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) — Q4 2011 Earnings Presentation
7 slides from Bank Of America's earnings presentation, Jan 19, 2012
Slide 1: Forward-looking statements
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 historical or current facts. Forw
Slide 2: Tier 1 Common Equity Ratio Improved 121 bps in 4Q11
Tier 1 Common Equity Ratio Improved 121 bps in 4Q11 8.65 9.86 0.29 0.24 0.07 0.21 0.18 0.10 0.12 3Q11 Preferred exchange CCB sale Canadian consumer card sale Net income and DTA Reductions in market risk Asset sales and change in loans Other RWA declines - net 4Q11 • Tier 1 common equity ratio increa
Slide 3: Legacy Asset Servicing (within CRES)
Legacy Asset Servicing (within CRES) ____________________ 1 Serviced by LAS associates. 2 Selected items include litigation expense and assessments and waivers costs. These items are listed on the Consumer Real Estate Services (CRES) slide. 3 Staffing includes ending full-time equivalent associates,
Slide 4: Basel III Capital Phase-In
3.5% 4.0% 4.5% 4.5% 4.5% 4.5% 4.5% 0.6% 1.25% 1.9% 2.5% 3.5% 4.0% 4.5% 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 2013 2014 2015 2016 2017 2018 2019 SIFI up to 250 bps Capital Conservation Buffer Tier 1 Common Minimum 1/1/2013 0% 1/1/2014 20% 1/1/2015 40% 1/1/2016 60% 1/1/2017 80% 1/1/2018 100% 1/1/2019 100% Ca
Slide 5: 2012 Commentary
2012 Commentary • Headwinds of global economies, housing prices, interest rates and Eurozone debt crisis persist • Net interest income expected to remain muted ‒ Modest core loan growth expected to partially offset divestitures and run-off portfolios ‒ Compression as higher yielding assets mature wi
Slide 6: Representations and Warranties Provision and Exposure
• Total representations and warranties provision for the quarter was $263MM primarily related to the GSEs which is consistent with 3Q11 • Estimated range of possible loss related to non-GSE representations and warranties exposure could be up to $5B over existing accruals at December 31, 2011. The co
Slide 7: Estimated Range of Possible Loss
• Does not include litigation reserves established • Estimated Range of Possible Loss (RPL) above accruals up to $5B for non-GSE exposures at December 31, 2011 • Exposures identified above relate to repurchase claims associated with purported representations and warranties breaches in RMBS transacti