Exhibit 99.2
Supplemental Information
First Quarter 2004
April 14, 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
1st Quarter 2004 Results
| • | Net income of $2.7 billion increased 11% compared to prior year and EPS of $1.83 increased 15%. Net income compared to 4Q03 declined 2% while EPS remained steady. |
| • | Revenue of $9.5 billion increased 7% from 1Q03 and declined 1% from 4Q03. |
| • | Consumer and Commercial banking revenue rose 9% over 1Q03 despite lower mortgage revenue but declined 3% from 4Q03 driven by seasonality factors. |
| • | Global Corporate and Investment Banking revenue declined slightly from 1Q03 primarily from lower spread income on trading assets and loan balances but increased 11% from 4Q03 on improved trading results. |
| • | Asset Management revenue rose 14% over 1Q03 on increased sales and higher market valuations while revenue compared to 4Q03 fell as a result of an equity gain recognized in 4Q. |
| • | Trading profits includes $275 million writedown in mortgage banking assets. |
| • | Noninterest expense included a charge, net of reserves, related to mutual funds settlement of $285 million. |
| • | Recorded $495 million in securities gains from repositioning balance sheet in anticipation of rising interest rates. |
| • | Provision for credit losses of $624 million down 25% from 1Q03 as asset quality improved; however, it was 7% higher from 4Q03. |
| • | Net charge-offs of $720 million declined 14% from 1Q03 and fell slightly, as well, from 4Q03. |
| • | Nonperforming assets, now at the lowest level since 1999, declined 51% vs. 1Q03, on improvements in the large corporate portfolio and declined 18% since the end of 2003. |
| • | Continued customer growth momentum from 2003. |
| • | Net checking accounts opened - 425,000 1Q04 vs. 242,900 1Q03 and 220,000 4Q03. |
| • | Net savings accounts opened - 531,000 1Q04 vs. 125,000 1Q03 and 128,000 4Q03. |
| • | Average core deposits grew 11% vs. prior year. |
| • | Commercial banking (middle market) loan balances continued growth from 4Q03. |
| • | Active online banking customers now over 8 million up 55% from last year. |
| • | Bill-pay customers increased 79% to 3.7 million. |
| • | Mortgage originations of $23.9 billion, although down 27% from 1Q03, increased 30% from 4Q03. |
| • | Most satisfied customer levels (Top 2 Box score) reached nearly 52% in the quarter. |
| • | Closed the merger of FleetBoston on April 1, 2004 and Bank of America results do not include FleetBoston’s results in current period. |
| • | Separate FleetBoston results: |
| • | Net income of $773 million increased 36% from 1Q03 and 6% from 4Q03. |
| • | Revenue of $3.2 billion, grew 15% from 1Q03 and 4% over 4Q03. |
| • | Noninterest expense of $2.0 billion included $140 million mutual fund settlement, $98 million litigation-related expenses, $33 million merger-associated costs, and $80 million marketing costs. |
| • | Provision for credit losses of zero in current quarter vs. $280 million in 1Q03 and $195 million in 4Q03. |
| • | Nonperforming assets of $1.2 billion down 59% from 1Q03 and 37% from end of 2003. Included in NPA decline is a 66% reduction in Argentina NPAs since 1Q03 and 52% since end of 2003. |
| • | Net loan charge-offs of $233 million ($54 million for Argentina) vs. $626 million 1Q03 ($196 million Argentina) and $250 million in 4Q03 ($1 million net recovery Argentina). |
| • | Integration has begun and is ahead of schedule. |
1
Bank of America Corporation
Consolidated Financial Highlights
(Dollars in millions, except per share information; shares in thousands)
| First Quarter 2004 |
Fourth Quarter 2003 |
Third Quarter 2003 |
Second Quarter 2003 |
First Quarter 2003 |
||||||||||||||||
| Income statement |
||||||||||||||||||||
| Total revenue |
$ | 9,518 | $ | 9,635 | $ | 9,750 | $ | 9,627 | $ | 8,902 | ||||||||||
| Provision for credit losses |
624 | 583 | 651 | 772 | 833 | |||||||||||||||
| Gains on sales of debt securities |
495 | 139 | 233 | 296 | 273 | |||||||||||||||
| Noninterest expense |
5,417 | 5,288 | 5,077 | 5,065 | 4,725 | |||||||||||||||
| Income tax expense |
1,291 | 1,177 | 1,333 | 1,348 | 1,193 | |||||||||||||||
| Net income |
2,681 | 2,726 | 2,922 | 2,738 | 2,424 | |||||||||||||||
| Diluted earnings per common share |
1.83 | 1.83 | 1.92 | 1.80 | 1.59 | |||||||||||||||
| Average diluted common shares issued and outstanding |
1,466,701 | 1,489,481 | 1,519,641 | 1,523,306 | 1,526,288 | |||||||||||||||
| Dividends paid per common share |
$ | 0.80 | $ | 0.80 | $ | 0.80 | $ | 0.64 | $ | 0.64 | ||||||||||
| Performance ratios |
||||||||||||||||||||
| Return on average assets |
1.27 | % | 1.39 | % | 1.48 | % | 1.42 | % | 1.38 | % | ||||||||||
| Return on average common shareholders’ equity |
22.16 | 22.42 | 23.74 | 21.86 | 19.92 | |||||||||||||||
| Book value per share of common stock |
$ | 33.71 | $ | 33.26 | $ | 33.83 | $ | 34.06 | $ | 33.38 | ||||||||||
| Market price per share of common stock: |
||||||||||||||||||||
| High closing price for the period |
$ | 82.76 | $ | 82.50 | $ | 83.53 | $ | 79.89 | $ | 72.48 | ||||||||||
| Low closing price for the period |
78.30 | 72.85 | 74.87 | 68.00 | 65.63 | |||||||||||||||
| Closing price |
80.98 | 80.43 | 78.04 | 79.03 | 66.84 | |||||||||||||||
| Market capitalization |
117,056 | 115,911 | 116,236 | 118,254 | 100,095 | |||||||||||||||
| Number of banking centers |
4,272 | 4,277 | 4,211 | 4,200 | 4,202 | |||||||||||||||
| Number of ATMs |
13,168 | 13,241 | 13,120 | 13,250 | 13,266 | |||||||||||||||
| Full-time equivalent employees |
134,374 | 133,549 | 132,749 | 132,796 | 132,583 | |||||||||||||||
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
| First Quarter 2004 |
Fourth Quarter 2003 |
Third Quarter 2003 |
Second Quarter 2003 |
First Quarter 2003 |
||||||||||||||||
| Net interest income |
$ | 5,970 | $ | 5,745 | $ | 5,477 | $ | 5,524 | $ | 5,361 | ||||||||||
| Total revenue |
9,687 | 9,794 | 9,923 | 9,786 | 9,054 | |||||||||||||||
| Net interest yield |
3.22 | % | 3.39 | % | 3.22 | % | 3.33 | % | 3.52 | % | ||||||||||
| Efficiency ratio |
55.92 | 53.98 | 51.16 | 51.76 | 52.18 | |||||||||||||||
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 quarters ended March 31, 2004, December 31, 2003, September 30, 2003, June 30, 2003 and March 31, 2003.
Reconciliation of net income to shareholder value added
| First Quarter 2004 |
Fourth Quarter 2003 |
Third Quarter 2003 |
Second Quarter 2003 |
First Quarter 2003 |
||||||||||||||||
| Net income |
$ | 2,681 | $ | 2,726 | $ | 2,922 | $ | 2,738 | $ | 2,424 | ||||||||||
| Amortization of intangibles |
54 | 54 | 55 | 54 | 54 | |||||||||||||||
| Capital charge |
(1,330 | ) | (1,337 | ) | (1,353 | ) | (1,378 | ) | (1,338 | ) | ||||||||||
| Shareholder value added |
$ | 1,405 | $ | 1,443 | $ | 1,624 | $ | 1,414 | $ | 1,140 | ||||||||||
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)
| First Quarter 2004 |
Fourth Quarter 2003 |
Third Quarter 2003 |
Second Quarter 2003 |
First Quarter 2003 |
||||||||||||
| Interest income |
||||||||||||||||
| Interest and fees on loans and leases |
$ | 5,549 | $ | 5,580 | $ | 5,328 | $ | 5,412 | $ | 5,348 | ||||||
| Interest on debt securities |
1,212 | 726 | 600 | 988 | 754 | |||||||||||
| Federal funds sold and securities purchased under agreements to resell |
434 | 506 | 480 | 193 | 194 | |||||||||||
| Trading account assets |
1,009 | 911 | 975 | 1,007 | 1,042 | |||||||||||
| Other interest income |
368 | 345 | 472 | 395 | 387 | |||||||||||
| Total interest income |
8,572 | 8,068 | 7,855 | 7,995 | 7,725 | |||||||||||
| Interest expense |
||||||||||||||||
| Deposits |
1,206 | 1,178 | 1,278 | 1,269 | 1,183 | |||||||||||
| Short-term borrowings |
740 | 537 | 447 | 514 | 453 | |||||||||||
| Trading account liabilities |
334 | 317 | 345 | 316 | 308 | |||||||||||
| Long-term debt |
491 | 450 | 481 | 531 | 572 | |||||||||||
| Total interest expense |
2,771 | 2,482 | 2,551 | 2,630 | 2,516 | |||||||||||
| Net interest income |
5,801 | 5,586 | 5,304 | 5,365 | 5,209 | |||||||||||
| Noninterest income |
||||||||||||||||
| Consumer service charges |
821 | 836 | 824 | 793 | 777 | |||||||||||
| Corporate service charges |
595 | 600 | 634 | 577 | 577 | |||||||||||
| Total service charges |
1,416 | 1,436 | 1,458 | 1,370 | 1,354 | |||||||||||
| Consumer investment and brokerage services |
417 | 418 | 372 | 406 | 383 | |||||||||||
| Corporate investment and brokerage services |
205 | 201 | 222 | 204 | 165 | |||||||||||
| Total investment and brokerage services |
622 | 619 | 594 | 610 | 548 | |||||||||||
| Mortgage banking income |
209 | 292 | 666 | 559 | 405 | |||||||||||
| Investment banking income |
404 | 458 | 412 | 488 | 378 | |||||||||||
| Equity investment gains (losses) |
133 | 215 | 25 | 43 | (68 | ) | ||||||||||
| Card income |
795 | 815 | 794 | 762 | 681 | |||||||||||
| Trading account profits |
3 | 27 | 175 | 93 | 114 | |||||||||||
| Other income |
135 | 187 | 322 | 337 | 281 | |||||||||||
| Total noninterest income |
3,717 | 4,049 | 4,446 | 4,262 | 3,693 | |||||||||||
| Total revenue |
9,518 | 9,635 | 9,750 | 9,627 | 8,902 | |||||||||||
| Provision for credit losses |
624 | 583 | 651 | 772 | 833 | |||||||||||
| Gains on sales of debt securities |
495 | 139 | 233 | 296 | 273 | |||||||||||
| Noninterest expense |
||||||||||||||||
| Personnel |
2,762 | 2,697 | 2,595 | 2,695 | 2,459 | |||||||||||
| Occupancy |
488 | 514 | 522 | 498 | 472 | |||||||||||
| Equipment |
261 | 263 | 252 | 253 | 284 | |||||||||||
| Marketing |
281 | 268 | 249 | 238 | 230 | |||||||||||
| Professional fees |
147 | 224 | 214 | 281 | 125 | |||||||||||
| Amortization of intangibles |
54 | 54 | 55 | 54 | 54 | |||||||||||
| Data processing |
284 | 301 | 275 | 262 | 266 | |||||||||||
| Telecommunications |
151 | 158 | 152 | 137 | 124 | |||||||||||
| Other general operating |
989 | 809 | 763 | 647 | 711 | |||||||||||
| Total noninterest expense |
5,417 | 5,288 | 5,077 | 5,065 | 4,725 | |||||||||||
| Income before income taxes |
3,972 | 3,903 | 4,255 | 4,086 | 3,617 | |||||||||||
| Income tax expense |
1,291 | 1,177 | 1,333 | 1,348 | 1,193 | |||||||||||
| Net income |
$ | 2,681 | $ | 2,726 | $ | 2,922 | $ | 2,738 | $ | 2,424 | ||||||
| Net income available to common shareholders |
$ | 2,680 | $ | 2,725 | $ | 2,921 | $ | 2,737 | $ | 2,423 | ||||||
| Per common share information |
||||||||||||||||
| Earnings |
$ | 1.86 | $ | 1.86 | $ | 1.96 | $ | 1.83 | $ | 1.62 | ||||||
| Diluted earnings |
$ | 1.83 | $ | 1.83 | $ | 1.92 | $ | 1.80 | $ | 1.59 | ||||||
| Dividends paid |
$ | 0.80 | $ | 0.80 | $ | 0.80 | $ | 0.64 | $ | 0.64 | ||||||
| Average common shares issued and outstanding |
1,440,153 | 1,463,247 | 1,490,103 | 1,494,094 | 1,499,405 | |||||||||||
| Average diluted common shares issued and outstanding |
1,466,701 | 1,489,481 | 1,519,641 | 1,523,306 | 1,526,288 | |||||||||||
Certain prior period amounts have been reclassified to conform to current period presentation.
4
Bank of America Corporation
Consolidated Balance Sheet
| (Dollars in millions) |
March 31 2004 |
December 31 2003 |
March 31 2003 |
|||||||||
| Assets |
||||||||||||
| Cash and cash equivalents |
$ | 22,296 | $ | 27,084 | $ | 25,069 | ||||||
| Time deposits placed and other short-term investments |
8,561 | 8,051 | 5,523 | |||||||||
| Federal funds sold and securities purchased under agreements to resell |
73,057 | 76,492 | 49,809 | |||||||||
| Trading account assets |
75,004 | 68,547 | 65,733 | |||||||||
| Derivative assets |
36,488 | 36,507 | 35,409 | |||||||||
| Debt securities: |
||||||||||||
| Available-for-sale |
139,546 | 66,382 | 73,910 | |||||||||
| Held-to-maturity |
242 | 247 | 927 | |||||||||
| Total debt securities |
139,788 | 66,629 | 74,837 | |||||||||
| Loans and leases |
375,968 | 371,463 | 343,412 | |||||||||
| Allowance for loan and lease losses |
(6,080 | ) | (6,163 | ) | (6,421 | ) | ||||||
| Loans and leases, net of allowance |
369,888 | 365,300 | 336,991 | |||||||||
| Premises and equipment, net |
6,076 | 6,036 | 6,643 | |||||||||
| Mortgage banking assets |
2,184 | 2,762 | 1,995 | |||||||||
| Goodwill |
11,468 | 11,455 | 11,396 | |||||||||
| Core deposit intangibles and other intangibles |
854 | 908 | 1,065 | |||||||||
| Other assets |
70,348 | 66,674 | 65,727 | |||||||||
| Total assets |
$ | 816,012 | $ | 736,445 | $ | 680,197 | ||||||
| Liabilities |
||||||||||||
| Deposits in domestic offices: |
||||||||||||
| Noninterest-bearing |
$ | 121,629 | $ | 118,495 | $ | 121,127 | ||||||
| Interest-bearing |
267,850 | 262,032 | 242,287 | |||||||||
| Deposits in foreign offices: |
||||||||||||
| Noninterest-bearing |
2,805 | 3,035 | 2,331 | |||||||||
| Interest-bearing |
43,308 | 30,551 | 29,431 | |||||||||
| Total deposits |
435,592 | 414,113 | 395,176 | |||||||||
| Federal funds purchased and securities sold under agreements to repurchase |
115,434 | 78,046 | 72,976 | |||||||||
| Trading account liabilities |
27,402 | 26,844 | 23,578 | |||||||||
| Derivative liabilities |
24,321 | 24,526 | 22,876 | |||||||||
| Commercial paper and other short-term borrowings |
64,621 | 42,478 | 29,729 | |||||||||
| Accrued expenses and other liabilities (includes $401, $416 and $432 of Reserve for unfunded lending commitments) |
18,635 | 27,115 | 16,337 | |||||||||
| Long-term debt |
81,231 | 75,343 | 63,442 | |||||||||
| Trust preferred securities |
— | — | 6,031 | |||||||||
| Total liabilities |
767,236 | 688,465 | 630,145 | |||||||||
| Shareholders’ equity |
||||||||||||
| Preferred stock, $0.01 par value; authorized - 100,000,000 shares; issued and outstanding 1,239,563; 1,269,600 and 1,336,200 shares |
53 | 54 | 57 | |||||||||
| Common stock, $0.01 par value; authorized - 7,500,000,000 shares; issued and outstanding 1,445,487,313; 1,441,143,786 and 1,497,530,740 shares |
14 | 14 | 127 | |||||||||
| Retained earnings |
51,823 | 50,213 | 49,978 | |||||||||
| Accumulated other comprehensive income (loss) |
(2,743 | ) | (2,148 | ) | 74 | |||||||
| Other |
(371 | ) | (153 | ) | (184 | ) | ||||||
| Total shareholders’ equity |
48,776 | 47,980 | 50,052 | |||||||||
| Total liabilities and shareholders’ equity |
$ | 816,012 | $ | 736,445 | $ | 680,197 | ||||||
Certain prior period amounts have been reclassified to conform to current period presentation.
5
Bank of America Corporation
Capital Management
(Dollars in millions)
| 1Q04* |
4Q03 |
3Q03 |
2Q03 |
1Q03 |
||||||||||||||||
| Tier 1 capital |
$ | 45,521 | $ | 44,050 | $ | 46,094 | $ | 45,192 | $ | 43,818 | ||||||||||
| Total capital |
67,490 | 66,651 | 67,991 | 66,843 | 65,688 | |||||||||||||||
| Risk-weighted assets |
588,770 | 561,294 | 558,472 | 559,324 | 534,378 | |||||||||||||||
| Tier 1 capital ratio |
7.73 | % | 7.85 | % | 8.25 | % | 8.08 | % | 8.20 | % | ||||||||||
| Total capital ratio |
11.46 | 11.87 | 12.17 | 11.95 | 12.29 | |||||||||||||||
| Ending equity / ending assets |
5.98 | 6.52 | 6.84 | 6.63 | 7.36 | |||||||||||||||
| Ending capital / ending assets |
6.72 | 7.34 | 7.69 | 7.42 | 8.25 | |||||||||||||||
| Average equity / average assets |
5.73 | 6.19 | 6.22 | 6.49 | 6.92 | |||||||||||||||
| Leverage ratio |
5.43 | 5.73 | 5.95 | 5.92 | 6.24 | |||||||||||||||
| * | Preliminary data on risk based capital |
Share Repurchase Program
12 million common shares were repurchased in the first quarter of 2004 as a part of ongoing share repurchase programs.
12 million shares remain outstanding under the 2003 authorized program.
90 million shares remain outstanding under the 2004 authorized program.
16 million shares were issued in the first quarter of 2004, mostly due to stock incentive plans.
6
Bank of America Corporation
Quarterly Average Balances and Interest Rates - Fully Taxable-equivalent Basis
(Dollars in millions)
| First Quarter 2004 |
Fourth Quarter 2003 |
First Quarter 2003 |
|||||||||||||||||||||||||
| Average Balance |
Interest Income/ 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 |
$ | 12,268 | $ | 48 | 1.57 | % | $ | 11,231 | $ | 49 | 1.71 | % | $ | 6,987 | $ | 43 | 2.49 | % | |||||||||
| Federal funds sold and securities purchased under agreements to resell |
113,761 | 434 | 1.53 | 96,713 | 506 | 2.08 | 57,873 | 194 | 1.35 | ||||||||||||||||||
| Trading account assets |
105,033 | 1,023 | 3.90 | 94,630 | 927 | 3.91 | 99,085 | 1,053 | 4.27 | ||||||||||||||||||
| Debt securities |
99,755 | 1,223 | 4.91 | 59,197 | 742 | 5.01 | 66,186 | 769 | 4.65 | ||||||||||||||||||
| Loans and leases(1): |
|||||||||||||||||||||||||||
| Commercial - domestic |
95,931 | 1,562 | 6.55 | 95,648 | 1,670 | 6.93 | 103,663 | 1,836 | 7.18 | ||||||||||||||||||
| Commercial - foreign |
15,227 | 139 | 3.67 | 16,226 | 136 | 3.31 | 18,876 | 156 | 3.35 | ||||||||||||||||||
| Commercial real estate - domestic |
19,491 | 207 | 4.27 | 19,293 | 207 | 4.28 | 19,955 | 215 | 4.37 | ||||||||||||||||||
| Commercial real estate - foreign |
324 | 3 | 3.63 | 323 | 3 | 3.97 | 301 | 3 | 3.88 | ||||||||||||||||||
| Total commercial |
130,973 | 1,911 | 5.87 | 131,490 | 2,016 | 6.09 | 142,795 | 2,210 | 6.27 | ||||||||||||||||||
| Residential mortgage |
141,898 | 1,960 | 5.53 | 142,482 | 1,931 | 5.41 | 113,695 | 1,582 | 5.59 | ||||||||||||||||||
| Home equity lines |
24,379 | 262 | 4.31 | 23,206 | 255 | 4.36 | 23,054 | 267 | 4.70 | ||||||||||||||||||
| Direct/Indirect consumer |
34,045 | 464 | 5.49 | 33,422 | 478 | 5.67 | 31,393 | 503 | 6.49 | ||||||||||||||||||
| Consumer finance |
5,490 | 104 | 7.56 | 5,798 | 108 | 7.38 | 8,012 | 154 | 7.76 | ||||||||||||||||||
| Credit card |
35,303 | 870 | 9.92 | 32,734 | 810 | 9.83 | 24,684 | 644 | 10.57 | ||||||||||||||||||
| Foreign consumer |
1,989 | 16 | 3.27 | 1,939 | 17 | 3.37 | 2,029 | 17 | 3.45 | ||||||||||||||||||
| Total consumer |
243,104 | 3,676 | 6.07 | 239,581 | 3,599 | 5.98 | 202,867 | 3,167 | 6.30 | ||||||||||||||||||
| Total loans and leases |
374,077 | 5,587 | 6.00 | 371,071 | 5,615 | 6.02 | 345,662 | 5,377 | 6.29 | ||||||||||||||||||
| Other earning assets |
38,817 | 426 | 4.41 | 42,370 | 388 | 3.66 | 37,299 | 441 | 4.77 | ||||||||||||||||||
| Total earning assets(2) |
743,711 | 8,741 | 4.72 | 675,212 | 8,227 | 4.85 | 613,092 | 7,877 | 5.18 | ||||||||||||||||||
| Cash and cash equivalents |
23,185 | 22,974 | 21,699 | ||||||||||||||||||||||||
| Other assets, less allowance for loan and lease losses |
82,729 | 82,348 | 78,989 | ||||||||||||||||||||||||
| Total assets |
$ | 849,625 | $ | 780,534 | $ | 713,780 | |||||||||||||||||||||
| Interest-bearing liabilities |
|||||||||||||||||||||||||||
| Domestic interest-bearing deposits: |
|||||||||||||||||||||||||||
| Savings |
$ | 26,159 | $ | 17 | 0.27 | % | $ | 25,494 | $ | 19 | 0.30 | % | $ | 22,916 | $ | 34 | 0.59 | % | |||||||||
| NOW and money market deposit accounts |
155,835 | 321 | 0.83 | 155,369 | 401 | 1.02 | 142,338 | 291 | 0.83 | ||||||||||||||||||
| Consumer CDs and IRAs |
75,341 | 567 | 3.03 | 73,246 | 475 | 2.58 | 66,937 | 695 | 4.21 | ||||||||||||||||||
| Negotiable CDs, public funds and other time deposits |
5,939 | 74 | 5.01 | 6,195 | 44 | 2.81 | 3,598 | 16 | 1.78 | ||||||||||||||||||
| Total domestic interest-bearing deposits |
263,274 | 979 | 1.50 | 260,304 | 939 | 1.43 | 235,789 | 1,036 | 1.78 | ||||||||||||||||||
| Foreign interest-bearing deposits(3): |
|||||||||||||||||||||||||||
| Banks located in foreign countries |
18,954 | 171 | 3.62 | 13,225 | 177 | 5.34 | 14,218 | 80 | 2.27 | ||||||||||||||||||
| Governments and official institutions |
4,701 | 19 | 1.63 | 2,654 | 11 | 1.58 | 1,785 | 6 | 1.31 | ||||||||||||||||||
| Time, savings and other |
21,054 | 37 | 0.71 | 20,019 | 51 | 1.02 | 18,071 | 61 | 1.38 | ||||||||||||||||||
| Total foreign interest-bearing deposits |
44,709 | 227 | 2.04 | 35,898 | 239 | 2.65 | 34,074 | 147 | 1.75 | ||||||||||||||||||
| Total interest-bearing deposits |
307,983 | 1,206 | 1.57 | 296,202 | 1,178 | 1.58 | 269,863 | 1,183 | 1.78 | ||||||||||||||||||
| Federal funds purchased, securities sold under agreements to repurchase and other short-term borrowings |
203,398 | 739 | 1.46 | 151,999 | 537 | 1.40 | 123,041 | 453 | 1.49 | ||||||||||||||||||
| Trading account liabilities |
34,543 | 335 | 3.90 | 38,298 | 317 | 3.28 | 34,858 | 308 | 3.58 | ||||||||||||||||||
| Long-term debt(4) |
78,852 | 491 | 2.49 | 70,596 | 450 | 2.55 | 67,399 | 572 | 3.40 | ||||||||||||||||||
| Total interest-bearing liabilities(2) |
624,776 | 2,771 | 1.78 | 557,095 | 2,482 | 1.77 | 495,161 | 2,516 | 2.05 | ||||||||||||||||||
| Noninterest-bearing sources: |
|||||||||||||||||||||||||||
| Noninterest-bearing deposits |
117,092 | 122,638 | 115,897 | ||||||||||||||||||||||||
| Other liabilities |
59,071 | 52,508 | 53,322 | ||||||||||||||||||||||||
| Shareholders’ equity |
48,686 | 48,293 | 49,400 | ||||||||||||||||||||||||
| Total liabilities and shareholders’ equity |
$ | 849,625 | $ | 780,534 | $ | 713,780 | |||||||||||||||||||||
| Net interest spread |
2.94 | 3.08 | 3.13 | ||||||||||||||||||||||||
| Impact of noninterest-bearing sources |
0.28 | 0.31 | 0.39 | ||||||||||||||||||||||||
| Net interest income/yield on earning assets |
$ | 5,970 | 3.22 | % | $ | 5,745 | 3.39 | % | $ | 5,361 | 3.52 | % | |||||||||||||||
| (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 $715 in the first quarter 2004 and $884 and $576 in the fourth and first quarters of 2003, 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 $183 in the first quarter 2004 and $90 and $46 in the fourth and first quarters of 2003, 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 Securities. |
7
Bank of America Corporation
Business Segment View
Net Income
First Quarter 2004
8
Bank of America Corporation
Consumer and Commercial Banking Segment Results
(Dollars in millions)
| Quarterly |
||||||||||||||||||||
| 1 Qtr 04 |
4 Qtr 03 |
3 Qtr 03 |
2 Qtr 03 |
1 Qtr 03 |
||||||||||||||||
| Key Measures |
||||||||||||||||||||
| Total revenue* |
$ | 6,629 | $ | 6,822 | $ | 6,950 | $ | 6,630 | $ | 6,061 | ||||||||||
| Provision for credit losses |
429 | 556 | 496 | 523 | 488 | |||||||||||||||
| Net income |
1,854 | 1,966 | 2,182 | 1,892 | 1,604 | |||||||||||||||
| Shareholder value added |
1,269 | 1,390 | 1,665 | 1,398 | 1,111 | |||||||||||||||
| Return on average equity |
32.4 | % | 34.8 | % | 42.7 | % | 38.6 | % | 32.9 | % | ||||||||||
| Efficiency ratio* |
49.3 | 47.6 | 44.1 | 46.9 | 49.9 | |||||||||||||||
| Selected Average Balance Sheet Components |
||||||||||||||||||||
| Total loans and leases |
$ | 197,681 | $ | 192,463 | $ | 188,329 | $ | 188,111 | $ | 186,706 | ||||||||||
| Total deposits |
326,485 | 327,965 | 319,463 | 306,290 | 295,504 | |||||||||||||||
| Total earning assets |
373,777 | 359,489 | 346,902 | 339,152 | 321,926 | |||||||||||||||
| Period End (in billions) |
||||||||||||||||||||
| Mortgage servicing portfolio |
$ | 247.6 | $ | 246.5 | $ | 245.9 | $ | 249.6 | $ | 257.2 | ||||||||||
| Mortgage originations: |
||||||||||||||||||||
| Retail |
14.1 | 11.7 | 30.0 | 28.2 | 22.0 | |||||||||||||||
| Wholesale |
9.8 | 6.7 | 9.5 | 12.2 | 10.8 | |||||||||||||||
| * | Fully taxable-equivalent basis |
Certain prior period amounts have been reclassified among the segments to conform to the current period presentation.
9
Bank of America Corporation
Consumer Customer Growth Momentum
10
Bank of America Corporation
E-Commerce & BankofAmerica.com
Bank of America has the largest active online banking customer base with 8.1 million subscribers. This represents an active customer penetration rate of 47%.
Bank of America uses a strict Active User standard - customers must have used our online services within the last 90 days.
3.7 million active bill pay users paid $16.3 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 9.0 million e-bills per quarter.
 |
 | |
 |
 | |
11
Bank of America Corporation
Consumer Credit Card Results
Included within Consumer Products
(Dollars in millions)
| Quarterly |
||||||||||||||||||||
| 1 Qtr 04 |
4 Qtr 03 |
3 Qtr 03 |
2 Qtr 03 |
1 Qtr 03 |
||||||||||||||||
| Key Measures |
||||||||||||||||||||
| Outstandings: |
||||||||||||||||||||
| Held (Period end) |
$ | 36,087 | $ | 34,814 | $ | 30,993 | $ | 27,419 | $ | 24,819 | ||||||||||
| Managed (Period end) |
37,296 | 36,596 | 33,631 | 30,807 | 29,064 | |||||||||||||||
| Held (Average) |
35,303 | 32,734 | 29,113 | 26,211 | 24,684 | |||||||||||||||
| Managed (Average) |
36,855 | 34,783 | 32,225 | 29,970 | 29,161 | |||||||||||||||
| Managed Income Statement: |
||||||||||||||||||||
| Total revenue |
$ | 1,238 | $ | 1,196 | $ | 1,134 | $ | 1,044 | $ | 967 | ||||||||||
| Provision for credit losses |
466 | 555 | 539 | 473 | 409 | |||||||||||||||
| Noninterest expense |
338 | 312 | 270 | 274 | 271 | |||||||||||||||
| Income before income taxes |
$ | 434 | $ | 329 | $ | 325 | $ | 297 | $ | 287 | ||||||||||
| Shareholder Value Added |
$ | 204 | $ | 152 | $ | 150 | $ | 135 | $ | 129 | ||||||||||
| Credit Quality: |
||||||||||||||||||||
| Held: |
||||||||||||||||||||
| Charge-offs $ |
$ | 443 | $ | 423 | $ | 390 | $ | 378 | $ | 323 | ||||||||||
| Charge-offs % |
5.05 | % | 5.12 | % | 5.32 | % | 5.78 | % | 5.31 | % | ||||||||||
| Managed: |
||||||||||||||||||||
| Losses $ |
$ | 463 | $ | 451 | $ | 433 | $ | 429 | $ | 378 | ||||||||||
| Losses % |
5.05 | % | 5.14 | % | 5.33 | % | 5.74 | % | 5.25 | % | ||||||||||
| Managed Delinquency %: |
||||||||||||||||||||
| 30+ |
3.75 | % | 3.93 | % | 3.84 | % | 3.99 | % | 4.18 | % | ||||||||||
| 90+ |
1.81 | 1.77 | 1.76 | 1.80 | 1.91 | |||||||||||||||
Certain prior period amounts have been reclassified among the segments to conform to the current period presentation.
12
Bank of America Corporation
Global Corporate and Investment Banking Segment Results
(Dollars in millions)
| Quarterly |
||||||||||||||||||||
| 1 Qtr 04 |
4 Qtr 03 |
3 Qtr 03 |
2 Qtr 03 |
1 Qtr 03 |
||||||||||||||||
| Key Measures |
||||||||||||||||||||
| Total revenue* |
$ | 2,270 | $ | 2,044 | $ | 2,203 | $ | 2,229 | $ | 2,319 | ||||||||||
| Provision for credit losses |
(23 | ) | (66 | ) | 98 | 172 | 272 | |||||||||||||
| Net income |
463 | 552 | 474 | 412 | 460 | |||||||||||||||
| Shareholder value added |
225 | 306 | 215 | 136 | 173 | |||||||||||||||
| Return on average equity |
20.9 | % | 23.9 | % | 19.6 | % | 16.0 | % | 17.2 | % | ||||||||||
| Efficiency ratio* |
69.2 | 63.9 | 63.9 | 64.1 | 57.4 | |||||||||||||||
| Selected Average Balance Sheet Components |
||||||||||||||||||||
| Total loans and leases |
$ | 40,785 | $ | 43,565 | $ | 46,243 | $ | 51,285 | $ | 56,543 | ||||||||||
| Total deposits |
69,186 | 63,086 | 67,456 | 66,900 | 67,315 | |||||||||||||||
| Total earning assets |
274,673 | 252,919 | 263,463 | 233,125 | 226,145 | |||||||||||||||
| * | Fully taxable-equivalent basis |
Certain prior period amounts have been reclassified among the segments to conform to the current period presentation.
13
Bank of America Corporation
Global Corporate & Investment Banking Strategic Progress Continues
Source: Thomson Financial - First Quarter 2004; except Syndicated Loans, Loan Pricing Corporation.
Significant US market share gains
Banc of America Securities increased market share in high yield and leveraged loans while maintaining its position in mortgage-backed securities.
| • | Top in leveraged loans with twice as many deals as closest competitor |
| • | #2 syndicated lender, ranked by dollar volume, with 16% market share |
| • | #1 syndicated lender, ranked by # of deals |
| • | High yield debt market share increased over 1Q03, from 9.7% to 10.8%. |
| • | Although BAS ranked #14 with 3.8% in M&A, sector analysis reveals a growing presence in consumer and retail M&A, where BAS ranked second with a 25% market share. |
14
Bank of America Corporation
Asset Management Segment Results
(Dollars in millions)
| Quarterly |
||||||||||||||||||||
| 1 Qtr 04 |
4 Qtr 03 |
3 Qtr 03 |
2 Qtr 03 |
1 Qtr 03 |
||||||||||||||||
| Key Measures |
||||||||||||||||||||
| Total revenue* |
$ | 669 | $ | 839 | $ | 624 | $ | 620 | $ | 586 | ||||||||||
| Provision for credit losses |
7 | 4 | (2 | ) | 3 | (4 | ) | |||||||||||||
| Net income |
53 | 261 | 123 | 145 | 139 | |||||||||||||||
| Shareholder value added |
(27 | ) | 183 | 51 | 73 | 67 | ||||||||||||||
| Return on average equity |
7.2 | % | 36.1 | % | 18.4 | % | 21.8 | % | 20.9 | % | ||||||||||
| Efficiency ratio* |
87.0 | 52.3 | 71.1 | 63.7 | 64.1 | |||||||||||||||
| Selected Average Balance Sheet Components |
||||||||||||||||||||
| Total loans and leases |
$ | 24,430 | $ | 23,834 | $ | 23,232 | $ | 22,889 | $ | 22,706 | ||||||||||
| Total deposits |
14,925 | 13,976 | 13,535 | 12,896 | 13,030 | |||||||||||||||
| Total earning assets |
25,516 | 24,869 | 24,184 | 23,807 | 23,438 | |||||||||||||||
| Period End (in billions) |
||||||||||||||||||||
| Assets under management |
$ | 337.2 | $ | 335.7 | $ | 318.1 | $ | 314.9 | $ | 297.0 | ||||||||||
| Client brokerage assets |
91.0 | 88.8 | 90.7 | 90.6 | 90.8 | |||||||||||||||
| Assets in custody |
50.6 | 49.9 | 47.3 | 47.9 | 45.1 | |||||||||||||||
| Total client assets |
$ | 478.8 | $ | 474.4 | $ | 456.1 | $ | 453.4 | $ | 432.9 | ||||||||||
| * | Fully taxable-equivalent basis |
Certain prior period amounts have been reclassified among the segments to conform to the current period presentation.
15
Bank of America Corporation
Equity Investments Segment Results
(Dollars in millions)
| Quarterly |
||||||||||||||||||||
| 1 Qtr 04 |
4 Qtr 03 |
3 Qtr 03 |
2 Qtr 03 |
1 Qtr 03 |
||||||||||||||||
| Key Measures |
||||||||||||||||||||
| Total revenue* |
$ | (18 | ) | $ | (55 | ) | $ | (80 | ) | $ | (11 | ) | $ | (107 | ) | |||||
| Provision for credit losses |
— | 21 | — | 3 | 1 | |||||||||||||||
| Net income |
(30 | ) | (66 | ) | (68 | ) | (28 | ) | (85 | ) | ||||||||||
| Shareholder value added |
(86 | ) | (125 | ) | (126 | ) | (85 | ) | (142 | ) | ||||||||||
| Return on average equity |
(5.7 | )% | (12.3 | )% | (12.8 | )% | (5.3 | )% | (16.5 | )% | ||||||||||
| Efficiency ratio* |
n/m | n/m | n/m | n/m | n/m | |||||||||||||||
| Period End |
||||||||||||||||||||
| Investment balances for Principal Investing |
$ | 4,975 | $ | 5,205 | $ | 5,430 | $ | 5,436 | $ | 5,435 | ||||||||||
| * | 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.
16
Bank of America Corporation
Corporate Other Results(1)
(Dollars in millions)
| Quarterly |
|||||||||||||||||||
| 1 Qtr 04 |
4 Qtr 03 |
3 Qtr 03 |
2 Qtr 03 |
1 Qtr 03 |
|||||||||||||||
| Key Measures |
|||||||||||||||||||
| Total revenue* |
$ | 137 | $ | 144 | $ | 226 | $ | 318 | $ | 195 | |||||||||
| Provision for credit losses |
211 | 68 | 59 | 71 | 76 | ||||||||||||||
| Net income |
341 | 13 | 211 | 317 | 306 | ||||||||||||||
| Shareholder value added |
24 | (311 | ) | (181 | ) | (108 | ) | (69 | ) | ||||||||||
| Selected Average Balance Sheet Components |
|||||||||||||||||||
| Total loans and leases |
$ | 111,094 | $ | 111,109 | $ | 99,390 | $ | 87,580 | $ | 79,273 | |||||||||
| Total deposits |
14,479 | 13,813 | 14,115 | 19,221 | 9,911 | ||||||||||||||
| Total earning assets |
233,432 | 191,527 | 182,792 | 198,706 | 160,050 | ||||||||||||||
| * | 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. |
Certain prior period amounts have been reclassified among the segments to conform to the current period presentation.
17
Bank of America Corporation
Outstanding Loans and Leases
(Dollars in millions)
| March 31 2004 |
December 31 2003 |
Inc. (Dec.) from 12/31/03 |
||||||||
| Commercial - domestic |
$ | 96,148 | $ | 96,644 | $ | (496 | ) | |||
| Commercial - foreign |
14,513 | 15,293 | (780 | ) | ||||||
| Commercial real estate - domestic |
19,545 | 19,043 | 502 | |||||||
| Commercial real estate - foreign |
317 | 324 | (7 | ) | ||||||
| Total commercial(1) |
130,523 | 131,304 | (781 | ) | ||||||
| Residential mortgage |
142,755 | 140,513 | 2,242 | |||||||
| Home equity lines |
24,946 | 23,859 | 1,087 | |||||||
| Direct/Indirect consumer |
34,451 | 33,415 | 1,036 | |||||||
| Consumer finance |
5,202 | 5,589 | (387 | ) | ||||||
| Credit card |
36,087 | 34,814 | 1,273 | |||||||
| Foreign consumer |
2,004 | 1,969 | 35 | |||||||
| Total consumer(2) |
245,445 | 240,159 | 5,286 | |||||||
| Total |
$ | 375,968 | $ | 371,463 | $ | 4,505 | ||||
| (1) | Includes lease financing of $9,291 and $9,692 at March 31, 2004 and December 31, 2003, respectively. |
| (2) | Includes lease financing of $1,274 and $1,684 at March 31, 2004 and December 31, 2003, respectively. |
18
Utilized Commercial Credit Exposure by Significant Industry(1)
(Dollars in millions)
| March 31 2004 |
December 31 2003 |
% Inc. (Dec.) from 12/31/03 |
|||||||
| Banks |
$ | 24,254 | $ | 25,088 | (3 | )% | |||
| Real estate |
22,416 | 22,228 | 1 | ||||||
| Diversified financials |
20,472 | 20,427 | 0 | ||||||
| Retailing |
15,253 | 15,152 | 1 | ||||||
| Education and government |
14,660 | 13,919 | 5 | ||||||
| Leisure and sports, hotels and restaurants |
10,100 | 10,099 | 0 | ||||||
| Transportation |
9,181 | 9,355 | (2 | ) | |||||
| Materials |
8,896 | 8,860 | 0 | ||||||
| Food, beverage and tobacco |
8,668 | 9,134 | (5 | ) | |||||
| Consumer durables and apparel |
8,624 | 8,313 | 4 | ||||||
| Capital goods |
7,610 | 8,244 | (8 | ) | |||||
| Commercial services and supplies |
7,151 | 7,206 | (1 | ) | |||||
| Health care equipment and services |
7,040 | 7,064 | (0 | ) | |||||
| Media |
4,968 | 4,701 | 6 | ||||||
| Energy |
4,815 | 4,348 | 11 | ||||||
| Utilities |
4,705 | 5,012 | (6 | ) | |||||
| Religious and social organizations |
4,459 | 4,272 | 4 | ||||||
| Insurance |
3,690 | 3,638 | 1 | ||||||
| Telecommunication services |
2,203 | 2,526 | (13 | ) | |||||
| Technology hardware and equipment |
1,765 | 1,941 | (9 | ) | |||||
| Software and services |
1,731 | 1,655 | 5 | ||||||
| Food and staples retailing |
1,662 | 1,837 | (10 | ) | |||||
| Automobiles and components |
1,240 | 1,326 | (6 | ) | |||||
| Pharmaceuticals and biotechnology |
445 | 466 | (5 | ) | |||||
| Household and personal products |
262 | 302 | (13 | ) | |||||
| Other (2) |
14,093 | 15,781 | (11 | ) | |||||
| Total |
$ | 210,363 | $ | 212,894 | (1 | ) | |||
| (1) | Includes commercial loans and leases, commercial letters of credit, standy letters of credit and financial guarantees as well as the mark-to-market exposure for derivatives. |
| (2) | At March 31, 2004 and December 31, 2003, Other included amounts for Individuals and Trusts of credit exposure outstanding of $13,739 and $14,307, respectively, representing 6.5 percent and 6.7 percent of total commercial credit exposure, respectively. |
19
Bank of America Corporation
Nonperforming Assets
(Dollars in millions)
| 1Q04 |
4Q03 |
3Q03 |
2Q03 |
1Q03 |
||||||||||||||||
| Commercial - domestic |
$ | 1,288 | $ | 1,507 | $ | 1,861 | $ | 2,265 | $ | 2,605 | ||||||||||
| Commercial - foreign |
338 | 586 | 756 | 1,040 | 1,279 | |||||||||||||||
| Commercial real estate - domestic |
113 | 140 | 154 | 154 | 173 | |||||||||||||||
| Commercial real estate - foreign |
2 | 2 | 2 | 2 | 3 | |||||||||||||||
| Total commercial(1) |
1,741 | 2,235 | 2,773 | 3,461 | 4,060 | |||||||||||||||
| Residential mortgage |
486 | 531 | 563 | 618 | 628 | |||||||||||||||
| Home equity lines |
35 | 43 | 42 | 55 | 63 | |||||||||||||||
| Direct/Indirect consumer |
31 | 28 | 32 | 33 | 28 | |||||||||||||||
| Consumer finance |
58 | 32 | 12 | 11 | 18 | |||||||||||||||
| Foreign consumer |
3 | 4 | 7 | 9 | 9 | |||||||||||||||
| Total consumer |
613 | 638 | 656 | 726 | 746 | |||||||||||||||
| Total nonperforming loans and leases |
2,354 | 2,873 | 3,429 | 4,187 | 4,806 | |||||||||||||||
| Foreclosed properties |
131 | 148 | 228 | 243 | 227 | |||||||||||||||
| Total nonperforming assets(1, 2) |
$ | 2,485 | $ | 3,021 | $ | 3,657 | $ | 4,430 | $ | 5,033 | ||||||||||
| Loans past due 90 days or more and still accruing |
$ | 795 | $ | 860 | $ | 788 | $ | 726 | $ | 808 | ||||||||||
| Nonperforming assets / Total assets |
0.30 | % | 0.41 | % | 0.50 | % | 0.58 | % | 0.74 | % | ||||||||||
| Nonperforming assets / Total loans, leases and foreclosed properties |
0.66 | 0.81 | 0.98 | 1.23 | 1.46 | |||||||||||||||
| Nonperforming loans and leases / Total loans and leases |
0.63 | 0.77 | 0.92 | 1.16 | 1.40 | |||||||||||||||
| Allowance for credit losses: |
||||||||||||||||||||
| Allowance for loan and lease losses |
$ | 6,080 | $ | 6,163 | $ | 6,258 | $ | 6,366 | $ | 6,421 | ||||||||||
| Reserve for unfunded lending commitments |
401 | 416 | 458 | 475 | 432 | |||||||||||||||
| Total |
$ | 6,481 | $ | 6,579 | $ | 6,716 | $ | 6,841 | $ | 6,853 | ||||||||||
| Allowance for loan and lease losses / Total loans and leases |
1.62 | % | 1.66 | % | 1.68 | % | 1.77 | % | 1.87 | % | ||||||||||
| Allowance for loan and lease losses / Total nonperforming loans and leases |
258 | 215 | 183 | 152 | 134 | |||||||||||||||
Loans are classified as domestic or foreign based upon the domicile of the borrower.
| (1) | Includes lease financing of $66, $127, $114, $95 and $109 at March 31, 2004, December 31, 2003, September 30, 2003, June 30, 2003 and March 31, 2003, respectively. |
| (2) | Balances do not include $82, $202, $82, $98 and $174 of nonperforming assets included in other assets at March 31, 2004, December 31, 2003, September 30, 2003, June 30, 2003 and March 31, 2003, respectively. |
20
Bank of America Corporation
Quarterly Net Charge-offs and Net Charge-off Ratios
(Dollars in millions)
| 1Q04 |
4Q03 |
3Q03 |
2Q03 |
1Q03 |
|||||||||||||||||||||||||||||
| Amt. |
Ratio |
Amount |
Ratio |
Amount |
Ratio |
Amount |
Ratio |
Amount |
Ratio |
||||||||||||||||||||||||
| Commercial - domestic |
$ | 53 | 0.22 | % | $ | 94 | 0.39 | % | $ | 203 | 0.84 | % | $ | 221 | 0.88 | % | $ | 239 | 0.94 | % | |||||||||||||
| Commercial - foreign |
106 | 2.81 | 75 | 1.86 | 58 | 1.36 | 53 | 1.19 | 120 | 2.57 | |||||||||||||||||||||||
| Commercial real estate - domestic |
(2 | ) | (0.05 | ) | 9 | 0.18 | 13 | 0.26 | 10 | 0.21 | 9 | 0.18 | |||||||||||||||||||||
| Total commercial(1) |
157 | 0.48 | 178 | 0.54 | 274 | 0.82 | 284 | 0.82 | 368 | 1.04 | |||||||||||||||||||||||
| Residential mortgage |
11 | 0.03 | 13 | 0.04 | 14 | 0.04 | 11 | 0.04 | 2 | 0.01 | |||||||||||||||||||||||
| Home equity lines |
4 | 0.07 | (3 | ) | (0.04 | ) | 2 | 0.02 | 6 | 0.11 | 6 | 0.11 | |||||||||||||||||||||
| Direct/Indirect consumer |
48 | 0.56 | 48 | 0.57 | 39 | 0.47 | 38 | 0.47 | 56 | 0.72 | |||||||||||||||||||||||
| Consumer finance |
48 | 3.54 | 54 | 3.67 | 44 | 2.74 | 46 | 2.52 | 68 | 3.42 | |||||||||||||||||||||||
| Credit card |
443 | 5.05 | 423 | 5.12 | 390 | 5.32 | 378 | 5.78 | 323 | 5.31 | |||||||||||||||||||||||
| Other consumer - domestic |
9 | n/m | 11 | n/m | 11 | n/m | 8 | n/m | 9 | n/m | |||||||||||||||||||||||
| Foreign consumer |
— | — | 1 | 0.19 | 2 | 0.31 | 1 | 0.28 | 1 | 0.20 | |||||||||||||||||||||||
| Total consumer(2) |
563 | 0.93 | 547 | 0.91 | 502 | 0.89 | 488 | 0.93 | 465 | 0.93 | |||||||||||||||||||||||
| Total net charge-offs |
$ | 720 | 0.77 | $ | 725 | 0.77 | $ | 776 | 0.86 | $ | 772 | 0.88 | $ | 833 | 0.98 | ||||||||||||||||||
| By Business Segment: |
|||||||||||||||||||||||||||||||||
| Consumer & commercial banking |
$ | 558 | 1.14 | % | $ | 563 | 1.16 | % | $ | 539 | 1.14 | % | $ | 522 | 1.12 | % | $ | 488 | 1.06 | % | |||||||||||||
| Global corporate & investment banking |
96 | 0.95 | 76 | 0.69 | 170 | 1.46 | 172 | 1.34 | 272 | 1.96 | |||||||||||||||||||||||
| Asset management |
5 | 0.08 | (4 | ) | (0.06 | ) | 2 | 0.04 | 3 | 0.04 | (4 | ) | (0.06 | ) | |||||||||||||||||||
| Equity investments |
— | — | 21 | n/m | 0 | — | 3 | 3.36 | 1 | 0.72 | |||||||||||||||||||||||
| Corporate other |
61 | 0.22 | 69 | 0.25 | 65 | 0.26 | 72 | 0.33 | 76 | 0.38 | |||||||||||||||||||||||
| Total net charge-offs |
$ | 720 | 0.77 | $ | 725 | 0.77 | $ | 776 | 0.86 | $ | 772 | 0.88 | $ | 833 | 0.98 | ||||||||||||||||||
Loans are classified as domestic or foreign based upon the domicile of the borrower.
n/m = not meaningful
| (1) | Includes lease financing of $4, $0, $40, $11 and $73 for the quarters ended March 31, 2004, December 31, 2003, September 30, 2003, June 30, 2003 and March 31, 2003, respectively. |
| (2) | Includes lease financing of $10, $10, $12, $14 and $17 for the quarters ended March 31, 2004, December 31, 2003, September 30, 2003, June 30, 2003 and March 31, 2003, respectively. |
21
Bank of America Corporation
Selected Emerging Markets (1)
| (Dollars in Millions) |
Loans and Loan |
Other Financing (2) |
Derivative Assets |
Securities/ Other Investments (3) |
Total Cross- border Exposure (4) |
Gross Local Country Exposure (5) |
Total Foreign Exposure March 31, 2004 |
Increase/ (Decrease) from December 31, 2003 |
|||||||||||||||||
| Region/Country |
|||||||||||||||||||||||||
| Asia |
|||||||||||||||||||||||||
| Hong Kong (6) |
$ | 192 | $ | 19 | $ | 94 | $ | 125 | $ | 430 | $ | 3,676 | $ | 4,106 | $ | 201 | |||||||||
| India |
466 | 104 | 121 | 295 | 986 | 1,051 | 2,037 | 84 | |||||||||||||||||
| Singapore |
180 | 9 | 87 | 51 | 327 | 1,002 | 1,329 | 161 | |||||||||||||||||
| South Korea |
234 | 644 | 62 | 142 | 1,082 | 559 | 1,641 | (288 | ) | ||||||||||||||||
| Taiwan |
265 | 173 | 49 | — | 487 | 715 | 1,202 | 313 | |||||||||||||||||
| Other |
135 | 89 | 82 | 230 | 536 | 613 | 1,149 | (19 | ) | ||||||||||||||||
| Total |
1,472 | 1,038 | 495 | 843 | 3,848 | 7,616 | 11,464 | 452 | |||||||||||||||||
| Central and Eastern Europe |
23 | 8 | 33 | 138 | 202 | — | 202 | (68 | ) | ||||||||||||||||
| Latin America |
|||||||||||||||||||||||||
| Argentina |
102 | 44 | 2 | 105 | 253 | 42 | 295 | (48 | ) | ||||||||||||||||
| Brazil |
90 | 258 | 8 | 29 | 385 | 254 | 639 | (102 | ) | ||||||||||||||||
| Mexico |
440 | 221 | 48 | 1,889 | 2,598 | 354 | 2,952 | (90 | ) | ||||||||||||||||
| Other |
265 | 185 | 225 | 233 | 908 | — | 908 | 60 | |||||||||||||||||
| Total |
897 | 708 | 283 | 2,256 | 4,144 | 650 | 4,794 | (180 | ) | ||||||||||||||||
| Total |
$ | 2,392 | $ | 1,754 | $ | 811 | $ | 3,237 | $ | 8,194 | $ | 8,266 | $ | 16,460 | $ | 204 | |||||||||
| (1) | There is no generally accepted definition of emerging markets. The definition that we used included all countries in Asia excluding Japan; all countries in Latin America excluding Cayman Islands and Bermuda; and all countries in Central and Eastern Europe excluding Greece. |
| (2) | Includes acceptances, standby letters of credit, commercial letters of credit and formal guarantees. |
| (3) | Amounts outstanding in the table above for Asia Other and Latin America Other have been reduced by $13 and $169, respectively at March 31, 2004 and $13 and $173, respectively, at December 31, 2003. Such amounts represent the fair value of U.S. Treasury securities held as collateral outside the country of exposure. |
| (4) | Cross-border exposure includes amounts payable to the Corporation by borrowers with a country of residence other than the one in which the credit is booked, regardless of the currency in which the claim is denominated, consistent with FFIEC reporting rules. |
| (5) | Gross local country exposure includes amounts payable to the Corporation by borrowers with a country of residence 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. |
| (6) | Gross local country exposure to Hong Kong consisted of $2,010 of consumer loans and loan commitments and $1,666 of commercial exposure at March 31, 2004 compared to $1,911 of consumer loans and loan commitments and $1,578 of commercial exposure at December 31, 2003. The consumer loans were collateralized primarily by residential real estate. The commercial exposure was primarily to local clients and was diversified across many industries. |
22
FleetBoston Financial
Financial Highlights
| Three Months Ended |
||||||||||||
| (Dollars in millions, except per share information; shares in thousands) |
March 31, 2004 |
December 31, 2003 |
March 31, 2003 |
|||||||||
| For the Period |
||||||||||||
| Net income (loss) |
$ | 773 | $ | 732 | $ | 567 | ||||||
| Continuing operations |
773 | 732 | 577 | |||||||||
| Discontinued operations |
— | — | (10 | ) | ||||||||
| Revenue |
3,175 | 3,067 | 2,760 | |||||||||
| Noninterest expense |
1,964 | 1,723 | 1,573 | |||||||||
| Provision for credit losses |
— | 195 | 280 | |||||||||
| Per Common Share |
||||||||||||
| Earnings (loss) per share - net income |
$ | 0.71 | $ | 0.68 | $ | 0.54 | ||||||
| Continuing operations |
0.71 | 0.68 | 0.55 | |||||||||
| Discontinued operations |
— | — | (0.01 | ) | ||||||||
| Cash dividends declared |
0.35 | 0.35 | 0.35 | |||||||||
| Book value (period-end) |
17.62 | 16.94 | 16.04 | |||||||||
| At Period-End |
||||||||||||
| Assets |
$ | 199,667 | $ | 200,235 | $ | 199,308 | ||||||
| Loans and leases |
127,596 | 128,949 | 124,015 | |||||||||
| Deposits |
139,721 | 137,764 | 129,575 | |||||||||
| Total stockholders’ equity |
19,329 | 18,280 | 17,132 | |||||||||
| Ratios |
||||||||||||
| Return on average assets |
1.56 | % | 1.49 | % | 1.18 | % | ||||||
| Return on common equity |
16.73 | 16.36 | 13.67 | |||||||||
| Net interest margin |
3.96 | 3.91 | 3.89 | |||||||||
| Total equity/assets (period-end) |
9.7 | 9.1 | 8.6 | |||||||||
| Tangible common equity/assets |
7.4 | 6.9 | 6.3 | |||||||||
| Tier 1 capital * |
$ | 17,424 | $ | 16,484 | $ | 15,254 | ||||||
| Risk-weighted assets * |
184,165 | 185,363 | 182,456 | |||||||||
| Tier 1 risk-based capital ratio* |
9.5 | % | 8.9 | % | 8.4 | % | ||||||
| Total risk-based capital ratio* |
12.4 | 12.0 | 11.7 | |||||||||
| Asset Quality |
||||||||||||
| Nonperforming assets |
$ | 1,231 | $ | 1,957 | $ | 2,973 | ||||||
| Non-Argentine |
733 | 927 | 1,512 | |||||||||
| Argentine |
498 | 1,030 | 1,461 | |||||||||
| Reserve for credit losses |
2,848 | 3,074 | 3,406 | |||||||||
| Nonperforming assets as a % of related assets |
0.96 | % | 1.51 | % | 2.39 | % | ||||||
| Non-Argentine |
0.58 | 0.73 | 1.24 | |||||||||
| Argentine |
34.73 | 51.12 | 55.96 | |||||||||
| Reserve for credit losses to period-end loans |
2.23 | 2.38 | 2.75 | |||||||||
| Reserve for credit losses to nonperforming loans |
266 | 195 | 134 | |||||||||
| Net loan charge-offs/average loans |
0.73 | 0.78 | 2.07 | |||||||||
| Net loan charge-offs |
$ | 233 | $ | 250 | $ | 626 | ||||||
| Non-Argentine |
179 | 251 | 430 | |||||||||
| Argentine |
54 | (1 | ) | 196 | ||||||||
| * | 1Q 2004 are estimates |
23
FleetBoston Financial
Consolidated Statement of Income
| Three Months Ended |
||||||||||
| Dollars in millions, except per share data |
March 31, 2004 |
December 31, 2003 |
March 31, 2003 |
|||||||
| Net interest income (FTE) |
$ | 1,718 | $ | 1,674 | $ | 1,622 | ||||
| Noninterest income: |
||||||||||
| Investment services revenue |
413 | 397 | 354 | |||||||
| Banking fees and commissions |
385 | 392 | 378 | |||||||
| Capital markets-related revenue |
272 | 251 | 111 | |||||||
| Credit card revenue |
152 | 167 | 156 | |||||||
| Other |
235 | 186 | 139 | |||||||
| Noninterest income |
1,457 | 1,393 | 1,138 | |||||||
| Revenue |
3,175 | 3,067 | 2,760 | |||||||
| Noninterest expense: |
||||||||||
| Employee compensation and benefits |
899 | 891 | 826 | |||||||
| Occupancy |
136 | 129 | 129 | |||||||
| Equipment |
101 | 107 | 119 | |||||||
| Intangible asset amortization |
21 | 20 | 20 | |||||||
| Other |
807 | 576 | 479 | |||||||
| Noninterest expense |
1,964 | 1,723 | 1,573 | |||||||
| Income from continuing operations before provision and income taxes |
1,211 | 1,344 | 1,187 | |||||||
| Provision for credit losses |
— | 195 | 280 | |||||||
| Income taxes and tax-equivalent adjustment from continuing operations |
438 | 417 | 330 | |||||||
| Net income from continuing operations |
$ | 773 | $ | 732 | $ | 577 | ||||
| Net income (loss) from discontinued operations (net of tax) |
— | — | (10 | ) | ||||||
| Net income |
$ | 773 | $ | 732 | $ | 567 | ||||
| Diluted earnings per share-continuing operations |
$ | 0.71 | $ | 0.68 | $ | 0.55 | ||||
| Diluted earnings per share-net income |
0.71 | 0.68 | 0.54 | |||||||
24
FleetBoston Financial
Consolidated Balance Sheet - Period End
| (Dollars in millions) |
March 31 2004 |
December 31 2003 |
March 31 2003 |
|||||||||
| Assets: |
||||||||||||
| Cash and equivalents |
$ | 19,774 | $ | 14,143 | $ | 12,434 | ||||||
| Securities |
31,151 | 31,370 | 36,109 | |||||||||
| Trading assets |
3,732 | 3,928 | 4,043 | |||||||||
| Loans and leases |
127,596 | 128,949 | 124,015 | |||||||||
| Reserve for credit losses |
(2,848 | ) | (3,074 | ) | (3,406 | ) | ||||||
| Due from brokers/dealers |
1,081 | 5,437 | 6,143 | |||||||||
| Intangible assets |
4,709 | 4,571 | 4,624 | |||||||||
| Other assets |
14,472 | 14,911 | 15,346 | |||||||||
| Total assets |
$ | 199,667 | $ | 200,235 | $ | 199,308 | ||||||
| Liabilities: |
||||||||||||
| Deposits |
$ | 139,721 | $ | 137,764 | $ | 129,575 | ||||||
| Short-term borrowings |
12,124 | 11,178 | 15,948 | |||||||||
| Due to brokers/dealers |
1,090 | 5,476 | 6,048 | |||||||||
| Long-term debt |
16,905 | 17,557 | 19,551 | |||||||||
| Other liabilities |
10,498 | 9,980 | 11,054 | |||||||||
| Total liabilities |
180,338 | 181,955 | 182,176 | |||||||||
| Shareholders’ equity: |
||||||||||||
| Preferred stock, $1.00 par value; authorized - 16,000,000 shares; issued and outstanding 1,082,450 shares |
271 | 271 | 271 | |||||||||
| Common stock, $0.01 par value; authorized - 2,000,000,000 shares; issued and outstanding 1,081,690,057; 1,063,133,292 and 1,051,290,155 shares |
19,058 | 18,009 | 16,861 | |||||||||
| Total shareholders’ equity |
19,329 | 18,280 | 17,132 | |||||||||
| Total liabilities and shareholders’ equity |
$ | 199,667 | $ | 200,235 | $ | 199,308 | ||||||
25
FleetBoston Financial
Net Interest Margin and Interest-Rate Spread: Quarter
Average for Three Months Ended
| FTE Basis Dollars in millions |
March 31, 2004 |
December 31, 2003 |
March 31, 2003 |
|||||||||||||||||||||||||||
| Balance |
Interest |
Rate |
Balance |
Interest |
Rate |
Balance |
Interest |
Rate |
||||||||||||||||||||||
| ASSETS: |
||||||||||||||||||||||||||||||
| Interest-bearing deposits |
$ | 2,908 | $ | 12 | 1.66 | % | $ | 2,790 | $ | 14 | 2.00 | % | $ | 2,980 | $ | 23 | 3.19 | % | ||||||||||||
| Federal funds sold/Repos |
5,256 | 71 | 5.47 | 2,653 | 64 | 9.64 | 3,864 | 91 | 9.54 | |||||||||||||||||||||
| Securities |
30,839 | 325 | 4.36 | 29,935 | 325 | 4.35 | 32,936 | 354 | 4.30 | |||||||||||||||||||||
| Total loan and leases - Domestic |
114,788 | 1,708 | 5.98 | 113,483 | 1,632 | 5.71 | 107,124 | 1,609 | 6.08 | |||||||||||||||||||||
| Total loan and leases – International |
13,801 | 270 | 7.87 | 14,174 | 295 | 8.29 | 15,627 | 253 | 6.54 | |||||||||||||||||||||
| Due from broker/dealer |
4,698 | 10 | 0.84 | 5,332 | 11 | 0.79 | 4,767 | 12 | 1.00 | |||||||||||||||||||||
| Other earning assets |
2,350 | 17 | 2.81 | 1,648 | 16 | 3.64 | 1,638 | 13 | 3.53 | |||||||||||||||||||||
| Total interest-earning assets |
174,640 | 2,413 | 5.55 | 170,015 | 2,357 | 5.50 | 168,936 | 2,355 | 5.63 | |||||||||||||||||||||
| Reserve for credit losses |
(3,153 | ) | (3,178 | ) | (3,817 | ) | ||||||||||||||||||||||||
| Other assets |
27,250 | 27,872 | 29,905 | |||||||||||||||||||||||||||
| Total assets |
$ | 198,737 | $ | 194,709 | $ | 195,024 | ||||||||||||||||||||||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY: |
||||||||||||||||||||||||||||||
| Deposits: |
||||||||||||||||||||||||||||||
| Savings - Domestic |
$ | 77,025 | $ | 171 | 0.89 | % | $ | 74,905 | $ | 167 | 0.88 | % | $ | 66,002 | $ | 182 | 1.12 | % | ||||||||||||
| Time - Domestic |
15,098 | 82 | 2.19 | 13,996 | 66 | 1.87 | 16,448 | 95 | 2.35 | |||||||||||||||||||||
| International |
9,746 | 89 | 3.65 | 10,159 | 95 | 3.69 | 9,443 | 92 | 3.93 | |||||||||||||||||||||
| Total interest-bearing deposits |
101,869 | 342 | 1.35 | 99,060 | 328 | 1.31 | 91,893 | 369 | 1.63 | |||||||||||||||||||||
| Short-term borrowings |
12,166 | 89 | 3.31 | 11,884 | 96 | 3.21 | 14,152 | 86 | 2.48 | |||||||||||||||||||||
| Long-term debt |
17,084 | 256 | 6.00 | 16,759 | 250 | 5.97 | 20,463 | 268 | 5.24 | |||||||||||||||||||||
| Due to broker/dealer |
4,720 | 8 | 0.68 | 5,322 | 9 | 0.63 | 4,892 | 10 | 0.83 | |||||||||||||||||||||
| Total interest-bearing liabilities |
135,839 | 695 | 2.05 | 133,025 | 683 | 2.04 | 131,400 | 733 | 2.25 | |||||||||||||||||||||
| Net interest spread |
3.49 | 3.46 | 3.38 | |||||||||||||||||||||||||||
| Demand and other noninterest- bearing time deposits |
34,473 | 34,152 | 35,993 | |||||||||||||||||||||||||||
| Other liabilities |
9,684 | 9,613 | 10,665 | |||||||||||||||||||||||||||
| Total liabilities |
179,996 | 176,790 | 178,058 | |||||||||||||||||||||||||||
| Preferred Stock |
271 | 271 | 271 | |||||||||||||||||||||||||||
| Common Stock |
18,470 | 17,648 | 16,695 | |||||||||||||||||||||||||||
| Stockholders’ equity |
18,741 | 17,919 | 16,966 | |||||||||||||||||||||||||||
| Total liab. and stockholders’ equity |
$ | 198,737 | $ | 194,709 | $ | 195,024 | ||||||||||||||||||||||||
| Net interest margin |
3.96 | % | 3.91 | % | 3.89 | % | ||||||||||||||||||||||||
26