Bank of America 2005 Annual Report Download - page 6

We also consider our long-term view of the changing
marketplace; the competitive landscape; whether the
company represents a good fit with our business model,
brand and culture; and the benefits that we believe will
accrue to our customers and shareholders over time.
It is in the context of all these criteria that we make an
acquisition decision, and our track record over the past five
years demonstrates both selectiveness and discipline in our
decision-making process.
While all acquisitions include elements of risk, our
company has demonstrated our ability to execute effective,
efficient and profitable merger transitions. We proved this
point in the Fleet transition, which we executed on time
and with greater expense savings and revenue gains than
we originally forecast. I expect nothing less in the MBNA
transition. And I am confident that we will take advantage
of the growth potential our new teammates and customers
from MBNA bring to our company.
Growing with our customers. In December 2000 I told
investors, “We are changing the basic thrust of our company
from acquisition- and expense-driven to a more customer-
focused, revenue-driven organization.” It would be easy to
assume after our acquisitions of Fleet and MBNA that I
have changed my position.
I have not.
Bank of America has the vision, the skills and the
financial wherewithal to pursue growth opportunities when
and where we find them. That fact does not lessen our
commitment to attracting, retaining and deepening our
customer relationships. In fact, I believe there are three
characteristics that give us a particular advantage with
customers and prospects: operational excellence, scale and
scope, and innovation.
Achieving operational excellence has been a top priority
for years, and it is most evident in our pursuit of process
excellence through our use of Six Sigma tools. Since we
adopted Six Sigma as a core operating discipline four years
ago, we have achieved billions of dollars in savings and rev-
enue growth, shortened cycle times, reduced error rates and
improved associate performance throughout the company.
Scale and scope, in addition to creating efficiencies for
investors, create a huge advantage with customers. Our
nationwide franchise and unmatched distribution platform
enable individuals and companies to do business with us
when, where and how they choose. It also means that more
customers and clients can keep their relationship with us
intact even when they move their home or business.
It is a truism in business that real growth requires new
Revenue
(Fully taxable-equivalent basis)
(in billions)
Net Income
(in billions)
Earnings per
Common Share
(Diluted)
Return on Average
Tangible Common
Shareholders’ Equity
(Fully taxable-equivalent basis)
$38.5
$49.7
’03 ’04 ’05
$56.9
’03 ’04 ’05 ’03 ’04 ’05 ’03 ’04 ’05
$10.8
$13.9
$16.5
$3.55
$3.64
$4.04
29.20%
32.59%
34.03%
Bank of America 2005 5