Bank of America Corporation and Subsidiaries
Business Segment Results
(Dollars in millions)
For the nine months ended September 30
Global Card
Services Home Loans &
Deposits (1,2) Insurance
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2009 2008 2009 2008 2009 2008
---- ---- ---- ---- ---- ----
Total revenue, net
of interest
expense (3) $10,560 $13,182 $22,181 $23,202 $13,101 $6,058
Provision for
credit losses 289 293 23,157 14,314 8,995 4,664
Noninterest
expense 7,318 6,566 6,024 6,980 8,519 4,211
Net income (loss) 1,912 3,949 (4,527) 1,244 (2,850) (1,775)
Efficiency ratio
(3) 69.30% 49.82% 27.16% 30.09% 65.03% 69.51%
Return on average
equity 10.81 21.59 n/m 4.28 n/m n/m
Average - total
loans and
leases n/m n/m $220,666 $237,817 $129,910 $100,237
Average - total
deposits $403,587 $350,765 n/m n/m n/m n/m
Global Wealth &
Investment
Global Banking Global Markets Management
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2009 2008 2009 2008 2009 2008
---- ---- ---- ---- ---- ----
Total revenue, net
of interest
expense (3) $18,100 $12,737 $17,236 $724 $12,606 $5,819
Provision for
credit
losses 6,772 1,728 148 (63) 1,007 512
Noninterest
expense 7,131 5,505 7,962 2,802 9,747 3,841
Net income (loss) 2,703 3,440 6,027 (1,263) 1,202 913
Efficiency ratio
(3) 39.40% 43.22% 46.20% n/m 77.32% 66.01%
Return on average
equity 6.02 9.27 23.62 n/m 8.75 10.44
Average - total
loans and
leases $320,904 $314,031 n/m n/m $104,454 $87,162
Average - total
deposits 205,285 170,162 n/m n/m 226,967 156,762
All Other (1,4)
--------------
2009 2008
---- ----
Total revenue, net
of interest
expense (3) $1,747 $(3,726)
Provision for
credit
losses (1,908) (3,158)
Noninterest
expense 3,627 677
Net income (loss) 2,003 (711)
Average - total
loans and
leases $158,721 $132,615
Average - total
deposits 106,944 104,143
(1) Global Card Services is presented on a managed basis with a
corresponding offset recorded in All Other.
(2) Provision for credit losses represents provision for credit losses
on held loans combined with realized credit losses associated with
the securitized loan portfolio.
(3) Fully taxable-equivalent (FTE) basis. FTE basis is a performance
measure used by management in operating the business that management
believes provides investors with a more accurate picture of the
interest margin for comparative purposes.
(4) Provision for credit losses represents provision for
credit losses in All Other combined with the Global Card Services
securitization offset.
n/m = not meaningful
Certain prior period amounts have been reclassified to conform to current period presentation.
Information for periods beginning July 1, 2008 include the Countrywide acquisition. Information for the period beginning January 1, 2009 includes the Merrill Lynch acquisition. Prior periods have not been restated. This information is preliminary and based on company data available at the time of the presentation.
Bank of America Corporation and Subsidiaries
Supplemental Financial Data
(Dollars in millions)
Fully taxable-equivalent Three Months Ended Nine Months Ended
basis data September 30 September 30
----------------- -----------------
2009 2008 2009 2008
---- ---- ---- ----
Net interest income $11,753 $11,920 $36,514 $33,148
Total revenue, net of
interest expense 26,365 19,899 95,531 57,996
Net interest yield 2.61% 2.93% 2.65% 2.86%
Efficiency ratio 61.84 58.60 52.68 52.73
Other Data September 30
-----------------
2009 2008
---- ----
Full-time equivalent
employees 281,863 247,024
Number of banking centers
- domestic 6,008 6,139
Number of branded ATMs
- domestic 18,254 18,584
Reconciliation to GAAP financial measures
The Corporation evaluates its business utilizing non-GAAP ratios including the tangible common equity ratio. The tangible common equity ratio represents common shareholders' equity less goodwill and intangible assets (excluding mortgage servicing rights), net of related deferred tax liabilities divided by total assets less goodwill and intangible assets (excluding mortgage servicing rights), net of related deferred tax liabilities. This measure is used to evaluate the Corporation's use of equity (i.e., capital). We believe the use of this non-GAAP measure provides additional clarity in assessing the results of the Corporation.
Other companies may define or calculate the tangible common equity ratio and the tangible book value per share of common stock differently. See the tables below for corresponding reconciliations to GAAP financial measures at September 30, 2009, June 30, 2009 and September 30, 2008.
Reconciliation of period end
common shareholders' equity
to period end tangible common
shareholders' equity
September 30 June 30 September 30
2009 2009 2008
------------ ------- ------------
Common shareholders' equity $198,843 $196,492 $136,888
Goodwill (86,009) (86,246) (81,756)
Intangible assets
(excluding MSRs) (12,715) (13,245) (9,167)
Related deferred tax
liabilities 3,714 3,843 1,914
----- ----- -----
Tangible common
shareholders' equity $103,833 $100,844 $47,879
======== ======== =======
Reconciliation of period
end assets to period end
tangible assets
September 30 June 30 September 30
2009 2009 2008
------------ ------- ------------
Assets $2,251,043 $2,254,394 $1,831,177
Goodwill (86,009) (86,246) (81,756)
Intangible assets
(excluding MSRs) (12,715) (13,245) (9,167)
Related deferred tax
liabilities 3,714 3,843 1,914
----- ----- -----
Tangible assets $2,156,033 $2,158,746 $1,742,168
========== ========== ==========
Certain prior period amounts have been reclassified to conform to current period presentation.
Information for periods beginning July 1, 2008 include the Countrywide acquisition. Information for the period beginning January 1, 2009 includes the Merrill Lynch acquisition. Prior periods have not been restated. This information is preliminary and based on company data available at the time of the presentation.
Bank of America Corporation and Subsidiaries
Reconciliation - Managed to GAAP
(Dollars in millions)
The Corporation reports Global Card Services on a managed basis. Reporting on a managed basis is consistent with the way that management evaluates the results of Global Card Services. Managed basis assumes that securitized loans were not sold and presents earnings on these loans in a manner similar to the way loans that have not been sold (i.e., held loans) are presented. Loan securitization is an alternative funding process that is used by the Corporation to diversify funding sources. Loan securitization removes loans from the Consolidated Balance Sheet through the sale of loans to an off-balance sheet qualified special purpose entity which is excluded from the Corporation's Consolidated Financial Statements in accordance with accounting principles generally accepted in the United States (GAAP).
The performance of the managed portfolio is important in understanding Global Card Services' results as it demonstrates the results of the entire portfolio serviced by the business. Securitized loans continue to be serviced by the business and are subject to the same underwriting standards and ongoing monitoring as held loans. In addition, retained excess servicing income is exposed to similar credit risk and repricing of interest rates as held loans. Global Card Services' managed income statement line items differ from a held basis reported as follows:
(CONTINUA)
Andalucía
Aragón
Cantabria
Castilla-La Mancha
Castilla y León
Catalunya
Extremadura
Galicia
Islas Canarias
Islas Baleares
Madrid
País Vasco
La Rioja
C. Valenciana
Navarra
Asturias
Murcia
Ceuta y Melilla
