Exhibit 99.2

 

LOGO

 

Supplemental Information

Second Quarter 2005

 

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

 

Second Quarter 2005

 

    Earnings of $4.3 billion or $1.06 per diluted share grew 14% over results in 2Q04 but fell 7% versus record 1Q05 results. Excluding merger and restructuring charges of $121 million, $80 million after tax, earnings were $1.08 per diluted share.

 

    Revenue on an FTE basis of $14.2 billion remained steady compared to 1Q05 despite the impact of a flattening yield curve and tough capital markets environment.

 

    Although net interest income was slightly above the previous year's quarter it declined 3% versus 1Q05. Impact of higher loan and deposit levels were more than offset by greater spread compression.

 

    Retail deposits grew another $11 billion or 3% versus 1Q05 and

 

    Average loans grew 2% (excluding residential mortgages held for asset liability management purposes).

 

    Noninterest income improved 4% from 1Q05 despite the tough trading environment experienced in the industry.

 

    Excluding trading results, noninterest income climbed 13% over 1Q05 led by strong card results, good service fee results as well as growth in investment banking and asset management fees.

 

    Second quarter also included $278 million in whole loan sale gains in other income.

 

    Securities gains recognized in 2Q05 were $325 million resulting primarily from the company repositioning for interest rate moves. Resolution of restructured government and corporate credits allowed for $70 million in securities gains in Latin America business.

 

    Noninterest expense, excluding merger and restructuring charges, of $6.9 billion was flat with 1Q05 and resulted in an efficiency ratio of 49%.

 

    Additional merger-related cost saves of $4 million brings current quarter run rate to $441 million.

 

    Provision expense was $875 million versus the $880 million net charge-offs recorded in the quarter.

 

    Includes establishment of $210 million reserve for estimated 2006 net charge-offs from implementing Phase 2 of minimum payment requirements.

 

    Also includes a reduction of $250 million in general reserves as credit integration uncertainties related to FleetBoston were reduced.

 

    Dividends of $1.8 billion and net share repurchases of $1.0 billion provided good capital returns to shareholders while the Tier 1 ratio remains above our 8.00% target rate.

 

    During the quarter Bank of America announced an 11% increase in quarterly dividend.

 

    Continuing momentum in business lines:

 

    7.6 million product sales.

 

    Number of net new checking accounts grew by 629,000.

 

    Number of net new savings accounts grew by 568,000.

 

    Opened 1.6 million new credit card accounts.

 

    Active online banking users increased to 13.6 million while bill payers near 7 million.

 

    Bill payers are now paying $30 billion worth of bills per quarter with bill presenters growing to more than 300.

 

    Assets under management ended the quarter at $443 billion reflecting increases from market valuations as well as small inflows.

 

    70,000 banking customers accepted invitations into premier banking relationships during the quarter.

 

    Integration of FleetBoston merger continues to go extremely well.

 

    Completed 1st phase Northeast retail platform conversion including 1.9 million customers in Rhode Island, Massachusetts, New Hampshire, Maine and Florida.

 

 

 

1


Bank of America Corporation

 

Consolidated Financial Highlights

(Dollars in millions, except per share information; shares in thousands)

 

    

Year-to-  
Date

2005


   

Year-to-  
Date

2004


    Second
Quarter
2005


   First
Quarter
2005


    Fourth
Quarter
2004


    Third
Quarter
2004


    Second
Quarter
2004


 

Income statement

                                                       

Total revenue

   $ 28,037     $ 22,579     $ 14,015    $ 14,022     $ 13,713     $ 12,587     $ 13,048  

Provision for credit losses

     1,455       1,413       875      580       706       650       789  

Gains on sales of debt securities

     984       1,290       325      659       101       732       795  

Noninterest expense

     14,076       12,658       7,019      7,057       7,333       7,021       7,228  

Income tax expense

     4,499       3,268       2,150      2,349       1,926       1,884       1,977  

Net income

     8,991       6,530       4,296      4,695       3,849       3,764       3,849  

Diluted earnings per common share

     2.20       1.85       1.06      1.14       0.94       0.91       0.93  

Average diluted common shares issued and outstanding

     4,081,921       3,531,038       4,065,355      4,099,062       4,106,040       4,121,375       4,131,290  

Dividends paid per common share

   $ 0.90     $ 0.80     $ 0.45    $ 0.45     $ 0.45     $ 0.45     $ 0.40  

Performance ratios

                                                       

Return on average assets

     1.46 %     1.36 %     1.35      1.59 %     1.33 %     1.37 %     1.41 %

Return on average common shareholders’ equity

     18.42       18.54       17.54      19.30       15.63       15.56       16.63  

Book value per share of common stock

   $ 24.96     $ 23.51     $ 24.96    $ 24.35     $ 24.56     $ 24.14     $ 23.51  

Market price per share of common stock:

                                                       

Closing price

   $ 45.61     $ 42.31     $ 45.61    $ 44.10     $ 46.99     $ 43.33     $ 42.31  

High closing price for the period

     47.08       42.72       47.08      47.08       47.44       44.98       42.72  

Low closing price for the period

     43.58       38.96       43.58      43.66       43.62       41.81       38.96  

Market capitalization

     183,202       171,891       183,202      177,958       190,147       175,446       171,891  

Number of banking centers - domestic

     5,880       5,774       5,880      5,889       5,885       5,829       5,774  

Number of ATMs - domestic

     16,687       16,672       16,687      16,798       16,771       16,728       16,672  

Full-time equivalent employees

     177,795       179,971       177,795      176,676       178,057       178,633       179,971  

 

Certain prior period amounts have been reclassified to conform to current period presentation.

 

Information for periods after April 1, 2004 includes the FleetBoston acquisition; prior periods have not been restated.

2


Bank of America Corporation

 

Supplemental Financial Data

(Dollars in millions)

 

Fully taxable-equivalent basis data

 

    

Year-to-

Date

2005


   

Year-to-

Date

2004


    Second
Quarter
2005


    First
Quarter
2005


    Fourth
Quarter
2004


    Third
Quarter
2004


    Second
Quarter
2004


 

Net interest income

   $ 15,913     $ 13,721     $ 7,841     $ 8,072     $ 7,954     $ 7,836     $ 7,751  

Total revenue

     28,427       22,918       14,206       14,221       13,920       12,758       13,218  

Net interest yield

     2.95 %     3.29 %     2.81 %     3.11 %     3.18 %     3.30 %     3.31 %

Efficiency ratio

     49.52       55.23       49.42       49.62       52.69       55.03       54.68  

 

Reconciliation to GAAP financial measures

 

Supplemental financial data presented on an operating basis is a basis of presentation not defined by accounting principles generally accepted in the United States (GAAP) that excludes merger and restructuring charges. We believe that the exclusion of merger and restructuring charges, which represent events outside our normal operations, provides a meaningful period-to-period comparison and is more reflective of normalized operations.

 

Shareholder value added (SVA) is a key measure of performance not defined by GAAP that is used in managing our growth strategy orientation and strengthening our focus on generating long-term growth and shareholder value. SVA is used to evaluate the Corporation’s use of equity (i.e. capital) at the individual unit level and is an integral component in the analytics for resource allocation. Using SVA as a performance measure places specific focus on whether incremental investments generate returns in excess of the costs of capital associated with those investments. 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 Tables below for supplemental financial data and corresponding reconciliations to GAAP financial measures for the quarters ended June 30, 2005, March 31, 2005, December 31, 2004, September 30, 2004 and June 30, 2004, and the six months ended June 30, 2005 and 2004.

 

Reconciliation of net income to operating earnings

 

   

Year-to-

Date

2005


   

Year-to-

Date

2004


    Second
Quarter
2005


    First
Quarter
2005


    Fourth
Quarter
2004


    Third
Quarter
2004


    Second
Quarter
2004


 

Net income

  $ 8,991     $ 6,530     $ 4,296     $ 4,695     $ 3,849     $ 3,764     $ 3,849  

Merger and restructuring charges

    233       125       121       112       272       221       125  

Related income tax benefit

    (78 )     (42 )     (41 )     (37 )     (91 )     (74 )     (42 )
   


 


 


 


 


 


 


Operating earnings

  $ 9,146     $ 6,613     $ 4,376     $ 4,770     $ 4,030     $ 3,911     $ 3,932  
   


 


 


 


 


 


 


Operating basis

                                                       

Diluted earnings per common share

  $ 2.24     $ 1.87     $ 1.08     $ 1.16     $ 0.98     $ 0.95     $ 0.95  

Return on average assets

    1.49 %     1.38 %     1.37 %     1.61 %     1.39 %     1.42 %     1.44 %

Return on avg common shareholders’ equity

    18.74       18.77       17.87       19.61       16.37       16.17       16.99  

Efficiency ratio

    48.70       54.68       48.56       48.83       50.73       53.30       53.73  

Reconciliation of net income to shareholder value added

                                                       

Net income

  $ 8,991     $ 6,530     $ 4,296     $ 4,695     $ 3,849     $ 3,764     $ 3,849  

Amortization of intangibles

    412       255       204       208       209       200       201  

Merger and restructuring charges, net of tax benefit

    155       83       80       75       181       147       83  

Capital charge

    (5,364 )     (3,872 )     (2,691 )     (2,673 )     (2,705 )     (2,658 )     (2,542 )
   


 


 


 


 


 


 


Shareholder value added

  $ 4,194     $ 2,996     $ 1,889     $ 2,305     $ 1,534     $ 1,453     $ 1,591  
   


 


 


 


 


 


 


 

Certain prior period amounts have been reclassified to conform to current period presentation.

 

Information for periods after April 1, 2004 includes the FleetBoston acquisition; prior periods have not been restated.

3


Bank of America Corporation

 

Consolidated Statement of Income

(Dollars in millions, except per share information; shares in thousands)

 

    

Year-to-

Date

2005


  

Year-to-

Date

2004


   Second
Quarter
2005


   First
Quarter
2005


   Fourth
Quarter
2004


   Third
Quarter
2004


    Second
Quarter
2004


Interest income

                                                 

Interest and fees on loans and leases

   $ 16,419    $ 12,786    $ 8,312    $ 8,107    $ 7,919    $ 7,508     $ 7,237

Interest and dividends on securities

     5,333      3,119      2,799      2,534      2,065      2,078       1,907

Federal funds sold and securities purchased under agreements to resell

     2,145      847      1,252      893      712      484       413

Trading account assets

     2,608      2,021      1,426      1,182      1,035      960       1,009

Other interest income

     939      769      502      437      464      457       424
    

  

  

  

  

  


 

Total interest income

     27,444      19,542      14,291      13,153      12,195      11,487       10,990
    

  

  

  

  

  


 

Interest expense

                                                 

Deposits

     4,422      2,735      2,379      2,043      1,829      1,711       1,529

Short-term borrowings

     4,646      1,739      2,677      1,969      1,543      1,152       1,019

Trading account liabilities

     1,038      632      611      427      352      333       298

Long-term debt

     1,815      1,054      974      841      724      626       563
    

  

  

  

  

  


 

Total interest expense

     11,921      6,160      6,641      5,280      4,448      3,822       3,409
    

  

  

  

  

  


 

Net interest income

     15,523      13,382      7,650      7,873      7,747      7,665       7,581
    

  

  

  

  

  


 

Noninterest income

                                                 

Service charges

     3,697      3,199      1,920      1,777      1,891      1,899       1,783

Investment and brokerage services

     2,062      1,634      1,049      1,013      1,008      972       999

Mortgage banking income (loss)

     410      508      189      221      156      (250 )     299

Investment banking income

     797      951      431      366      497      438       547

Equity investment gains

     891      217      492      399      426      220       84

Card income

     2,726      1,954      1,437      1,289      1,380      1,258       1,159

Trading account profits

     1,045      416      285      760      269      184       413

Other income

     886      318      562      324      339      201       183
    

  

  

  

  

  


 

Total noninterest income

     12,514      9,197      6,365      6,149      5,966      4,922       5,467
    

  

  

  

  

  


 

Total revenue

     28,037      22,579      14,015      14,022      13,713      12,587       13,048

Provision for credit losses

     1,455      1,413      875      580      706      650       789

Gains on sales of debt securities

     984      1,290      325      659      101      732       795

Noninterest expense

                                                 

Personnel

     7,372      6,381      3,671      3,701      3,520      3,534       3,629

Occupancy

     1,251      1,109      615      636      648      622       621

Equipment

     594      579      297      297      326      309       318

Marketing

     683      648      346      337      337      364       367

Professional fees

     393      354      216      177      275      207       194

Amortization of intangibles

     412      255      204      208      209      200       201

Data processing

     732      617      368      364      371      341       333

Telecommunications

     402      334      196      206      216      180       183

Other general operating

     2,004      2,256      985      1,019      1,159      1,043       1,257

Merger and restructuring charges

     233      125      121      112      272      221       125
    

  

  

  

  

  


 

Total noninterest expense

     14,076      12,658      7,019      7,057      7,333      7,021       7,228
    

  

  

  

  

  


 

Income before income taxes

     13,490      9,798      6,446      7,044      5,775      5,648       5,826

Income tax expense

     4,499      3,268      2,150      2,349      1,926      1,884       1,977
    

  

  

  

  

  


 

Net income

   $ 8,991    $ 6,530    $ 4,296    $ 4,695    $ 3,849    $ 3,764     $ 3,849
    

  

  

  

  

  


 

Net income available to common shareholders

   $ 8,982    $ 6,524    $ 4,292    $ 4,690    $ 3,844    $ 3,759     $ 3,844
    

  

  

  

  

  


 

Per common share information

                                                 

Earnings

   $ 2.23    $ 1.88    $ 1.07    $ 1.16    $ 0.95    $ 0.93     $ 0.95
    

  

  

  

  

  


 

Diluted earnings

   $ 2.20    $ 1.85    $ 1.06    $ 1.14    $ 0.94    $ 0.91     $ 0.93
    

  

  

  

  

  


 

Dividends paid

   $ 0.90    $ 0.80    $ 0.45    $ 0.45    $ 0.45    $ 0.45     $ 0.40
    

  

  

  

  

  


 

Average common shares issued and outstanding

     4,019,089      3,471,516      4,005,356      4,032,550      4,032,979      4,052,304       4,062,384
    

  

  

  

  

  


 

Average diluted common shares issued and outstanding

     4,081,921      3,531,038      4,065,355      4,099,062      4,106,040      4,121,375       4,131,290
    

  

  

  

  

  


 

 

Certain prior period amounts have been reclassified to conform to current period presentation.

 

Information for periods after April 1, 2004 includes the FleetBoston acquisition; prior periods have not been restated.

4


Bank of America Corporation

 

Consolidated Balance Sheet

 

(Dollars in millions)


  

June 30

2005


    March 31
2005


   

June 30

2004


 

Assets

                        

Cash and cash equivalents

   $ 33,935     $ 28,698     $ 31,789  

Time deposits placed and other short-term investments

     9,682       11,223       10,418  

Federal funds sold and securities purchased under agreements to resell

     149,287       139,396       81,437  

Trading account assets

     126,658       124,960       85,972  

Derivative assets

     26,019       26,182       25,908  

Securities:

                        

Available-for-sale

     233,412       218,675       166,175  

Held-to-maturity, at cost

     174       275       478  
    


 


 


Total securities

     233,586       218,950       166,653  
    


 


 


Loans and leases

     529,418       529,466       498,481  

Allowance for loan and lease losses

     (8,319 )     (8,313 )     (8,767 )
    


 


 


Loans and leases, net of allowance

     521,099       521,153       489,714  
    


 


 


Premises and equipment, net

     7,602       7,531       7,797  

Mortgage servicing rights

     2,366       2,668       3,005  

Goodwill

     45,381       45,378       44,672  

Core deposit intangibles and other intangibles

     3,472       3,679       3,922  

Other assets

     87,243       82,421       73,444  
    


 


 


Total assets

   $ 1,246,330     $ 1,212,239     $ 1,024,731  
    


 


 


Liabilities

                        

Deposits in domestic offices:

                        

Noninterest-bearing

   $ 175,427     $ 166,499     $ 154,061  

Interest-bearing

     397,778       403,534       369,446  

Deposits in foreign offices:

                        

Noninterest-bearing

     6,102       5,319       5,499  

Interest-bearing

     56,110       54,635       46,407  
    


 


 


Total deposits

     635,417       629,987       575,413  
    


 


 


Federal funds purchased and securities sold under agreements to repurchase

     207,710       187,652       119,264  

Trading account liabilities

     61,906       53,434       29,689  

Derivative liabilities

     15,630       15,363       14,381  

Commercial paper and other short-term borrowings

     93,763       93,440       63,162  

Accrued expenses and other liabilities (includes $383, $394 and $486 of reserve for unfunded lending commitments)

     34,470       35,081       28,682  

Long-term debt

     96,894       98,763       98,319  
    


 


 


Total liabilities

     1,145,790       1,113,720       928,910  
    


 


 


Shareholders’ equity

                        

Preferred stock, $0.01 par value; authorized - 100,000,000 shares; issued and outstanding - 1,090,189; 1,090,189 and 2,292,013 shares

     271       271       322  

Common stock and additional paid-in capital, $0.01 par value; authorized - 7,500,000,000 shares; issued and outstanding - 4,016,703,839; 4,035,318,509 and 4,062,656,866 shares

     42,507       43,589       45,669  

Retained earnings

     63,328       60,843       54,030  

Accumulated other comprehensive income (loss)

     (4,992 )     (5,559 )     (3,862 )

Other

     (574 )     (625 )     (338 )
    


 


 


Total shareholders’ equity

     100,540       98,519       95,821  
    


 


 


Total liabilities and shareholders’ equity

   $ 1,246,330     $ 1,212,239     $ 1,024,731  
    


 


 


 

Certain prior period amounts have been reclassified to conform to current period presentation.

 

Information for periods after April 1, 2004 includes the FleetBoston acquisition; prior periods have not been restated.

5


Bank of America Corporation

 

Capital Management

(Dollars in millions)

 

     2Q05*

    1Q05

    4Q04

    3Q04

    2Q04

 

Tier 1 capital

   $ 68,806     $ 67,127     $ 64,281     $ 62,981     $ 61,883  

Total capital

     94,933       93,774       92,266       91,326       90,267  

Risk-weighted assets

     853,669       818,179       793,523       779,858       754,386  

Tier 1 capital ratio

     8.06 %     8.20 %     8.10 %     8.08 %     8.20 %

Total capital ratio

     11.12       11.46       11.63       11.71       11.97  

Ending equity / ending assets

     8.07       8.13       8.97       9.14       9.35  

Ending capital / ending assets

     8.93       9.01       9.85       10.00       10.25  

Average equity / average assets

     7.70       8.23       8.51       8.79       8.52  

Leverage ratio

     5.59       5.82       5.82       5.92       5.83  

 

*Preliminary data on risk-based capital

 

Share Repurchase Program

 

40.3 million common shares were repurchased in the second quarter of 2005 as a part of ongoing share repurchase programs.

 

197.1 million shares remain outstanding under the 2005 authorized program.

 

21.7 million shares were issued in the second quarter of 2005.

 

LOGO

 

Information for periods after April 1, 2004 includes the FleetBoston acquisition; prior periods have not been restated.

6


Bank of America Corporation

 

Quarterly Average Balances and Interest Rates - Fully Taxable-equivalent Basis

(Dollars in millions)

 

    Second Quarter 2005

    First Quarter 2005

    Second Quarter 2004

 
   

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

  $ 13,696    $ 113    3.31 %   $ 14,327    $ 101    2.87 %   $ 14,384    $ 59    1.65 %

Federal funds sold and securities purchased under agreements to resell

    185,835      1,252    2.70       147,855      893    2.43       124,383      413    1.33  

Trading account assets

    134,196      1,454    4.34       117,748      1,203    4.10       104,391      1,025    3.94  

Securities

    227,182      2,829    4.98       204,574      2,561    5.01       159,797      1,925    4.82  

Loans and leases(1):

                                                           

Residential mortgage

    167,272      2,271    5.43       178,098      2,412    5.43       173,158      2,284    5.29  

Credit card

    52,474      1,481    11.32       51,310      1,373    10.85       43,160      1,167    10.88  

Home equity lines

    54,941      799    5.83       51,477      692    5.45       40,424      450    4.48  

Direct/Indirect consumer

    43,132      612    5.69       41,620      573    5.58       39,763      540    5.44  

Other consumer(2)

    6,968      155    8.96       7,305      158    8.75       8,142      169    8.32  
   

  

        

  

        

  

      

Total consumer

    324,787      5,318    6.56       329,810      5,208    6.37       304,647      4,610    6.07  
   

  

        

  

        

  

      

Commercial - domestic

    123,927      1,969    6.37       123,803      1,983    6.49       123,970      1,843    5.98  

Commercial real estate

    33,484      477    5.72       33,016      430    5.29       30,311      317    4.20  

Commercial lease financing

    20,446      252    4.93       20,745      260    5.01       20,086      237    4.72  

Commercial - foreign

    17,780      306    6.90       17,570      258    5.96       18,144      237    5.24  
   

  

        

  

        

  

      

Total commercial

    195,637      3,004    6.16       195,134      2,931    6.08       192,511      2,634    5.50  
   

  

        

  

        

  

      

Total loans and leases

    520,424      8,322    6.41       524,944      8,139    6.27       497,158      7,244    5.85  
   

  

        

  

        

  

      

Other earning assets

    37,194      512    5.52       35,466      455    5.19       38,407      494    5.17  
   

  

        

  

        

  

      

Total earning assets(3)

    1,118,527      14,482    5.19       1,044,914      13,352    5.15       938,520      11,160    4.77  
   

  

  

 

  

  

 

  

  

Cash and cash equivalents

    34,731                   31,382                   30,320              

Other assets, less allowance for loan and lease losses

    124,231                   124,587                   125,619              
   

               

               

             

Total assets

  $ 1,277,489                 $ 1,200,883                 $ 1,094,459              
   

               

               

             

Interest-bearing liabilities

                                                           

Domestic interest-bearing deposits:

                                                           

Savings

  $ 38,043    $ 52    0.54 %   $ 37,000    $ 35    0.39 %   $ 35,864    $ 31    0.34 %

NOW and money market deposit accounts

    229,174      723    1.27       233,392      651    1.13       233,702      488    0.84  

Consumer CDs and IRAs

    127,169      974    3.07       118,989      769    2.62       93,017      587    2.54  

Negotiable CDs, public funds and other time deposits

    7,751      87    4.49       10,291      96    3.73       4,737      66    5.60  
   

  

        

  

        

  

      

Total domestic interest-bearing deposits

    402,137      1,836    1.83       399,672      1,551    1.57       367,320      1,172    1.28  
   

  

        

  

        

  

      

Foreign interest-bearing deposits(4):

                                                           

Banks located in foreign countries

    25,546      335    5.26       22,084      316    5.81       18,945      287    6.10  

Governments and official institutions

    7,936      59    2.97       6,831      43    2.58       5,739      23    1.58  

Time, savings and other

    30,973      149    1.94       30,770      133    1.75       29,882      47    0.64  
   

  

        

  

        

  

      

Total foreign interest-bearing deposits

    64,455      543    3.38       59,685      492    3.35       54,566      357    2.63  
   

  

        

  

        

  

      

Total interest-bearing deposits

    466,592      2,379    2.04       459,357      2,043    1.80       421,886      1,529    1.46  
   

  

        

  

        

  

      

Federal funds purchased, securities sold under agreements to repurchase and other short-term borrowings

    323,916      2,677    3.32       276,483      1,969    2.89       235,701      1,019    1.74  

Trading account liabilities

    60,987      611    4.02       44,507      427    3.89       31,620      298    3.78  

Long-term debt

    97,360      974    4.00       97,126      841    3.46       96,395      563    2.34  
   

  

        

  

        

  

      

Total interest-bearing liabilities(3)

    948,855      6,641    2.81       877,473      5,280    2.43       785,602      3,409    1.74  
   

  

  

 

  

  

 

  

  

Noninterest-bearing sources:

                                                           

Noninterest-bearing deposits

    174,001                   168,062                   160,419              

Other liabilities

    56,216                   56,534                   55,172              

Shareholders’ equity

    98,417                   98,814                   93,266              
   

               

               

             

Total liabilities and shareholders’ equity

  $ 1,277,489                 $ 1,200,883                 $ 1,094,459              
   

               

               

             

Net interest spread

                2.38                   2.72                   3.03  

Impact of noninterest-bearing sources

                0.43                   0.39                   0.28  
                 

               

               

Net interest income/yield on earning assets

         $ 7,841    2.81 %          $ 8,072    3.11 %          $ 7,751    3.31 %
          

  

        

  

        

  

 

(1) Nonperforming loans are included in the respective average loan balances. Income on these nonperforming loans is recognized on a cash basis.

 

(2) Includes consumer finance of $3,212 million and $3,362 million in the second and first quarters of 2005 and $3,828 million in the second quarter of 2004; foreign consumer of $3,505 million and $3,532 million in the second and first quarters of 2005 and $3,256 million in the second quarter of 2004; and consumer lease financing of $251 million and $411 million in the second and first quarters of 2005 and $1,058 million in the second quarter of 2004.

 

(3) Interest income includes the impact of interest rate risk management contracts, which increased interest income on the underlying assets $193 million and $437 million in the second and first quarters of 2005 and $658 million in the second quarter of 2004. 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 $314 million and $154 million in the second and first quarters of 2005 and $333 million in the second quarter of 2004. These amounts were substantially offset by corresponding decreases in the interest paid on the underlying liabilities.

 

(4) Primarily consists of time deposits in denominations of $100,000 or more.

 

Information for periods after April 1, 2004 includes the FleetBoston acquisition; prior periods have not been restated.

7


Bank of America Corporation

 

Year-to-Date Average Balances and Interest Rates - Fully Taxable-equivalent Basis

(Dollars in millions)

 

     Six Months Ended June 30

 
     2005

    2004

 
    

Average

Balance


  

Interest

Income/

Expense


  

Yield/

Rate


   

Average

Balance


  

Interest

Income/

Expense


  

Yield/

Rate


 
                  
                  

Earning assets

                                        

Time deposits placed and other short-term investments

   $ 14,010    $ 214    3.09 %   $ 13,326    $ 107    1.61 %

Federal funds sold and securities purchased under agreements to resell

     166,950      2,145    2.58       119,072      847    1.43  

Trading account assets

     126,017      2,657    4.23       104,712      2,050    3.92  

Securities

     215,940      5,390    4.99       129,776      3,148    4.85  

Loans and leases(1):

                                        

Residential mortgage

     172,655      4,683    5.43       157,528      4,244    5.40  

Credit card

     51,895      2,854    11.09       39,232      2,037    10.44  

Home equity lines

     53,219      1,491    5.65       32,402      712    4.42  

Direct/Indirect consumer

     42,380      1,184    5.63       36,904      1,004    5.47  

Other consumer(2)

     7,136      314    8.86       7,810      289    7.41  
    

  

        

  

      

Total consumer

     327,285      10,526    6.47       273,876      8,286    6.07  
    

  

        

  

      

Commercial - domestic

     123,865      3,952    6.43       107,457      3,354    6.28  

Commercial real estate

     33,252      907    5.50       25,063      527    4.23  

Commercial lease financing

     20,594      512    4.97       14,773      332    4.49  

Commercial - foreign

     17,676      564    6.43       14,449      332    4.62  
    

  

        

  

      

Total commercial

     195,387      5,935    6.12       161,742      4,545    5.65  
    

  

        

  

      

Total loans and leases

     522,672      16,461    6.34       435,618      12,831    5.91  
    

  

        

  

      

Other earning assets

     36,335      967    5.36       34,160      898    5.28  
    

  

        

  

      

Total earning assets(3)

     1,081,924      27,834    5.17       836,664      19,881    4.77  
    

  

  

 

  

  

Cash and cash equivalents

     33,065                   26,754              

Other assets, less allowance for loan and lease losses

     124,409                   100,407              
    

               

             

Total assets

   $ 1,239,398                 $ 963,825              
    

               

             

Interest-bearing liabilities

                                        

Domestic interest-bearing deposits:

                                        

Savings

   $ 37,525    $ 87    0.47 %   $ 31,012    $ 48    0.31 %

NOW and money market deposit accounts

     231,271      1,375    1.20       194,768      809    0.84  

Consumer CDs and IRAs

     123,101      1,743    2.86       84,179      1,154    2.76  

Negotiable CDs, public funds and other time deposits

     9,014      181    4.06       5,338      140    5.28  
    

  

        

  

      

Total domestic interest-bearing deposits

     400,911      3,386    1.70       315,297      2,151    1.37  
    

  

        

  

      

Foreign interest-bearing deposits(4):

                                        

Banks located in foreign countries

     23,824      651    5.51       18,950      458    4.86  

Governments and official institutions

     7,387      102    2.79       5,220      42    1.60  

Time, savings and other

     30,873      283    1.84       25,468      84    0.67  
    

  

        

  

      

Total foreign interest-bearing deposits

     62,084      1,036    3.36       49,638      584    2.37  
    

  

        

  

      

Total interest-bearing deposits

     462,995      4,422    1.93       364,935      2,735    1.51  
    

  

        

  

      

Federal funds purchased, securities sold under agreements to repurchase and other short-term borrowings

     300,330      4,646    3.12       215,783      1,739    1.62  

Trading account liabilities

     52,792      1,038    3.97       33,082      632    3.84  

Long-term debt

     97,244      1,815    3.73       87,623      1,054    2.41  
    

  

        

  

      

Total interest-bearing liabilities(3)

     913,361      11,921    2.63       701,423      6,160    1.76  
    

  

  

 

  

  

Noninterest-bearing sources:

                                        

Noninterest-bearing deposits

     171,048                   138,755              

Other liabilities

     56,375                   52,671              

Shareholders’ equity

     98,614                   70,976              
    

               

             

Total liabilities and shareholders’ equity

   $ 1,239,398                 $ 963,825              
    

               

             

Net interest spread

                 2.54                   3.01  

Impact of noninterest-bearing sources

                 0.41                   0.28  
                  

               

Net interest income/yield on earning assets

          $ 15,913    2.95 %          $ 13,721    3.29 %
           

  

        

  

 

(1) Nonperforming loans are included in the respective average loan balances. Income on such nonperforming loans is recognized on a cash basis.

 

(2) Includes consumer finance of $3,287 million and $3,913 million; foreign consumer of $3,519 million and $2,622 million; and consumer lease financing of $330 million and $1,275 million for the six months ended June 30, 2005 and 2004.

 

(3) Interest income includes the impact of interest rate risk management contracts, which increased interest income on the underlying assets $630 million and $1,373 million in the six months ended June 30, 2005 and 2004. 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 $468 million and $516 million in the six months ended June 30, 2005 and 2004. These amounts were substantially offset by corresponding decreases in the interest paid on the underlying liabilities.

 

(4) Primarily consists of time deposits in denominations of $100,000 or more.

 

Information for periods after April 1, 2004 includes the FleetBoston acquisition; prior periods have not been restated.

8


Bank of America Corporation

 

Business Segment View

 

Net Income

Second Quarter 2005

 

LOGO

 

 

Revenue*

Second Quarter 2005

 

LOGO

 

*Fully taxable-equivalent basis

 

9


Bank of America Corporation

 

Global Consumer and Small Business Banking Segment Results (1)

(Dollars in millions)

 

     Year-to-Date

    Quarterly

 
     2005

    2004

    2 Qtr 05

   1 Qtr 05

    4 Qtr 04

    3 Qtr 04

    2 Qtr 04

 
Key Measures                                                        

Total revenue (2)

   $ 14,024     $ 11,448     $ 7,062    $ 6,962     $ 7,107     $ 6,566     $ 6,723  

Provision for credit losses

     1,857       1,069       1,143      714       1,218       1,005       641  

Net income

     3,494       2,810       1,595      1,899       1,604       1,483       1,740  

Shareholder value added

     1,982       1,739       828      1,154       803       711       1,022  

Return on average equity

     21.43 %     24.96 %     19.36      23.55 %     18.70 %     18.07 %     22.51 %

Efficiency ratio (2)

     48.01       51.86       48.45      47.55       47.74       50.93       49.61  

Selected Average Balance

Sheet Components

                                                       

Total loans and leases

   $ 139,467     $ 107,731     $ 140,255    $ 138,670     $ 137,193     $ 133,489     $ 129,379  

Total deposits

     303,486       262,638       306,399      300,540       301,828       306,367       307,700  

Total earning assets

     302,928       268,543       300,671      305,212       312,038       315,449       314,907  
Period End (in billions)                                                        

Mortgage servicing portfolio

   $ 280.1     $ 267.8     $ 280.1    $ 275.5     $ 273.1     $ 268.5     $ 267.8  

Mortgage originations:

                                                       

Retail

     27.0       33.2       15.1      11.9       12.7       11.7       19.2  

Wholesale

     11.6       19.1       6.0      5.6       5.7       5.2       9.3  

 

(1) Global Consumer and Small Business Banking’s most significant product lines are Card Services, Consumer Real Estate and Consumer Deposit Products.

 

(2) Fully taxable-equivalent basis

 

Certain prior period amounts have been reclassified among the segments to conform to the current period presentation.

 

Information for periods after April 1, 2004 includes the FleetBoston acquisition; prior periods have not been restated.

10


Bank of America Corporation

 

E-Commerce & BankofAmerica.com

 

Bank of America has the largest active online banking customer base with 13.6 million subscribers.

 

Bank of America uses a strict Active User standard - customers must have used our online services within the last 90 days.

 

6.6 million active bill pay users paid $30.1 billion worth of bills this quarter. The number of customers who sign up and use Bank of America's Bill Pay Service continues to far surpass that of any other financial institution.

 

Currently, approximately 300 companies are presenting 16.3 million e-bills per quarter.

 

LOGO   LOGO

 

LOGO

 

11


Bank of America Corporation

 

Card Services Results(1)

(Dollars in millions)

 

     Year-to-Date

    Quarterly

 
     2005

    2004

    2 Qtr 05

    1 Qtr 05

    4 Qtr 04

    3 Qtr 04

    2 Qtr 04

 
Key Measures                                                         
Consumer Credit Card                                                         
Outstandings                                                         

On-balance sheet (Period end)

   $ 53,863     $ 42,195     $ 53,863     $ 51,012     $ 51,726     $ 47,521     $ 42,195  

Managed (Period end)

     59,283       51,990       59,283       57,920       58,629       55,399       51,990  

On-balance sheet (Average)

     51,895       39,240       52,474       51,310       49,366       45,589       43,177  

Managed (Average)

     58,342       44,996       58,537       58,145       56,444       54,419       53,136  
Managed Income Statement                                                         

Total revenue

   $ 4,581     $ 3,519     $ 2,338     $ 2,243     $ 2,354     $ 2,267     $ 2,173  

Provision for credit losses (2)

     2,021       1,226       1,204       817       1,335       994       760  

Noninterest expense

     1,396       928       720       676       700       544       546  
    


 


 


 


 


 


 


Income before income taxes

   $ 1,164     $ 1,365     $ 414     $ 750     $ 319     $ 729     $ 867  
    


 


 


 


 


 


 


Shareholder Value Added

   $ 524     $ 645     $ 143     $ 381     $ 89     $ 403     $ 407  
Merchant Acquiring Business                                                         

Processing volume (millions)

     160,016       44,812       84,262       75,754       75,383       24,898       23,239  

Total transactions (millions)

     3,452       651       1,832       1,620       1,756       374       342  
Consumer Credit Card                                                         
Credit Quality                                                         
On-balance sheet                                                         

Charge-offs $

   $ 1,514     $ 1,028     $ 774     $ 740     $ 691     $ 586     $ 585  

Charge-offs %

     5.88 %     5.31 %     5.91 %     5.85 %     5.57 %     5.09 %     5.45 %
Managed                                                         

Losses $

   $ 1,793     $ 1,239     $ 909     $ 884     $ 837     $ 753     $ 776  

Losses %

     6.20 %     5.54 %     6.23 %     6.17 %     5.90 %     5.48 %     5.88 %

Managed delinquency %

                                                        

30+

     n/a       n/a       4.25 %     4.20 %     4.37 %     4.30 %     3.86 %

90+

     n/a       n/a       1.96       2.10       2.13       1.98       1.76  

 

n/a = not applicable

 

(1) Card Services includes Consumer and Small Business Credit Card and Merchant Services.

 

(2) Includes $210 million for the three and six months ended June 30, 2005, and $165 million for the three months ended December 31, 2004 related to minimum payment requirements.

 

Represents financial statement presentation with certain reclassifications to reflect securitization activity.

 

Certain prior period amounts have been reclassified among the segments to conform to the current period classification.

 

 

Information for periods after April 1, 2004 includes the FleetBoston acquisition; prior periods have not been restated.

12


Bank of America Corporation

 

Global Business and Financial Services Segment Results(1)

(Dollars in millions)

 

     Year-to-Date

    Quarterly

 
     2005

    2004

    2 Qtr 05

    1 Qtr 05

    4 Qtr 04

    3 Qtr 04

    2 Qtr 04

 
Key Measures                                                         

Total revenue (2)

   $ 5,425     $ 3,999     $ 2,691     $ 2,734     $ 2,720     $ 2,522     $ 2,430  

Provision for credit losses

     (221 )     86       (164 )     (57 )     (248 )     (222 )     (5 )

Net income

     2,339       1,441       1,217       1,122       1,205       1,181       849  

Shareholder value added

     810       479       458       352       414       393       83  

Return on average equity

     16.12 %     15.77 %     16.90 %     15.36 %     16.04 %     15.78 %     11.66 %

Efficiency ratio (2)

     36.95       40.86       37.55       36.36       36.70       36.66       44.55  
Selected Average Balance                                                         
Sheet Components                                                         

Total loans and leases

   $ 174,019     $ 136,551     $ 176,505     $ 171,505     $ 167,726     $ 164,603     $ 163,905  

Total deposits

     105,782       82,053       106,271       105,287       105,401       101,926       102,201  

Total earning assets

     184,444       143,121       187,099       181,760       177,763       174,339       172,854  

 

(1) Global Business and Financial Services major businesses are Global Treasury Services, Middle Market Banking, Business Banking, Commercial Real Estate Banking, Leasing, Business Capital, Dealer Financial Services and Latin America.

 

(2) Fully taxable-equivalent basis

 

Certain prior period amounts have been reclassified among the segments to conform to the current period presentation.

 

Information for periods after April 1, 2004 includes the FleetBoston acquisition; prior periods have not been restated.

13


Bank of America Corporation

 

Global Capital Markets and Investment Banking Segment Results (1)

(Dollars in millions)

 

     Year-to-Date

    Quarterly

 
     2005

    2004

    2 Qtr 05

    1 Qtr 05

    4 Qtr 04

    3 Qtr 04

    2 Qtr 04

 
Key Measures                                                         

Total revenue (2)

   $ 4,753     $ 4,808     $ 2,121     $ 2,632     $ 2,206     $ 2,074     $ 2,634  

Provision for credit losses

     (170 )     (95 )     (73 )     (97 )     (209 )     (158 )     4  

Net income

     1,182       864       461       721       597       478       411  

Shareholder value added

     644       381       195       449       309       190       128  

Return on average equity

     23.13 %     18.96 %     18.24 %     27.91 %     21.84 %     17.47 %     15.28 %

Efficiency ratio (2)

     66.73       74.28       71.92       62.55       69.60       72.82       76.27  
Selected Average Balance                                                         
Sheet Components                                                         

Total loans and leases

   $ 34,065     $ 33,905     $ 32,639     $ 35,508     $ 34,726     $ 36,285     $ 38,476  

Total deposits

     85,136       73,147       87,261       82,987       81,376       72,550       78,854  

Total earning assets

     348,815       265,498       376,322       321,002       307,611       271,782       276,022  

 

(1) Global Capital Markets and Investment Banking offers clients a comprehensive range of global capabilities through three financial services: Global Investment Banking, Global Credit Products and Global Treasury Services.

 

(2) Fully taxable-equivalent basis

 

Certain prior period amounts have been reclassified among the segments to conform to the current period presentation.

 

Information for periods after April 1, 2004 includes the FleetBoston acquisition; prior periods have not been restated.

14


Bank of America Corporation

 

Global Capital Markets and Investment Banking

(Dollars in millions)

 

     Year-to-Date

    Quarterly

 
     2005

   2004

    2 Qtr 05

   1 Qtr 05

   4 Qtr 04

    3 Qtr 04

    2 Qtr 04

 
Trading-related Revenue                                                      

Net interest income (1)

   $ 828    $ 1,174     $ 414    $ 414    $ 417     $ 448     $ 597  

Trading account profits

     960      656       256      704      231       136       389  
    

  


 

  

  


 


 


Total trading-related revenue

   $ 1,788    $ 1,830     $ 670    $ 1,118    $ 648     $ 584     $ 986  
    

  


 

  

  


 


 


Trading-related revenue by product                                                      

Fixed income

   $ 558    $ 965     $ 107    $ 451    $ 283     $ 299     $ 456  

Interest rate (1)

     410      456       183      227      93       118       289  

Foreign exchange

     386      358       190      196      231       163       170  

Equities (2)

     208      80       60      148      75       40       83  

Commodities

     88      (6 )     67      21      33       18       (4 )
    

  


 

  

  


 


 


Market-based trading-related revenue

     1,650      1,853       607      1,043      715       638       994  

Credit portfolio hedges (3)

     138      (23 )     63      75      (67 )     (54 )     (8 )
    

  


 

  

  


 


 


Total trading-related revenue

   $ 1,788    $ 1,830     $ 670    $ 1,118    $ 648     $ 584     $ 986  
    

  


 

  

  


 


 


     Year-to-Date

    Quarterly

 
     2005

   2004

    2 Qtr 05

   1 Qtr 05

   4 Qtr 04

    3 Qtr 04

    2 Qtr 04

 
Investment Banking Income                                                      

Securities underwriting

   $ 337    $ 492     $ 180    $ 157    $ 209     $ 219     $ 275  

Syndications

     237      253       125      112      140       128       174  

Advisory services

     170      150       95      75      94       66       73  

Other

     13      18       7      6      7       7       10  
    

  


 

  

  


 


 


Total investment banking income

   $ 757    $ 913     $ 407    $ 350    $ 450     $ 420     $ 532  
    

  


 

  

  


 


 


 

(1) Fully taxable-equivalent basis

 

(2) Does not include commissions from equity transactions which were $394 million and $341 million for the six months ended June 30, 2005 and 2004, and $205 million, $189 million, $173 million, $153 million and $168 million for the three months ended June 30, 2005, March 31, 2005, December 31, 2004, September 30, 2004 and June 30, 2004, respectively.

 

(3) Includes credit default swaps and related products used for credit risk management.

 

Certain prior period amounts have been reclassified among the segments to conform to the current period presentation.

 

Information for periods after April 1, 2004 includes the FleetBoston acquisition; prior periods have not been restated.

15


Bank of America Corporation

 

Global Capital Markets & Investment Banking Strategic Progress Continues

 

LOGO

                                               Source: Thomson Financial except Syndicated Loans and Leveraged Loans from Loan Pricing Corporation.

 

 

Significant US market share gains

 

Banc of America Securities increased market share in M&A, high yield, investment grade and public finance.

 

    #1 in syndicated loans and leveraged loans, ranked by number of deals

 

    #1 in high yield

 

    Investment grade rank rose to #4 from #8 in 1st Half 04

 

    M&A market share increased over YTD04, from 7.2% to 16.8%

 

    Top 5 rankings in:

 

Syndicated loans

 

Leveraged loans

 

High yield

 

Mortgage-backed securities

 

Investment grade

 

 

16


Bank of America Corporation

 

Global Wealth and Investment Management Segment Results(1)

(Dollars in millions)

 

     Year-to-Date

    Quarterly

 
     2005

    2004

    2 Qtr 05

    1 Qtr 05

    4 Qtr 04

    3 Qtr 04

    2 Qtr 04

 
Key Measures                                                         

Total revenue (2)

   $ 3,631     $ 2,647     $ 1,837     $ 1,794     $ 1,681     $ 1,606     $ 1,546  

Provision for credit losses

     (7 )     2       (9 )     2       (4 )     (18 )     10  

Net income

     1,166       645       590       576       482       475       398  

Shareholder value added

     657       290       329       328       227       235       163  

Return on average equity

     23.45 %     18.70 %     23.18       23.74 %     19.33 %     20.15 %     17.20 %

Efficiency ratio (2)

     50.24       61.61       50.17       50.31       55.35       54.55       58.93  

Selected Average Balance

                                                        

Sheet Components

                                                        

Total loans and leases

   $ 51,869     $ 41,280     $ 52,967     $ 50,759     $ 47,956     $ 45,654     $ 44,117  

Total deposits

     116,177       70,773       118,234       114,098       102,489       87,909       77,075  

Total earning assets

     118,380       72,862       120,474       116,263       104,929       90,135       79,254  

Period End (in billions)

                                                        

Assets under management

   $ 442.8     $ 439.6     $ 442.8     $ 433.4     $ 451.5     $ 429.5     $ 439.6  

Client brokerage assets

     150.9       144.9       150.9       150.7       149.9       141.9       144.9  

Assets in custody

     101.7       105.2       101.7       100.8       107.0       104.0       105.2  
    


 


 


 


 


 


 


Total client assets

   $ 695.4     $ 689.7     $ 695.4     $ 684.9     $ 708.4     $ 675.4     $ 689.7  
    


 


 


 


 


 


 


 

(1) Global Wealth and Investment Management services clients through five major businesses: Premier Banking, Banc of America Investments, The Private Bank, Columbia Management Group and Other Services.

 

(2) Fully taxable-equivalent basis

 

Certain prior period amounts have been reclassified among the segments to conform to the current period presentation.

 

Information for periods after April 1, 2004 includes the FleetBoston acquisition; prior periods have not been restated.

17


Bank of America Corporation

 

All Other Results(1)

(Dollars in millions)

 

     Year-to-Date

   Quarterly

 
     2005

    2004

   2 Qtr 05

    1 Qtr 05

   4 Qtr 04

    3 Qtr 04

    2 Qtr 04

 

Key Measures

                                                      

Total revenue (2)

   $ 594     $ 16    $ 495     $ 99    $ 206     $ (10 )   $ (115 )

Provision for credit losses

     (4 )     351      (22 )     18      (51 )     43       139  

Net income (3)

     810       770      433       377      (39 )     147       451  

Shareholder value added

     101       107      79       22      (219 )     (76 )     195  

Selected Average Balance

                                                      

Sheet Components

                                                      

Total loans and leases

   $ 123,252     $ 116,151    $ 118,058     $ 128,502    $ 127,862     $ 123,047     $ 121,281  

Total deposits

     23,462       15,079      22,428       24,507      18,842       19,126       16,475  

Total earning assets

     127,357       86,640      133,961       120,677      95,663       96,678       95,483  

 

(1) All Other consists primarily of Equity Investments, noninterest income and expense amounts associated with the Asset and Liability (ALM) process, including gains on sales of debt securities, the allowance for credit losses process residual, the residual impact of allocation methodologies, merger and restructuring charges, intersegment eliminations, and the results of certain consumer finance and commercial lending businesses that are being liquidated.

 

(2) Fully taxable-equivalent basis

 

(3) Includes merger and restructuring charges, net of taxes, $155 million and $83 million for the six months ended June 30, 2005 and 2004, and $80 million, $75 million, $181 million, $147 million and $83 million for the three months ended June 30, 2005, March 31, 2005, December 31, 2004, September 30, 2004 and June 30, 2004, respectively.

 

Certain prior period amounts have been reclassified among the segments to conform to the current period presentation.

 

Information for periods after April 1, 2004 includes the FleetBoston acquisition; prior periods have not been restated.

18


Bank of America Corporation

 

Outstanding Loans and Leases

(Dollars in millions)

 

     June 30
2005


   March 31
2005


   Increase
(Decrease)
from 3/31/05


 

Residential mortgage

   $ 170,057    $ 178,978    $(8,921 )

Credit card

     53,863      51,012    2,851  

Home equity lines

     56,839      52,891    3,948  

Direct/Indirect consumer

     43,247      42,694    553  

Other consumer (1)

     6,829      7,167    (338 )
    

  

  

Total consumer

     330,835      332,742    (1,907 )
    

  

  

Commercial - domestic

     124,080      124,779    (699 )

Commercial real estate (2)

     34,537      33,434    1,103  

Commercial lease financing

     20,628      20,638    (10 )

Commercial - foreign

     19,338      17,873    1,465  
    

  

  

Total commercial

     198,583      196,724    1,859  
    

  

  

Total

   $ 529,418    $ 529,466    $     (48 )
    

  

  

 

(1) Includes consumer finance of $3,144 million and $3,288 million; foreign consumer of $3,505 million and $3,549 million; and consumer lease financing of $180 million and $330 million at June 30, 2005 and March 31, 2005.

 

(2) Includes domestic commercial real estate loans of $34,020 million and $32,978 million; and foreign commercial real estate loans of $517 million and $456 million at June 30, 2005 and March 31, 2005.

 

Information for periods after April 1, 2004 includes the FleetBoston acquisition; prior periods have not been restated.

19


Bank of America Corporation

 

Commercial Utilized Credit Exposure by Industry(1)

(Dollars in millions)

 

               % Increase
(Decrease)
from
12/31/04


 
     June 30
2005


   December 31
2004


  

Real estate (2)

   $ 39,233    $ 36,672    7 %

Retailing

     24,294      23,149    5  

Diversified financials

     23,361      25,932    (10 )

Banks

     22,332      25,265    (12 )

Education and government

     19,207      17,429    10  

Individuals and trusts

     16,468      16,110    2  

Materials

     14,607      14,123    3  

Leisure and sports, hotels and restaurants

     14,002      13,331    5  

Consumer durables and apparel

     13,921      13,427    4  

Transportation

     13,188      13,234    (0 )

Capital goods

     13,097      12,633    4  

Commercial services and supplies

     12,627      11,944    6  

Healthcare equipment and services

     11,895      12,196    (2 )

Food, beverage and tobacco

     10,508      11,687    (10 )

Energy

     9,079      7,579    20  

Media

     5,834      6,232    (6 )

Religious and social organizations

     5,812      5,710    2  

Insurance

     5,151      5,851    (12 )

Utilities

     4,739      5,615    (16 )

Food and staples retailing

     3,495      3,610    (3 )

Telecommunication services

     3,383      3,030    12  

Technology hardware and equipment

     2,998      3,398    (12 )

Software and services

     2,828      3,292    (14 )

Automobiles and components

     1,789      1,894    (6 )

Pharmaceuticals and biotechnology

     1,334      1,441    (7 )

Household and personal products

     319      371    (14 )

Other

     2,868      3,132    (8 )
    

  

      

Total

   $ 298,369    $ 298,287    0  
    

  

      

 

(1) Includes loans and leases, standby letters of credit and financial guarantees, derivative assets, assets held for sale and commercial letters of credit. Derivative assets are reported on a mark-to-market basis and have not been reduced by the amount of collateral applied, which totaled $17.4 billion and $17.7 billion at June 30, 2005 and December 31, 2004.

 

(2) Industries are viewed from a variety of perspectives to best isolate the perceived risks. For purposes of this table, the real estate industry is defined based upon the borrowers' or counterparties' primary business activity using operating cash flow and primary source of repayment as key factors.

 

Certain prior period amounts have been reclassified to conform to current period presentation.

 

Information for periods after April 1, 2004 includes the FleetBoston acquisition; prior periods have not been restated.

20


Bank of America Corporation

 

Nonperforming Assets

(Dollars in millions)

 

     2Q05

    1Q05

    4Q04

    3Q04

    2Q04

 

Residential mortgage

   $ 494     $ 536     $ 554     $ 532     $ 537  

Home equity lines

     75       70       66       51       42  

Direct/Indirect consumer

     33       32       33       26       31  

Other consumer

     76       83       85       94       99  
    


 


 


 


 


Total consumer

     678       721       738       703       709  
    


 


 


 


 


Commercial - domestic

     662       811       855       991       1,246  

Commercial real estate

     60       64       87       136       164  

Commercial lease financing

     282       249       266       243       257  

Commercial - foreign

     88       228       267       473       503  
    


 


 


 


 


Total commercial

     1,092       1,352       1,475       1,843       2,170  
    


 


 


 


 


Total nonperforming loans and leases

     1,770       2,073       2,213       2,546       2,879  

Nonperforming securities (1)

     14       153       140       157       156  

Foreclosed properties

     111       112       102       133       144  
    


 


 


 


 


Total nonperforming assets (2)

   $ 1,895     $ 2,338     $ 2,455     $ 2,836     $ 3,179  
    


 


 


 


 


Loans past due 90 days or more and still accruing

   $ 1,235     $ 1,211     $ 1,294     $ 1,120     $ 939  

Nonperforming assets / Total assets

     0.15 %     0.19 %     0.22 %     0.26 %     0.31 %

Nonperforming assets / Total loans, leases and foreclosed properties

     0.36       0.44       0.47       0.55       0.64  

Nonperforming loans and leases / Total loans and leases

     0.33       0.39       0.42       0.50       0.58  

Allowance for credit losses:

                                        

Allowance for loan and lease losses

   $ 8,319     $ 8,313     $ 8,626     $ 8,723     $ 8,767  

Reserve for unfunded lending commitments

     383       394       402       446       486  
    


 


 


 


 


Total

   $ 8,702     $ 8,707     $ 9,028     $ 9,169     $ 9,253  
    


 


 


 


 


Allowance for loan and lease losses / Total loans and leases

     1.57 %     1.57 %     1.65 %     1.70 %     1.76 %

Allowance for loan and lease losses / Total nonperforming loans and leases

     470       401       390       343       305  

Commercial criticized exposure

   $ 7,731     $ 8,858     $ 10,249     $ 12,025     $ 13,420  

Commercial criticized exposure / Commercial utilized exposure

     2.59 %     2.95 %     3.44 %     4.13 %     4.73 %

 

Loans are classified as domestic or foreign based upon the domicile of the borrower.

 

(1) Primarily related to international securities held in the available-for-sale securities portfolio.

 

(2) Balances do not include $49, $76, $151, $100 and $103 of nonperforming assets, primarily loans held-for-sale, included in Other Assets at June 30, 2005, March 31, 2005, December 31, 2004, September 30, 2004 and June 30, 2004, respectively.

 

Information for periods after April 1, 2004 includes the FleetBoston acquisition; prior periods have not been restated.

21


Bank of America Corporation

 

Quarterly Net Charge-offs and Net Charge-off Ratios

(Dollars in millions)

 

     2Q05

    1Q05

    4Q04

    3Q04

    2Q04

 
     Amount

    Percent

    Amount

    Percent

    Amount

    Percent

    Amount

    Percent

    Amount

    Percent

 

Residential mortgage

   $ 11     0.03 %   $ 4     0.01 %   $ 6     0.01 %   $ 7     0.02 %   $ 12     0.03 %

Credit card

     774     5.91       740     5.85       691     5.57       586     5.09       585     5.45  

Home equity lines

     9     0.07       6     0.05       4     0.03       2     0.02       5     0.05  

Direct/Indirect consumer

     46     0.43       61     0.60       55     0.55       56     0.57       49     0.50  

Other consumer (1)

     43     2.48       56     3.12       45     2.39       49     2.53       42     2.10  
    


       


       


       


       


     

Total consumer

     883     1.09       867     1.07       801     0.98       700     0.89       693     0.92  
    


       


       


       


       


     

Commercial - domestic

     (7 )   (0.02 )     26     0.09       27     0.09       25     0.08       76     0.25  

Commercial real estate

     1     0.01       0     0.00       1     0.02       1     0.02       (3 )   (0.04 )

Commercial lease financing

     9     0.19       25     0.48       11     0.21       (3 )   (0.07 )     (3 )   (0.06 )

Commercial - foreign

     (6 )   (0.15 )     (29 )   (0.66 )     5     0.09       (4 )   (0.09 )     66     1.47  
    


       


       


       


       


     

Total commercial

     (3 )   (0.01 )     22     0.05       44     0.09       19     0.04       136     0.28  
    


       


       


       


       


     

Total net charge-offs

   $ 880     0.68     $ 889     0.69     $ 845     0.65     $ 719     0.57     $ 829     0.67  
    


       


       


       


       


     

By Business Segment:

                                                                      

Global Consumer and Small Business Banking

   $ 849     2.43 %   $ 811     2.37 %   $ 748     2.17 %   $ 646     1.92 %   $ 643     2.00 %

Global Business and Financial Services

     12     0.03       88     0.21       79     0.19       41     0.10       85     0.21  

Global Capital Markets and Investment Banking

     (5 )   (0.07 )     (43 )   (0.49 )     (25 )   (0.29 )     (6 )   (0.07 )     69     0.72  

Global Wealth and Investment Management

     5     0.04       0     0.00       3     0.03       1     0.01       (4 )   (0.04 )

All Other

     19     0.06       33     0.10       40     0.12       37     0.12       36     0.12  
    


       


       


       


       


     

Total net charge-offs

   $ 880     0.68     $ 889     0.69     $ 845     0.65     $ 719     0.57     $ 829     0.67  
    


       


       


       


       


     

 

Loans are classified as domestic or foreign based upon the domicile of the borrower.

 

(1) Includes lease financing of $2 million, $3 million, $5 million, $7 million and $5 million for the quarters ended June 30, 2005, March 31, 2005, December 31, 2004, September 30, 2004 and June 30, 2004, respectively.

 

LOGO

 

Information for periods after April 1, 2004 includes the FleetBoston acquisition; prior periods have not been restated.

22


Bank of America Corporation

 

Year-to-Date Net Charge-offs and Net Charge-off Ratios

(Dollars in millions)

 

     Six Months Ended June 30

 
     2005

    2004

 
     Amount

    Percent

    Amount

    Percent

 

Residential mortgage

   $ 15     0.02 %   $ 23     0.03 %

Credit card

     1,514     5.88       1,028     5.27  

Home equity lines

     15     0.06       9     0.05  

Direct/Indirect consumer

     107     0.51       97     0.53  

Other consumer (1)

     99     2.81       99     2.56  
    


       


     

Total consumer

     1,750     1.08       1,256     0.92  
    


       


     

Commercial - domestic

     19     0.03       125     0.23  

Commercial real estate

     1     —         (6 )   (0.05 )

Commercial lease financing

     34     0.34       1     0.02  

Commercial - foreign

     (35 )   (0.40 )     173     2.40  
    


       


     

Total commercial

     19     0.02       293     0.36  
    


       


     

Total net charge-offs

   $ 1,769     0.68     $ 1,549     0.72  
    


       


     

By Business Segment:

                            

Global Consumer and Small Business Banking

   $ 1,660     2.40 %   $ 1,129     2.11 %

Global Business and Financial Services

     100     0.12       163     0.24  

Global Capital Markets and Investment Banking

     (48 )   (0.29 )     158     0.94  

Global Wealth and Investment Management

     5     0.02       1     0.01  

All Other

     52     0.08       98     0.17  
    


       


     

Total net charge-offs

   $ 1,769     0.68     $ 1,549     0.72  
    


       


     

 

Loans are classified as domestic or foreign based upon the domicile of the borrower.

 

(1) Includes lease financing of $5 million and $15 million for the six months ended June 30, 2005 and 2004.

 

Information for periods after April 1, 2004 includes the FleetBoston acquisition; prior periods have not been restated.

23


Bank of America Corporation

 

Selected Emerging Markets (1)

 

(Dollars in millions)


 

Loans and

Leases, and Loan

Commitments


 

Other

Financing (2)


 

Derivative

Assets (3)


 

Securities/

Other

Investments (4,5)


 

Total

Cross-

border

Exposure (6)


 

Local

Country

Exposure

Net of Local

Liabilities (7)


 

Total Foreign

Exposure

June 30,

2005


 

Increase/

(Decrease)

from

December 31,

2004


 

Region/Country

                                                 

Latin America

                                                 

Brazil (8)

  $ 913   $ 59   $ 7   $ 54   $ 1,033   $ 2,535   $ 3,568   $ 18  

Mexico

    784     162     105     2,260     3,311     0     3,311     445  

Chile

    296     64     0     7     367     610     977     (203 )

Argentina

    90     27     0     35     152     8     160     (231 )

Other Latin America (9)

    204     122     66     55     447     28     475     (600 )
   

 

 

 

 

 

 

 


Total Latin America

    2,287     434     178     2,411     5,310     3,181     8,491     (571 )
   

 

 

 

 

 

 

 


Asia Pacific

                                                 

India

    376     198     201     414     1,189     285     1,474     (18 )

South Korea

    274     472     31     603     1,380     0     1,380     (3 )

Taiwan

    225     67     70     40     402     546     948     (379 )

Hong Kong

    155     140     30     325     650     0     650     (469 )

Singapore

    68     166     90     283     607     0     607     267  

China

    56     41     13     318     428     0     428     320  

Other Asia Pacific (9)

    34     48     33     435     550     157     707     161  
   

 

 

 

 

 

 

 


Total Asia Pacific

    1,188     1,132     468     2,418     5,206     988     6,194     (121 )
   

 

 

 

 

 

 

 


Central and Eastern Europe (9)

    20     84     25     96     225     0     225     (16 )
   

 

 

 

 

 

 

 


Total

  $ 3,495   $ 1,650   $ 671   $ 4,925   $ 10,741   $ 4,169   $ 14,910   $ (708 )
   

 

 

 

 

 

 

 


 

(1) There is no generally accepted definition of emerging markets. The definition that we use includes all countries in Latin America excluding Cayman Islands and Bermuda; all countries in Asia Pacific excluding Japan, Australia and New Zealand; 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) Derivative assets are reported on a mark-to-market basis and have not been reduced by the amount of collateral applied, which totaled $72 million and $361 million at June 30, 2005 and December 31, 2004.

 

(4) Amounts outstanding for Other Latin America and Other Asia Pacific have been reduced by $34 million and $15 million at June 30, 2005 and $196 million and $14 million at December 31, 2004. Such amounts represent the fair value of U.S. Treasury securities held as collateral outside the country of exposure.

 

(5) Cross-border resale agreements are presented based on the domicile of the counterparty because the counterparty has the legal obligation for repayment. For regulatory reporting under Federal Financial Institutions Examination Council (FFIEC) guidelines, cross-border resale agreements are presented based on the domicile of the issuer of the securities that are held as collateral.

 

(6) Cross-border exposure includes amounts payable to the Corporation by borrowers or counterparties 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.

 

(7) 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 subtracts local funding or liabilities from local exposures as allowed by the FFIEC. Total amount of local country exposure funded by local liabilities at June 30, 2005 was $19,359 million compared to $17,189 million at December 31, 2004. Local country exposure funded by local liabilities at June 30, 2005 in Latin America and Asia Pacific was $10,113 million and $9,246 million, of which $5,019 million was in Brazil, $4,106 million in Hong Kong, $3,038 million in Singapore, $1,748 million in Argentina, $1,470 million in Mexico, $1,437 million in Chile and $556 million in India. There were no other countries with local country exposure funded by local liabilities greater than $500 million.

 

(8) The Corporation has risk mitigation instruments associated with certain exposures for Brazil, including structured trade related transfer risk mitigation of $837 million and $950 million, third party funding of $185 million and $286 million, and linked certificates of deposit of $78 million and $125 million at June 30, 2005 and December 31, 2004. The resulting total foreign exposure net of risk mitigation was $2.5 billion and $2.2 billion at June 30, 2005 and December 31, 2004.

 

(9) Other Latin America, Other Asia Pacific, and Central and Eastern Europe include countries each with total foreign exposure of less than $300 million.

 

Information for periods after April 1, 2004 includes the FleetBoston acquisition; prior periods have not been restated.

24