Exhibit 99.2 Bank of America Supplemental Information First Quarter 2001 April 16, 2001 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 unde4rtake 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 persuant to the Securities Exchange Act of 1934, which are available at the SEC's website (www.sec.gov) or at Bank of America's website (www.bankofamerica.com). Bank of America's future financial performance is subject to risks and uncertainties as described in its SEC filings.
Bank of America Consolidated Financial Highlights (Excludes merger and restructuring charges) - ------------------------------------------------------------------------------------------------------------------------------------ (Dollars in millions, except per share information; shares in thousands) First Fourth Third Second First Quarter Quarter Quarter Quarter Quarter 2001 2000 2000 2000 2000 ---------------------------------------------------------------------------- Operating net income $ 1,870 $ 1,385 $ 2,175 $ 2,063 $ 2,240 Cash basis earnings(1) 2,093 1,599 2,390 2,281 2,457 Diluted operating earnings per common share 1.15 0.85 1.31 1.23 1.33 Cash basis diluted earnings per common share 1.28 0.98 1.44 1.36 1.46 Dividends per common share 0.56 0.56 0.50 0.50 0.50 Average common shares issued and outstanding 1,608,890 1,623,721 1,639,392 1,653,495 1,669,311 Average diluted common shares issued and outstanding 1,631,099 1,638,863 1,661,031 1,676,089 1,688,318 Period-end common shares issued and outstanding 1,601,984 1,613,632 1,630,824 1,645,701 1,657,754 Period-end managed loans and leases* $ 403,601 $ 407,880 $ 406,363 $ 406,144 $ 390,925 Average managed loans and leases* 409,261 409,188 409,491 400,298 389,432 *Prior periods have been restated for comparison (e.g., acquisitions, divestitures, sales, and securitizations) Performance ratios (operating basis): Return on average assets 1.17 % 0.81 % 1.26 % 1.23 % 1.38 % Cash basis return on average assets 1.31 0.94 1.39 1.36 1.52 Return on average common shareholders' equity 15.86 11.57 18.15 17.63 19.59 Cash basis return on average common shareholders' equity 17.75 13.36 19.94 19.49 21.49 Efficiency ratio 54.73 57.35 53.01 53.77 53.49 Cash basis efficiency ratio 52.11 54.70 50.43 51.12 50.98 Net interest yield 3.39 3.21 3.10 3.23 3.26 Shareholder value added $ 679 $ 164 $ 953 $ 878 $ 1,086 Book value per common share 30.47 29.47 28.69 27.82 27.28 Market price per share of common stock: High for the period 55.94 54.75 57.63 61.00 55.19 Low for the period 45.00 36.31 43.63 42.98 42.31 Closing price 54.75 45.88 52.38 43.00 52.44 Other data: Number of banking centers 4,339 4,390 4,419 4,450 4,502 Number of ATM's 12,866 12,921 12,840 12,931 12,933 Full-time equivalent employees 143,584 142,724 146,346 150,854 152,948 (1) Cash basis calculations exclude goodwill and other intangible amortization expense.
GRAPHIC REPRESENTATION OMITTED: Cash Basis Earnings by Business Segment for First Quarter 2001 (Dollars in millions) Consumer & Commercial Banking $1,256 59% Asset Management $143 7% Global Corporate & Investment Banking $645 31% Equity Investments $38 2% Corporate Other $11 1% --------------------------- Total $2,093 100% =========================== Consumer & Commercial Banking: Banking Regions $730 58% Consumer Products $375 30% Commercial Banking $151 12% --------------------------- Total Consumer & Commercial Banking $1,256 100% =========================== Global Corporate & Investment Banking: Global Investment Banking $325 50% Global Credit Products $259 40% Global Treasury Services $61 10% --------------------------- Total Global Corporate & Investment Banking $645 100% =========================== Consumer and Commercial Banking Segment
Consumer and Commercial Banking Segment Results - ----------------------------------------------------------------------------------------------------------------------------------- Quarterly --------------------------------------------------------------------------- Key Measures (in Millions) 1Q01 4Q00 1Q00 - --------------------------- ----------------------- ----------------------- ---------------------- Total Revenue $ 5,156 $ 5,132 $ 4,820 Provision for Credit Losses 516 427 398 Net Income 1,089 1,087 954 Cash Basis Earnings (1) 1,256 1,252 1,122 Shareholder Value Added 644 623 485 Average Equity to Average Assets 7.23 % 7.33 % 7.58 % Return on Average Equity 21.4 20.7 18.0 Cash Basis Return on Average Equity (1) 24.7 23.9 21.1 Efficiency Ratio 55.3 55.9 59.3 Cash Basis Efficiency Ratio (1) 52.0 52.6 55.8 Selected Average Balance Sheet Components (in Millions) - ------------------------------ Total Loans and Leases $ 198,457 $ 196,292 $ 187,007 Total Deposits 258,050 256,162 253,039 Total Earning Assets 258,317 257,059 253,970 Consumer and Commercial Banking Sub-Segment Results - ----------------------------------------------------------------------------------------------------------------------------------- Quarterly --------------------------------------------------------------------------- Key Measures (in Millions) 1Q01 4Q00 1Q00 - --------------------------- ----------------------- ----------------------- ---------------------- Banking Regions - --------------- Total Revenue $ 2,958 $ 3,117 $ 2,893 Shareholder Value Added 397 478 333 Cash Basis Earnings (1) 730 815 677 Cash Basis Efficiency Ratio (1) 59.1 % 56.0 % 61.0 % Consumer Products - ----------------- Total Revenue $ 1,466 $ 1,284 $ 1,164 Shareholder Value Added 202 122 49 Cash Basis Earnings (1) 375 303 229 Cash Basis Efficiency Ratio (1) 40.5 % 47.3 % 48.8 % Commercial Banking - ------------------ Total Revenue $ 732 $ 731 $ 763 Shareholder Value Added 45 23 103 Cash Basis Earnings (1) 151 134 216 Cash Basis Efficiency Ratio (1) 46.6 % 47.6 % 46.9 % - ----------------------------------------------------------------------------------------------------------------------------------- (1) Cash basis calculations exclude goodwill and other intangible amortization expense. Key First Quarter Performance Drivers (Compared to Fourth Quarter 2000) - ----------------------------------------------------------------------- o Earnings were flat as higher fees were offset by lower net interest income and higher provision expense. - Net interest income declined 2% as a result of money market deposit pricing stategies offset by growth in deposits. - Fee revenue grew 5% driven by mortgage banking results and lower auto lease residual charges. - Card net interest income rose 2% as a result of lower customer payments driving growth in receivables. Card fee income decreased 4% due primarily to seasonality as well as less intensity in purchase volumes. o Noninterest expense was down 1% driven primarily by a decline in personnel costs resulting from productivity and growth initiatives and a decrease in marketing expense.
Asset Management Group Segment
Asset Management Group Segment Results - ----------------------------------------------------------------------------------------------------------------------------------- Quarterly ---------------------------------------------------------------------------- Key Measures (in Millions) 1Q01 4Q00 1Q00 - --------------------------- ----------------------- ---------------------- ----------------------- Total Revenue $ 576 $ 576 $ 549 Provision for Credit Losses 8 38 9 Net Income 130 123 145 Cash Basis Earnings (1) 143 129 151 Shareholder Value Added 83 85 108 Average Equity to Average Assets 7.79 % 5.69 % 6.41 % Return on Average Equity 26.2 34.0 40.7 Cash Basis Return on Average Equity (1) 28.7 35.6 42.4 Efficiency Ratio 62.1 58.1 55.3 Cash Basis Efficiency Ratio (1) 60.0 57.0 54.2 Selected Average Balance Sheet Components (in Millions) - ------------------------------ Total Loans and Leases $ 23,531 $ 23,369 $ 20,721 Total Deposits 11,808 11,307 10,844 Total Earning Assets 24,587 24,386 21,521 Assets Under Management (period end) 285,638 277,000 261,457 - ----------------------------------------------------------------------------------------------------------------------------------- (1) Cash basis calculations exclude goodwill and other intangible amortization expense. Key First Quarter Performance Drivers (Compared to Fourth Quarter 2000) - ----------------------------------------------------------------------- o Earnings grew 6% due to lower provision expense. Fourth quarter results reflect increased provision expense in the Private Bank. o Total revenue remained flat as income from the acquisition of the remaining 50% interest in Marsico Capital Management LLC was offset by lower management fees as a result of the market sell-off. o Mutual fund assets under management grew 18% to $129.8 billion due mainly to the Marsico acquisition. o Noninterest expense increased 7% driven by an increase in project costs related to revenue growth initiatives.
Global Corporate and Investment Banking Banking Segment
Global Corporate and Investment Banking Segment Results - ----------------------------------------------------------------------------------------------------------------------------------- Quarterly ---------------------------------------------------------------------------- Key Measures (in Millions) 1Q01 4Q00 1Q00 - --------------------------- ----------------------- ---------------------- ----------------------- Total Revenue $ 2,563 $ 2,023 $ 2,481 Provision for Credit Losses 245 480 27 Net Income 604 159 724 Cash Basis Earnings (1) 645 199 763 Shareholder Value Added 238 (235) 329 Average Equity to Average Assets 5.48 % 5.79 % 6.21 % Return on Average Equity 17.9 4.4 20.0 Cash Basis Return on Average Equity (1) 19.1 5.6 21.1 Efficiency Ratio 53.4 67.1 53.9 Cash Basis Efficiency Ratio (1) 51.8 65.1 52.3 Selected Average Balance Sheet Components (in Millions) - ------------------------------ Total Loans and Leases $ 109,190 $ 112,598 $ 107,707 Total Deposits 67,610 69,958 66,796 Total Earning Assets 213,274 210,822 196,267 Global Corporate and Investment Banking Sub-Segment Results - ----------------------------------------------------------------------------------------------------------------------------------- Quarterly ---------------------------------------------------------------------------- Key Measures (in Millions) 1Q01 4Q00 1Q00 - --------------------------- ----------------------- ---------------------- ----------------------- Global Investment Banking - ------------------------- Total Revenue $ 1,415 $ 880 $ 1,335 Shareholder Value Added 218 (51) 227 Cash Basis Earnings (1) 325 55 332 Cash Basis Efficiency Ratio (1) 63.5 % 93.7 % 63.8 % Global Credit Products - ---------------------- Total Revenue $ 799 $ 809 $ 819 Shareholder Value Added (25) (211) 44 Cash Basis Earnings (1) 259 102 358 Cash Basis Efficiency Ratio (1) 21.8 % 27.1 % 23.5 % Global Treasury Services - ------------------------ Total Revenue $ 349 $ 334 $ 327 Shareholder Value Added 45 27 58 Cash Basis Earnings (1) 61 42 73 Cash Basis Efficiency Ratio (1) 73.2 % 81.8 % 78.2 % - ----------------------------------------------------------------------------------------------------------------------------------- (1) Cash basis calculations exclude goodwill and other intangible amortization expense. Key First Quarter Performance Drivers (Compared to Fourth Quarter 2000) - ----------------------------------------------------------------------- o Earnings increased $445 million to $604 million as revenue grew 27% and provision expense decreased $235 million. - Trading-related revenue grew $465 million as the drop in interest rates provided a strong deal flow and favorable trading environment. - A surge in new issue activity provided for favorable high yield and high grade results which were offset by lower syndication fees, leaving investment banking flat for the quarter. o The provision for credit losses declined due to significant charge-offs in the large corporate book of Global Credit Products in the fourth quarter of 2000. o Noninterest expense remained relatively flat as an increase in revenue-related incentive compensation expense was offset by decreases in most other expense categories.
Equity Investments Segment
Equity Investments Segment Results - ----------------------------------------------------------------------------------------------------------------------------------- Quarterly ---------------------------------------------------------------------------- Key Measures (in Millions) 1Q01 4Q00 1Q00 - --------------------------- ----------------------- ---------------------- ----------------------- Total Revenue $ 105 $ (89) $ 524 Provision for Credit Losses - 1 4 Net Income 35 (73) 301 Cash Basis Earnings (1) 38 (71) 304 Shareholder Value Added (29) (136) 252 Average Equity to Average Assets 33.61 % 33.48 % 36.15 % Return on Average Equity 6.3 (13.6) 70.6 Cash Basis Return on Average Equity (1) 6.8 (13.0) 71.2 Efficiency Ratio 47.7 (32.3) 5.4 Cash Basis Efficiency Ratio (1) 45.1 (29.3) 4.8 Selected Average Balance Sheet Components (in Millions) - ------------------------------ Total Loans and Leases $ 504 $ 462 $ 416 Total Deposits 37 19 7 Total Earning Assets 504 473 436 - ----------------------------------------------------------------------------------------------------------------------------------- (1) Cash basis calculations exclude goodwill and other intangible amortization expense. Key First Quarter Performance Drivers (Compared to Fourth Quarter 2000) - ----------------------------------------------------------------------- o Revenue rose $194 million reflecting a $140 million gain related to Star ATM network.
Bank of America Corporation Consolidated Statement of Income - ---------------------------------------------------------------------------------------------------------------------------------- (Dollars in millions, except per share information) First Fourth Third Second First Quarter Quarter Quarter Quarter Quarter 2001 2000 2000 2000 2000 ----------------------------------------------------------------------- Interest income Interest and fees on loan and leases $ 7,659 $ 8,224 $ 8,283 $ 7,915 $ 7,395 Interest and dividends on securities 846 1,177 1,251 1,268 1,311 Federal funds sold and securities purchased under agreements to resell 435 551 633 595 575 Trading account assets 846 751 744 694 536 Other interest income 455 434 324 254 250 ----------------------------------------------------------------------- Total interest income 10,241 11,137 11,235 10,726 10,067 ----------------------------------------------------------------------- Interest expense Deposits 2,713 2,924 2,868 2,720 2,495 Short-term borrowings 1,377 1,942 2,223 1,990 1,802 Trading account liabilities 290 285 237 189 181 Long-term debt 1,222 1,322 1,344 1,210 1,084 ----------------------------------------------------------------------- Total interest expense 5,602 6,473 6,672 6,109 5,562 ----------------------------------------------------------------------- Net interest income 4,639 4,664 4,563 4,617 4,505 Provision for credit losses 835 1,210 435 470 420 ----------------------------------------------------------------------- Net interest income after provision for credit losses 3,804 3,454 4,128 4,147 4,085 Gains (losses) on sales of securities (8) 2 11 6 6 Noninterest income Consumer service charges 694 706 684 646 618 Corporate service charges 499 475 474 465 475 ----------------------------------------------------------------------- Total service charges 1,193 1,181 1,158 1,111 1,093 ----------------------------------------------------------------------- Consumer investment and brokerage services 379 358 357 387 364 Corporate investment and brokerage services 136 123 114 105 121 ----------------------------------------------------------------------- Total investment and brokerage services 515 481 471 492 485 ----------------------------------------------------------------------- Mortgage banking income 151 152 144 136 128 Investment banking income 346 366 376 373 397 Equity investment gains 147 (65) 422 134 563 Card income 573 595 594 556 484 Trading account profits(1) 699 293 402 485 743 Other income 156 325 108 227 172 ----------------------------------------------------------------------- Total noninterest income 3,780 3,328 3,675 3,514 4,065 ----------------------------------------------------------------------- Other noninterest expense Personnel 2,401 2,257 2,298 2,311 2,534 Occupancy 433 434 419 411 418 Equipment 291 291 285 296 301 Marketing 177 223 147 132 119 Professional fees 126 154 100 93 105 Amortization of intangibles 223 214 215 218 217 Data processing 190 172 167 169 159 Telecommunications 119 136 127 133 131 Other general operating 545 585 509 505 515 General administrative and other 149 171 143 145 124 ----------------------------------------------------------------------- Total other noninterest expense 4,654 4,637 4,410 4,413 4,623 ----------------------------------------------------------------------- Operating income before income taxes 2,922 2,147 3,404 3,254 3,533 Income tax expense 1,052 762 1,229 1,191 1,293 ----------------------------------------------------------------------- Operating net income $ 1,870 $ 1,385 $ 2,175 $ 2,063 $ 2,240 ----------------------------------------------------------------------- Operating income available to common shareholders 1,869 1,383 2,174 2,061 2,239 ----------------------------------------------------------------------- Per share information Operating earnings per common share 1.16 0.85 1.33 1.25 1.34 ----------------------------------------------------------------------- Diluted operating earnings per common share 1.15 0.85 1.31 1.23 1.33 ----------------------------------------------------------------------- Dividends per common share 0.56 0.56 0.50 0.50 0.50 ----------------------------------------------------------------------- Average common shares issued and outstanding (in thousands) 1,608,890 1,623,721 1,639,392 1,653,495 1,669,311 ----------------------------------------------------------------------- Average diluted common shares issued and outstanding (in thousands) 1,631,099 1,638,863 1,661,031 1,676,089 1,688,318 ----------------------------------------------------------------------- As reported (includes merger and restructuring charges, net of tax): Net income $ 1,870 $ 1,385 $ 1,829 $ 2,063 $ 2,240 Net income available to common shareholders 1,869 1,383 1,828 2,061 2,239 Earnings per common share 1.16 0.85 1.11 1.25 1.34 Diluted earnings per common share 1.15 0.85 1.10 1.23 1.33 Certain prior period amounts have been reclassified to conform to current period classifications. (1) Trading account profits for the three months ended March 31, 2001 included the $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.
Bank of America Corporation Consolidated Balance Sheet - --------------------------------------------------------------------------------------------------------------------------------- March 31 December 31 March 31 (Dollars in millions) 2001 2000 2000 - --------------------------------------------------------------------------------------------------------------------------------- Assets Cash and cash equivalents $ 23,333 $ 27,513 $ 27,259 Time deposits placed and other short-term investments 5,549 5,448 3,250 Federal funds sold and securities purchased under agreements to resell 20,581 28,055 39,801 Trading account assets 45,281 43,041 47,321 Derivative assets 16,508 15,534 17,877 Securities: Available-for-sale 49,189 64,651 82,557 Held-to-maturity 1,189 1,187 1,294 - --------------------------------------------------------------------------------------------------------------------------------- Total securities 50,378 65,838 83,851 - --------------------------------------------------------------------------------------------------------------------------------- Loans and leases 382,677 392,193 382,085 Allowance for credit losses (6,900) (6,838) (6,827) - --------------------------------------------------------------------------------------------------------------------------------- Loans and leases, net of allowance for credit losses 375,777 385,355 375,258 - --------------------------------------------------------------------------------------------------------------------------------- Premises and equipment, net 6,366 6,433 6,607 Customers' acceptance liability 2,232 1,972 2,362 Interest receivable 3,855 4,432 3,870 Mortgage banking assets 3,855 3,762 4,080 Goodwill 12,006 11,643 12,121 Core deposits and other intangibles 1,446 1,499 1,674 Other assets 42,588 41,666 30,782 - --------------------------------------------------------------------------------------------------------------------------------- Total assets $609,755 $ 642,191 $ 656,113 - --------------------------------------------------------------------------------------------------------------------------------- Liabilities Deposits in domestic offices: Noninterest-bearing $ 97,448 $ 98,722 $ 92,496 Interest-bearing 214,379 211,978 209,427 Deposits in foreign offices: Noninterest-bearing 1,716 1,923 1,986 Interest-bearing 38,917 51,621 47,717 - --------------------------------------------------------------------------------------------------------------------------------- Total deposits 352,460 364,244 351,626 - --------------------------------------------------------------------------------------------------------------------------------- Federal funds purchased and securities sold under agreements to repurchase 37,011 49,411 83,775 Trading account liabilities 24,138 20,947 23,007 Derivative liabilities 17,132 22,402 17,805 Commercial paper 5,707 6,955 9,045 Other short-term borrowings 30,559 35,243 37,007 Acceptances outstanding 2,232 1,972 2,362 Accrued expenses and other liabilites 19,631 20,887 19,173 Long-term debt 67,044 67,547 62,059 Trust preferred securities 4,955 4,955 4,955 - --------------------------------------------------------------------------------------------------------------------------------- Total liabilities 560,869 594,563 610,814 - --------------------------------------------------------------------------------------------------------------------------------- Shareholders' equity Preferred stock, $0.01 par value; authorized - 100,000,000 shares; issued and outstanding 1,662,172; 1,692,172 and 1,807,349 shares 71 72 77 Common stock, $0.01 par value; authorized - 5,000,000,000 shares; issued and outstanding 1,601,983,783; 1,613,632,036 and 1,657,753,677 shares 7,872 8,613 10,828 Retained earnings 40,785 39,815 37,089 Accumulated other comprehensive (loss) (360) (746) (2,492) Other 518 (126) (203) - --------------------------------------------------------------------------------------------------------------------------------- Total shareholders' equity 48,886 47,628 45,299 - --------------------------------------------------------------------------------------------------------------------------------- Total liabilities and shareholders' equity $609,755 $ 642,191 $ 656,113 - ---------------------------------------------------------------------------------------------------------------------------------
Bank of America Corporation Quarterly Average Balances and Interest Rates - Taxable-Equivalent Basis - ----------------------------------------------------------------------------------------------------------------------------------- (Dollars in millions) First Quarter 2001 Fourth Quarter 2000 --------------------------------------------------------------------------- Interest Interest Average Income/ Yield/ Average Income/ Yield/ Balance Expense Rate Balance Expense Rate ------------- ------------- --------- -------------------------- ---------- Earning assets Time deposits placed and other short-term investments $ 6,675 $ 102 6.17% $ 5,663 $ 99 6.96% Federal funds sold and securities purchased under agreements to resell 31,903 435 5.48 37,936 551 5.79 Trading account assets 62,491 852 5.49 53,251 758 5.68 Total securities(1) 55,221 860 6.26 79,501 1,205 6.05 Loans and leases(2) Commercial - domestic 144,404 2,813 7.90 147,336 3,034 8.19 Commercial - foreign 29,540 515 7.06 30,408 560 7.32 Commercial real estate - domestic 25,989 530 8.27 27,220 622 9.09 Commercial real estate - foreign 300 6 7.82 264 6 8.44 -------------------------------------------------------------------------- Total commercial 200,233 3,864 7.82 205,228 4,222 8.18 -------------------------------------------------------------------------- Residential mortgage 82,710 1,532 7.43 92,679 1,733 7.47 Home equity lines 21,744 467 8.71 21,117 483 9.11 Direct/Indirect consumer 40,461 784 7.86 40,390 843 8.30 Consumer finance 25,947 589 9.08 25,592 570 8.91 Bankcard 14,464 443 12.41 12,295 384 12.43 Foreign consumer 2,330 43 7.54 2,248 48 8.49 -------------------------------------------------------------------------- Total consumer 187,656 3,858 8.29 194,321 4,061 8.34 -------------------------------------------------------------------------- Total loans and leases 387,889 7,722 8.05 399,549 8,283 8.26 -------------------------------------------------------------------------- Other earning assets 17,248 352 8.28 14,828 335 9.00 -------------------------------------------------------------------------- Total earning assets(3) 561,427 10,323 7.42 590,728 11,231 7.58 -------------------------------------------------------------------------- Cash and cash equivalents 23,020 23,458 Other assets, less allowance for credit losses 64,251 63,272 -------------------------------------------------------------------------- Total assets $648,698 $677,458 -------------------------------------------------------------------------- Interest-bearing liabilities Domestic interest-bearing deposits: Savings $ 20,406 61 1.21 $22,454 80 1.42 NOW and money market deposit accounts 107,015 808 3.06 101,376 788 3.09 Consumer CDs and IRAs 77,772 1,068 5.57 78,298 1,105 5.62 Negotiable CDs, public funds and other time deposits 7,137 108 6.16 7,570 127 6.68 -------------------------------------------------------------------------- Total domestic interest-bearing deposits 212,330 2,045 3.91 209,698 2,100 3.98 -------------------------------------------------------------------------- Foreign interest-bearing deposits(4) Banks located in foreign countries 24,358 332 5.53 26,223 424 6.43 Governments and official institutions 3,993 52 5.27 5,884 61 4.14 Time, savings, and other 22,506 284 5.11 24,064 339 5.62 -------------------------------------------------------------------------- Total foreign interest-bearing deposits 50,857 668 5.32 56,171 824 5.84 -------------------------------------------------------------------------- Total interest-bearing deposits 263,187 2,713 4.18 265,869 2,924 4.38 -------------------------------------------------------------------------- Federal funds purchased, securities sold under agreements to repurchase and other short-term borrowings 94,792 1,377 5.89 122,680 1,942 6.30 Trading account liabilities 28,407 290 4.14 27,548 285 4.13 Long-term debt(5) 73,752 1,222 6.63 73,041 1,322 7.24 -------------------------------------------------------------------------- Total interest-bearing liabilities(6) 460,138 5,602 4.92 489,138 6,473 5.27 -------------------------------------------------------------------------- Noninterest-bearing sources: Noninterest-bearing deposits 92,431 91,685 Other liabilities 48,263 48,996 Shareholders' equity 47,866 47,639 -------------------------------------------------------------------------- Total liabilities and shareholders' equity $648,698 $677,458 -------------------------------------------------------------------------- Net interest spread 2.50 2.31 Impact of noninterest-bearing sources .89 .90 -------------------------------------------------------------------------- Net interest income/yield on earning assets $ 4,721 3.39% $4,758 3.21% -------------------------------------------------------------------------- (1) The average balance and yield on available-for-sale securities are based on the average of historical amortized cost balances. (2) Nonperforming loans are included in the average loan balances. Income on such nonperforming loans is recognized on a cash basis. (3) Interest income includes taxable-equivalent basis adjustments of $82 in the first quarter of 2001 and $94, $79, $78, and $71 in the fourth, third, second and first quarter of 2000, respectively. Interest income also includes the impact of risk management interest rate contracts, which increased (decreased) interest income on the underlying assets $27 in the first quarter of 2001 and $(31), $(13), $(11) and $7 in the fourth, third, second and first quarters of 2000, respectively. (4) Primarily consists of time deposits in denominations of $100,000 or more. (5) Long-term debt includes trust preferred securities. (6) Interest expense includes the impact of risk management interest rate contracts, which (increased) decreased interest expense on the underlying liabilities $23 in the first quarter of 2001 and $(7), $(16), $(5) and $(8) in the fourth, third, second and first quarters of 2000, respectively.
Third Quarter 2000 Second Quarter 2000 First Quarter 2000 - --------------------------------------------------------------------------------------------------------------------------------- Interest Interest Interest Average Income/ Yield/ Average Income/ Yield/ Average Income/ Yield/ Balance Expense Rate Balance Expense Rate Balance Expense Rate -------------- ------------------------- -------------- -------------- ---------- ----------------- ------------- ---------- $ 4,700 $ 83 6.97 % $ 4,578 $ 79 7.02 % $ 4,504 $ 75 6.65 % 40,763 633 6.20 43,983 595 5.43 45,459 575 5.07 53,793 749 5.55 48,874 702 5.77 39,733 542 5.47 83,728 1,276 6.08 85,460 1,293 6.06 88,211 1,337 6.08 151,903 3,151 8.26 148,034 3,016 8.19 145,362 2,824 7.81 29,845 555 7.39 29,068 515 7.12 27,927 486 6.99 26,113 597 9.09 25,497 563 8.88 24,664 517 8.43 235 5 8.30 376 8 9.15 344 8 9.29 - -------------------------------------------------------------------------------------------------------------------------------- 208,096 4,308 8.24 202,975 4,102 8.13 198,297 3,835 7.78 - -------------------------------------------------------------------------------------------------------------------------------- 94,380 1,759 7.45 91,825 1,696 7.40 85,427 1,566 7.34 20,185 466 9.18 19,067 422 8.91 17,573 377 8.62 41,905 848 8.06 41,757 867 8.36 41,858 887 8.52 25,049 559 8.93 24,123 545 9.03 22,798 486 8.53 10,958 344 12.49 9,429 279 11.87 8,404 234 11.22 2,190 48 8.79 2,228 48 8.81 2,227 50 9.00 - -------------------------------------------------------------------------------------------------------------------------------- 194,667 4,024 8.25 188,429 3,857 8.21 178,287 3,600 8.10 - -------------------------------------------------------------------------------------------------------------------------------- 402,763 8,332 8.24 391,404 7,959 8.17 376,584 7,435 7.93 - -------------------------------------------------------------------------------------------------------------------------------- 11,501 241 8.39 8,191 176 8.53 8,679 174 8.11 - -------------------------------------------------------------------------------------------------------------------------------- 597,248 11,314 7.55 582,490 10,804 7.45 563,170 10,138 7.23 - -------------------------------------------------------------------------------------------------------------------------------- 24,191 25,605 25,830 63,578 64,493 62,019 - -------------------------------------------------------------------------------------------------------------------------------- $685,017 $672,588 $651,019 - -------------------------------------------------------------------------------------------------------------------------------- $23,195 78 1.33 $23,936 78 1.32 $24,237 78 1.29 99,710 740 2.96 100,186 734 2.94 98,424 679 2.78 77,864 1,083 5.53 77,384 1,034 5.38 76,074 983 5.20 8,598 140 6.46 7,361 111 6.09 6,966 103 5.93 - -------------------------------------------------------------------------------------------------------------------------------- 209,367 2,041 3.88 208,867 1,957 3.77 205,701 1,843 3.60 - -------------------------------------------------------------------------------------------------------------------------------- 18,845 286 6.03 15,823 232 5.92 14,180 188 5.33 11,182 177 6.30 9,885 151 6.12 8,745 124 5.72 25,972 364 5.58 27,697 380 5.51 26,382 340 5.17 - -------------------------------------------------------------------------------------------------------------------------------- 55,999 827 5.87 53,405 763 5.74 49,307 652 5.31 - -------------------------------------------------------------------------------------------------------------------------------- 265,366 2,868 4.30 262,272 2,720 4.17 255,008 2,495 3.93 - -------------------------------------------------------------------------------------------------------------------------------- 136,007 2,223 6.51 135,817 1,990 5.89 131,517 1,802 5.51 24,233 237 3.88 20,532 189 3.70 23,013 181 3.16 74,022 1,344 7.26 69,779 1,210 6.94 64,256 1,084 6.75 - -------------------------------------------------------------------------------------------------------------------------------- 499,628 6,672 5.32 488,400 6,109 5.02 473,794 5,562 4.72 - -------------------------------------------------------------------------------------------------------------------------------- 91,368 91,154 90,366 46,286 45,922 40,829 47,735 47,112 46,030 - -------------------------------------------------------------------------------------------------------------------------------- $685,017 $672,588 $651,019 - -------------------------------------------------------------------------------------------------------------------------------- 2.23 2.43 2.51 .87 .80 .75 - -------------------------------------------------------------------------------------------------------------------------------- $4,642 3.10 % $4,695 3.23 % $4,576 3.26 % - --------------------------------------------------------------------------------------------------------------------------------
GRAPHIC REPRESENTATION OMITTED: Loan Portfolio Diversity at March 31, 2001 Consumer: Residential Real Estate Secured 33 % Bankcard 4 Other consumer 12 -------------- Total Consumer 49 -------------- Commercial: Real Estate 7 Transportation 3 Media 2 Business Services 2 Equipment and General Manufacturing 2 Agribusiness 2 Telecom 2 Autos 2 Health Care 2 Retail 2 Other Commercial < 2% 25 -------------- Total Commercial 51 -------------- Total Loans 100 % ============== $382.7 Billion Total Loan Portfolio o On balance sheet loan portfolio equally balanced between consumer and commercial o 67% of consumer portfolio is secured by residential real estate o Largest segment, at 33% of total portfolio, is residential real estate secured loans o Extremely diverse commercial portfolio spread across many industry sectors, with the largest segment being in commercial real estate at 7% of total loans Average Managed Loans & Leases (Dollars in millions)
1Q00 2Q00 3Q00 4Q00 1Q01 ---------------- ----------------- ---------------- ---------------- ---------------- Commercial - domestic $146,526 $149,403 $151,710 $148,000 $146,602 Commercial - foreign 27,752 28,953 29,845 30,408 29,540 Commercial real estate - domestic 24,299 25,132 25,748 26,326 25,989 Commercial real estate - foreign 344 376 235 264 300 ---------------- ----------------- ---------------- ---------------- ---------------- Total Commercial 198,921 203,864 207,538 204,998 202,431 ---------------- ----------------- ---------------- ---------------- ---------------- Residential mortgage 80,123 83,030 85,391 85,629 85,700 Home equity lines 17,573 19,067 20,185 21,117 21,744 Direct/indirect consumer 40,060 40,057 40,685 40,783 41,093 Consumer finance 31,477 32,375 32,821 32,952 32,925 Bankcard 19,051 19,677 20,681 21,461 23,038 Foreign consumer 2,227 2,228 2,190 2,248 2,330 ---------------- ----------------- ---------------- ---------------- ---------------- Total Consumer 190,511 196,434 201,953 204,190 206,830 ---------------- ----------------- ---------------- ---------------- ---------------- Total Managed Loans & Leases $389,432 $400,298 $409,491 $409,188 $409,261 ================ ================= ================ ================ ================ Annualized growth rate from previous quarter by loan type: Total Commercial 12 % 10 % 7 % (5)% (5)% Total Consumer 11 13 11 4 5 Total Managed Loans & Leases 12 11 9 - - By Business Segment: Consumer & Commercial Banking 7 % Asset Management 3 Global Corporate & Investment Banking (10) Equity Investments 37 Loans are classified as domestic or foreign based upon the domicile of the borrower. Prior periods are restated for comparison (e.g., acquisitions, divestitures, sales and securitizations). GRAPHIC REPRESENTATION OMITTED: The graphic representation of managed loans and leases by category in dollars and as a percentage of total loans and leases for the most recent five quarters has been omitted. The table above includes equivalent information.
Net Charge-offs and Net Charge-off Ratios (Dollars in millions)
1Q00 2Q00 3Q00 ------------------------- ----------------------- ----------------------------- Amt. Ratio Amt. Ratio Amt. Ratio ------------- ---------- ------------ ---------- -------------- ------------- Commercial - domestic $ 172 0.47% $ 226 0.62% $ 185 0.48% Commercial - foreign 5 0.08 24 0.33 23 0.30 Commercial real estate - domestic 6 0.10 6 0.09 (2) n/m Commercial real estate - foreign (2) n/m - 0.16 - 0.21 ----------- ------------ -------------- Total Commercial 181 0.37 256 0.51 206 0.39 ----------- ------------ -------------- Residential mortgage 4 0.02 4 0.02 6 0.03 Home equity lines 3 0.07 3 0.05 2 0.04 Direct/indirect consumer 91 0.88 61 0.58 61 0.57 Consumer finance 57 1.01 59 0.97 68 1.08 Bankcard 81 3.86 77 3.30 79 2.89 Other consumer domestic 2 n/m 10 n/m 12 n/m Foreign consumer 1 0.12 - 0.09 1 0.20 ----------- ------------ -------------- Total Consumer 239 0.54 214 0.46 229 0.47 ----------- ------------ -------------- Total Net Charge-offs $ 420 0.45% $ 470 0.48% $ 435 0.43% =========== ============ ============== Managed bankcard information: End of period receivables $ 19,123 $ 20,324 $ 21,136 Average receivables 19,051 19,677 20,682 Charge-offs 257 237 216 Charge-off ratio 5.43% 4.84% 4.15% By Business Segment: Consumer & Commercial Banking $ 322 0.70% $ 309 0.65% $ 296 0.60% Global Corporate & Investment Banking 96 0.35 170 0.62 139 0.48 Asset Management (2) n/m (1) n/m - n/m Equity Investments 1 1.43 (1) n/m - n/m Other 3 0.02 (7) n/m - n/m ----------- ------------ -------------- Total Net Charge-offs $ 420 0.45% $ 470 0.48% $ 435 0.43% =========== ============ ============== 4Q00 1Q01 --------------------------- ----------------------- Amt. Ratio Amt. Ratio ------------- ---------- ----------- --------- Commercial - domestic $ 704 1.90% $ 415 1.17% Commercial - foreign 34 0.45 34 0.46 Commercial real estate - domestic 3 - 6 - Commercial real estate - foreign - 0.05 - - ------------ ----------- Total Commercial 741 1.44 455 0.92 ------------ ----------- Residential mortgage 13 0.05 6 0.03 Home equity lines 12 0.24 6 0.11 Direct/indirect consumer 111 1.10 75 0.76 Consumer finance 82 1.27 93 1.45 Bankcard 101 3.25 125 3.51 Other consumer domestic 14 n/m 11 n/m Foreign consumer 1 0.18 1 0.19 ------------ ----------- Total Consumer 334 0.69 317 0.68 ------------ ----------- Total Net Charge-offs $ 1,075 1.07% $ 772 0.81% ============ =========== Managed bankcard information: End of period receivables $ 22,830 $ 23,179 Average receivables 21,461 23,038 Charge-offs 233 248 Charge-off ratio 4.31% 4.37% By Business Segment: Consumer & Commercial Banking $ 526 1.07% $ 515 1.05% Global Corporate & Investment Banking 505 1.78 245 0.91 Asset Management 38 0.64 8 0.15 Equity Investments 1 1.14 - n/m Other 5 0.03 4 0.03 ------------ ----------- Total Net Charge-offs $ 1,075 1.07% $ 772 0.81% ============ =========== Loans are classified as domestic or foreign based upon the domicile of the borrower. GRAPHIC REPRESENTATION OMITTED: The graphic representation of total net charge-offs and annualized net charge-off ratios for the most recent five quarters has been omitted. The table above includes equivalent information.
Nonperforming Assets (Dollars in millions)
1Q00 2Q00 3Q00 4Q00 1Q01 ---------- -------------- -------------- ------------ ------------ Commercial - domestic $1,301 $1,535 $1,950 $2,777 $3,110 Commercial - foreign 500 588 564 486 529 Commercial real estate - domestic 208 164 136 236 206 Commercial real estate - foreign 3 2 1 3 3 --------- ------------- -------------- ------------ ----------- Total Commercial 2,012 2,289 2,651 3,502 3,848 --------- ------------- -------------- ------------ ----------- Residential mortgage 483 505 502 551 553 Home equity lines 45 44 47 32 36 Direct/Indirect consumer 18 20 19 19 19 Consumer finance 737 826 951 1,095 1,153 Foreign consumer 7 7 7 9 11 --------- ------------- -------------- ------------ ----------- Total Consumer 1,290 1,402 1,526 1,706 1,772 --------- ------------- -------------- ------------ ----------- Total Nonperforming Loans 3,302 3,691 4,177 5,208 5,620 Foreclosed properties 179 195 226 249 277 --------- ------------- -------------- ------------ ----------- Total Nonperforming Assets(1) 3,481 3,886 4,403 5,457 5,897 --------- ------------- -------------- ------------ ----------- Loans past due 90 days or more and still accruing $461 $482 $503 $495 $527 Nonperforming Assets/ Total Assets 0.53 % 0.57 % 0.65 % 0.85 % 0.97 % Nonperforming Assets/ Total Loans 0.91 0.97 1.09 1.39 1.54 Allowance for Loan Losses $6,827 $6,815 $6,739 $6,838 $6,900 Allowance / Total Loans 1.79 % 1.70 % 1.67 % 1.74 % 1.80 % Allowance / Total Nonperforming Loans 207 185 161 131 123 By Business Segment: Consumer & Commercial Banking 1,590 $ 1,747 $ 1,950 $ 2,282 $ 2,601 Global Corporate & Investment Banking 1,455 1,655 1,983 2,526 2,579 Asset Management 19 42 37 166 235 Equity Investments 12 12 12 20 20 Other 405 430 421 463 462 --------- ------------- -------------- ------------ ----------- Total Nonperforming Assets 3,481 $ 3,886 $ 4,403 $ 5,457 $ 5,897 --------- ------------- -------------- ------------ ----------- Loans are classified as domestic or foreign based upon the domicile of the borrower. (1) Balance does not include $144 million, $124 million and $95 million of loans held for sale, included in other assets at March 31, 2001, December 31, 2000, and September 30, 2000, respectively, which would have been classified as nonperforming had they been included in loans. GRAPHIC REPRESENTATION OMITTED: The graphic representation of nonperforming assets by category (Commercial, Consumer, Foreclosed Properties) in dollars and as a percentage of total nonperforming assets for the most recent five quarters has been omitted. The table above includes equivalent information.
Capital Management (Dollars in millions)
1Q00 2Q00 3Q00 4Q00 1Q01* ---- ---- ---- ---- ----- Tier 1 capital $ 39,355 $ 40,257 $ 40,696 $ 40,667 $ 40,769 Total capital 58,376 60,027 60,063 59,826 63,102 Net risk-weighted assets 530,514 543,987 556,146 542,169 532,824 Tier 1 capital ratio 7.42 % 7.40 % 7.32 % 7.50 % 7.65 % Total capital ratio 11.00 11.03 10.80 11.04 11.84 Ending equity / ending assets 6.90 6.75 6.98 7.42 8.02 Ending capital / ending assets 7.66 7.48 7.71 8.19 8.83 * Preliminary Share Repurchase Program - ----------------------------------------------------------------------------------------------------------------------------------- o 14 million common shares were repurchased during the first quarter of 2001 as a part of ongoing share repurchase programs. o In total, 160 million common shares have been repurchased since June 1999- returning $8.9 billion of capital to shareholders. GRAPHIC REPRESENTATION OMITTED: The graphic representation of number of common shares outstanding at period end and Tier 1 Capital Ratio for the most recent five quarters has been omitted. The table above includes equivalent information.
Ending Balance Sheet Trends ($ in Billions) GRAPHIC REPRESENTATION OMITTED: The graphic representation of period-end total assets for the most recent six quarters has been omitted. The table below includes equivalent information.
Ending Balances --------------- Dec-99 Mar-00 Jun-00 Sep-00 Dec-00 Mar-01 ------------------------------------------------------------------------------- Investment Securities 83 84 81 81 66 50 Trading Assets & Resales 75 86 92 79 68 66 Loans and Leases 371 382 401 403 392 383 Total Assets 633 656 680 672 642 610
Continued focus on improving balance sheet mix: o Total assets are down $32 billion from December as a result of continued efforts and focus on balance sheet levels. o Risk-weighted assets decreased $9 billion from the fourth quarter. The decline was attributable to a drop in loans and securities. Balance sheet reduction initiatives: o Investment securities are down $16 billion from December. - Market conditions allowed the company to accelerate sales of certain lower-yielding securities. - A portion of the securities sold were replaced with interest rate swaps. - Expectations are for moderate growth in securities going forward. o Loans declined $9 billion from December. - Residential mortage loan levels declined due to sales ($5 billion). - Decline in commercial loans in GCIB ($7 billion).