Bank of America 2003 Annual Report Download - page 2

Contents
Financial Highlights
Revenue* $ 38,529 $ 35,082
Net income 10,810 9,249
Shareholder value added 5,621 3,760
Earnings per common share 7.27 6.08
Diluted earnings per common share 7.13 5.91
Dividends paid per common share 2.88 2.44
Return on average assets 1.41 % 1.40 %
Return on average common
shareholders’ equity 21.99 % 19.44 %
Efficiency ratio 52.23 % 52.55 %
Average common shares issued
and outstanding (in millions) 1,487 1,520
For the Year
Year Ended December 31
2003 2002
Total assets $ 736,445 $ 660,951
Total loans and leases 371,463 342,755
Total deposits 414,113 386,458
Total shareholders’ equity 47,980 50,319
Common shareholders’ equity 47,926 50,261
Book value per common share 33.26 33.49
Market price per share of
common stock 80.43 69.57
Common shares issued and
outstanding (in millions) 1,441 1,501
At Year End
2003 Revenue**
($ in millions)
$26,303
Consumer and
Commercial
Banking
Global
Corporate and
Investment Banking
2003 Net Income**
($ in millions)
Equity
Investments
$(249)
Asset
Management
$670
Equity
Investments
$(254)
Asset
Management
$2,634
$2,012
$8,933
$7,521
1 Chairman’s Letter to Shareholders
5 Chief Financial Officer’s Letter
6 Raising the Bar for Consumers
10 Raising the Bar in Product Innovation
14 Raising the Bar in Wealth Management
16 Raising the Bar for Small Business
18 Raising the Bar in the Middle Market
20 Raising the Bar for Large Companies
and Institutions
22 Raising the Bar in Neighborhood Excellence
24 Financial Review
116 Executive Officers and Directors
Inside Back Cover: Corporate Information
Consumer and
Commercial
Banking
Global
Corporate and
Investment Banking
* Fully taxable-equivalent basis
**Excludes Corporate Other
(Dollars in millions, except per share)
Higher Standards, I wrote last year, is a phrase that
reflects your company’s commitment to the idea that in
every endeavor there is always an opportunity to raise the
bar. In 2003, your company promised—and delivered—
higher standards of performance for customers, share-
holders and the communities where we do business:
■We produced strong revenue and net income
gains in all our major lines of business,
demonstrating the power of scale, execution
and a sound organic growth strategy;
■We achieved significant gains in customer
satisfaction across our businesses and customer
segments, laying the foundation for accelerating
organic growth in the future;
■We responded decisively to a regulatory
inquiry into mutual fund industry practices,
demonstrating our commitment to strong
governance, ethical conduct and our core values;
■We staked out a bold vision for the future
with our agreement to acquire FleetBoston
Financial Corporation; and
■We announced new 10-year goals for community
development banking and corporate philanthropy
unprecedented in our nation’s history.
Our vision and strategy for your company has not
changed. We are building Bank of America by offering
our customers unmatched convenience and expertise,
high service quality, innovation and a variety of financial
products and services delivered as a single relationship.
We are striving to exceed past accomplishments every
day, in all we do.
Growing the business, one customer at a time.
In 2003, Bank of America was one of six companies in
the world to post earnings of more than $10 billion.
In surpassing this milestone, we increased net income
for the year by 17%, revenue by 10% and shareholder
value added by 49%, and posted a return on equity of
22%, beating our goal in each case. Our efficiency ratio
for 2003 was 52%, close to our target of 50% and a small
improvement from 2002. I hope you will review our
financial results in more detail on Page 5 of this report
and in the Financial Review beginning on Page 25.
These financial results are significant. They are the
product of the hard work and dedication of thousands of
associates whose talent and commitment to a shared set
of values give me confidence that we can continue to
push our company to even greater heights in the future.
I am immensely proud of our team’s achievement. What
makes me even more proud is how we got here.
For the past five years, we have followed a disci-
plined organic growth strategy, pursuing growth by
attracting more customers and expanding our relation-
ships with the customers we already have. The execution
of this strategy has required a constant focus on the
voice of the customer, product and service quality, and
process excellence throughout the organization.
As those of you who have held Bank of America
shares for the past few years know, we have sustained
our focus on these priorities by institutionalizing quality
and productivity tools and methods across the entire
company. Foremost among these is Six Sigma, which is
now being used within all business lines across the com-
pany to measure and improve the results we produce for
customers and shareholders.
To Our Shareholders
BANK OF AMERICA 2003 1
Kenneth D. Lewis
Chairman, Chief Executive Officer and President