Bank of America 2001 Annual Report Download - page 30

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28
Global Corporate and Investment Banking (GCIB) at
Bank of America has forged a business with annual
revenues in excess of $9 billion. In 2001, a tough
environment by any measure, earnings grew 7%,
shareholder value added (SVA) nearly doubled and
Banc of America Securities increased its market share
of lead-managed underwriting mandates in every
major category of capital-raising transaction.
GCIB is a full-service corporate and investment bank that
provides creative, value-added capital-raising solutions,
advisory services, derivatives capabilities, equity and debt
sales and trading, as well as traditional bank deposit and loan
products, cash management and payments services. We believe
that our integrated bank model, combining both corporate and
investment banking services, is the right model for the future.
Profound marketplace changes are favoring this model,
evidenced by the fact that since 1998 U.S. and European
integrated banks have gained market share in equity and
debt origination as well as sales and trading at the expense
of stand-alone investment banks. Similarly, integrated banks
are increasing their ROE while ROE is declining for stand-
alone firms. These trends are driven by clients’ critical and
growing need to access bank capital and by the enhanced
ability of integrated banks to fully service advisory and
capital-raising needs.
Our model also results in a diverse revenue stream,
contributing to more stable earnings. For example, when
equity and mergers and acquisitions experience a cyclical
downturn, as was the case in 2001, use of debt and credit
instruments expands.
Our unsurpassed reach among corporate clients fuels our
strong market position. Our clients include 76% of the Fortune
Global 500 and 94% of the Domestic 500. This client access,
>Opportunities
>Take advantage of unmatched client reach –
76% of Fortune Global 500, 94% of U.S. 500
>Serve clients’ growing need to access bank
capital
>Build fee-based investment banking business
>Expand sales and trading to build under-
writing business and meet investors’ needs
>Recent Achievements
>Increased market share of investment
banking fees in targeted industry sectors
>Grew revenue per strategic client by 54%
>Significantly diversified revenue streams
earned from corporate banking clients
>Reduced corporate loan balances by
more than 30% since mid-2000
>Strategies
>Focus on strategic issuer clients in
key sectors
>Increase fee-based business by targeting
resources to key client needs
>Build market share with investors to
increase commission revenue
>Reduce credit risk to improve capital
efficiency and lower volatility
Serving Large Corporations and Institutional Markets >