Bank of America 2000 Annual Report Download - page 7

Winner of National Real
Estate Investor’s 2000
Leadership Award for Top
Financial Firm.
Received Business Committee
for the Arts and Forbes maga-
zine Founder’s Award for
exceptional long-term leader-
ship and commitment to
alliances with the arts.
Certified as top-quality
provider of trade and cash
management services in
Asia by the International
Standards Organization.
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loans, and other products and services. In return for bringing us more of their business,
these customers qualify for reduced fees, enhanced services and other benefits.
The results are positive, measurable and dramatic. Since the beginning of 1999,
customers in two of these service levels – Plus and Premier – each have increased by
more than 25%, even as our total number of retail customers has remained relatively
unchanged. The benefits for customers is clear. And so is the benefit to the bank: when
non-relationship households become Plus or Premier households, relationship-net-income
more than doubles.
Progress is evident in other high-growth businesses as well, including Asset
Management, where mutual fund assets grew 35% during the year, topping the $100 bil-
lion mark in August. Balances in Money Manager, our combined investing and banking
account, increased 65% to more than $20 billion. And while we expect that Global
Corporate and Investment Banking growth will slow this year due to weakened condi-
tions in the capital markets, this group continues to gain market share, breaking into
the top 10 in league table rankings in almost every significant product category, and will
be in a very strong position when the markets regain momentum.
At the same time our front line businesses are strengthening and expanding cus-
tomer relationships, our associates in technology and R&D continue to work toward
building the “digi-brick” institution we wrote about last year, combining the best of the
physical and virtual worlds to deliver a 21st-century financial services experience to our
customers. These associates are accomplishing this goal by implementing innovative
technology solutions, and by forming strategic partnerships with myriad new corporate
partners to give our customers access to all the newest capabilities they need. You can
read more about how we’re making good on this part of our vision on page 24.
Our associates are keeping their eyes on the ball and building this company for the
future. My judgment – which is supported by positive trends in customer service and
growth in our key businesses – is that we have the right business strategy and a sound
long-term plan. I continue to believe that when the dust settles and the clouds lift, Bank
of America will emerge as the best financial services company in the country, with a
stock price to match its fundamentally solid financial performance.
Looking Ahead Today, the company we have built during the 17 years of my tenure as
CEO is positioned for great success. Our current challenges may delay that success. But
the potential, the plan, the resources and the leadership are all here in abundance, and the
combination of these assets gives me great confidence.
In my judgment, it also is important to remember that our company continues to be
a strong leader and a driving force for good in all the communities where we do busi-
ness. Business challenges have not caused us to diminish our community development
activities, as we announced last May that we exceeded our first-year target in our unprece-
dented $350 billion, ten-year commitment to investing in low-to moderate-income
American neighborhoods. The Bank of America Foundation also remains strong, as we
topped the list of U.S. corporate foundations measured by cash contributions, and won the