Bank of America 2005 Annual Report Download - page 115

Losses offset by an increase in Noninterest Expense. Provision for Credit Losses declined $753 million to negative $445
million due to a notable improvement in credit quality in the large corporate portfolio and a $312 million reduction in
net charge-offs. Noninterest Expense increased by $1.2 billion, or 22 percent, driven by an increase in litigation-related
charges, higher incentive compensation for market-based activities, and this segment’s allocation of the mutual fund
settlement.
Global Wealth and Investment Management
Total Revenue increased $1.9 billion, or 47 percent, in 2004. Net Interest Income increased $915 million, or 47
percent, due to growth in Deposits, loan growth and the impact of FleetBoston earning assets to the portfolio.
Noninterest Income increased $986 million, or 47 percent, driven by increased Investment and Brokerage Services
revenue primarily due to the impact of FleetBoston. Net Income increased $366 million, or 30 percent. This increase was
due to the increases in Net Interest Income and Noninterest Income offset by higher Noninterest Expense. Noninterest
Expense increased $1.3 billion, or 64 percent, related to the impact of FleetBoston and this segment’s allocation of the
mutual fund settlement.
All Other
In 2004 compared to 2003, Total Revenue decreased $339 million, or 53 percent. Net Interest Income decreased $352
million to negative $695 million primarily due to a reduction of capital in Other as more capital was deployed to the
business segments. Offsetting this decrease was a $166 million increase in total revenue associated with the change in
the fair value derivatives used as economic hedges of interest and foreign exchange rate fluctuations that do not qualify
for SFAS 133 hedge accounting. Provision for Credit Losses increased $43 million, or 14 percent. Gains on Sales of Debt
Securities increased $675 million to $1.6 billion in 2004 as we continued to reposition the ALM portfolio in response to
changes in interest rates and to manage mortgage prepayment risk. Other Noninterest Expense decreased $78 million
and included Merger and Restructuring Charges of $618 million in 2004. As a result, Net Income improved $232 million.
Total Revenue in Equity Investments increased $704 million in 2004 compared to 2003 due to an improvement in Equity
Investment Gains (Losses). Equity Investments had Net Income of $202 million in 2004 compared to a Net Loss of $246
million in 2003. In 2004, Principal Investing revenue increased as a result of increased realized gains compared to the
prior year. Noninterest Income primarily consists of Equity Investment Gains.
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