Bank of America

About bank of America Corporation

• World’s largest holding bank company in terms of 2009 assets and total
revenue

• Based in Charlotte, North Carolina

• Offers full range of financial and non-financial services in 3 principal

divisions:
 Consumer and small business banking
 Global Corporate and Investment Banking
 Global Wealth and Investment Management

• Has a presence in all 50 US states as well as 44 foreign countries, and

serves over 55 million consumer and small business clients
 Products and Services
• Checking Account
• Savings and CD accounts
• Credit Cards
• Mortgage
• Re-finance
• Home Equity
• Auto Loans
• Insurance and Protection
 Business Segments
• Global Card Services:
 24% of 2009 Revenue
 -87% of 2009 Net Income
 Revenue generated through servicing fees, cash advance fees, late fees
and interest income

• Global banking:
 19% of 2009 Revenue
 49% of 2009 Net Income
 Took a big step the top tier of U.S. investment banks with its September
2008 acquisition of Merrill Lynch (MER)
 Business Segments…Continued
• Global Markets
 17% of 2009 Revenue
 114% of 2009 Net Income
 This division provides support to institutional investor clients in their
investing and trading activities

• Global Wealth and Investment Management

 15% of 2009 Revenue
 43% of 2009 Net Income
 the corporation manages the wealth of high net-worth individuals and
institutional customers
 Potential to be the biggest growth driver in the future
 Business Segments…Continued
• Home Loans and Insurance
 14% of 2009 Revenue
 -60% of 2009 Net Income
 provides mortgage services to its clients via its over 6,139 banking centers,
sales account executives in nearly 1000 locations, telephone and online
access, and a partnership with more than 6,500 mortgage brokers in all 50
states

• Deposits
 11% of 2009 Revenue
 41% of 2009 Net Income
 Deposits products include traditional savings accounts, money market
savings accounts, CDs and IRAs, checking accounts, and debit cards
 Merrill Lynch Acquisition
• On September 14, 2008, Bank of America announced its intentions to
purchase Merrill Lynch & Co., Inc. in an all-stock deal worth approximately
$50 billion

•  This acquisition made Bank of America the largest financial

services company in the world with $2 trillion in client assets and 20,000
advisers

• Investors were skeptical about this deal as they felt that the acquisition
was overvalued and this subsequently reflected in BoA’s stock
performance

• BoA's stock price fell to $7.18, its lowest level in 17 years

 Continued
• The market cap of BoA including Merrill Lynch , fell to $45 billion less than
the $50 billion it offered Merrill Lynch just 4 months earlier and was down
$108 billion from the time the merger announcement took place

• Subsequently, as the credit crisis eased , losses at Merrill Lynch subsided,

and the subsidiary generated $3.7 billion of BoA’s $4.2 billion profit by end
of Q1 2009.
 Financial Performance – (2005-2009)

FISCAL
31-DEC 31-DEC 31-DEC 31-DEC 31-DEC
YEAR CAGR
2005 2006 2007 2008 2009
ENDING
Federal Funds
150B 135B 130B 82.5B 190B
and Repos 5%
Finance
Contracts and 566B 697B 865B 940B 907B
Loans 10%
Trading
132B 153B 162B 160B 182B
Securities 7%
Other
245B 193B 214B 278B 311B
Investments 5%
Total
1.09T 1.18T 1.37T 1.46T 1.59T
Investments 8%

Cash and Cash

37.0B 36.4B 42.5B 32.9B 121B
Equivalents 27%
Property, Plant
7.79B 9.26B 11.2B 13.2B 15.5B
& Equipment 15%
Goodwill and
51.4B 75.1B 87.8B 104B 118B
Intangibles 18%
Other Assets 1.20T 1.34T 1.57T 1.67T 1.97T 10%
Total Assets 1.29T 1.46T 1.72T 1.82T 2.22T 11%
 Financial Performance – (2005-2009)….Continued
FISCAL YEAR 31-DEC 31-DEC 31-DEC 31-DEC 31-DEC
ENDING 2005 2006 2007 2008 2009
Premium Deposits 635B 693B 805B 883B 992B

Other Liabilities 455B 485B 566B 490B 562B

Total Operating
1.09T 1.18T 1.37T 1.37T 1.55T
Liabilities

Long-term Debt 101B 146B 198B 268B 439B

Total Financing
101B 146B 198B 268B 439B
Liabilities
Total Liabilities 1.19T 1.32T 1.57T 1.64T 1.99T

Preferred Stock 271M 2.85B 4.41B 37.7B 37.2B

Common Par 41.7B 61.6B 60.3B 76.8B 129B

Retained Earnings 67.6B 79.0B 81.4B 73.8B 71.2B

Other Equity, Net -7.98B -8.18B 673M -11.2B -5.73B

Total
Shareholder's 102B 135B 147B 177B 231B
Equity
Some Financial Facts
 Competitive Analysis
• Top Competitors of Bank of America

 Citigroup Inc

 JPMorgan Chase & Co

 Wells Fargo & Company

 Key Financial Indicators
Financials BAC C JPM WFC Industry
Market Cap: 129.14B 108.65B 146.24B 126.81B 27.77M
Employees: 283,000 259,000 232,939 267,600 163
Qtrly Rev Growth 8.50% -10.90% 23.60% 32.80% 10.30%
Revenue 72.51B 42.23B 76.80B 69.31B 15.27M
Operating Margin 12.10% -16.26% 34.29% 34.15% 17.81%
Net Income -2.00B -3.90B 13.44B 8.28B N/A
EPS -0.2 -0.17 3.39 1.66 -0.15
P/E N/A N/A 10.87 14.62 14.05
PEG (5 yr expected)
1.96 0.39 1.27 1.22 1.91
P/S 1.78 2.57 1.92 1.86 1.74
Figures for the last 12
months          
B indicates $ billion          
 Domestic Deposit Share

  Domestic Deposit Market Share (%)

  2004 2005 2006 2007 2008

Bank of America (BAC) 10.07 10.36 9.54 10 11.33

Wells Fargo (WFC) 4.9 4.64 5.2 4.2 10.33

J P Morgan Chase (JPM) 4.18 7.07 7.47 7.4 9.85

 Revenue comparison
Revenue
50

45

40

35
BOA
CITI
30 JPM

25

20

15

10
2009 Q1 2009 Q2 2009 Q3 2009 Q4 2010 Q1 2010 Q2
 Net Income Comparison
Net Income
12

JPM
0 CITI
2009 Q1 2009 Q2 2009 Q3 2009 Q4 2010 Q1 2010 Q2 BOA

-4

-8

-12

-16
 Operations in India
Major offices in India

• Mumbai
• Hyderabad
• Gurgaon

Type of product/services - Back end operations

 Awards & Recognitions
• 2008 Natural Resources Defense Council Award

The Natural Resource Defense Council is one of the leading environmental

organizations. In April 2008, the council recognized Bank of America's efforts
in addressing climate change by presenting an award to Chair and CEO
Ken Lewis. At the awards event, Mr. Lewis announced Bank of America's
adoption of The Carbon Principles. These principles are an important set
of guidelines that'll help advisors and lenders, who lend to power companies,
evaluate and address carbon risks associated with a project's financing.

• 2008 City of San Diego Climate Protection Champion Award.

• 2006 Global Green USA Award.

• 2005 Corporate Climate Champion.

 CSR Initiatives
• Grant Programs

• Associate Commitment

• Philanthropic Management
– Goal of investing or lending 1.5 trillion dollars in community
development in the next 10 yrs – Started in Jan 2009

• Volunteer Network
 Social Responsibility
• Employee Welfare
 Recreation
 Gatherings
 Leadership Development

• Environmental Awareness
 Providing facilities to customers so as to save paper
 Reducing impact of business on the environment
THANK YOU