Exhibit 99.2
Supplemental Information
Fourth Quarter 2003
January 15, 2004
This information is preliminary and based on company data available at the time of the presentation. It speaks only as of the particular date or dates included in the accompanying pages. Bank of America does not undertake an obligation to, and disclaims any duty to, correct or update any of the information provided. Any forward-looking statements in this information are subject to the forward-looking language contained in Bank of America’s reports filed with the SEC pursuant to the Securities Exchange Act of 1934, which are available at the SEC’s website (www.sec.gov) or at Bank of America’s website (www.bankofamerica.com). Bank of America’s future financial performance is subject to risks and uncertainties as described in its SEC filings.
Bank of America Corporation
Results Overview
Full Year 2003
| l | Record earnings of $10.8 billion, up 17% over 2002. |
| l | Diluted EPS of $7.13, up 21%. |
| l | Revenue of $37.9 billion increased 10%. |
| • | Net interest income grew 3%. |
| • | Noninterest income climbed 21% reflecting strong growth in all consumer fees. |
| l | Provision expense improved 23% to $2.8 billion as asset quality improved. |
| l | Nonperforming assets declined $2.2 billion, or 43%, on improvements in the large corporate portfolio. |
| l | Strong earnings growth in each of the company’s primary business segments : |
| • | Consumer & Commercial Banking - 15% |
| • | Asset Management - 79% |
| • | Global Corporate & Investment Banking - 29% |
| l | Approximately $10 billion in capital returned to shareholders through dividends and net share repurchases in 2003. |
| l | Strategic milestones achieved in 2003 |
| • | Net checking accounts opened - 1.24 million 2003 vs. 528,000 2002. |
| • | Net savings account opened - 640,000 in 2003 vs. net closures of 265,000 in 2002. |
| • | Average core deposits grew 10%. |
| • | New credit card accounts - 4.26 million 2003 vs. 2.67 million 2002. |
| • | Record mortgage originations - $131 billion 2003 vs. $88 billion 2002. |
| • | Most satisfied customer levels (Top 2 Box score) reached 51% in 4Q03. |
| • | Opened 151 new banking centers, completing the first phase of the retail banking store initiative. |
| • | Grew active online banking customers 52% to 7.2 million. |
| • | Increased bill-pay customers 84% to 3.2 million. |
| • | Exceeded goal of increasing financial advisors 20% and ended the year with 1,150 financial advisors. |
1
Bank of America Corporation
Consolidated Financial Highlights
(Dollars in millions, except per share information; shares in thousands)
| Year-to- Date 2003 |
Year-to- Date 2002 |
Fourth Quarter 2003 |
Third Quarter 2003 |
Second Quarter 2003 |
First Quarter 2003 |
Fourth Quarter 2002 |
||||||||||||||||||||||
| Income statement |
||||||||||||||||||||||||||||
| Total revenue |
$ | 37,886 | $ | 34,494 | $ | 9,629 | $ | 9,743 | $ | 9,620 | $ | 8,894 | $ | 8,804 | ||||||||||||||
| Provision for credit losses |
2,839 | 3,697 | 583 | 651 | 772 | 833 | 1,165 | |||||||||||||||||||||
| Gains on sales of securities |
941 | 630 | 139 | 233 | 296 | 273 | 304 | |||||||||||||||||||||
| Noninterest expense |
20,127 | 18,436 | 5,282 | 5,070 | 5,058 | 4,717 | 4,832 | |||||||||||||||||||||
| Income tax expense |
5,051 | 3,742 | 1,177 | 1,333 | 1,348 | 1,193 | 497 | |||||||||||||||||||||
| Net income |
10,810 | 9,249 | 2,726 | 2,922 | 2,738 | 2,424 | 2,614 | |||||||||||||||||||||
| Diluted earnings per common share |
7.13 | 5.91 | 1.83 | 1.92 | 1.80 | 1.59 | 1.69 | |||||||||||||||||||||
| Average diluted common shares outstanding |
1,515,178 | 1,565,467 | 1,489,481 | 1,519,641 | 1,523,306 | 1,526,288 | 1,542,482 | |||||||||||||||||||||
| Dividends paid per common share |
$ | 2.88 | $ | 2.44 | $ | 0.80 | $ | 0.80 | $ | 0.64 | $ | 0.64 | $ | 0.64 | ||||||||||||||
| Performance ratios |
||||||||||||||||||||||||||||
| Return on average assets |
1.41 | % | 1.40 | % | 1.39 | % | 1.48 | % | 1.42 | % | 1.38 | % | 1.49 | % | ||||||||||||||
| Return on average common shareholders’ equity |
21.99 | 19.44 | 22.42 | 23.74 | 21.86 | 19.92 | 21.58 | |||||||||||||||||||||
| Book value per share of common stock |
$ | 33.26 | $ | 33.49 | $ | 33.26 | $ | 33.83 | $ | 34.06 | $ | 33.38 | $ | 33.49 | ||||||||||||||
| Market price per share of common stock: |
||||||||||||||||||||||||||||
| High closing price for the period |
$ | 83.53 | $ | 76.90 | $ | 82.50 | $ | 83.53 | $ | 79.89 | $ | 72.48 | $ | 71.42 | ||||||||||||||
| Low closing price for the period |
65.63 | 54.15 | 72.85 | 74.87 | 68.00 | 65.63 | 54.15 | |||||||||||||||||||||
| Closing price |
80.43 | 69.57 | 80.43 | 78.04 | 79.03 | 66.84 | 69.57 | |||||||||||||||||||||
| Market capitalization |
115,911 | 104,403 | 115,911 | 116,236 | 118,254 | 100,095 | 104,403 | |||||||||||||||||||||
| Number of banking centers |
4,277 | 4,208 | 4,277 | 4,211 | 4,200 | 4,202 | 4,208 | |||||||||||||||||||||
| Number of ATM’s |
13,241 | 13,013 | 13,241 | 13,120 | 13,250 | 13,266 | 13,013 | |||||||||||||||||||||
| Full-time equivalent employees |
133,549 | 133,944 | 133,549 | 132,749 | 132,796 | 132,583 | 133,944 | |||||||||||||||||||||
Certain prior period amounts have been reclassified to conform to current period presentation.
2
Bank of America Corporation
Supplemental Financial Data
(Dollars in millions)
Fully taxable-equivalent basis data
| Year-to- Date 2003 |
Year-to- Date 2002 |
Fourth Quarter 2003 |
Third Quarter 2003 |
Second Quarter 2003 |
First Quarter 2003 |
Fourth Quarter 2002 |
||||||||||||||||||||||
| Net interest income |
$ | 22,107 | $ | 21,511 | $ | 5,745 | $ | 5,477 | $ | 5,524 | $ | 5,361 | $ | 5,537 | ||||||||||||||
| Total revenue |
38,529 | 35,082 | 9,788 | 9,916 | 9,779 | 9,046 | 8,967 | |||||||||||||||||||||
| Net interest yield |
3.36 | % | 3.75 | % | 3.39 | % | 3.22 | % | 3.33 | % | 3.52 | % | 3.66 | % | ||||||||||||||
| Efficiency ratio |
52.23 | 52.55 | 53.95 | 51.13 | 51.73 | 52.14 | 53.90 | |||||||||||||||||||||
Reconciliation to GAAP financial measures
Shareholder value added (SVA) is a key measure of performance not defined by GAAP (generally accepted accounting principles), that is used in managing our growth strategy orientation and strengthening our focus on generating long-term growth and shareholder value. SVA is used in measuring performance of our different business units and is an integral component for allocating resources. Each business segment has a goal for growth in SVA reflecting the individual segment’s business and customer strategy. Other companies may define or calculate supplemental financial data differently. See the Table below for supplemental financial data and corresponding reconciliation to GAAP financial measures for the years ended December 31, 2003 and 2002, and the three months ended December 31, 2003, September 30, 2003, June 30, 2003, March 31, 2003 and December 31, 2002.
Reconciliation of net income to
shareholder value added
| Year-to- Date 2003 |
Year-to- Date 2002 |
Fourth Quarter 2003 |
Third Quarter 2003 |
Second Quarter 2003 |
First Quarter 2003 |
Fourth Quarter 2002 |
||||||||||||||||||||||
| Net income |
$ | 10,810 | $ | 9,249 | $ | 2,726 | $ | 2,922 | $ | 2,738 | $ | 2,424 | $ | 2,614 | ||||||||||||||
| Amortization expense |
217 | 218 | 54 | 55 | 54 | 54 | 54 | |||||||||||||||||||||
| Capital charge |
(5,406 | ) | (5,707 | ) | (1,337 | ) | (1,353 | ) | (1,378 | ) | (1,338 | ) | (1,454 | ) | ||||||||||||||
| Shareholder value added |
$ | 5,621 | $ | 3,760 | $ | 1,443 | $ | 1,624 | $ | 1,414 | $ | 1,140 | $ | 1,214 | ||||||||||||||
Certain prior period amounts have been reclassified to conform to current period presentation.
3
Bank of America Corporation
Consolidated Statement of Income
(Dollars in millions, except per share information; shares in thousands)
| Year-to- Date 2003 |
Year-to- Date 2002 |
Fourth Quarter 2003 |
Third Quarter 2003 |
Second Quarter 2003 |
First Quarter 2003 |
Fourth Quarter 2002 |
||||||||||||||||||
| Interest income |
||||||||||||||||||||||||
| Interest and fees on loans and leases |
$ | 21,668 | $ | 22,030 | $ | 5,580 | $ | 5,328 | $ | 5,412 | $ | 5,348 | $ | 5,502 | ||||||||||
| Interest on debt securities |
3,160 | 4,035 | 748 | 623 | 1,011 | 778 | 1,061 | |||||||||||||||||
| Federal funds sold and securities purchased under agreements to resell |
|
1,373 |
|
870 |
|
|
506 |
|
480 |
|
193 |
|
194 |
|
|
208 |
| |||||||
| Trading account assets |
3,935 | 3,811 | 911 | 975 | 1,007 | 1,042 | 979 | |||||||||||||||||
| Other interest income |
1,507 | 1,415 | 323 | 449 | 372 | 363 | 371 | |||||||||||||||||
| Total interest income |
31,643 | 32,161 | 8,068 | 7,855 | 7,995 | 7,725 | 8,121 | |||||||||||||||||
| Interest expense |
||||||||||||||||||||||||
| Deposits |
4,908 | 5,434 | 1,178 | 1,278 | 1,269 | 1,183 | 1,292 | |||||||||||||||||
| Short-term borrowings |
1,951 | 2,089 | 537 | 447 | 514 | 453 | 557 | |||||||||||||||||
| Trading account liabilities |
1,286 | 1,260 | 317 | 345 | 316 | 308 | 289 | |||||||||||||||||
| Long-term debt |
2,034 | 2,455 | 450 | 481 | 531 | 572 | 609 | |||||||||||||||||
| Total interest expense |
10,179 | 11,238 | 2,482 | 2,551 | 2,630 | 2,516 | 2,747 | |||||||||||||||||
| Net interest income |
21,464 | 20,923 | 5,586 | 5,304 | 5,365 | 5,209 | 5,374 | |||||||||||||||||
| Noninterest income |
||||||||||||||||||||||||
| Consumer service charges |
3,230 | 2,986 | 836 | 824 | 793 | 777 | 801 | |||||||||||||||||
| Corporate service charges |
2,388 | 2,290 | 600 | 634 | 577 | 577 | 572 | |||||||||||||||||
| Total service charges |
5,618 | 5,276 | 1,436 | 1,458 | 1,370 | 1,354 | 1,373 | |||||||||||||||||
| Consumer investment and brokerage services |
1,559 | 1,544 | 413 | 367 | 401 | 378 | 369 | |||||||||||||||||
| Corporate investment and brokerage services |
792 | 693 | 201 | 222 | 204 | 165 | 172 | |||||||||||||||||
| Total investment and brokerage services |
2,351 | 2,237 | 614 | 589 | 605 | 543 | 541 | |||||||||||||||||
| Mortgage banking income |
1,922 | 761 | 292 | 666 | 559 | 405 | 210 | |||||||||||||||||
| Investment banking income |
1,736 | 1,545 | 458 | 412 | 488 | 378 | 422 | |||||||||||||||||
| Equity investment gains (losses) |
215 | (280 | ) | 215 | 25 | 43 | (68 | ) | (54 | ) | ||||||||||||||
| Card income |
3,052 | 2,620 | 815 | 794 | 762 | 681 | 735 | |||||||||||||||||
| Trading account profits |
409 | 778 | 27 | 175 | 93 | 114 | 99 | |||||||||||||||||
| Other income |
1,119 | 634 | 186 | 320 | 335 | 278 | 104 | |||||||||||||||||
| Total noninterest income |
16,422 | 13,571 | 4,043 | 4,439 | 4,255 | 3,685 | 3,430 | |||||||||||||||||
| Total revenue |
37,886 | 34,494 | 9,629 | 9,743 | 9,620 | 8,894 | 8,804 | |||||||||||||||||
| Provision for credit losses |
2,839 | 3,697 | 583 | 651 | 772 | 833 | 1,165 | |||||||||||||||||
| Gains on sales of securities |
941 | 630 | 139 | 233 | 296 | 273 | 304 | |||||||||||||||||
| Noninterest expense |
||||||||||||||||||||||||
| Personnel |
10,446 | 9,682 | 2,697 | 2,595 | 2,695 | 2,459 | 2,482 | |||||||||||||||||
| Occupancy |
2,006 | 1,780 | 514 | 522 | 498 | 472 | 450 | |||||||||||||||||
| Equipment |
1,052 | 1,124 | 263 | 252 | 253 | 284 | 292 | |||||||||||||||||
| Marketing |
985 | 753 | 268 | 249 | 238 | 230 | 203 | |||||||||||||||||
| Professional fees |
844 | 525 | 224 | 214 | 281 | 125 | 186 | |||||||||||||||||
| Amortization of intangibles |
217 | 218 | 54 | 55 | 54 | 54 | 54 | |||||||||||||||||
| Data processing |
1,104 | 1,017 | 301 | 275 | 262 | 266 | 291 | |||||||||||||||||
| Telecommunications |
571 | 481 | 158 | 152 | 137 | 124 | 120 | |||||||||||||||||
| Other general operating |
2,902 | 2,856 | 803 | 756 | 640 | 703 | 754 | |||||||||||||||||
| Total noninterest expense |
20,127 | 18,436 | 5,282 | 5,070 | 5,058 | 4,717 | 4,832 | |||||||||||||||||
| Income before income taxes |
15,861 | 12,991 | 3,903 | 4,255 | 4,086 | 3,617 | 3,111 | |||||||||||||||||
| Income tax expense |
5,051 | 3,742 | 1,177 | 1,333 | 1,348 | 1,193 | 497 | |||||||||||||||||
| Net income |
$ | 10,810 | $ | 9,249 | $ | 2,726 | $ | 2,922 | $ | 2,738 | $ | 2,424 | $ | 2,614 | ||||||||||
| Net income available to common shareholders |
$ | 10,806 | $ | 9,244 | $ | 2,725 | $ | 2,921 | $ | 2,737 | $ | 2,423 | $ | 2,613 | ||||||||||
| Per common share information |
||||||||||||||||||||||||
| Earnings |
$ | 7.27 | $ | 6.08 | $ | 1.86 | $ | 1.96 | $ | 1.83 | $ | 1.62 | $ | 1.74 | ||||||||||
| Diluted earnings |
$ | 7.13 | $ | 5.91 | $ | 1.83 | $ | 1.92 | $ | 1.80 | $ | 1.59 | $ | 1.69 | ||||||||||
| Dividends paid |
$ | 2.88 | $ | 2.44 | $ | 0.80 | $ | 0.80 | $ | 0.64 | $ | 0.64 | $ | 0.64 | ||||||||||
| Average common shares issued and outstanding |
1,486,703 | 1,520,042 | 1,463,247 | 1,490,103 | 1,494,094 | 1,499,405 | 1,499,557 | |||||||||||||||||
| Average diluted common shares issued and outstanding |
1,515,178 | 1,565,467 | 1,489,481 | 1,519,641 | 1,523,306 | 1,526,288 | 1,542,482 | |||||||||||||||||
Certain prior period amounts have been reclassified to conform to current period presentation.
4
Bank of America Corporation
Consolidated Balance Sheet
(Dollars in millions)
| December 31 2003 |
September 30 2003 |
December 31 2002 |
||||||||||
| Assets | ||||||||||||
| Cash and cash equivalents |
$ | 27,084 | $ | 22,142 | $ | 24,973 | ||||||
| Time deposits placed and other short-term investments |
8,051 | 6,881 | 6,813 | |||||||||
| Federal funds sold and securities purchased under agreements to resell |
76,492 | 67,729 | 44,878 | |||||||||
| Trading account assets |
68,547 | 65,339 | 63,996 | |||||||||
| Derivative assets |
36,507 | 36,810 | 34,310 | |||||||||
| Debt securities: |
||||||||||||
| Available-for-sale |
67,993 | 64,363 | 68,122 | |||||||||
| Held-to-maturity |
247 | 522 | 1,026 | |||||||||
| Total debt securities |
68,240 | 64,885 | 69,148 | |||||||||
| Loans and leases |
371,463 | 373,098 | 342,755 | |||||||||
| Allowance for loan and lease losses |
(6,163 | ) | (6,258 | ) | (6,358 | ) | ||||||
| Loans and leases, net of allowance |
365,300 | 366,840 | 336,397 | |||||||||
| Premises and equipment, net |
6,036 | 5,956 | 6,717 | |||||||||
| Mortgage banking assets |
2,762 | 2,426 | 2,110 | |||||||||
| Goodwill |
11,455 | 11,456 | 11,389 | |||||||||
| Core deposit intangibles and other intangibles |
908 | 966 | 1,095 | |||||||||
| Other assets (1) |
65,063 | 86,116 | 59,125 | |||||||||
| Total assets |
$ | 736,44 | 5 | $ | 737,546 | $ | 660,951 | |||||
| Liabilities |
||||||||||||
| Deposits in domestic offices: |
||||||||||||
| Noninterest-bearing |
$ | 118,495 | $ | 122,669 | $ | 122,686 | ||||||
| Interest-bearing |
262,032 | 257,586 | 232,320 | |||||||||
| Deposits in foreign offices: |
||||||||||||
| Noninterest-bearing |
3,035 | 2,650 | 1,673 | |||||||||
| Interest-bearing |
30,551 | 25,605 | 29,779 | |||||||||
| Total deposits |
414,113 | 408,510 | 386,458 | |||||||||
| Federal funds purchased and securities sold under agreements to repurchase |
78,046 | 79,775 | 65,079 | |||||||||
| Trading account liabilities |
26,844 | 29,744 | 25,574 | |||||||||
| Derivative liabilities |
24,526 | 25,120 | 23,566 | |||||||||
| Commercial paper and other short-term borrowings |
42,478 | 41,739 | 25,234 | |||||||||
| Accrued expenses and other liabilities |
27,115 | 35,751 | 17,545 | |||||||||
| Long-term debt |
75,343 | 66,462 | 61,145 | |||||||||
| Trust preferred securities |
— | — | 6,031 | |||||||||
| Total liabilities |
688,465 | 687,101 | 610,632 | |||||||||
| Shareholders’ equity |
||||||||||||
| Preferred stock, $0.01 par value; authorized - 100,000,000 shares; issued and outstanding 1,269,600; 1,281,600 and 1,356,749 shares |
|
54 |
|
|
55 |
|
|
58 |
| |||
| Common stock, $0.01 par value; authorized - 5,000,000,000 shares; issued and outstanding 1,441,143,786; 1,489,437,206 and 1,500,691,103 shares |
|
14 |
|
|
15 |
|
|
496 |
| |||
| Retained earnings |
50,213 | 52,320 | 48,517 | |||||||||
| Accumulated other comprehensive income (loss) |
(2,148 | ) | (1,776 | ) | 1,232 | |||||||
| Other |
(153 | ) | (169 | ) | 16 | |||||||
| Total shareholders’ equity |
47,980 | 50,445 | 50,319 | |||||||||
| Total liabilities and shareholders’ equity |
$ | 736,445 | $ | 737,546 | $ | 660,951 | ||||||
| (1) | Other assets includes loans held for sale totaling $8,406, $12,129 and $13,833 at December 31, 2003, September 30, 2003 and December 31, 2002, respectively. |
5
Bank of America Corporation
Capital Management
(Dollars in millions)
| 4Q03* |
3Q03 |
2Q03 |
1Q03 |
4Q02 |
||||||||||||||||
| Tier 1 capital |
$ | 44,050 | $ | 46,094 | $ | 45,192 | $ | 43,818 | $ | 43,012 | ||||||||||
| Total capital |
66,651 | 67,991 | 66,843 | 65,688 | 65,064 | |||||||||||||||
| Risk-weighted assets |
561,294 | 558,472 | 559,324 | 534,378 | 532,250 | |||||||||||||||
| Tier 1 capital ratio |
7.85 | % | 8.25 | % | 8.08 | % | 8.20 | % | 8.22 | % | ||||||||||
| Total capital ratio |
11.87 | 12.17 | 11.95 | 12.29 | 12.43 | |||||||||||||||
| Ending equity / ending assets |
6.52 | 6.84 | 6.63 | 7.36 | 7.61 | |||||||||||||||
| Ending capital / ending assets |
7.34 | 7.69 | 7.42 | 8.25 | 8.53 | |||||||||||||||
| Average equity / average assets |
6.19 | 6.22 | 6.49 | 6.92 | 6.91 | |||||||||||||||
| Leverage ratio |
5.73 | 5.95 | 5.92 | 6.24 | 6.29 | |||||||||||||||
| *Preliminary | data on risk based capital |
Share Repurchase Program
56 million common shares were repurchased in the fourth quarter of 2003 as a part of ongoing share repurchase programs, year-to-date, 129 million shares were repurchased.
24 million shares remain outstanding under the current authorized program.
7 million shares were issued in the fourth quarter of 2003, mostly due to stock incentive plans.
6
Bank of America Corporation
Quarterly Average Balances and Interest Rates - Fully Taxable-Equivalent Basis
(Dollars in millions)
| Fourth Quarter 2003 |
Third Quarter 2003 |
Fourth Quarter 2002 |
|||||||||||||||||||||||||
| Average Balance |
Interest Expense |
Yield/ Rate |
Average Balance |
Interest Income/ Expense |
Yield/ Rate |
Average Balance |
Interest Income/ Expense |
Yield/ Rate |
|||||||||||||||||||
| Earning assets |
|||||||||||||||||||||||||||
| Time deposits placed and other short-term investments |
$ | 11,231 | $ | 49 | 1.71 | % | $ | 10,062 | $ | 41 | 1.63 | % | $ | 8,853 | $ | 56 | 2.49 | % | |||||||||
| Federal funds sold and securities purchased under agreements to resell |
|
96,713 |
|
506 |
2.08 |
|
|
90,236 |
|
479 |
2.11 |
|
|
49,169 |
|
208 |
1.68 |
| |||||||||
| Trading account assets |
94,630 | 927 | 3.91 | 96,105 | 991 | 4.11 | 84,181 | 994 | 4.71 | ||||||||||||||||||
| Debt securities |
60,801 | 763 | 5.02 | 65,024 | 639 | 3.93 | 83,751 | 1,078 | 5.15 | ||||||||||||||||||
| Loans and leases(1): |
|||||||||||||||||||||||||||
| Commercial - domestic |
95,648 | 1,670 | 6.93 | 96,086 | 1,719 | 7.10 | 105,333 | 1,777 | 6.70 | ||||||||||||||||||
| Commercial - foreign |
16,226 | 136 | 3.31 | 16,885 | 151 | 3.55 | 20,538 | 180 | 3.48 | ||||||||||||||||||
| Commercial real estate - domestic |
19,293 | 207 | 4.28 | 19,681 | 210 | 4.23 | 20,359 | 245 | 4.77 | ||||||||||||||||||
| Commercial real estate - foreign |
323 | 3 | 3.97 | 280 | 3 | 4.16 | 426 | 4 | 3.93 | ||||||||||||||||||
| Total commercial |
131,490 | 2,016 | 6.09 | 132,932 | 2,083 | 6.22 | 146,656 | 2,206 | 5.97 | ||||||||||||||||||
| Residential mortgage |
142,482 | 1,931 | 5.41 | 130,948 | 1,656 | 5.05 | 108,019 | 1,699 | 6.28 | ||||||||||||||||||
| Home equity lines |
23,206 | 255 | 4.36 | 22,539 | 255 | 4.48 | 23,347 | 300 | 5.10 | ||||||||||||||||||
| Direct/Indirect consumer |
33,422 | 478 | 5.67 | 33,278 | 488 | 5.82 | 30,643 | 523 | 6.76 | ||||||||||||||||||
| Consumer finance |
5,798 | 108 | 7.38 | 6,528 | 121 | 7.39 | 8,943 | 174 | 7.75 | ||||||||||||||||||
| Credit card |
32,734 | 810 | 9.83 | 29,113 | 742 | 10.11 | 23,535 | 613 | 10.33 | ||||||||||||||||||
| Foreign consumer |
1,939 | 17 | 3.37 | 1,950 | 17 | 3.43 | 1,956 | 17 | 3.48 | ||||||||||||||||||
| Total consumer |
239,581 | 3,599 | 5.98 | 224,356 | 3,279 | 5.82 | 196,443 | 3,326 | 6.74 | ||||||||||||||||||
| Total loans and leases |
371,071 | 5,615 | 6.02 | 357,288 | 5,362 | 5.97 | 343,099 | 5,532 | 6.41 | ||||||||||||||||||
| Other earning assets |
40,766 | 367 | 3.59 | 58,593 | 516 | 3.50 | 32,828 | 417 | 5.07 | ||||||||||||||||||
| Total earning assets(2) |
675,212 | 8,227 | 4.85 | 677,308 | 8,028 | 4.72 | 601,881 | 8,285 | 5.48 | ||||||||||||||||||
| Cash and cash equivalents |
22,974 | 22,660 | 21,242 | ||||||||||||||||||||||||
| Other assets, less allowance for loan and lease losses |
82,348 | 86,185 | 72,436 | ||||||||||||||||||||||||
| Total assets |
$ | 780,534 | $ | 786,153 | $ | 695,559 | |||||||||||||||||||||
| Interest-bearing liabilities |
|||||||||||||||||||||||||||
| Domestic interest-bearing deposits: |
|||||||||||||||||||||||||||
| Savings |
$ | 25,494 | $ | 19 | 0.30 | % | $ | 25,285 | $ | 20 | 0.31 | % | $ | 22,142 | $ | 35 | 0.63 | % | |||||||||
| NOW and money market deposit accounts |
155,369 | 401 | 1.02 | 151,424 | 249 | 0.65 | 137,229 | 325 | 0.94 | ||||||||||||||||||
| Consumer CDs and IRAs |
73,246 | 475 | 2.58 | 71,216 | 872 | 4.85 | 66,266 | 728 | 4.36 | ||||||||||||||||||
| Negotiable CDs, public funds and other time deposits |
6,195 | 44 | 2.81 | 7,771 | 25 | 1.27 | 3,400 | 17 | 1.97 | ||||||||||||||||||
| Total domestic interest-bearing deposits |
260,304 | 939 | 1.43 | 255,696 | 1,166 | 1.81 | 229,037 | 1,105 | 1.91 | ||||||||||||||||||
| Foreign interest-bearing deposits(3): |
|||||||||||||||||||||||||||
| Banks located in foreign countries |
13,225 | 177 | 5.34 | 12,273 | 59 | 1.90 | 15,286 | 104 | 2.70 | ||||||||||||||||||
| Governments and official institutions |
2,654 | 11 | 1.58 | 2,032 | 6 | 1.21 | 1,737 | 7 | 1.68 | ||||||||||||||||||
| Time, savings and other |
20,019 | 51 | 1.02 | 18,792 | 47 | 1.00 | 17,929 | 76 | 1.68 | ||||||||||||||||||
| Total foreign interest-bearing deposits |
35,898 | 239 | 2.65 | 33,097 | 112 | 1.35 | 34,952 | 187 | 2.12 | ||||||||||||||||||
| Total interest-bearing deposits |
296,202 | 1,178 | 1.58 | 288,793 | 1,278 | 1.76 | 263,989 | 1,292 | 1.94 | ||||||||||||||||||
| Federal funds purchased, securities sold under agreements to repurchase and other short-term borrowings |
|
151,999 |
|
537 |
1.40 |
|
|
162,080 |
|
447 |
1.09 |
|
|
123,434 |
|
558 |
1.79 |
| |||||||||
| Trading account liabilities |
38,298 | 317 | 3.28 | 36,903 | 345 | 3.71 | 30,445 | 289 | 3.77 | ||||||||||||||||||
| Long-term debt(4) |
70,596 | 450 | 2.55 | 66,788 | 481 | 2.88 | 65,702 | 609 | 3.71 | ||||||||||||||||||
| Total interest-bearing liabilities(2) |
557,095 | 2,482 | 1.77 | 554,564 | 2,551 | 1.83 | 483,570 | 2,748 | 2.26 | ||||||||||||||||||
| Noninterest-bearing sources: |
|||||||||||||||||||||||||||
| Noninterest-bearing deposits |
122,638 | 125,776 | 117,392 | ||||||||||||||||||||||||
| Other liabilities |
52,508 | 56,942 | 46,523 | ||||||||||||||||||||||||
| Shareholders’ equity |
48,293 | 48,871 | 48,074 | ||||||||||||||||||||||||
| Total liabilities and shareholders’ equity |
$ | 780,534 | $ | 786,153 | $ | 695,559 | |||||||||||||||||||||
| Net interest spread |
3.08 | 2.89 | 3.22 | ||||||||||||||||||||||||
| Impact of noninterest-bearing sources |
0.31 | 0.33 | 0.44 | ||||||||||||||||||||||||
| Net interest income/yield on earning assets |
$ | 5,745 | 3.39 | % | $ | 5,477 | 3.22 | % | $ | 5,537 | 3.66 | % | |||||||||||||||
| (1) | Nonperforming loans are included in the respective average loan balances. Income on such nonperforming loans is recognized on a cash basis. |
| (2) | Interest income includes the impact of interest rate risk management contracts, which increased interest income on the underlying assets $884 and $925 in the fourth and third quarters of 2003, respectively, and $517 in the fourth quarter of 2002. These amounts were substantially offset by corresponding decreases in the income earned on the underlying assets. Interest expense includes the impact of interest rate risk management contracts, which increased interest expense on the underlying liabilities $90 and $141 in the fourth and third quarters of 2003, respectively, and $62 in the fourth quarter of 2002. These amounts were substantially offset by corresponding decreases in the interest paid on the underlying liabilities. |
| (3) | Primarily consists of time deposits in denominations of $100,000 or more. |
| (4) | Includes long-term debt related to trust preferred securities. |
7
Bank of America Corporation
Year-to-Date Average Balances and Interest Rates - Fully Taxable-Equivalent Basis
(Dollars in millions)
| Year Ended December 31 |
||||||||||||||||||
| 2003 |
2002 |
|||||||||||||||||
| Average Balance |
Interest Income/ Expense |
Yield/ Rate |
Average Balance |
Interest Income/ Expense |
Yield/ Rate |
|||||||||||||
| Earning assets |
||||||||||||||||||
| Time deposits placed and other short-term investments |
$ | 9,056 | $ | 172 | 1.90 | % | $ | 10,038 | $ | 243 | 2.42 | % | ||||||
| Federal funds sold and securities purchased under agreements to resell |
|
78,857 |
1,373 | 1.74 |
|
|
45,640 |
|
870 |
1.91 |
| |||||||
| Trading account assets |
97,222 | 3,993 | 4.11 | 79,562 | 3,860 | 4.85 | ||||||||||||
| Debt securities |
72,267 | 3,223 | 4.46 | 75,298 | 4,100 | 5.44 | ||||||||||||
| Loans and leases(1): |
||||||||||||||||||
| Commercial - domestic |
99,000 | 6,971 | 7.04 | 109,724 | 7,370 | 6.72 | ||||||||||||
| Commercial - foreign |
17,489 | 613 | 3.50 | 21,287 | 824 | 3.87 | ||||||||||||
| Commercial real estate - domestic |
19,740 | 850 | 4.31 | 21,161 | 1,043 | 4.93 | ||||||||||||
| Commercial real estate - foreign |
302 | 12 | 3.99 | 408 | 17 | 4.23 | ||||||||||||
| Total commercial |
136,531 | 8,446 | 6.19 | 152,580 | 9,254 | 6.06 | ||||||||||||
| Residential mortgage |
127,059 | 6,872 | 5.41 | 97,204 | 6,423 | 6.61 | ||||||||||||
| Home equity lines |
22,890 | 1,040 | 4.55 | 22,807 | 1,213 | 5.32 | ||||||||||||
| Direct/Indirect consumer |
32,593 | 1,964 | 6.03 | 30,264 | 2,145 | 7.09 | ||||||||||||
| Consumer finance |
6,888 | 520 | 7.54 | 10,533 | 856 | 8.12 | ||||||||||||
| Credit card |
28,210 | 2,886 | 10.23 | 21,410 | 2,195 | 10.25 | ||||||||||||
| Foreign consumer |
1,977 | 68 | 3.43 | 2,021 | 74 | 3.68 | ||||||||||||
| Total consumer |
219,617 | 13,350 | 6.08 | 184,239 | 12,906 | 7.01 | ||||||||||||
| Total loans and leases |
356,148 | 21,796 | 6.12 | 336,819 | 22,160 | 6.58 | ||||||||||||
| Other earning assets |
43,953 | 1,729 | 3.94 | 26,164 | 1,517 | 5.80 | ||||||||||||
| Total earning assets(2) |
657,503 | 32,286 | 4.91 | 573,521 | 32,750 | 5.71 | ||||||||||||
| Cash and cash equivalents |
22,637 | 21,166 | ||||||||||||||||
| Other assets, less allowance for loan and lease losses |
83,992 | 67,737 | ||||||||||||||||
| Total assets |
$ | 764,132 | $ | 662,424 | ||||||||||||||
| Interest-bearing liabilities |
||||||||||||||||||
| Domestic interest-bearing deposits: |
||||||||||||||||||
| Savings |
$ | 24,538 | $ | 108 | 0.44 | % | $ | 21,691 | $ | 138 | 0.64 | % | ||||||
| NOW and money market deposit accounts |
148,896 | 1,236 | 0.83 | 131,841 | 1,369 | 1.04 | ||||||||||||
| Consumer CDs and IRAs |
70,246 | 2,784 | 3.96 | 67,695 | 2,968 | 4.39 | ||||||||||||
| Negotiable CDs, public funds and other time deposits |
7,627 | 130 | 1.70 | 4,237 | 128 | 3.03 | ||||||||||||
| Total domestic interest-bearing deposits |
251,307 | 4,258 | 1.69 | 225,464 | 4,603 | 2.04 | ||||||||||||
| Foreign interest-bearing deposits(3): |
||||||||||||||||||
| Banks located in foreign countries |
13,959 | 403 | 2.89 | 15,464 | 442 | 2.86 | ||||||||||||
| Governments and official institutions |
2,218 | 31 | 1.40 | 2,316 | 43 | 1.86 | ||||||||||||
| Time, savings and other |
19,027 | 216 | 1.14 | 18,769 | 346 | 1.84 | ||||||||||||
| Total foreign interest-bearing deposits |
35,204 | 650 | 1.85 | 36,549 | 831 | 2.27 | ||||||||||||
| Total interest-bearing deposits |
286,511 | 4,908 | 1.71 | 262,013 | 5,434 | 2.07 | ||||||||||||
| Federal funds purchased, securities sold under agreements to repurchase and other short-term borrowings |
147,580 | 1,951 | 1.32 | 104,153 | 2,089 | 2.01 | ||||||||||||
| Trading account liabilities |
37,176 | 1,286 | 3.46 | 31,600 | 1,261 | 3.99 | ||||||||||||
| Long-term debt(4) |
68,432 | 2,034 | 2.97 | 66,045 | 2,455 | 3.72 | ||||||||||||
| Total interest-bearing liabilities(2) |
539,699 | 10,179 | 1.89 | 463,811 | 11,239 | 2.42 | ||||||||||||
| Noninterest-bearing sources: |
||||||||||||||||||
| Noninterest-bearing deposits |
119,722 | 109,466 | ||||||||||||||||
| Other liabilities |
55,507 | 41,534 | ||||||||||||||||
| Shareholders’ equity |
49,204 | 47,613 | ||||||||||||||||
| Total liabilities and shareholders’ equity |
$ | 764,132 | $ | 662,424 | ||||||||||||||
| Net interest spread |
3.02 | 3.29 | ||||||||||||||||
| Impact of noninterest-bearing sources |
0.34 | 0.46 | ||||||||||||||||
| Net interest income/yield on earning assets |
$ | 22,107 | 3.36 | % | $ | 21,511 | 3.75 | % | ||||||||||
| (1) | Nonperforming loans are included in the respective average loan balances. Income on such nonperforming loans is recognized on a cash basis. |
| (2) | Interest income includes the impact of interest rate risk management contracts, which increased interest income on the underlying assets $2,972 and $1,983 in 2003 and 2002, respectively. These amounts were substantially offset by corresponding decreases in the income earned on the underlying assets. Interest expense includes the impact of interest rate risk management contracts, which increased interest expense on the underlying liabilities $305 and $141 in 2003 and 2002, respectively. These amounts were substantially offset by corresponding decreases in the interest paid on the underlying liabilities. |
| (3) | Primarily consists of time deposits in denominations of $100,000 or more. |
| (4) | Includes long-term debt related to trust preferred securities. |
8
Bank of America Corporation
Business Segment View
9
Bank of America Corporation
Consumer and Commercial Banking Segment Results
(Dollars in millions)
| Year-to-Date |
Quarterly |
|||||||||||||||||||||||||||
| Key Measures |
2003 |
2002 |
4 Qtr 03 |
3 Qtr 03 |
2 Qtr 03 |
1 Qtr 03 |
4 Qtr 02 |
|||||||||||||||||||||
| Total revenue* |
$ | 26,303 | $ | 23,616 | $ | 6,786 | $ | 6,894 | $ | 6,590 | $ | 6,033 | $ | 6,192 | ||||||||||||||
| Provision for credit losses |
2,062 | 1,806 | 555 | 496 | 523 | 488 | 510 | |||||||||||||||||||||
| Net income |
7,521 | 6,543 | 1,914 | 2,145 | 1,871 | 1,591 | 1,721 | |||||||||||||||||||||
| Shareholder value added |
5,450 | 4,392 | 1,337 | 1,633 | 1,381 | 1,099 | 1,168 | |||||||||||||||||||||
| Return on average equity |
36.8 | % | 33.8 | % | 33.9 | % | 42.4 | % | 38.5 | % | 32.6 | % | 34.7 | % | ||||||||||||||
| Efficiency ratio* |
47.5 | 48.6 | 48.5 | 44.5 | 47.1 | 50.0 | 47.5 | |||||||||||||||||||||
| Selected Average Balance |
||||||||||||||||||||||||||||
| Sheet Components |
||||||||||||||||||||||||||||
| Total loans and leases |
$ | 188,706 | $ | 182,463 | $ | 192,685 | $ | 188,500 | $ | 187,811 | $ | 185,756 | $ | 184,243 | ||||||||||||||
| Total deposits |
312,582 | 283,255 | 328,151 | 319,641 | 306,447 | 295,654 | 292,259 | |||||||||||||||||||||
| Total earning assets |
341,932 | 288,849 | 359,525 | 346,764 | 339,030 | 321,945 | 314,605 | |||||||||||||||||||||
| Period End (in billions) |
||||||||||||||||||||||||||||
| Mortgage servicing portfolio |
$ | 246.5 | $ | 264.5 | $ | 246.5 | $ | 245.9 | $ | 249.6 | $ | 257.2 | $ | 264.5 | ||||||||||||||
| Mortgage originations: |
||||||||||||||||||||||||||||
| Retail |
91.9 | 59.9 | 11.7 | 30.0 | 28.2 | 22.0 | 22.2 | |||||||||||||||||||||
| Wholesale |
39.2 | 28.1 | 6.7 | 9.5 | 12.2 | 10.8 | 9.7 | |||||||||||||||||||||
| * | Fully taxable-equivalent basis |
Certain prior period amounts have been reclassified among the segments to conform to the current period presentation.
10
Bank of America Corporation
Consumer Customer Growth Momentum
11
Bank of America Corporation
E-Commerce & BankofAmerica.com
Bank of America has the largest active online banking customer base with 7.2 million subscribers. This represents an active customer penetration rate of 44%.
Bank of America uses a strict Active User standard - customers must have used our online services within the last 90 days.
3.2 million active bill pay users paid $14.0 billion worth of bills this quarter. The number of customers who sign up and use Bank of America Bill Pay Service continues to far surpass that of any other financial institution.
Currently, over 300 companies are presenting over 7.1 million e-bills per quarter.
 |
 | |
 |
 | |
12
Bank of America Corporation
Consumer Credit Card Results
Included within Consumer Products
(Dollars in millions)
| Year-to-Date |
Quarterly |
|||||||||||||||||||||||||||
| 2003 |
2002 |
4 Qtr 03 |
3 Qtr 03 |
2 Qtr 03 |
1 Qtr 03 |
4 Qtr 02 |
||||||||||||||||||||||
| Key Measures |
||||||||||||||||||||||||||||
| Outstandings: |
||||||||||||||||||||||||||||
| Held (Period end) |
$ | 34,814 | $ | 24,729 | $ | 34,814 | $ | 30,993 | $ | 27,419 | $ | 24,819 | $ | 24,729 | ||||||||||||||
| Managed (Period end) |
36,596 | 29,461 | 36,596 | 33,631 | 30,807 | 29,064 | 29,461 | |||||||||||||||||||||
| Held (Average) |
28,210 | 21,409 | 32,734 | 29,113 | 26,211 | 24,684 | 23,535 | |||||||||||||||||||||
| Managed (Average) |
31,552 | 27,352 | 34,783 | 32,225 | 29,970 | 29,161 | 28,406 | |||||||||||||||||||||
| Managed Income Statement: |
||||||||||||||||||||||||||||
| Total revenue |
$ | 4,334 | $ | 3,471 | $ | 1,194 | $ | 1,132 | $ | 1,043 | $ | 965 | $ | 943 | ||||||||||||||
| Provision for credit losses |
1,976 | 1,541 | 554 | 540 | 473 | 409 | 386 | |||||||||||||||||||||
| Noninterest expense |
1,144 | 991 | 317 | 273 | 279 | 275 | 244 | |||||||||||||||||||||
| Income before income taxes |
$ | 1,214 | $ | 939 | $ | 323 | $ | 319 | $ | 291 | $ | 281 | $ | 313 | ||||||||||||||
| Shareholder Value Added |
$ | 566 | $ | 422 | $ | 153 | $ | 151 | $ | 134 | $ | 128 | $ | 152 | ||||||||||||||
| Credit Quality: |
||||||||||||||||||||||||||||
| Held: |
||||||||||||||||||||||||||||
| Charge-offs $ |
$ | 1,514 | $ | 1,094 | $ | 423 | $ | 390 | $ | 378 | $ | 323 | $ | 299 | ||||||||||||||
| Charge-offs % |
5.37 | % | 5.11 | % | 5.12 | % | 5.32 | % | 5.78 | % | 5.31 | % | 5.03 | % | ||||||||||||||
| Managed: |
||||||||||||||||||||||||||||
| Losses $ |
$ | 1,691 | $ | 1,443 | $ | 451 | $ | 433 | $ | 429 | $ | 378 | $ | 357 | ||||||||||||||
| Losses % |
5.36 | % | 5.28 | % | 5.14 | % | 5.33 | % | 5.74 | % | 5.25 | % | 4.99 | % | ||||||||||||||
| Managed Delinquency %: |
||||||||||||||||||||||||||||
| 30+ |
3.93 | % | 3.94 | % | 3.93 | % | 3.84 | % | 3.99 | % | 4.18 | % | 3.94 | % | ||||||||||||||
| 90+ |
1.77 | 1.71 | 1.77 | 1.76 | 1.80 | 1.91 | 1.71 | |||||||||||||||||||||
Certain prior period amounts have been reclassified among the segments to conform to the current period presentation.
13
Bank of America Corporation
Global Corporate and Investment Banking Segment Results
(Dollars in millions)
| Year-to-Date |
Quarterly |
|||||||||||||||||||||||||||
| 2003 |
2002 |
4 Qtr 03 |
3 Qtr 03 |
2 Qtr 03 |
1 Qtr 03 |
4 Qtr 02 |
||||||||||||||||||||||
| Key Measures |
||||||||||||||||||||||||||||
| Total revenue* |
$ | 8,933 | $ | 8,677 | $ | 2,075 | $ | 2,253 | $ | 2,262 | $ | 2,343 | $ | 2,086 | ||||||||||||||
| Provision for credit losses |
477 | 1,208 | (65 | ) | 98 | 172 | 272 | 524 | ||||||||||||||||||||
| Net income |
2,012 | 1,561 | 576 | 513 | 441 | 482 | 207 | |||||||||||||||||||||
| Shareholder value added |
983 | 251 | 341 | 262 | 176 | 204 | (119 | ) | ||||||||||||||||||||
| Return on average equity |
20.9 | % | 14.0 | % | 26.2 | % | 21.9 | % | 17.8 | % | 18.6 | % | 7.4 | % | ||||||||||||||
| Efficiency ratio* |
60.8 | 58.4 | 62.6 | 62.0 | 62.7 | 56.4 | 60.3 | |||||||||||||||||||||
| Selected Average Balance |
||||||||||||||||||||||||||||
| Sheet Components |
||||||||||||||||||||||||||||
| Total loans and leases |
$ | 49,365 | $ | 63,133 | $ | 43,565 | $ | 46,243 | $ | 51,285 | $ | 56,543 | $ | 60,475 | ||||||||||||||
| Total deposits |
66,181 | 64,767 | 63,086 | 67,456 | 66,900 | 67,315 | 65,879 | |||||||||||||||||||||
| Total earning assets |
243,109 | 201,364 | 252,919 | 263,161 | 233,125 | 226,145 | 207,767 | |||||||||||||||||||||
| * | Fully taxable-equivalent basis |
Certain prior period amounts have been reclassified among the segments to conform to the current period presentation.
14
Bank of America Corporation
Global Corporate & Investment Banking Strategic Progress Continues
| Source: | Thomson Financial - Full Year 2003; except Syndicated Loans, Loan Pricing Corporation. |
Significant US market share gains
Banc of America Securities maintained important syndicated lending and fixed income market share positions while improving market share gains in mergers and advisory and mortgage backed securities areas.
| • | #2 syndicated lender, ranked by dollar volume, with 18% market share. |
| • | #1 syndicated lender, ranked by # of deals, executing nearly twice as many deals as next two competitors combined. |
| • | Convertible debt market share increased year over year, from 6.9% to 8.2%. |
| • | Mergers & acquisitions achieved highest ranking ever at #6 with 17.6% market share. |
| • | Mortgage-backed securities increased substantially from 6.1% to 8.3% year over year. |
| • | Market share for common stock underwriting was up a full point from 2002 to 3.6%. |
15
Bank of America Corporation
Asset Management Segment Results
(Dollars in millions)
| Year-to-Date |
Quarterly |
|||||||||||||||||||||||||||
| 2003 |
2002 |
4 Qtr 03 |
3 Qtr 03 |
2 Qtr 03 |
1 Qtr 03 |
4 Qtr 02 |
||||||||||||||||||||||
| Key Measures |
||||||||||||||||||||||||||||
| Total revenue* |
$ | 2,634 | $ | 2,378 | $ | 830 | $ | 615 | $ | 611 | $ | 578 | $ | 587 | ||||||||||||||
| Provision for credit losses |
1 | 318 | 4 | (2 | ) | 3 | (4 | ) | 30 | |||||||||||||||||||
| Net income |
670 | 375 | 262 | 123 | 145 | 140 | 108 | |||||||||||||||||||||
| Shareholder value added |
368 | 81 | 183 | 48 | 71 | 66 | 26 | |||||||||||||||||||||
| Return on average equity |
24.0 | % | 15.0 | % | 36.0 | % | 17.7 | % | 21.2 | % | 20.4 | % | 15.6 | % | ||||||||||||||
| Efficiency ratio* |
61.3 | 62.8 | 51.8 | 70.5 | 63.1 | 63.3 | 67.2 | |||||||||||||||||||||
| Selected Average Balance |
||||||||||||||||||||||||||||
| Sheet Components |
||||||||||||||||||||||||||||
| Total loans and leases |
$ | 23,143 | $ | 23,916 | $ | 23,805 | $ | 23,205 | $ | 22,866 | $ | 22,683 | $ | 22,950 | ||||||||||||||
| Total deposits |
13,162 | 12,030 | 13,755 | 13,313 | 12,710 | 12,859 | 12,531 | |||||||||||||||||||||
| Total earning assets |
24,053 | 24,565 | 24,840 | 24,156 | 23,784 | 23,415 | 23,693 | |||||||||||||||||||||
| Period End (in billions) |
||||||||||||||||||||||||||||
| Assets under management |
$ | 335.7 | $ | 310.4 | $ | 335.7 | $ | 318.1 | $ | 314.9 | $ | 297.0 | $ | 310.4 | ||||||||||||||
| Client brokerage assets |
88.8 | 90.9 | 88.8 | 90.7 | 90.6 | 90.8 | 90.9 | |||||||||||||||||||||
| Assets in custody |
49.9 | 46.5 | 49.9 | 47.3 | 47.9 | 45.1 | 46.5 | |||||||||||||||||||||
| Total client assets |
$ | 474.4 | $ | 447.8 | $ | 474.4 | $ | 456.1 | $ | 453.4 | $ | 432.9 | $ | 447.8 | ||||||||||||||
| * | Fully taxable-equivalent basis |
Certain prior period amounts have been reclassified among the segments to conform to the current period presentation.
16
Bank of America Corporation
Equity Investments Segment Results
(Dollars in millions)
| Year-to-Date |
Quarterly |
|||||||||||||||||||||||||||
| Key Measures |
2003 |
2002 |
4 Qtr 03 |
3 Qtr 03 |
2 Qtr 03 |
1 Qtr 03 |
4 Qtr 02 |
|||||||||||||||||||||
| Total revenue* |
$ | (254 | ) | $ | (446 | ) | $ | (55 | ) | $ | (80 | ) | $ | (12 | ) | $ | (107 | ) | $ | (100 | ) | |||||||
| Provision for credit losses |
25 | 7 | 21 | — | 3 | 1 | 7 | |||||||||||||||||||||
| Net income |
(249 | ) | (331 | ) | (67 | ) | (68 | ) | (28 | ) | (86 | ) | (83 | ) | ||||||||||||||
| Shareholder value added |
(475 | ) | (583 | ) | (124 | ) | (126 | ) | (84 | ) | (141 | ) | (146 | ) | ||||||||||||||
| Return on average equity |
(11.9 | )% | (15.6 | )% | (12.4 | )% | (13.0 | )% | (5.5 | )% | (16.7 | )% | (15.6 | )% | ||||||||||||||
| Efficiency ratio* |
n/m | n/m | n/m | n/m | n/m | n/m | n/m | |||||||||||||||||||||
| Period End |
||||||||||||||||||||||||||||
| Investment balances for Principal Investing |
$ | 5,205 | $ | 5,395 | $ | 5,205 | $ | 5,430 | $ | 5,436 | $ | 5,435 | $ | 5,395 | ||||||||||||||
| * | Fully taxable-equivalent basis |
n/m = not meaningful
Certain prior period amounts have been reclassified among the segments to conform to the current period presentation.
17
Bank of America Corporation
Corporate Other Results(1)
(Dollars in millions)
| Year-to-Date |
Quarterly | ||||||||||||||||||||||||||
| Key Measures |
2003 |
2002 |
4 Qtr 03 |
3 Qtr 03 |
2 Qtr 03 |
1 Qtr 03 |
4 Qtr 02 | ||||||||||||||||||||
| Total revenue* |
$ | 913 | $ | 857 | $ | 152 | $ | 234 | $ | 328 | $ | 199 | $ | 202 | |||||||||||||
| Provision for credit losses |
274 | 358 | 68 | 59 | 71 | 76 | 94 | ||||||||||||||||||||
| Net income (2) |
856 | 1,101 | 41 | 209 | 309 | 297 | 661 | ||||||||||||||||||||
| Shareholder value added |
(705 | ) | (381 | ) | (294 | ) | (193 | ) | (130 | ) | (88 | ) | 285 | ||||||||||||||
| Selected Average Balance |
|||||||||||||||||||||||||||
| Sheet Components |
|||||||||||||||||||||||||||
| Total loans and leases |
$ | 94,675 | $ | 66,867 | $ | 110,916 | $ | 99,247 | $ | 87,903 | $ | 80,246 | $ | 74,993 | |||||||||||||
| Total deposits |
14,309 | 11,427 | 13,848 | 14,159 | 19,250 | 9,932 | 10,712 | ||||||||||||||||||||
| Total earning assets |
183,587 | 150,216 | 191,333 | 182,648 | 199,028 | 161,018 | 171,269 | ||||||||||||||||||||
| * | Fully taxable-equivalent basis |
| (1) | Corporate Other consists primarily of gains and losses associated with managing the balance sheet of the Corporation, certain consumer finance and commercial lending businesses being liquidated, and certain residential mortgages originated by the mortgage group or otherwise acquired and held for asset/liability management purposes. |
| (2) | The fourth quarter of 2002 included $488 tax benefit related to the settlement of federal income tax returns through 1999. |
Certain prior period amounts have been reclassified among the segments to conform to the current period presentation.
18
Bank of America Corporation
Quarterly Net Charge-offs and Net Charge-off Ratios
(Dollars in millions)
| 4Q03 |
3Q03 |
2Q03 |
1Q03 |
4Q02 |
||||||||||||||||||||||||||||
| Amount |
Ratio |
Amount |
Ratio |
Amount |
Ratio |
Amount |
Ratio |
Amount |
Ratio |
|||||||||||||||||||||||
| Commercial—domestic |
$ | 94 | 0.39 | % | $ | 203 | 0.84 | % | $ | 221 | 0.88 | % | $ | 239 | 0.94 | % | $ | 478 | 1.80 | % | ||||||||||||
| Commercial—foreign |
75 | 1.86 | 58 | 1.36 | 53 | 1.19 | 120 | 2.57 | 205 | 3.95 | ||||||||||||||||||||||
| Commercial real estate—domestic |
9 | 0.18 | 13 | 0.26 | 10 | 0.21 | 9 | 0.18 | 9 | 0.20 | ||||||||||||||||||||||
| Total commercial |
178 | 0.54 | 274 | 0.82 | 284 | 0.82 | 368 | 1.04 | 692 | 1.87 | ||||||||||||||||||||||
| Residential mortgage |
13 | 0.04 | 14 | 0.04 | 11 | 0.04 | 2 | 0.01 | 18 | 0.07 | ||||||||||||||||||||||
| Home equity lines |
(3 | ) | (0.04 | ) | 2 | 0.02 | 6 | 0.11 | 6 | 0.11 | 6 | 0.10 | ||||||||||||||||||||
| Direct/Indirect consumer |
48 | 0.57 | 39 | 0.47 | 38 | 0.47 | 56 | 0.72 | 60 | 0.78 | ||||||||||||||||||||||
| Consumer finance |
54 | 3.67 | 44 | 2.74 | 46 | 2.52 | 68 | 3.42 | 77 | 3.44 | ||||||||||||||||||||||
| Credit card |
423 | 5.12 | 390 | 5.32 | 378 | 5.78 | 323 | 5.31 | 299 | 5.03 | ||||||||||||||||||||||
| Other consumer—domestic |
11 | n/m | 11 | n/m | 8 | n/m | 9 | n/m | 11 | n/m | ||||||||||||||||||||||
| Foreign consumer |
1 | 0.19 | 2 | 0.31 | 1 | 0.28 | 1 | 0.20 | 2 | 0.38 | ||||||||||||||||||||||
| Total consumer |
547 | 0.91 | 502 | 0.89 | 488 | 0.93 | 465 | 0.93 | 473 | 0.95 | ||||||||||||||||||||||
| Total net charge-offs |
$ | 725 | 0.77 | $ | 776 | 0.86 | $ | 772 | 0.88 | $ | 833 | 0.98 | $ | 1,165 | 1.35 | |||||||||||||||||
| By Business Segment: |
||||||||||||||||||||||||||||||||
| Consumer & commercial banking |
$ | 563 | 1.16 | % | $ | 539 | 1.13 | % | $ | 522 | 1.12 | % | $ | 488 | 1.06 | % | $ | 509 | 1.10 | % | ||||||||||||
| Global corporate & investment banking |
76 | 0.70 | 170 | 1.46 | 172 | 1.34 | 272 | 1.96 | 526 | 3.44 | ||||||||||||||||||||||
| Asset management |
(4 | ) | (0.07 | ) | 2 | 0.04 | 3 | 0.04 | (4 | ) | (0.06 | ) | 30 | 0.52 | ||||||||||||||||||
| Equity investments |
21 | n/m | 0 | n/m | 3 | 3.36 | 1 | 0.72 | 7 | 6.26 | ||||||||||||||||||||||
| Corporate other |
69 | 0.25 | 65 | 0.26 | 72 | 0.33 | 76 | 0.38 | 93 | 0.50 | ||||||||||||||||||||||
| Total net charge-offs |
$ | 725 | 0.77 | $ | 776 | 0.86 | $ | 772 | 0.88 | $ | 833 | 0.98 | $ | 1,165 | 1.35 | |||||||||||||||||
Loans are classified as domestic or foreign based upon the domicile of the borrower.
n/m = not meaningful
19
Bank of America Corporation
Year-to-Date Net Charge-offs and Net Charge-off Ratios
(Dollars in millions)
| Year Ended December 31 |
|||||||||||||
| 2003 |
2002 |
||||||||||||
| Amt. |
Ratio |
Amt. |
Ratio |
||||||||||
| Commercial—domestic |
$ | 757 | 0.76 | % | $ | 1,471 | 1.34 | % | |||||
| Commercial—foreign |
306 | 1.75 | 521 | 2.45 | |||||||||
| Commercial real estate—domestic |
41 | 0.21 | 37 | 0.18 | |||||||||
| Total commercial |
1,104 | 0.81 | 2,029 | 1.33 | |||||||||
| Residential mortgage |
40 | 0.03 | 42 | 0.04 | |||||||||
| Home equity lines |
11 | 0.05 | 26 | 0.11 | |||||||||
| Direct/Indirect consumer |
181 | 0.55 | 210 | 0.69 | |||||||||
| Consumer finance |
212 | 3.08 | 255 | 2.42 | |||||||||
| Credit card |
1,514 | 5.37 | 1,094 | 5.11 | |||||||||
| Other consumer—domestic |
39 | n/m | 36 | n/m | |||||||||
| Foreign consumer |
5 | 0.24 | 5 | 0.25 | |||||||||
| Total consumer |
2,002 | 0.91 | 1,668 | 0.91 | |||||||||
| Total net charge-offs |
$ | 3,106 | 0.87 | $ | 3,697 | 1.10 | |||||||
| By Business Segment: |
|||||||||||||
| Consumer & commercial banking |
$ | 2,112 | 1.12 | % | $ | 1,805 | 0.98 | % | |||||
| Global corporate & investment banking |
690 | 1.40 | 1,209 | 1.92 | |||||||||
| Asset management |
(3 | ) | (0.01 | ) | 317 | 1.37 | |||||||
| Equity investments |
25 | 9.70 | 7 | 1.57 | |||||||||
| Corporate other |
282 | 0.30 | 359 | 0.54 | |||||||||
| Total net charge-offs |
$ | 3,106 | 0.87 | $ | 3,697 | 1.10 | |||||||
Loans are classified as domestic or foreign based upon the domicile of the borrower.
n/m = not meaningful
20
Bank of America Corporation
Nonperforming Assets
(Dollars in millions)
| 4Q03 |
3Q03 |
2Q03 |
1Q03 |
4Q02 |
||||||||||||||||
| Commercial—domestic |
$ | 1,507 | $ | 1,861 | $ | 2,265 | $ | 2,605 | $ | 2,781 | ||||||||||
| Commercial—foreign |
586 | 756 | 1,040 | 1,279 | 1,359 | |||||||||||||||
| Commercial real estate—domestic |
140 | 154 | 154 | 173 | 161 | |||||||||||||||
| Commercial real estate—foreign |
2 | 2 | 2 | 3 | 3 | |||||||||||||||
| Total commercial |
2,235 | 2,773 | 3,461 | 4,060 | 4,304 | |||||||||||||||
| Residential mortgage |
531 | 563 | 618 | 628 | 612 | |||||||||||||||
| Home equity lines |
43 | 42 | 55 | 63 | 66 | |||||||||||||||
| Direct/Indirect consumer |
28 | 32 | 33 | 28 | 30 | |||||||||||||||
| Consumer finance |
32 | 12 | 11 | 18 | 19 | |||||||||||||||
| Foreign consumer |
4 | 7 | 9 | 9 | 6 | |||||||||||||||
| Total consumer |
638 | 656 | 726 | 746 | 733 | |||||||||||||||
| Total nonperforming loans |
2,873 | 3,429 | 4,187 | 4,806 | 5,037 | |||||||||||||||
| Foreclosed properties |
148 | 228 | 243 | 227 | 225 | |||||||||||||||
| Total nonperforming assets(1) |
$ | 3,021 | $ | 3,657 | $ | 4,430 | $ | 5,033 | $ | 5,262 | ||||||||||
| Loans past due 90 days or more and still accruing |
$ | 860 | $ | 788 | $ | 726 | $ | 808 | $ | 764 | ||||||||||
| Nonperforming Assets / Total Assets |
0.41 | % | 0.50 | % | 0.58 | % | 0.74 | % | 0.80 | % | ||||||||||
| Nonperforming Assets / Total Loans, Leases and Foreclosed Properties |
0.81 | 0.98 | 1.23 | 1.46 | 1.53 | |||||||||||||||
| Nonperforming Loans / Total Loans and Leases |
0.77 | 0.92 | 1.16 | 1.40 | 1.47 | |||||||||||||||
| Allowance for credit losses: |
||||||||||||||||||||
| Loans and leases |
$ | 6,163 | $ | 6,258 | $ | 6,366 | $ | 6,421 | $ | 6,358 | ||||||||||
| Unfunded lending commitments |
416 | 458 | 475 | 432 | 493 | |||||||||||||||
| Total |
$ | 6,579 | $ | 6,716 | $ | 6,841 | $ | 6,853 | $ | 6,851 | ||||||||||
| Allowance for Loans and Leases / Total Loans and Leases |
1.66 | % | 1.68 | % | 1.77 | % | 1.87 | % | 1.85 | % | ||||||||||
| Allowance for Loans and Leases / Total Nonperforming Loans |
215 | 183 | 152 | 134 | 126 | |||||||||||||||
Loans are classified as domestic or foreign based upon the domicile of the borrower.
| (1) | Balances do not include $202, $82, $98, $174 and $120 of nonperforming assets included in other assets at December 31, 2003, September 30, 2003, June 30, 2003, March 31, 2003 and December 31, 2002, respectively. |
21
Bank of America Corporation
Significant Industry Non-Real Estate Outstanding Commercial Loans and Leases
(Dollars in millions)
| December 31 |
% Inc. (Dec.) from 12/31/02 |
||||||||
| 2003 |
2002 |
||||||||
| Retailing |
$ | 11,474 | $ | 10,572 | 9 | % | |||
| Education and government |
7,874 | 5,624 | 40 | ||||||
| Transportation |
7,715 | 8,030 | (4 | ) | |||||
| Leisure and sports, hotels and restaurants |
7,477 | 8,139 | (8 | ) | |||||
| Food, beverage and tobacco |
6,942 | 7,335 | (5 | ) | |||||
| Diversified financials |
6,469 | 8,344 | (22 | ) | |||||
| Capital goods |
5,729 | 7,088 | (19 | ) | |||||
| Materials |
5,704 | 7,972 | (28 | ) | |||||
| Commercial services and supplies |
5,701 | 6,449 | (12 | ) | |||||
| Health care equipment and services |
4,052 | 3,912 | 4 | ||||||
| Religious and social organizations |
2,975 | 2,426 | 23 | ||||||
| Media |
2,821 | 5,911 | (52 | ) | |||||
| Utilities |
2,635 | 5,590 | (53 | ) | |||||
| Energy |
2,516 | 3,076 | (18 | ) | |||||
| Consumer durables and apparel |
2,161 | 2,591 | (17 | ) | |||||
| Telecommunications services |
1,967 | 3,105 | (37 | ) | |||||
| Food and staples retailing |
1,364 | 1,344 | 1 | ||||||
| Technology hardware and equipment |
1,260 | 1,368 | (8 | ) | |||||
| Banks |
1,199 | 1,881 | (36 | ) | |||||
| Automobiles and components |
1,029 | 1,024 | 0 | ||||||
| Software and services |
948 | 908 | 4 | ||||||
| Insurance |
840 | 1,616 | (48 | ) | |||||
| Other(1) |
21,085 | 20,660 | 2 | ||||||
| Total |
$ | 111,937 | $ | 124,965 | (10 | ) | |||
| (1) | At December 31, 2003 and 2002, Other included $10,510 and $9,090, respectively, of loans outstanding to individuals and trusts, representing 2.8% and 2.7% of total outstanding loans and leases, respectively. The remaining balance in Other included loans to industries which primarily include pharmaceuticals and biotechnology, and household and personal products. |
Outstanding Loans and Leases
(Dollars in millions)
| December 31 |
Inc. (Dec.) from 12/31/02 |
|||||||||
| 2003 |
2002 |
|||||||||
| Commercial—domestic |
$ | 96,644 | $ | 105,053 | $ | (8,409 | ) | |||
| Commercial—foreign |
15,293 | 19,912 | (4,619 | ) | ||||||
| Commercial real estate—domestic |
19,043 | 19,910 | (867 | ) | ||||||
| Commercial real estate—foreign |
324 | 295 | 29 | |||||||
| Total commercial |
131,304 | 145,170 | (13,866 | ) | ||||||
| Residential mortgage |
140,513 | 108,197 | 32,316 | |||||||
| Home equity lines |
23,859 | 23,236 | 623 | |||||||
| Direct/Indirect consumer |
33,415 | 31,068 | 2,347 | |||||||
| Consumer finance |
5,589 | 8,384 | (2,795 | ) | ||||||
| Credit card |
34,814 | 24,729 | 10,085 | |||||||
| Foreign consumer |
1,969 | 1,971 | (2 | ) | ||||||
| Total consumer |
240,159 | 197,585 | 42,574 | |||||||
| Total |
$ | 371,463 | $ | 342,755 | $ | 28,708 | ||||
22
Bank of America Corporation
Emerging Markets
(Dollars in millions)
| Loans and Loan Commitments |
Other Financing (1) |
Derivative Assets |
Debt Securities/ Other Investments (2) |
Total Cross- border Exposure (3) |
Gross Local Country Exposure (4) |
Total Foreign Exposure December 31, 2003 |
Increase/ (Decrease) from December 31, 2002 |
||||||||||||||||||
| Region/Country |
|||||||||||||||||||||||||
| Asia |
|||||||||||||||||||||||||
| China |
$ | 49 | $ | 23 | $ | 82 | $ | 45 | $ | 199 | $ | 99 | $ | 298 | $ | 54 | |||||||||
| Hong Kong (5) |
166 | 19 | 118 | 113 | 416 | 3,489 | 3,905 | 101 | |||||||||||||||||
| India |
132 | 543 | 61 | 275 | 1,011 | 942 | 1,953 | 580 | |||||||||||||||||
| Indonesia |
31 | 0 | 13 | 84 | 128 | 3 | 131 | 11 | |||||||||||||||||
| Malaysia |
7 | 2 | 3 | 27 | 39 | 146 | 185 | (55 | ) | ||||||||||||||||
| Philippines |
22 | 35 | 2 | 55 | 114 | 62 | 176 | 20 | |||||||||||||||||
| Singapore |
189 | 11 | 65 | 13 | 278 | 890 | 1,168 | (500 | ) | ||||||||||||||||
| South Korea |
638 | 636 | 41 | 83 | 1,398 | 531 | 1,929 | 693 | |||||||||||||||||
| Taiwan |
226 | 173 | 32 | 0 | 431 | 458 | 889 | (200 | ) | ||||||||||||||||
| Thailand |
20 | 5 | 16 | 37 | 78 | 173 | 251 | (12 | ) | ||||||||||||||||
| Other |
8 | 16 | 4 | 0 | 28 | 99 | 127 | 24 | |||||||||||||||||
| Total |
1,488 | 1,463 | 437 | 732 | 4,120 | 6,892 | 11,012 | 716 | |||||||||||||||||
| Central and Eastern Europe |
|||||||||||||||||||||||||
| Turkey |
8 | 3 | 0 | 19 | 30 | 0 | 30 | (28 | ) | ||||||||||||||||
| Other |
16 | 32 | 41 | 127 | 216 | 207 | 423 | 117 | |||||||||||||||||
| Total |
24 | 35 | 41 | 146 | 246 | 207 | 453 | 89 | |||||||||||||||||
| Latin America |
|||||||||||||||||||||||||
| Argentina |
106 | 56 | 2 | 123 | 287 | 56 | 343 | (122 | ) | ||||||||||||||||
| Brazil |
115 | 217 | 7 | 139 | 478 | 263 | 741 | (434 | ) | ||||||||||||||||
| Chile |
75 | 49 | 5 | 2 | 131 | 0 | 131 | (10 | ) | ||||||||||||||||
| Colombia |
31 | 14 | 1 | 8 | 54 | 4 | 58 | (30 | ) | ||||||||||||||||
| Mexico |
556 | 208 | 105 | 1,914 | 2,783 | 259 | 3,042 | 1,453 | |||||||||||||||||
| Venezuela |
93 | 19 | 0 | 144 | 256 | 0 | 256 | 24 | |||||||||||||||||
| Other |
93 | 75 | 202 | 33 | 403 | 0 | 403 | 178 | |||||||||||||||||
| Total |
1,069 | 638 | 322 | 2,363 | 4,392 | 582 | 4,974 | 1,059 | |||||||||||||||||
| Total |
$ | 2,581 | $ | 2,136 | $ | 800 | $ | 3,241 | $ | 8,758 | $ | 7,681 | $ | 16,439 | $ | 1,864 | |||||||||
| (1) | Includes acceptances, standby letters of credit, commercial letters of credit and formal guarantees. |
| (2) | Amounts outstanding in the table above for Philippines, Argentina, Mexico, Venezuela and Latin America Other have been reduced by $13, $0, $0, $136 and $37, respectively, at December 31, 2003, and $12, $90, $505, $131 and $37, respectively, at December 31, 2002. Such amounts represent the fair value of U.S. Treasury securities held as collateral outside the country of exposure. |
| (3) | Cross-border exposure includes amounts payable to the Corporation by residents of countries other than the one in which the credit is booked, regardless of the currency in which the claim is denominated, consistent with Federal Financial Institutions Examinations Council (FFIEC) reporting rules. |
| (4) | Gross local country exposure includes amounts payable to the Corporation by residents of countries in which the credit is booked, regardless of the currency in which the claim is denominated. Management does not net local funding or liabilities against local exposures as allowed by the FFIEC. |
| (5) | Gross local country exposure to Hong Kong consisted of $1,911 of consumer loans and $1,578 of commercial exposure at December 31, 2003 compared to $1,828 of consumer loans and $1,572 of commercial exposure at December 31, 2002. The consumer loans were collateralized primarily by residential real estate. The commercial exposure was primarily to local clients and was diversified across many industries. |
23