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) — Q3 2013 Earnings Presentation
23 slides from Bank Of America's earnings presentation, Oct 16, 2013
Slide 1: Bank of America 3Q13 Financial Results
Bank of America 3Q13 Financial Results October 16, 2013
Slide 2: Forward-Looking Statements
Forward-Looking Statements 2 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 hist
Slide 3: 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 4: Third Quarter Highlights
Third Quarter Highlights 4 • Generated net income of $2.5B, or $0.20 per diluted share • Revenue of $22.2B 1, excluding FVO/DVA, reflected headwinds from reduced mortgage and capital markets activity • Further strengthened the balance sheet and capital • Repurchased 60MM common shares in 3Q13, bring
Slide 5: 3Q13 Results: Summary Income Statement
3Q13 Results 5 ____________________ 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 expense were $10.3B, $21.5B and $
Slide 6: 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. 2 Represents a non-GAAP financial measure. The impact of the U.K. corporate incom
Slide 7: Regulatory Capital
Basel 1 1 • Tier 1 common capital ratio grew to 11.08%, up 25bps from 2Q13 Basel 3 (fully phased-in under Advanced Approach) 2 • Estimated Tier 1 common capital increased $6.0B from 2Q13, and Tier 1 common ratio improved to 9.94%, up 34bps from 2Q13 Proposed Supplementary Leverage Ratio 4 • In conne
Slide 8: Funding and Liquidity
$380 $372 $372 $342 $359 $0 $100 $200 $300 $400 3Q12 4Q12 1Q13 2Q13 3Q13 Parent company Bank subsidiaries Broker/dealers Funding and Liquidity 8 211 206 209 200 196 76 70 71 62 59 $287 $276 $280 $262 $255 $0 $100 $200 $300 3Q12 4Q12 1Q13 2Q13 3Q13 Parent company debt Other debt Global Excess Liquidi
Slide 9: Net Interest Income
Net Interest Income 9 • Reported NII of $10.5B, down $0.3B from 2Q13 as core NII improvements were more than offset by lower market-related impacts • NII excluding market-related impacts improved $0.1B from 2Q13 to $10.5B Benefits from: – Higher yields on discretionary portfolio and increased commer
Slide 10: Expense Highlights
13.0 13.2 13.1 2.9 2.3 2.2 1.6 0.5 1.1 $17.5 $16.0 $16.4 $0 $5 $10 $15 $20 3Q12 2Q13 3Q13 All Other LAS (excl. litigation) Litigation Expense Highlights ____________________ 1 Represents a non-GAAP financial measure. LAS noninterest expense was $2.5B, $2.5B and $3.4B in 3Q13, 2Q13 and 3Q12, respecti
Slide 11: Asset Quality Trends Continued to Improve
____________________ 1 Net charge-offs exclude write-offs of consumer PCI loans of $443MM, $313MM, $839MM, $1.1B and $1.7B for 3Q13, 2Q13, 1Q13, 4Q12 and 3Q12, respectively. 2 Excludes FHA-insured loans and other loans individually insured under long-term standby agreements. 3 Allowance/annualized n
Slide 12: Consumer & Business Banking (CBB)
Consumer & Business Banking (CBB) 1 12 ____________________ 1 During 2Q13, consumer Dealer Financial Services results were moved to CBB from Global Banking and prior periods were reclassified to conform to current period presentation. 2 FTE basis. 3 Represents a non-GAAP financial measure. For impor
Slide 13: Consumer Real Estate Services (CRES)
Consumer Real Estate Services (CRES) 1 13 • Net loss increased slightly from 2Q13, as LAS cost savings and provision improvement were more than offset by lower mortgage banking income and increased litigation costs • Total Corporation first-lien retail mortgage originations were $22.6B, down 11% fro
Slide 14: Global Wealth & Investment Management (GWIM)
Global Wealth & Investment Management (GWIM) 14 ____________________ 1 FTE basis. 2 Includes Financial Advisors in CBB of 1,585, 1,587 and 1,457 at 3Q13, 2Q13 and 3Q12, respectively. 3 Represents a non-GAAP financial measure. For important presentation information, see slide 3, and for reconciliatio
Slide 15: Global Banking
Global Banking 1 15 ____________________ 1 During 2Q13, consumer Dealer Financial Services results were moved from Global Banking to CBB and prior periods were reclassified to conform to current period presentation. 2 FTE basis. 3 Represents a non-GAAP financial measure. For important presentation i
Slide 16: Global Markets
Global Markets 16 • [ Bullets to come ] ____________________ 1 FTE basis. 2 Represents a non-GAAP financial measure. Net DVA results were losses of $291MM, gains of $38MM and losses of $582MM in 3Q13, 2Q13 and 3Q12, respectively. U.K. tax charges were $1.1B and $781MM in 3Q13 and 3Q12. 3 In addition
Slide 17: All Other
• Net income of $864MM increased $2.4B from 3Q12 driven by the tax benefit from recognition of foreign tax credits, and $0.8B lower negative FVO adjustments on structured liabilities related to improvements in our own credit spreads • Results were impacted by the following selected items ___________
Slide 18: Appendix
Appendix
Slide 19: 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 20: Representations and Warranties Exposure (2004-2008 vintages)
Representations and Warranties Exposure 1 (2004-2008 vintages) 20 ____________________ 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; separa
Slide 21: Home Loans Asset Quality Key Indicators
____________________ 1 Excludes FVO loans. 2 Excludes write-offs of consumer PCI loans of $351MM and $203MM related to residential mortgage and $92MM and $110MM related to home equity for 3Q13 and 2Q13. Net charge-off ratios including the PCI write-offs for residential mortgage were 0.89% and 0.74%,
Slide 22: Regulatory Capital – Basel 1 to Basel 3 (Fully Phased-in)
Basel 1 to Basel 3 (Fully Phased-in) 1, 2, 3 22 ____________________ 1 Regulatory capital ratios are preliminary until filed with the Federal Reserve on Form Y-9C. For important presentation information, see slide 3. 2 Basel 1 includes the Market Risk Final Rule at September 30, 2013, June 30, 2013
Slide 23: Bank of America
Bankof America