Bank of America 2004 Annual Report Download - page 7

on page 30 and in the Management Discussion & Analysis starting on page 33.
Our financial results in 2004 continued the strong returns we have posted for our shareholders over the past
four years. In fact, we have met or exceeded the rising expectations of Wall Street every quarter since the beginning
of 2001. From 2000 through 2004, our diluted earnings per share grew at a 10% annual rate, despite an economic
slowdown and market turbulence that derailed many competitors.
Our strong profit growth provides us multiple opportunities for capital deployment, which we pursue in three
broad categories: investments in existing lines of business, acquisitions of other companies and capital returned to
shareholders.
Our internal investments are tightly focused on areas of the company with strong long-term growth prospects.
Prominent examples include a $675 million investment beginning in 2005 in Global Capital Markets and Investment
Banking, where growth priorities include expanding capabilities in debt sales and trading, client management, our equity
platform, and our ability to serve clients’ needs in Europe and Asia. In Global Wealth and Investment Management, we
continue to invest in sales and relationship management capacity. And in Global Consumer and Small Business
Banking, we’re continuing to build out our banking center network as we move into new and fast-growing markets.
Our most visible acquisition last year was Fleet, but our acquisition of National Processing Corporation was a
great example of an effort to build scale and capabilities in an existing business. The addition of National Processing
to Bank of America Merchant Services is enabling us to offer more payments solutions to our customers. As payments
continue to shift from paper to plastic, the Merchant Services expansion has enabled us to strengthen our leadership
position in the payments business.
In deploying capital, we have complemented investments and acquisitions with an extremely shareholder-
friendly capital strategy. Since 1998, Bank of America has returned more than $65 billion in capital to shareholders
through a combination of increasing dividends and the repurchase of shares. Our dividend has grown at an annual
rate of 13% over the past 27 years, from $0.07 in 1977 to $1.70 today, and our current dividend yield of almost 4% is
among the most attractive in the industry.
Our strategic vision and financial results have been rewarded in the marketplace. Over the past five years, our
shares have appreciated faster than our peers’, faster than the KBW Banks Index, faster than the S&P 500 and faster
than the Dow Jones Industrial Average. With an annualized total shareholder return (including stock price apprecia-
tion and dividends) of 18% from 1999 through 2004, Bank of America has been an extremely strong investment.
Growth in the Northeast
When we agreed to acquire Fleet, we believed that by bringing our successful retail model to the Fleet franchise we
could immediately start taking market share from our competitors, increasing customer satisfaction and generating
growth in accounts and revenue. And that’s exactly what has happened.
($ in billions)
Revenue (Fully taxable-equivalent basis)
($ in billions)
Net Income
6BANK OF AMERICA 2004
'02 '03 '04
$35.1
$38.6
$49.6
'02 '03 '04
$9.2
$10.8
$14.1