||||
Total debt securities | 354,709 | 360,331 | 346,943 | ||||||||||||
Total earning assets | 1,763,737 | 1,788,305 | 1,744,452 | ||||||||||||
Total assets | 2,174,611 | 2,209,974 | 2,181,449 | ||||||||||||
Total deposits | 1,095,183 | 1,105,261 | 1,041,311 | ||||||||||||
Total shareholders' equity |
238,433 | 236,956 | 232,499 | ||||||||||||
Common shareholders' equity |
219,653 | 218,188 | 213,711 | ||||||||||||
Book value per share of common stock | $ | 20.30 | $ | 20.24 | $ | 19.83 | |||||||||
Tangible book value per share of common stock (1) | 13.46 | 13.36 | 12.87 |
(1) Return on average tangible shareholders' equity and tangible book value per share of common stock are non-GAAP financial measures. We believe the use of these non-GAAP financial measures provides additional clarity in assessing the results of the Corporation. Other companies may define or calculate non-GAAP financial measures differently. See Reconciliations to GAAP Financial Measures on pages 22-25.
(2) Ratios do not include loans accounted for under the fair value option during the period. Charge-off ratios are annualized for the quarterly presentation.
(3) Balances do not include past due consumer credit card, consumer loans secured by real estate where repayments are insured by the
(4) Reflects preliminary data for current period risk-based capital.
(5)
(6) On a pro-forma basis, under the Market Risk Final Rule, the
(7) Tier 1 common capital ratio equals Tier 1 capital excluding preferred stock, trust preferred securities, hybrid securities and minority interest divided by risk-weighted assets.
(8) Tangible equity ratio equals period-end tangible shareholders' equity divided by period-end tangible assets. Tangible common equity equals period-end tangible common shareholders' equity divided by period-end tangible assets. Tangible shareholders' equity and tangible assets are non-GAAP financial measures. We believe the use of these non-GAAP financial measures provides additional clarity in assessing the results of the Corporation. Other companies may define or calculate non-GAAP financial measures differently. See Reconciliations to GAAP Financial Measures on pages 22-25.
(9)
Certain prior period amounts have been reclassified to conform to current period presentation.
This information is preliminary and based on company data available at the time of the presentation. |
Bank of America Corporation and Subsidiaries | ||||||||||||||||||||||||||||||||||
Quarterly Results by Business Segment | ||||||||||||||||||||||||||||||||||
(Dollars in millions) | ||||||||||||||||||||||||||||||||||
First Quarter 2013 | ||||||||||||||||||||||||||||||||||
Consumer & Business Banking |
Consumer
Real Estate Services |
Global
Banking |
Global
Markets |
GWIM | All
Other | |||||||||||||||||||||||||||||
Total revenue, net of interest expense (FTE basis) (1) | $ | 7,214 | $ | 2,312 | $ | 4,225 | $ | 5,172 | $ | 4,421 | $ | 364 | ||||||||||||||||||||||
Provision for credit losses | 906 | 335 | 195 | 5 | 22 | 250 | ||||||||||||||||||||||||||||
Noninterest expense | 4,108 | 4,059 | 1,900 | 3,076 | 3,253 | 1,756 | ||||||||||||||||||||||||||||
Net income (loss) | 1,382 | (1,308 | ) | 1,338 | 1,358 | 720 | (867 | ) | ||||||||||||||||||||||||||
Return on average allocated capital (2, 3) | 20.05 | n/m | 21.72 | 18.38 | 29.38 | n/m | ||||||||||||||||||||||||||||
Balance Sheet |
||||||||||||||||||||||||||||||||||
Average | ||||||||||||||||||||||||||||||||||
Total loans and leases | $ | 129,570 | $ | 92,963 | $ | 280,305 | n/m | $ | 106,082 | $ | 244,557 | |||||||||||||||||||||||
Total deposits | 502,483 | n/m | 221,492 | n/m | 253,413 | 35,550 | ||||||||||||||||||||||||||||
Allocated capital (2, 3) | 28,000 | 24,000 | 25,000 | 30,000 | 10,000 | n/m | ||||||||||||||||||||||||||||
Period end | ||||||||||||||||||||||||||||||||||
Total loans and leases | $ | 127,502 | $ | 90,971 | $ | 287,263 | n/m | $ | 107,048 | $ | 241,407 | |||||||||||||||||||||||
Total deposits | 530,552 | n/m | 227,647 | n/m | 239,853 | 35,758 | ||||||||||||||||||||||||||||
Fourth Quarter 2012 | ||||||||||||||||||||||||||||||||||
Consumer & Business Banking |
Consumer
Real Estate Services |
Global
Banking |
Global
Markets |
GWIM | All
Other | |||||||||||||||||||||||||||||
Total revenue, net of interest expense (FTE basis) (1) | $ | 7,212 | $ | 475 | $ | 4,138 | $ | 3,023 | $ | 4,193 | $ | (150 | ) | |||||||||||||||||||||
Provision for credit losses | 961 | 485 | 179 | 17 | 112 | 450 | ||||||||||||||||||||||||||||
Noninterest expense | 4,141 | 5,607 | 1,796 | 2,627 | 3,196 | 993 | ||||||||||||||||||||||||||||
Net income (loss) | 1,421 | (3,704 | ) | 1,409 | 183 | 576 | 847 | |||||||||||||||||||||||||||
Return on average economic capital (2, 3) | 23.90 | n/m | 28.09 | 5.18 | 28.36 | n/m | ||||||||||||||||||||||||||||
Balance Sheet |
||||||||||||||||||||||||||||||||||
Average | ||||||||||||||||||||||||||||||||||
Total loans and leases | $ | 131,217 | $ | 96,605 | $ | 268,364 | n/m | $ | 103,785 | $ | 247,128 | |||||||||||||||||||||||
Total deposits | 484,062 | n/m | 242,241 | n/m | 249,658 | 36,939 | ||||||||||||||||||||||||||||
Economic capital (2, 3) | 23,713 | 12,474 | 19,966 | 14,188 | 8,149 | n/m | ||||||||||||||||||||||||||||
Period end | ||||||||||||||||||||||||||||||||||
Total loans and leases | $ | 133,287 | $ | 94,660 | $ | 278,286 | n/m | $ | 105,928 | $ | 241,980 | |||||||||||||||||||||||
Total deposits | 496,127 | n/m | 242,596 | n/m | 266,188 | 36,060 | ||||||||||||||||||||||||||||
First Quarter 2012 | ||||||||||||||||||||||||||||||||||
Consumer & Business Banking |
Consumer
Real Estate Services |
Global
Banking |
Global
Markets |
GWIM | All
Other | |||||||||||||||||||||||||||||
Total revenue, net of interest expense (FTE basis) (1) | $ | 7,422 | $ | 2,664 | $ | 4,236 | $ | 4,411 | $ | 4,147 | $ | (395 | ) | |||||||||||||||||||||
Provision for credit losses | 877 | 507 | (245 | ) | (13 | ) | 46 | 1,246 | ||||||||||||||||||||||||||
Noninterest expense | 4,263 | 3,884 | 1,997 | 3,239 | 3,232 | 2,526 | ||||||||||||||||||||||||||||
Net income (loss) | 1,445 | (1,138 | ) | 1,573 | 828 | 550 | (2,605 | ) | ||||||||||||||||||||||||||
Return on average economic capital (2, 3) | 26.05 | n/m | 31.34 | 23.22 | 34.85 | n/m | ||||||||||||||||||||||||||||
Balance Sheet |
||||||||||||||||||||||||||||||||||
Average | ||||||||||||||||||||||||||||||||||
Total loans and leases | $ | 140,341 | $ | 109,601 | $ | 266,206 | n/m | $ | 98,016 | $ | 270,228 | |||||||||||||||||||||||
Total deposits | 464,023 | n/m | 210,940 | n/m | 239,859 | 52,529 | ||||||||||||||||||||||||||||
Economic capital (2, 3) | 22,368 | 14,791 | 20,200 | 14,384 | 6,420 | n/m | ||||||||||||||||||||||||||||
Period end | ||||||||||||||||||||||||||||||||||
Total loans and leases | $ | 137,718 | $ | 108,063 | $ | 261,480 | n/m | $ | 97,953 | $ | 266,095 | |||||||||||||||||||||||
Total deposits | 484,003 | n/m | 211,363 | n/m | 239,915 | 42,873 |
(1) Fully taxable-equivalent basis is a performance measure used by management in operating the business that management believes provides investors with a more accurate picture of the interest margin for comparative purposes.
(2) Effective
(3) Return on average allocated capital and return on average economic capital are calculated as net income, adjusted for cost of funds and earnings credits and certain expenses related to intangibles, divided by average allocated capital or average economic capital, as applicable. Allocated capital, economic capital and the related returns are non-GAAP financial measures. The Corporation believes the use of these non-GAAP financial measures provides additional clarity in assessing the results of the segments. Other companies may define or calculate these measures differently. (See Exhibit A: Non-GAAP Reconciliations - Reconciliations to GAAP Financial Measures on pages 22-25.)
n/m = not meaningful
Certain prior period amounts have been reclassified among the segments to conform to current period presentation.
This information is preliminary and based on company data available at the time of the presentation. |
Bank of America Corporation and Subsidiaries | ||||||||||||||||
Supplemental Financial Data | ||||||||||||||||
(Dollars in millions) | ||||||||||||||||
Fully taxable-equivalent (FTE) basis data (1) |
First Quarter 2013 |
Fourth Quarter 2012 |
First Quarter 2012 | |||||||||||||
Net interest income | $ | 10,875 | $ | 10,555 | $ | 11,053 | ||||||||||
Total revenue, net of interest expense | 23,708 | 18,891 | 22,485 | |||||||||||||
Net interest yield (2) | 2.43 | % | 2.35 | % | 2.51 | % | ||||||||||
Efficiency ratio | 76.57 | 97.19 | 85.13 | |||||||||||||
Other Data |
March 31 2013 |
December 31 2012 |
March 31 2012 | |||||||||||||
Number of banking centers - U.S. | 5,389 | 5,478 | 5,651 | |||||||||||||
Number of branded ATMs - U.S. | 16,311 | 16,347 | 17,255 | |||||||||||||
Ending full-time equivalent employees | 262,812 | 267,190 | 278,688 |
(1) FTE basis is a non-GAAP financial measure. FTE basis is a performance measure used by management in operating the business that management believes provides investors with a more accurate picture of the interest margin for comparative purposes. See Reconciliations to GAAP Financial Measures on pages 22-25.
(2) Calculation includes fees earned on overnight deposits placed with the Federal Reserve and, beginning in the third quarter of 2012, fees earned on deposits, primarily overnight, placed with certain non-U.S. central banks of,
Certain prior period amounts have been reclassified to conform to current period presentation.
This information is preliminary and based on company data available at the time of the presentation. |
Bank of America Corporation and Subsidiaries |
Reconciliations to GAAP Financial Measures |
(Dollars in millions) |
The Corporation evaluates its business based on a fully taxable-equivalent basis, a non-GAAP financial measure. The Corporation believes managing the business with net interest income on a fully taxable-equivalent basis provides a more accurate picture of the interest margin for comparative purposes. Total revenue, net of interest expense, includes net interest income on a fully taxable-equivalent basis and noninterest income. The Corporation views related ratios and analyses (i.e., efficiency ratios and net interest yield) on a fully taxable-equivalent basis. To derive the fully taxable-equivalent basis, net interest income is adjusted to reflect tax-exempt income on an equivalent before-tax basis with a corresponding increase in income tax expense. This measure ensures comparability of net interest income arising from taxable and tax-exempt sources. The efficiency ratio measures the costs expended to generate a dollar of revenue, and net interest yield evaluates the basis points the Corporation earns over the cost of funds.
The Corporation also evaluates its business based on the following ratios that utilize tangible equity, a non-GAAP financial measure. Return on average tangible common shareholders' equity measures the Corporation's earnings contribution as a percentage of average common shareholders' equity less goodwill and intangible assets (excluding mortgage servicing rights), net of related deferred tax liabilities. Return on average tangible shareholders' equity measures the Corporation's earnings contribution as a percentage of average shareholders' equity less goodwill and intangible assets (excluding mortgage servicing rights), net of related deferred tax liabilities. The tangible common equity ratio represents ending common shareholders' equity less goodwill and intangible assets (excluding mortgage servicing rights), net of related deferred tax liabilities divided by total assets less goodwill and intangible assets (excluding mortgage servicing rights), net of related deferred tax liabilities. The tangible equity ratio represents total ending shareholders' equity less goodwill and intangible assets (excluding mortgage servicing rights), net of related deferred tax liabilities divided by total assets less goodwill and intangible assets (excluding mortgage servicing rights), net of related deferred tax liabilities. Tangible book value per common share represents ending common shareholders' equity less goodwill and intangible assets (excluding mortgage servicing rights), net of related deferred tax liabilities divided by ending common shares outstanding. These measures are used to evaluate the Corporation's use of equity (i.e., capital). In addition, profitability, relationship and investment models all use return on average tangible shareholders' equity as key measures to support our overall growth goals.
Effective
See the tables below and on pages 23-25 for reconciliations of these non-GAAP financial measures with financial measures defined by GAAP for the three months ended March 31, 2013, December 31, 2012 and March 31, 2012. The Corporation believes the use of these non-GAAP financial measures provides additional clarity in assessing the results of the Corporation. Other companies may define or calculate supplemental financial data differently.
First Quarter 2013 |
Fourth Quarter 2012 |
First Quarter 2012 | |||||||||||||
Reconciliation of net interest income to net interest income on a fully taxable-equivalent basis |
|||||||||||||||
Net interest income | $ | 10,664 | $ | 10,324 | $ | 10,846 | |||||||||
Fully taxable-equivalent adjustment | 211 | 231 | 207 | ||||||||||||
Net interest income on a fully taxable-equivalent basis | $ | 10,875 | $ | 10,555 | $ | 11,053 | |||||||||
Reconciliation of total revenue, net of interest expense to total revenue, net of interest expense on a fully taxable-equivalent basis |
|||||||||||||||
Total revenue, net of interest expense | $ | 23,497 | $ | 18,660 | $ | 22,278 | |||||||||
Fully taxable-equivalent adjustment | 211 | 231 | 207 | ||||||||||||
Total revenue, net of interest expense on a fully taxable-equivalent basis | $ | 23,708 | $ | 18,891 | $ | 22,485 | |||||||||
Reconciliation of income tax expense (benefit) to income tax expense (benefit) on a fully taxable-equivalent basis |
|||||||||||||||
Income tax expense (benefit) | $ | 1,009 | $ | (2,636 | ) | $ | 66 | ||||||||
Fully taxable-equivalent adjustment | 211 | 231 | 207 | ||||||||||||
Income tax expense (benefit) on a fully taxable-equivalent basis | $ | 1,220 | $ | (2,405 | ) | $ | 273 | ||||||||
Reconciliation of average common shareholders' equity to average tangible common shareholders' equity |
|||||||||||||||
Common shareholders' equity |
$ | 218,238 | $ | 219,744 | $ | 214,150 | |||||||||
Goodwill | (69,945 | ) | (69,976 | ) | (69,967 | ) | |||||||||
Intangible assets (excluding mortgage servicing rights) | (6,549 | ) | (6,874 | ) | (7,869 | ) | |||||||||
Related deferred tax liabilities | 2,425 | 2,490 | 2,700 | ||||||||||||
Tangible common shareholders' equity |
$ | 144,169 | $ | 145,384 | $ | 139,014 | |||||||||
Reconciliation of average shareholders' equity to average tangible shareholders' equity |
|||||||||||||||
Shareholders' equity |
$ | 237,008 | $ | 238,512 | $ | 232,566 | |||||||||
Goodwill | (69,945 | ) | (69,976 | ) | (69,967 | ) | |||||||||
Intangible assets (excluding mortgage servicing rights) | (6,549 | ) | (6,874 | ) | (7,869 | ) | |||||||||
Related deferred tax liabilities | 2,425 | 2,490 | 2,700 | ||||||||||||
Tangible shareholders' equity |
$ | 162,939 | $ | 164,152 | $ | 157,430 |
Certain prior period amounts have been reclassified to conform to current period presentation.
This information is preliminary and based on company data available at the time of the presentation. |
Bank of America Corporation and Subsidiaries | |||||||||||||||||
Reconciliations to GAAP Financial Measures (continued) | |||||||||||||||||
(Dollars in millions) | |||||||||||||||||
First Quarter 2013 |
Fourth Quarter 2012 |
First Quarter 2012 | |||||||||||||||
Reconciliation of period-end common shareholders' equity to period-end tangible common shareholders' equity |
|||||||||||||||||
Common shareholders' equity |
$ | 219,653 | $ | 218,188 | $ | 213,711 | |||||||||||
Goodwill | (69,930 | ) | (69,976 | ) | (69,976 | ) | |||||||||||
Intangible assets (excluding mortgage servicing rights) | (6,379 | ) | (6,684 | ) | (7,696 | ) | |||||||||||
Related deferred tax liabilities | 2,363 | 2,428 | 2,628 | ||||||||||||||
Tangible common shareholders' equity |
$ | 145,707 | $ | 143,956 | $ | 138,667 | |||||||||||
Reconciliation of period-end shareholders' equity to period-end tangible shareholders' equity |
|||||||||||||||||
Shareholders' equity |
$ | 238,433 | $ | 236,956 | $ | 232,499 | |||||||||||
Goodwill | (69,930 | ) | (69,976 | ) | (69,976 | ) | |||||||||||
Intangible assets (excluding mortgage servicing rights) | (6,379 | ) | (6,684 | ) | (7,696 | ) | |||||||||||
Related deferred tax liabilities | 2,363 | 2,428 | 2,628 | ||||||||||||||
Tangible shareholders' equity |
$ | 164,487 | $ | 162,724 | $ | 157,455 | |||||||||||
Reconciliation of period-end assets to period-end tangible assets |
|||||||||||||||||
Assets | $ | 2,174,611 | $ | 2,209,974 | $ | 2,181,449 | |||||||||||
Goodwill | (69,930 | ) | (69,976 | ) | (69,976 | ) | |||||||||||
Intangible assets (excluding mortgage servicing rights) | (6,379 | ) | (6,684 | ) | (7,696 | ) | |||||||||||
Related deferred tax liabilities | 2,363 | 2,428 | 2,628 | ||||||||||||||
Tangible assets | $ | 2,100,665 | $ | 2,135,742 | $ | 2,106,405 | |||||||||||
Book value per share of common stock |
|||||||||||||||||
Common shareholders' equity |
$ | 219,653 | $ | 218,188 | $ | 213,711 | |||||||||||
Ending common shares issued and outstanding | 10,822,380 | 10,778,264 | 10,775,604 | ||||||||||||||
Book value per share of common stock | $ | 20.30 | $ | 20.24 | $ | 19.83 | |||||||||||
Tangible book value per share of common stock |
|||||||||||||||||
Tangible common shareholders' equity |
$ | 145,707 | $ | 143,956 | $ | 138,667 | |||||||||||
Ending common shares issued and outstanding | 10,822,380 | 10,778,264 | 10,775,604 | ||||||||||||||
Tangible book value per share of common stock | $ | 13.46 | $ | 13.36 | $ | 12.87 |
Certain prior period amounts have been reclassified to conform to current period presentation.
This information is preliminary and based on company data available at the time of the presentation. |
Bank of America Corporation and Subsidiaries | |||||||||||||||
Reconciliations to GAAP Financial Measures (continued) | |||||||||||||||
(Dollars in millions) | |||||||||||||||
First Quarter 2013 |
Fourth Quarter 2012 |
First Quarter 2012 | |||||||||||||
Reconciliation of return on average allocated capital/economic capital (1) | |||||||||||||||
Consumer & Business Banking |
|||||||||||||||
Reported net income | $ | 1,382 | $ | 1,421 | $ | 1,445 | |||||||||
Adjustment related to intangibles (2) | 2 | 3 | 3 | ||||||||||||
Adjusted net income | $ | 1,384 | $ | 1,424 | $ | 1,448 | |||||||||
Average allocated equity | $ | 58,388 | $ | 54,131 | $ | 52,890 | |||||||||
Adjustment related to goodwill and a percentage of intangibles | (30,388 | ) | (30,418 | ) | (30,522 | ) | |||||||||
Average allocated capital/economic capital | $ | 28,000 | $ | 23,713 | $ | 22,368 | |||||||||
Global Banking |
|||||||||||||||
Reported net income | $ | 1,338 | $ | 1,409 | $ | 1,573 | |||||||||
Adjustment related to intangibles (2) | 1 | 1 | 1 | ||||||||||||
Adjusted net income | $ | 1,339 | $ | 1,410 | $ | 1,574 | |||||||||
Average allocated equity | $ | 49,828 | $ | 44,815 | $ | 45,060 | |||||||||
Adjustment related to goodwill and a percentage of intangibles | (24,828 | ) | (24,849 | ) | (24,860 | ) | |||||||||
Average allocated capital/economic capital | $ | 25,000 | $ | 19,966 | $ | 20,200 | |||||||||
Global Markets |
|||||||||||||||
Reported net income | $ | 1,358 | $ | 183 | $ | 828 | |||||||||
Adjustment related to intangibles (2) | 2 | 2 | 2 | ||||||||||||
Adjusted net income | $ | 1,360 | $ | 185 | $ | 830 | |||||||||
Average allocated equity | $ | 34,645 | $ | 18,836 | $ | 19,032 | |||||||||
Adjustment related to goodwill and a percentage of intangibles | (4,645 | ) | (4,648 | ) | (4,648 | ) | |||||||||
Average allocated capital/economic capital | $ | 30,000 | $ | 14,188 | $ | 14,384 | |||||||||
Global Wealth & Investment Management |
|||||||||||||||
Reported net income | $ | 720 | $ | 576 | $ | 550 | |||||||||
Adjustment related to intangibles (2) | 4 | 5 | 6 | ||||||||||||
Adjusted net income | $ | 724 | $ | 581 | $ | 556 | |||||||||
Average allocated equity | $ | 20,323 | $ | 18,489 | $ | 16,822 | |||||||||
Adjustment related to goodwill and a percentage of intangibles | (10,323 | ) | (10,340 | ) | (10,402 | ) | |||||||||
Average allocated capital/economic capital | $ | 10,000 | $ | 8,149 | $ | 6,420 |
Certain prior period amounts have been reclassified to conform to current period presentation.
This information is preliminary and based on company data available at the time of the presentation. |
Bank of America Corporation and Subsidiaries | |||||||||||||||
Reconciliations to GAAP Financial Measures (continued) | |||||||||||||||
(Dollars in millions) | |||||||||||||||
First Quarter 2013 |
Fourth Quarter 2012 |
First Quarter 2012 | |||||||||||||
Consumer & Business Banking |
|||||||||||||||
Deposits |
|||||||||||||||
Reported net income | $ | 398 | $ | 322 | $ | 403 | |||||||||
Adjustment related to intangibles (2) | — | — | — | ||||||||||||
Adjusted net income | $ | 398 | $ | 322 | $ | 403 | |||||||||
Average allocated equity | $ | 35,407 | $ | 33,479 | $ | 32,219 | |||||||||
Adjustment related to goodwill and a percentage of intangibles | (20,007 | ) | (20,013 | ) | (20,030 | ) | |||||||||
Average allocated capital/economic capital | $ | 15,400 | $ | 13,466 | $ | 12,189 | |||||||||
Card Services |
|||||||||||||||
Reported net income | $ | 984 | $ | 1,099 | $ | 1,042 | |||||||||
Adjustment related to intangibles (2) | 2 | 3 | 3 | ||||||||||||
Adjusted net income | $ | 986 | $ | 1,102 | $ | 1,045 | |||||||||
Average allocated equity | $ | 22,981 | $ | 20,652 | $ | 20,671 | |||||||||
Adjustment related to goodwill and a percentage of intangibles | (10,381 | ) | (10,405 | ) | (10,492 | ) | |||||||||
Average allocated capital/economic capital | $ | 12,600 | $ | 10,247 | $ | 10,179 |
(1) There are no adjustments to reported net income (loss) or average allocated equity for Consumer Real Estate Services.
(2) Represents cost of funds, earnings credits and certain expenses related to intangibles.
Certain prior period amounts have been reclassified to conform to current period presentation.
This information is preliminary and based on company data available at the time of the presentation. |
Source:
Investors May Contact:
Kevin Stitt, Bank of America, 1.980.386.5667
Lee McEntire, Bank of America, 1.980.388.6780
Reporters May Contact:
Jerry Dubrowski, Bank of America, 1.980.388.2840
jerome.f.dubrowski@bankofamerica.com