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 2013 Earnings Presentation
25 slides from Bank Of America's earnings presentation, Jan 15, 2014
Slide 1: Bank of America 4Q13 Financial Results
Bank of America 4Q13 Financial Results January 15, 2014
Slide 2: Track Record of Improving Results
$1.4 $4.2 $11.4 $0 $2 $4 $6 $8 $10 $12 $14 2011 2012 2013 ____________________ 1 For more information on Basel 1 Tier 1 common capital, see footnote 1 on slide 6 and for more information on Global Excess Liquidity Sources and Time to Required Funding, see footnotes 1, 2 and 4 on slide 7. 2 Represent
Slide 3: Businesses Executing on Core Strategy to Deliver Results
Businesses Executing on Core Strategy to Deliver Results 3 Consumer and Business Banking (CBB) Global Wealth & Investment Management (GWIM) Consumer Real Estate Services (CRES) Global Banking Global Markets Top-tier sales & trading platform Gained market share in Equities during 2013 Ranked #1
Slide 4: 4Q13 Results
4Q13 Results 4 ____________________ 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 $10.8B, $21.5B and $
Slide 5: 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 6: Regulatory Capital
Basel 1 1 • Tier 1 common capital ratio grew to 11.19%, up 11bps from 3Q13 Basel 3 2 • Under the Advanced approach fully phased-in, estimated Tier 1 common capital increased $0.5B from 3Q13 and the Tier 1 common ratio improved to 9.96%, up 2bps from 3Q13 • Under the Standardized approach fully phase
Slide 7: Funding and Liquidity
$372 $372 $342 $359 $376 $0 $100 $200 $300 $400 4Q12 1Q13 2Q13 3Q13 4Q13 Parent company Bank subsidiaries Other regulated entities Funding and Liquidity 7 206 209 200 196 194 70 71 62 59 56 $276 $280 $262 $255 $250 $0 $100 $200 $300 4Q12 1Q13 2Q13 3Q13 4Q13 Parent company debt Other debt Global Exce
Slide 8: Net Interest Income
Net Interest Income 8 • Reported NII of $11.0B, up $0.5B from 3Q13 – Higher long-end rates drove a $0.3B increase in market- related adjustments • NII excluding market-related adjustments improved $0.3B from 3Q13 to $10.8B Benefits from: – Shift in composition of trading-related assets – Reduction i
Slide 9: Expense Highlights
13.3 13.1 13.2 3.1 2.2 1.8 2.0 1.1 2.3 $18.4 $16.4 $17.3 $0 $5 $10 $15 $20 4Q12 3Q13 4Q13 All Other LAS (excl. litigation and IFR) Litigation Expense Highlights ____________________ 1 Represents a non-GAAP financial measure. 2 Represents a non-GAAP financial measure. LAS noninterest expense was $3.0
Slide 10: Credit Quality
____________________ 1 Net charge-offs exclude write-offs of PCI loans of $741MM, $443MM, $313MM, $839MM and $1.1B for 4Q13, 3Q13, 2Q13, 1Q13 and 4Q12, respectively. Including the write-offs of PCI loans, total annualized net charge-offs and PCI write-offs as a percentage of total average loans and
Slide 11: Consumer & Business Banking (CBB)
Consumer & Business Banking (CBB) 11 ____________________ 1 FTE basis. 2 Represents a non-GAAP financial measure. For important presentation information, see slide 24, and for reconciliations to GAAP financial measures, see the accompanying reconciliations in the earnings press release and other ear
Slide 12: Consumer Real Estate Services (CRES)
Consumer Real Estate Services (CRES) 1 12 • Net loss increased slightly from 3Q13, as LAS cost savings, lower representations and warranties costs and lower credit provisions were more than offset by increased litigation expense • Total Corporation first-lien retail mortgage originations were $11.6B
Slide 13: Global Wealth & Investment Management (GWIM)
Global Wealth & Investment Management (GWIM) 13 ____________________ 1 FTE basis. 2 Includes Financial Advisors in CBB of 1,545, 1,585 and 1,496 at 4Q13, 3Q13 and 4Q12, respectively. 3 Represents a non-GAAP financial measure. For important presentation information, see slide 24, and for reconciliati
Slide 14: Global Banking
Global Banking 14 ____________________ 1 FTE basis. 2 Represents a non-GAAP financial measure. For important presentation information, see slide 24, and for reconciliations to GAAP financial measures, see the accompanying reconciliations in the earnings press release and other earnings-related infor
Slide 15: Global Markets
Global Markets 15 • [ Bullets to come ] ____________________ 1 FTE basis. 2 Represents a non-GAAP financial measure. Net DVA results were losses of $200MM, $291MM and $276MM in 4Q13, 3Q13 and 4Q12, respectively. U.K. tax charge was $1.1B in 3Q13. 3 In addition to sales and trading revenue, Global Ma
Slide 16: All Other
____________________ 1 All Other consists of ALM activities, equity investments, the international consumer card business, liquidating businesses, residual expense allocations and other. ALM activities encompass the whole- loan residential mortgage portfolio and investment securities, interest rate
Slide 17: Positioned Well for 2014
Positioned Well for 2014 17 • Record capital and liquidity levels • Business performance showing solid client activity • Expense initiatives on track to achieve cost saving targets • Net charge-offs approaching record lows • Continued progress on legacy issues
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: Residential Mortgage and Home Equity Credit Quality
____________________ 1 Excludes FVO loans. 2 Excludes write-offs of PCI loans of $437MM and $351MM related to residential mortgage and $304MM and $92MM related to home equity for 4Q13 and 3Q13. Net charge-off ratios including the PCI write-offs for residential mortgage were 1.02% and 0.89%, and for
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 24. 2 Basel 1 includes the Market Risk Final Rule at December 31, 2013, September 30,
Slide 23: Forward-Looking Statements
Forward-Looking Statements 23 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 24: 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 25: Bank of America
Bankof America