Bank Of America Corporation · NYSE:BAC
Bank Of America — Bank of America Corp /De/ (Bac, Bac-Pb, Bac-Pe, Bac-Pk, Bac-Pl, Bac-Pm, Bac-Pn, Bac-Po, Bac-Pp, Bml-Pg, Bml-Ph, Bml-Pj, Bml-Pl) — Q1 2014 Earnings Presentation
26 slides from Bank Of America's earnings presentation, Apr 16, 2014
Slide 1: Bank of America 1Q14 Financial Results
Bank of America 1Q14 Financial Results April 16, 2014
Slide 2: 1Q14 Results
1Q14 Results 2 ____________________ 1 Amounts may not total due to rounding. 2 FTE basis. Represents a non-GAAP financial measure. 3 Represents a non-GAAP financial measure. On a GAAP basis, net interest income; total revenue, net of interest expense; and income tax benefit were $10.1B, $22.6B and $
Slide 3: Balance Sheet Highlights
____________________ 1 Represents a non-GAAP financial measure. For reconciliations to GAAP financial measures, see the accompanying reconciliations in the earnings press release and other earnings-related information. n/m = not meaningful Balance Sheet Highlights 3 • Total assets increased $47.6B f
Slide 4: Regulatory Capital
Basel 3 Transition (under Standardized approach) 1 • Common equity tier 1 capital (CET1) ratio grew to 11.8% from pro-forma 4Q13 2 Basel 3 Fully Phased-in 3 • Under the fully phased-in Standardized approach, the estimated CET1 ratio improved to 9.3% from 4Q13 • Under the fully phased-in Advanced app
Slide 5: Funding and Liquidity
Funding and Liquidity 5 Global Excess Liquidity Sources ($B) 2 • Long-term debt increased $5.1B from 4Q13 due to increased bank debt issuance – Remaining contractual parent company debt maturities of $23B through the end of 2014 3 – Successfully issued $7.6B of parent company long-term debt which se
Slide 6: Net Interest Income
Net Interest Income 6 • Reported NII of $10.3B, down $0.7B from 4Q13, driven by a $0.5B change in market-related adjustments and two fewer interest accrual days • Excluding market-related adjustments, NII of $10.6B declined $0.2B from 4Q13 and the net interest yield declined 3bps to 2.36% Drivers of
Slide 7: Expense Highlights
13.8 13.2 13.6 0.9 1.0 2.6 1.8 1.6 2.2 2.3 6.0 $19.5 $17.3 $22.2 $0 $5 $10 $15 $20 $25 1Q13 4Q13 1Q14 All Other Retirement-eligible costs LAS (excl. litigation) Litigation Expense Highlights ____________________ 1 Represents a non-GAAP financial measure. LAS noninterest expense was $7.4B, $3.0B and
Slide 8: Credit Quality
$22.4 $21.2 $19.4 $17.4 $16.6 2.20x 2.51x 2.90x 2.78x 2.95x 0x 1x 2x 3x 4x 5x $0 $5 $10 $15 $20 $25 $30 1Q13 2Q13 3Q13 4Q13 1Q14 T h o u s a n d s Allowance for loans and leases Allowance / annualized net charge-offs $2.5 $2.1 $1.7 $1.6 $1.4 1.14% 0.94% 0.73% 0.68% 0.62% 0% 1% 2% 3% $0 $1 $2 $3 1Q13
Slide 9: Consumer & Business Banking (CBB)
Consumer & Business Banking (CBB) 9 ____________________ 1 FTE basis. 2 Represents a non-GAAP financial measure. For important presentation information, see slide 25, and for reconciliations to GAAP financial measures, see the accompanying reconciliations in the earnings press release and other earn
Slide 10: Consumer Real Estate Services (CRES)
Consumer Real Estate Services (CRES) 1 10 • 1Q14 net loss of $5.0B increased $4.0B from 4Q13, primarily driven by increased litigation expense • Total first-lien retail mortgage originations 4 were $8.9B, down 24% from 4Q13 – Origination pipeline at the end of 1Q14 was up 23% vs. 4Q13 • Core product
Slide 11: Global Wealth & Investment Management (GWIM)
1,137 1,121 1,144 1,181 1,190 745 744 780 821 842 240 235 242 245 244 110 115 117 119 120 $2,232 $2,215 $2,283 $2,366 $2,396 $500 $1,000 $1,500 $2,000 $2,500 1Q13 2Q13 3Q13 4Q13 1Q14 Other client balances Assets under management Client deposits Loans and leases Global Wealth & Investment Management
Slide 12: Global Banking
Global Banking 12 ____________________ 1 FTE basis. 2 Represents a non-GAAP financial measure. For important presentation information, see slide 25, and for reconciliations to GAAP financial measures, see the accompanying reconciliations in the earnings press release and other earnings-related infor
Slide 13: Global Markets
Global Markets 13 • [ Bullets to come ] ____________________ 1 FTE basis. 2 Represents a non-GAAP financial measure. During 1Q14, the management of structured liabilities and the associated DVA were moved into Global Markets from All Other to better align the performance risk of these instruments. A
Slide 14: All Other
• Net loss of $182MM as results declined from 4Q13, driven by annual retirement-eligible incentive compensation costs and negative quarterly impact of market-related NII adjustments, partially offset by higher equity investment gains in the quarter • Revenue was impacted by the following selected it
Slide 15: Appendix
Appendix
Slide 16: Results by Business Segment
____________________ 1 FTE basis. FTE basis for the Total Corporation and pre-tax, pre-provision earnings are non-GAAP financial measures. 2 For reconciliations to GAAP financial measures, see the accompanying reconciliations in the earnings press release and other earnings-related information. Resu
Slide 17: Business Metrics Reflect Progress: Consumer Metrics
Business Metrics Reflect Progress Consumer Metrics 17 Avg. Consumer and Business Banking Deposits ($B) and Rate Paid (bps) Mobile Banking Active Accounts (units in MM) 1 Banking Centers 5,651 5,389 5,095 3,000 4,000 5,000 6,000 1Q12 1Q13 1Q14 $73.4 $82.6 $100.2 $0 $20 $40 $60 $80 $100 $120 1Q12 1Q13
Slide 18: Business Metrics Reflect Progress: Banking and Markets Metrics
Business Metrics Reflect Progress Banking and Markets Metrics 18 ____________________ 1 FTE basis. Represents a non-GAAP financial measure. 2 Represents a non-GAAP financial measure. During 1Q14, the management of structured liabilities and the associated DVA were moved into Global Markets from All
Slide 19: Line of Business Allocated Capital
Line of Business Allocated Capital 19 ____________________ 1 Represents a non-GAAP financial measure. For reconciliations to GAAP financial measures, see the accompanying reconciliations in the earnings press release and other earnings-related information. 2 Allocations are subject to change over ti
Slide 20: Settlement with FGIC and Certain Securitization Trusts
Settlement with Financial Guaranty Insurance Co. (FGIC) and Certain Securitization Trusts 20 • On April 11, 2014, BAC reached a settlement with Financial Guaranty Insurance Co. (FGIC), as well as separate settlements with the Trustee for certain second-lien residential mortgage-backed securities (RM
Slide 21: Representations and Warranties Exposure
Representations and Warranties Exposure 1 21 ____________________ 1 Exposures identified above relate only to repurchase claims associated with purported representations and warranties breaches. They do not include any exposures associated with related litigation matters; separate foreclosure costs
Slide 22: Residential Mortgage and Home Equity Credit Metrics
____________________ 1 Excludes FVO loans. 2 Excludes write-offs of PCI loans of $281MM and $437MM related to residential mortgage and $110MM and $304MM related to home equity for 1Q14 and 4Q13. Net charge-off ratios including the PCI write-offs for residential mortgage were 0.67% and 1.02%, and for
Slide 23: Regulatory Capital Reconciliation
Regulatory Capital Reconciliation 1, 2 ____________________ 1 Regulatory capital ratios are preliminary until filed with the Federal Reserve on Form Y-9C. For important presentation information, see slide 25. 2 On January 1, 2014, the Basel 3 rules became effective, subject to transition provisions
Slide 24: Forward-Looking Statements
Forward-Looking Statements 24 Bank of America and its management may make certain statements that constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These statements can be identified by the fact that they do not relate strictly to his
Slide 25: Important Presentation Information
• The information contained herein is preliminary and based on Company data available at the time of the earnings presentation. It speaks only as of the particular date or dates included in the accompanying slides. Bank of America does not undertake an obligation to, and disclaims any duty to, updat
Slide 26: Bank of America
Bankof America