Bank Of America Corporation · NYSE:BAC
Bank Of America — Q1 2006 Earnings Presentation
31 slides from Bank Of America's earnings presentation, Apr 20, 2006
Slide 1: Bank of America First Quarter 2006 Results
Exhibit 99.3 Bank of America First Quarter 2006 Results Al de Molina Chief Financial Officer April 20, 2006
Slide 2: Forward Looking Statements
Forward Looking Statements This presentation contains forward-looking statements, including statements about the financial conditions, results of operations and earnings outlook of Bank of America Corporation. The forward- looking statements involve certain risks and uncertainties. Factors that may
Slide 3: Summary Earnings Statement
Summary Earnings Statement $ in millions Proforma 1 GAAP 1Q06 1Q05 % Change 1Q05 Core net interest income (FTE) $ 8,630 $ 7,995 8% $ 7,160 Market-based net interest income 410 546 546 Net interest income (FTE) 9,040 8,541 6% 7,706 Noninterest income 8,901 7,775 15 % 6,032 Total revenue (FTE) 17,941
Slide 4: Earnings Highlights – 1st Qtr 2006
st Earnings Highlights – 1 Qtr 2006 • Record earnings of $5 billion grew 14% over GAAP reported 1earnings in 1Q05 while EPS was steady due to MBNA dilution. On a proforma basis and excluding merger charges net income grew 1%. • Versus 1Q05 proforma, growth includes headwinds of $388 million higher c
Slide 5: Global Consumer & Small Business Banking (GCSB)
Global Consumer & Small Business Banking (GCSB) ($ in millions) GAAP Basis Proforma 1 vs. 1Q05 vs. 4Q05 1Q06 1Q05 % chg 1Q05 4Q05 % chg % chg Net interest income $ 5,400 $ 5,029 7% $ 4,215 $ 4,325 28 % 25 % Noninterest income 4,801 4,380 10 % 2,638 2,955 82 % 62 % Total revenue 10,201 9,409 8% 6,853
Slide 6: Deposits (GCSB)
Deposits (GCSB) ($ in millions) GAAP Basis Proforma 1 vs. 1Q05 vs. 4Q05 1Q06 1Q05 % chg 1Q05 4Q05 % chg % chg Total revenue (FTE) $ 3,984 3,467 15 % $ 3,426 4,034 16 % ( 1 %) Provision expense 28 (7) (7) 48 Noninterest expense 2,206 1,931 14 % 1,931 2,070 14 % 7% Pre-tax income 1,750 1,543 1,502 1,9
Slide 7: Deposits Business Metrics (GCSB) - Proforma
Deposits Business Metrics (GCSB) - Proforma 5 Quarter trend of deposit indicators: 1Q06 4Q05 1 3Q05 1 2Q05 1 1Q05 1 Average balances (in billions) Checking $ 126.3 $ 125.8 $ 124.8 $ 123.4 $ 120.1 Savings 32.1 31.9 32.1 32.5 31.6 MMS 76.9 78.4 75.1 74.0 76.3 CDs & IRAs 84.8 85.5 93.8 92.8 90.1 Foreig
Slide 8: Deposits Business Metrics (GCSB) - GAAP
Deposits Business Metrics (GCSB) - GAAP 5 Quarter trend of deposit indicators: 1Q06 4Q05 3Q05 2Q05 1Q05 Average balances (in billions) Checking $ 126.3 $ 125.5 $ 124.4 $ 123.0 $ 119.8 Savings 32.1 31.9 32.0 32.5 31.5 MMS 76.9 71.9 68.8 67.7 69.7 CDs & IRAs 84.8 69.4 76.8 75.7 73.1 Foreign & Other 10
Slide 9: Card Services (GCSB) – Managed View
Card Services (GCSB) – Managed View ($ in millions) GAAP Basis 1 Proforma vs. 1Q05 vs. 4Q05 1Q06 1Q05 % chg 1Q05 4Q05 % chg % chg Total revenue (FTE) $ 5,933 $ 5,594 6% $ 2,140 2,276 177 % 161 % Provision expense 1,820 2,150 (15 %) 843 1,254 116 % 45 % Noninterest expense 2,016 2,184 ( 8 %) 758 730
Slide 10: Card Services (GCSB) – Held View
Card Services (GCSB) – Held View ($ in millions) GAAP Basis 1 Proforma vs. 1Q05 vs. 4Q05 1Q06 1Q05 % chg 1Q05 4Q05 % chg % chg Total revenue (FTE) $ 5,278 $ 4,444 19 % $ 1,995 2,213 165 % 139 % Provision expense 1,166 1,000 17 % 698 1,191 67 % (2 %) Noninterest expense 2,016 2,184 ( 8 %) 758 730 166
Slide 11: Home Equity (GCSB)
Home Equity (GCSB) ($ in millions) GAAP Basis 1 Proforma vs. 1Q05 vs. 4Q05 1Q06 1Q05 % chg 1Q05 4Q05 % chg % chg Total revenue (FTE) $ 351 $ 323 9% $ 323 350 9% 0% Provision expense 12 8 48 % 8 10 48 % 22 % Noninterest expense 154 182 (16 %) 182 146 (16 %) 5% Pre-tax income 185 133 133 194 Income ta
Slide 12: Mortgage (GCSB)
Mortgage (GCSB) ($ in millions) GAAP Basis 1 Proforma vs. 1Q05 vs. 4Q05 1Q06 1Q05 % chg 1Q05 4Q05 % chg % chg Total revenue (FTE) $ 347 $ 458 (24 %) $ 452 430 (23 %) (19 %) Provision expense 4 5 (24 %) 6 6 (24 %) (25 %) Noninterest expense 229 276 (17 %) 276 276 (17 %) (17 %) Pre-tax income 114 177
Slide 13: Consumer Credit Quality – Total BAC
Consumer Credit Quality – Total BAC $ in millions 1 Excl. BK reform Proforma GAAP impact 1Q06 1Q05 1Q05 4Q05 4Q05 Consumer Consumer charge-offs $ 1,006 $ 1,338 $ 1,018 $ 1,749 Consumer recoveries 213 181 151 172 Net consumer charge-offs 793 1,158 867 1,577 $ 1,069 Net consumer c/o ratio .82% 1.30% 1
Slide 14: Global Corporate & Investment Banking (GCIB)
Global Corporate & Investment Banking (GCIB) ($ in millions) GAAP Basis 1 Proforma vs. 1Q05 vs. 4Q05 1Q06 1Q05 % chg 1Q05 4Q05 % chg % chg Net interest income $ 2,714 $ 2,877 (6 %) $ 2,856 $ 2,771 ( 5 %) (2 %) Noninterest income 2,846 2,613 9% 2,591 2,187 10 % 30 % Total revenue 5,560 5,490 1% 5,447
Slide 15: Business Lending (GCIB)
Business Lending (GCIB) ($ in millions) GAAP Basis 1 Proforma vs. 1Q05 vs. 4Q05 1Q06 1Q05 % chg 1Q05 4Q05 % chg % chg Total revenue (FTE) $1,338 $ 1,637 (18 %) $ 1,628 $1,397 (18 %) (4 %) Securities gains (losses) 9 21 21 - Provision expense 16 (26) NM (26) 228 NM NM Noninterest expense 513 496 3% 4
Slide 16: Capital Markets and Advisory Services (GCIB)
Capital Markets and Advisory Services (GCIB) ($ in millions) GAAP Basis 1 Proforma vs. 1Q05 vs. 4Q05 1Q06 1Q05 % chg 1Q05 4Q05 % chg % chg Total revenue (FTE) $ 2,216 $ 1,864 19 % $ 1,864 $ 1,554 19 % 42 % Securities gains (losses) 5 8 8 32 Provision expense 3 (2) (2) (14) Noninterest expense 1,394
Slide 17: Treasury Services (GCIB)
Treasury Services (GCIB) ($ in millions) GAAP Basis 1 Proforma vs. 1Q05 vs. 4Q05 1Q06 1Q05 % chg 1Q05 4Q05 % chg % chg Total revenue (FTE) $ 1,628 $ 1,417 15 % $ 1,411 $ 1,605 15 % 1% Provision expense 6 (6) (5) (5) 1 Noninterest expense 806 778 4% 783 780 3% 3% Pre-tax income 816 645 633 824 Income
Slide 18: Commercial Credit Quality – Total BAC
Commercial Credit Quality – Total BAC $ in millions 1Q05 2Q05 3Q05 4Q05 1Q06 Commercial Commercial charge-offs $ 169 $ 207 $ 391 $ 255 $ 111 Commercial recoveries 121 189 133 163 81 1 Net commercial charge-offs 48 18 258 92 29 Nonperforming assets 1,558 1,167 859 779 833 1 Net commercial c/o ratio .
Slide 19: Global Wealth & Investment Management (GWIM)
Global Wealth & Investment Management (GWIM) ($ in millions) 1 Proforma GAAP Basis vs. 1Q05 vs. 4Q05 1Q06 1Q05 % chg 1Q05 4Q05 % chg % chg Net interest income $ 981 $ 979 -% $ 955 $ 1,001 3% (2 %) Noninterest income 987 858 15 % 858 890 15 % 11 % Total revenue 1,968 1,837 7% 1,813 1,891 9% 4% Securi
Slide 20: Private Bank (GWIM)
Private Bank (GWIM) 1 ($ in millions) Proforma GAAP Basis vs. 1Q05 vs. 4Q05 1Q06 1Q05 % chg 1Q05 4Q05 % chg % chg Total revenue (FTE) $ 539 513 5% $ 513 $ 525 5% 3% Provision expense (4) (2) (2) (3) Noninterest expense 314 305 3% 305 313 3% - Pre-tax income 230 210 210 215 Income tax expense 85 75 7
Slide 21: Columbia Management (GWIM)
Columbia Management (GWIM) ($ in millions) 1 Proforma GAAP Basis vs. 1Q05 vs. 4Q05 1Q06 1Q05 % chg 1Q05 4Q05 % chg % chg Total revenue (FTE) $ 363 332 9% $ 332 345 9% 5% Noninterest expense 236 221 7% 222 233 6% 1% Pre-tax income 127 111 110 112 Income tax expense 47 39 39 40 Net income $ 80 $ 72 11
Slide 22: Premier Banking & Investments (GWIM)
Premier Banking & Investments (GWIM) ($ in millions) 1 Proforma GAAP Basis vs. 1Q05 vs. 4Q05 1Q06 1Q05 % chg 1Q05 4Q05 % chg % chg Total revenue (FTE) $ 716 $ 575 25 % $ 575 $ 706 25 % 1% Provision expense 3 4 4 4 Noninterest expense 349 314 11 % 314 308 11 % 13 % Pre-tax income 364 257 257 394 Inco
Slide 23: All Other
All Other • The corporation’s total equity investment gains were $660 million versus $481 million in 4Q05 and $399 million in 1Q05. $513 million in 1Q06, $453 million in 4Q05 and $264 million in 1Q05 of these gains are reported in this segment. • Debt securities gains recorded were $14 million, a de
Slide 24: Capital Strength
Capital Strength $ in millions 1Q06 4Q05 1Q05 Tier 1 Capital $ 83,201 $ 74,375 $ 67,593 Risk Weighted Assets 948,190 901,469 817,862 Tier 1 Capital Ratio 8.45% 8.25% 8.26% Total Capital Ratio 11.33% 11.08% 11.52% Tier 1 Leverage Ratio 6.18% 5.91% 5.86% Tangible Equity $ 52,473 $ 52,984 $ 49,869 Tang
Slide 25: Net Interest Income
Net Interest Income $ in millions Linked Quarter Net Interest Income & Yield 1Q06 4Q05 Change % Change Reported net interest income (FTE) $ 9,040 $ 8,102 $ 938 12 % Market based related NII 410 419 (9) Core net interest Income (FTE) 8,630 7,683 947 12 % Avg. earning assets $ 1,219,611 $ 1,145,550 $
Slide 26: Business Segment ALM Allocations
Business Segment ALM Allocations 1 1Q06 1Q05 Global Consumer & Small Business $ 315 $ 616 Global Corporate & Investment Bank 51 269 Global Wealth & Investment Management 44 230 26 1 Proforma 1Q05 includes MBNA refer to 8-K filing 4/10/06
Slide 27: NII Sensitivity on a Managed Basis
Bank of America NII Scusilivity on a Managed Basis inst Rolling 12 Months March 31, 2006 Change m L-mo Liba ~_——_ Change in 10 yr CMS
Slide 28: Net Interest Income Sensitivity - Managed
Net Interest Income Sensitivity - Managed Net interest income impact for next 12 months Forward curve interest rate scenarios @3/31/06 @12/31/05 + 100 bp parallel shift ($ 924) ($ 357) - 100 bp parallel shift 894 244 Flattening scenario from forward curve + 100 bp flattening on short end ( 1,134) (
Slide 29: MBNA Integration Update
MBNA Integration Update • MBNA integration on target Relationships with financial institution partners remain strong Cost savings on target with over $150 million in 1Q driven by personnel related and marketing One third of planned 6,000 position reductions achieved as of 3/31, primarily through att
Slide 30: Footnote Disclosures
Footnote Disclosures Footnotes for Page 21 (4) Please consider the objectives, risks, charges and expenses of any Columbia fund carefully before investing. Contact your financial advisor for a prospectus, which contains this and other important information about the fund. You should read it carefull
Slide 31: Bank of America 'A Higher Standard'
— Bank of America ‘A Higher Standards