1. Bank of America
Fourth Quarter 2006 Results
Ken Lewis
Chairman, CEO and President
Joe Price
Chief Financial Officer
January 23, 2007
2. 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 cause actual results or earnings to differ materially from such forward-looking
statements include, among others, the following: 1) projected business increases following
process changes and other investments are lower than expected; 2) competitive pressure
among financial services companies increases significantly; 3) general economic conditions
are less favorable than expected; 4) political conditions including the threat of future terrorist
activity and related actions by the United States abroad may adversely affect the company’s
businesses and economic conditions as a whole; 5) changes in the interest rate environment
reduce interest margins and impact funding sources; 6) changes in foreign exchange rates
increases exposure; 7) changes in market rates and prices may adversely impact the value of
financial products; 8) legislation or regulatory environments, requirements or changes
adversely affect the businesses in which the company is engaged; 9) changes in accounting
standards, rules or interpretations, 10) litigation liabilities, including costs, expenses,
settlements and judgments, may adversely affect the company or its businesses; 11) mergers
and acquisitions and their integration into the company; and 12) decisions to downsize, sell or
close units or otherwise change the business mix of any of the company. For further
information regarding Bank of America Corporation, please read the Bank of America reports
filed with the SEC and available at www.sec.gov.
2
3. Important Presentation Format Information
• Information included in the following slides is presented in a
proforma format for the total corporation and the Global
Consumer & Small Business Bank to include MBNA in all 2005
periods to provide a clearer picture of growth other than
acquisitions. Information that is presented on a proforma basis
is also reported on a GAAP basis in the Appendix
• Certain prior period amounts have been reclassified to conform
to current period presentation
3
4. Summary Earnings Statement –
Annual Comparison
($ in millions) Proforma 1 GAAP
2006 2005 % Change 2005
Core net interest income (FTE) $ 34,164 $ 32,925 4% $ 29,631
Market-based net interest income 1,651 1,938 1,938
Net interest income (FTE) 35,815 34,863 3% 31,569
Noninterest income 38,432 32,647 18 % 25,354
Total revenue (FTE) 74,247 67,510 10 % 56,923
Provision for credit losses 5,010 5,082 (1 %) 4,014
Gains (losses) on sales of debt securities (443) 1,084 NM 1,084
Noninterest expense (excl merger charges) 34,792 34,411 1% 28,269
Merger charge 805 1,179 412
Noninterest expense 35,597 35,590 28,681
Pre-tax income 33,197 27,922 25,312
Income tax expense 12,064 9,765 8,847
Net income 21,133 18,157 16 % 16,465
Merger & restructuring charges (after-tax) 507 771 275
Net Income before merger charges $ 21,640 $ 18,928 14 % $ 16,740
Diluted EPS reported $ 4.59 $ 4.04
Merger charge impact .11 .07
Diluted EPS (excl. merger charge) 4.70 4.11
Impact of intangibles amortization .24 .13
1 Proforma results include MBNA
4
5. 2006 Highlights
• Earnings of $21.6 billion before merger charges, 14% increase over
proforma 2005
• Double digit revenue growth led by strong noninterest income and modest
net interest income gains
• Focus on expense management produced strong operating leverage
• Global Consumer & Small Business earnings grew 19% over proforma 2005
• Capital Markets & Advisory Services revenues rose 21% over 2005
• Total consumer franchise unit sales climbed 7% over 2005 to 44.4 million
• Assets under management again reached new highs increasing to
$542.9 billion
• Securities gains declined $1.5 billion from 2005 levels
• Credit quality remains stable
• Strong capital position
5
6. 2006 Business Results
($ in millions)
REVENUE (FTE) EARNINGS
Change vs. Proforma1 2005 Change vs. Proforma1 2005
2006 Amt. % Change 2006 Amt. % Change
Global Consumer
$ 41,691 $ 2,844 7% $ 11,171 $ 1,785 19 %
& Small Business
Global Corporate &
22,691 1,992 10 % 6,792 358 6%
Investment Bank
Global Wealth &
7,779 410 6% 2,403 55 2%
Investment Mgmt
All Other 2,086 1,491 NM 767 778 NM
Total $ 74,247 $ 6,737 10 % $ 21,133 $ 2,976 16 %
1 Proforma results include MBNA
6
7. Achieving Growth in a Challenging Environment
Proforma highlights on a Diluted EPS excluding merger
managed basis 1 and restructuring charges 2
2005 2006
Revenue growth (FTE) 5% 7%
Net interest income (FTE) 1% 1%
Noninterest income 12 % 16 %
$4.70
$4.11
$3.75
Expense growth: - 1%
(excl. merger charges)
Credit costs 12 % (16 %)
2004 2005 2006
Securities gains/(losses) (39 %) NM
Achieved While Completing 2 of Industry’s Largest Acquisitions
1 Managed basis treats securitized loan receivables as if they were still on the balance sheet and presents the earnings on the sold loan
receivables as if they were not sold. Managed Noninterest Income includes the impact of the gains recognized on securitized loan principal
receivables in accordance with SFAS No. 140.
2 Excludes merger and restructuring charges of $.11, $.07 and $.11
7
in 2004, 2005 and 2006, respectively
8. Summary Earnings Statement –
4th Quarter Comparisons
($ in millions)
Proforma 1 GAAP
4Q06 4Q05 % Change 4Q05
Core net interest income (FTE) $ 8,469 $ 8,484 -% $ 7,681
Market-based net interest income 486 421 421
Net interest income (FTE) 8,955 8,905 1% 8,102
Noninterest income 9,866 7,673 29 % 5,951
Total revenue (FTE) 18,821 16,578 14 % 14,053
Provision for credit losses 1,570 1,697 (7 %) 1,400
Gains (losses) on sales of debt securities 21 71 NM 71
Noninterest expense (excl merger charges) 8,849 8,996 (2 %) 7,261
Merger charge 244 62 59
Noninterest expense 9,093 9,058 7,320
Pre-tax income 8,179 5,894 5,404
Income tax expense 2,923 1,983 1,830
Net income 5,256 3,911 34 % 3,574
Merger & restructuring charges (after-tax) 154 42 40
Net Income before merger charges $ 5,410 $ 3,953 37 % $ 3,614
Diluted EPS reported $ 1.16 $ .88
Merger charge impact .03 .01
Diluted EPS (excl. merger charge) 1.19 .89
Impact of intangibles amortization .06 .03
1 Proforma results include MBNA
8
9. Summary Earnings Statement –
4th Quarter Comparison
($ in millions)
4Q06 3Q06 $ Change % Change
Core net interest income (FTE) $ 8,469 $ 8,519 $ (50) (1 %)
Market-based net interest income 486 375
Net interest income (FTE) 8,955 8,894 61 1%
Noninterest income 9,866 10,067 (201) (2 %)
Total revenue (FTE) 18,821 18,961 (140) (1 %)
Provision for credit losses 1,570 1,165 405 35 %
Gains (losses) on sales of debt securities 21 (469) 490 NM
Noninterest expense (excl merger charges) 8,849 8,594 255 3%
Merger charge 244 269
Noninterest expense 9,093 8,863
Pre-tax income 8,179 8,464
Income tax expense 2,923 3,048
Net income 5,256 5,416 (160) (3 %)
Merger & restructuring charges (after-tax) 154 169
Net Income before merger charges $ 5,410 $ 5,585 (175) (3 %)
Diluted EPS reported $ 1.16 $ 1.18
Merger charge impact .03 .04
Diluted EPS (excl. merger charge) 1.19 1.22
Impact of intangibles amortization .06 .07
9
10. Net Interest Income
($ in millions)
Linked Quarter Net Interest Income & Yield
4Q06 3Q06 $ Change % Change
Reported net interest income (FTE) $ 8,955 $ 8,894 $ 61 1%
Less: Market based NII 486 375 111
Core net interest income (FTE) 8,469 8,519 (50) (1 %)
Impact of securitizations 1,850 1,760 90
Core NII – Managed Basis $10,319 $10,279 $ 40 -%
Avg. earning assets $ 1,299,461 $1,302,366 $ (2,905) -%
Market based earning assets 405,763 375,960 29,803 8%
Impact of securitizations 100,786 98,722 2,064 2%
Reported net interest yield 2.75 % 2.73 % 2 bps
Core net interest yield 3.78 % 3.67 % 11 bps
Managed net interest yield 4.14 % 4.00 % 14 bps
• Core net interest income (on a held basis) down slightly from 3Q06
Impact from sale of Brazilian operations - $110 mm
Benefit of loan activity offset by continuing shift in deposit mix
• Market based net interest income increased as a result of higher customer related trading assets
• Core net interest yield benefited from prior quarter reduction in investment securities
10
11. Net Interest Income – Managed Sensitivity
($ in millions)
Managed Net interest income impact for next 12 months
Forward curve interest rate scenarios @12/31/06 @9/30/06
+ 100 bp parallel shift $ (557) $ (171)
- 100 bp parallel shift 770 544
Flattening scenario from forward curve
+ 100 bp flattening on short end (687) (304)
Steepening scenario from forward curve
+ 100 bp steepening on long end 138 132
11
12. Bank of America
NII Sensitivity on a Managed Basis
First Rolling 12 Months
December 31, 2006
As of DECEMBER 31, 2006
300
Year 1 FF: 6.85
10-Y: 6.19
NII ∆: -1,083
200 (F) (B)
Curve Flatteners NII ∆: -989
FF: 5.85
10-Y: 5.19
FF: 2.75 NII ∆: -687
10-Y: 4.78
100 (G) (C) NII ∆: -557
FF: 4.85
Change in 1-mo Libor
10-Y: 5.19
FF: 4.85 (S) FF: 4.85
10-Y: 4.19
10-Y: 6.19
NII ∆: -192 (H) (I) NII ∆: 138
0
-300 -200 -100 0 FF: 5.25 100 200 300
10-Y: 5.19
NII ∆: -269
NII ∆: 770 FF: 3.85
-100 (J) 10-Y: 5.19
(D) S NII ∆: 971
FF: 1.75
10-Y: 4.45
NII ∆: 299
NII ∆: 1,299 (E) -200
(K) Curve Steepeners
FF: 2.85
10-Y: 4.19
NII ∆: 1,735
-300
Change in 10-yr Swap
14. Global Consumer & Small Business Banking (GCSB)
($ in millions) Change from
Proforma 4Q051 3Q06
4Q06 Amt. % Amt. %
Net interest income (FTE) $ 5,312 $ 146 3% $ 69 1%
Noninterest income 5,317 641 14 % 117 2%
Total revenue (FTE) 10,629 787 8% 186 2%
Provision expense 1,752 242 16 % 608 53 %
Securities gains - 1 NM - -%
Noninterest expense 4,873 (68) (1 %) 143 3%
Pre-tax income 4,004 614 18 % (565) (12 %)
Income tax expense 1,477 267 (203)
Net income $ 2,527 $ 347 16 % $(362) (13 %)
ROE 16.27 % 219 bps (215 bps)
Efficiency ratio 45.84 % (436 bps) 53 bps
• Net income up 16% over 4Q05 to $2.5 billion, but down 13% vs. 3Q06
• Card services earnings increased 84% from 4Q05
• Home equity earnings improved 12% from 4Q05
• Product sales increased 13% over 4Q05 to 10.7 million
• E-commerce channel becoming increasingly important sales channel
• Credit costs continue to season and normalize
1 Proforma results include MBNA
14
15. Deposits (GCSB)
($ in millions) Change from
Proforma 4Q051 3Q06
4Q06 Amt. % Amt. %
Net interest income (FTE) $ 2,489 $ 119 5% $ 27 1%
Noninterest income 1,899 215 13 % (13) (1 %)
Total revenue (FTE) 4,388 334 8% 14 -%
Provision expense 56 8 17 % 5 10 %
Noninterest expense 2,360 308 15 % 92 4%
Pre-tax income 1,972 18 1% (83) (4 %)
Income tax expense 728 31 (27)
Net income $ 1,244 $ (13) (1%) $ (56) (4 %)
Debit purchase volume $ 45.1 b $ 5.5 b 14 % $ 2.3 b 5%
Net new retail checking accts 363 k
Net new retail savings accts 82 k
• #1 deposit market share in US with largest branch and ATM network
• #1 debit market share with $169 billion in full year 2006 purchase volume
• #1 online banking presence with 21.3 million customers
• #1 online bill pay with 11.1 million customers paying $50.6 billion in bills in the quarter
1 Proforma results include MBNA
15
16. Deposits Business Metrics (GCSB) - Proforma
Trend of deposit indicators:
4Q06 3Q06 4Q05 1
Average balances (in billions)
Checking $123.5 $124.8 $125.9
Savings 30.0 31.2 31.9
MMS 67.4 70.3 78.4
CDs & IRAs 94.3 92.6 85.6
Foreign & Other 10.5 11.5 11.2
Total GCSB deposits 325.7 330.4 333.0
GWIM and Business Banking deposits 2 153.4 147.5 149.7
Total retail deposit balances $479.1 $477.9 $482.7
Deposit Spreads
Checking 4.26 % 4.23 % 4.16 %
Savings 3.68 3.42 3.53
MMS 3.25 2.87 2.50
CDs & IRAs 1.11 1.20 1.01
Foreign & Other 4.30 4.08 3.50
Total GCSB deposits 3.07 3.00 2.86
1 Proforma results include MBNA
16 2 Retail deposit balances in business segments other than GCSB
17. Retail Deposits & MMMF Cumulative Growth –
January 2004 – December 2006
Retail Money Market Mutual Funds – Retail Deposits –
40% Cumulative Balance Growth 20% Cumulative Balance Growth 18.8%
Cumulative Balances Growth
Cumulative Balances Growth
30%
26.3% 16.9%
15%
20%
10% 10%
7.5%
0%
5%
-10%
-20% 0%
Jan Apr Jul Oct Jan Apr Jul Oct Jan Apr Jul Oct Jan Apr Jul Oct Jan Apr Jul Oct Jan Apr Jul Oct
'04 '04 '04 '04 '05 '05 '05 '05 '06 '06 '06 '06 '04 '04 '04 '04 '05 '05 '05 '05 '06 '06 '06 '06
Industry BAC
Combined Retail Deposits and Money Funds – • Executing on an enterprise-wide strategy that takes a
20% Cumulative Balance Growth broader view of the Deposits business which includes
Cumulative Balances Growth
17.9% retail money market mutual funds
15% 17.2%
• On a combined basis since January 2004, growth in
deposits has outperformed the industry by 0.7%
– Columbia Money Fund balance has grown $9B
10%
or 26% compared to a gain of 7.5% for the
industry
5%
– Bank of America has grown retail deposits by
nearly $66B while maintaining firm price
0% discipline – recent growth trajectory has been
Jan Apr Jul Oct Jan Apr Jul Oct Jan Apr Jul Oct
'04 '04 '04 '04 '05 '05 '05 '05 '06 '06 '06 '06
steepening
17 Note: Columbia balances for Dec’03-Dec’04 assumed to grow at market rate.
Sources: Fed H6
18. Card Services (GCSB)* – Managed View
($ in millions) Change from
Proforma 4Q051 3Q06
4Q06 Amt. % Amt. %
Net interest income (FTE) $4,190 $ 228 6% $ 93 2%
Noninterest income 2,289 (2) -% 148 7%
Total revenue (FTE) 6,479 226 4% 241 4%
Credit costs 2,608 (286) (10 %) 668 34 %
Noninterest expense 2,011 (356) (15 %) 55 3%
Pre-tax income 1,860 868 88 % (482) (21 %)
Income tax expense 686 332 (176) #1 consumer credit
card issuer in the US
Net income $1,174 $ 536 84 % $(306) (21 %)
and the UK.
Purchase volume $ 69.2 b $ 2.3 b 3% $ 2.0 b 3%
Total average loans 197.8 b 12.5 b 7% 4.4 b 2%
Card services net losses 2,218 (1,074) (33 %) 216 11 %
Losses as a % of loans 4.45 % (260 bps) 34 bps
30-day delinquency 5.16 % 120 bps 26 bps
Risk adj. margin 8.55 % 217 bps (14 bps)
* Card Services financials includes US consumer and business card, unsecured lending,
international card operations and merchant services.
1 Proforma results include MBNA
18
19. Global Corporate & Investment Banking (GCIB)
($ in millions) Change from
4Q05 3Q06
4Q06 Amt. % Amt. %
Net interest income (FTE) $ 2,624 $ (147) (5 %) $ (19) (1 %)
Noninterest income 2,774 587 27 % (598) (18 %)
Total revenue (FTE) 5,398 440 9% (617) (10 %)
Provision expense (108) (205) NM (130) NM
Securities gains 19 (76) (80 %) 5 36 %
Noninterest expense 3,045 78 3% 80 3%
Pre-tax income 2,480 491 25 % (562) (18 %)
Income tax expense 909 202 (211)
Net income $ 1,571 $ 289 23 % $(351) (18 %)
ROE 15.33 % 334 bps (330 bps)
Efficiency ratio 56.41 % (343 bps) 711 bps
• Net income up 23% over 4Q05 to $1.6 billion, but down 18% vs. 3Q06
• Revenue in 3Q06 included $720 mm gain from sale of Brazil operations
• 4Q06 includes $165 mm gain from sale of Asia Commercial Banking business
• Average loans are up 8% vs. 4Q05 to $247 billion
• Capital Markets & Advisory Services revenue increased 30% vs 4Q05 and up 7% vs. 3Q06
• Asset quality remains stable
19
20. Business Lending (GCIB)
($ in millions) Change from
4Q05 3Q06
4Q06 Amt. % Amt. %
Net interest income (FTE) $1,138 $ (56) (5 %) $ 13 1%
Noninterest income 250 29 13 % (18) (7 %)
Total revenue (FTE) 1,388 (27) (2 %) (5) -%
Provision expense (85) (292) (141 %) (138) (260 %)
Securities gains 5 5 NM 2 67 %
Noninterest expense 550 27 5% 3 1%
Pre-tax income 928 243 35 % 132 17 %
Income tax expense 343 97 60
Net income $ 585 $ 146 33 % $ 72 14 %
Risk mitigation $ (63) $ (27) (75 %) $ (27) (75 %)
Average loans 221.2 b 17.2 b 8% 2.7 b 1%
• #1 middle market lender with clients representing more than 1 out of 3 middle market companies within
our franchise.
• Industry leading positions across Commercial Real Estate lending, Business Capital, Business Banking and
Leasing
• Total GCIB client roster includes 98% of US Fortune 500 and 80% of global Fortune 500
20
22. Treasury Services (GCIB)
($ in millions) Change from
4Q05 3Q06
4Q06 Amt. % Amt. %
Net interest income (FTE) $ 970 $ 8 1% $ (14) (1 %)
Noninterest income 710 72 11 % (21) (3 %)
Total revenue (FTE) 1,680 80 5% (35) (2 %)
Provision expense ( 2) (2) NM (1) NM
Noninterest expense 818 28 4% 9 1%
Pre-tax income 864 54 7% (43) (5 %)
Income tax expense 320 28 (15)
Net income $ 544 $ 26 5% $ (28) (5 %)
Average deposits $ 146.3 b $(2.9 b) (2 %) $ 5.1 b 4%
Deposit spread 2.54% 11 bps (10 bps)
• Voted “Best Bank Cash & Working Capital Management North America” and “Best Bank Risk Management”
(Treasury Management International, 2006)
•Voted “Best Bank for Payments and Collections in North America” and “Best Liquidity Management Bank in
North America” (Global Finance Magazine, 2006 and 2005)
•Voted “Best for Industry Expertise and Knowledge” and “Best Personalized Client Service” by Euromoney as
part of the Customer Satisfaction section of the publication’s Awards for Excellence 2006
22
23. Global Wealth & Investment Management (GWIM)
($ in millions) Change from
4Q05 3Q06
4Q06 Amt. % Amt. %
Net interest income (FTE) $ 971 $ (30) (3 %) $ 28 3%
Noninterest income 1,017 127 14 % 92 10 %
Total revenue (FTE) 1,988 97 5% 120 6%
Provision expense 2 1 NM 3 NM
Noninterest expense 1,030 82 9% 38 4%
Pre-tax income 956 14 1% 79 9%
Income tax expense 354 18 30
Net income $ 602 $ (4) (1 %) $ 49 9%
ROE 22.80 % 83 bps 112 bps
Efficiency ratio 51.80 % 171 bps (132 bps)
Financial advisors 1,954 59 51
Client managers 2,395 291 103
• Net income stable compared to 4Q05 and increased 9% over 3Q06
• Assets under management increased 13% from 4Q05 and 5% over 3Q06 to $542.9 billion
• Average loans increased 14% on an annualized basis from 3Q06
• Average deposits increased 18% on an annualized basis from 3Q06
• $0 online equity trading program - early results proving successful
23
24. Columbia Management (GWIM)
($ in millions) Change from
4Q05 3Q06
4Q06 Amt. % Amt. %
Net interest income (FTE) $ (3) $ (1) (50 %) $ 11 79 %
Noninterest income 422 68 19 % 32 8%
Total revenue (FTE) 419 67 19 % 43 11 %
Noninterest expense 274 41 18 % 23 9%
Pre-tax income 145 26 22 % 20 16 %
Income tax expense 53 10 7
Net income $ 92 $ 16 21 % $ 13 16 %
Investment & brokerage $417 $ 72 21 % $ 43 11 %
AUM 433.4 b 72.2 b 20 % 22.6 b 6%
• In a year-end ranking of firms, with more than 10 funds and $10 billion in AUM, our equity funds were top
performers for the 1-year period ended 12/31/06 and placed 1st out of 52 firms, based on Morningstar percentile
rankings. (1)
• On a 3-year AUM weighted basis, 88% of our equity funds were in the top 2 performance quartiles compared to
the peer group. (2)
• Our Money Market Fund complex maintained a 6th place ranking among its Global peer group. (3)
• Money Market Fund’s posted strong performance with 91% of the Fund’s placing in the top 2 performance
quartiles compared to their peer group. (3)
24
25. Global Wealth & Investment Management (GWIM)
Assets Under Management Investment & Brokerage Service Fees
$ in billions $ in millions
600
$542.9 $903
900 $870
$500.1 $517.0 $833 $843 38
500
$482.3 $493.9 $792 38
37
38
36 202
188
208.5 179 183
198.4 168
400 184.8 182.4 192.3
600
246
252 268 248
300 86.7 243
82.1 83.7 87.1
82.9
200
300
229.4 231.5 247.7 377 417
100 214.6 224.1 345 364 374
0 0
4Q05 1Q06 2Q06 3Q06 4Q06 4Q05 1Q06 2Q06 3Q06 4Q06
Columbia Mgmt Private Bank
Equity Fixed Income Money Mkt/ Other Premier Banking Other
% of AUM in 4 or 5 Star Funds2
56% 56% 59% 61% 57%
% of AUM in 1st and 2nd quartiles4
78% 82% 85% 88% 73%
25
27. All Other
($ in millions) Change from
4Q05 3Q06
4Q06 Amt. % Amt. %
Net interest income (FTE) $ 48 $ 61 NM $ (17) NM
Noninterest income 758 836 NM 188 NM
Total revenue (FTE) 806 897 NM 171 NM
Provision expense (76) (87) NM (76) NM
Securities gains 2 25 NM 485 NM
Merger & restruct. exp. 244 185 NM (25) NM
Noninterest expense (99) (160) NM (6) NM
Pre-tax income 739 984 NM 763 NM
Income tax expense 183 365 259
Net income $ 556 $619 NM $ 504 NM
Components of equity investment gains:
Principal investing $ 547 $ 143 35 % $ (57) (9 %)
Corporate & strategic 484 395 NM 401 NM
Total All Other equity gains 1,031 538 109 % 344 50 %
Other business segments 36 8 29 % 18 100 %
Total corp equity gains $1,067 $ 546 105 % $ 362 51 %
27
28. Capital Strength
($ in millions) 4Q06 3Q06 4Q05
Tier 1 Capital $ 91,065 $ 88,085 $ 74,375
Risk Weighted Assets 1,054,555 1,039,283 901,469
Tier 1 Capital Ratio 8.64 % 8.48 % 8.25 %
Total Capital Ratio 11.88 % 11.46 % 11.08 %
Tier 1 Leverage Ratio 6.36 % 6.16 % 5.91 %
Tangible Equity $ 60,188 $ 58,021 $ 52,985
Tangible Equity Ratio 4.35 % 4.22 % 4.26 %
Tangible Equity Ratio Adj for OCI 4.86 % 4.69 % 4.82 %
Months to required funding- Parent Co. 24 22 26
Earnings Returned to Shareholders
Dividends paid $2,503 $2,536 $2,012
Cost of net share repurchases 2,538 2,082 933
Dividends & net repur. as % of earnings 96 % 85 % 82 %
Dividend yield 4.20 % 4.18 % 4.33 %
28
29. Short-term Outlook
• Continuing flat yield curve environment
• Expect GDP growth around 3%
• Core net interest income growth in low single digits
• Reduced equity investment gains
• Credit costs continue to season and normalize
• Positive operating leverage
29
30. Long-term Targets
Earnings Growth
• Global Consumer and Small Business Banking 6 – 9%
– Card Services 10%+
– Deposits high single digit
– Consumer real estate businesses high single digit
• Global Corporate and Investment Banking 7 – 10%
– Business Lending steady mid single digits
– Treasury Services high single digits
– Capital Markets and Advisory Services is
10% plus but more market sensitive
• Global Wealth and Investment Management 7 – 10%
– Columbia Management low teens but more market
sensitive
– Premier Banking and Investments high single digits
– Improved Private Banking
30
31. Summary
• Anticipating a soft landing for economy
• Expect continuing strength in consumer banking
• Effectively managing headwind of interest rate yield curve
• Leadership positions in key retail businesses provide strong base for growth
• Consumer credit losses continue to season and trend toward more “normalized”
levels
• Commercial asset quality continues to be good
• Business lending profits continue to be hampered by macro conditions but Bank
of America positioned well
• Continued investments in Global Corporate & Investment Banking and Premier
Banking and Investments platforms working well
• Capital levels remain strong
• Remain committed to shareholder value
31
