Bank of America 2006 Annual Report Download - page 148

All Other consists of equity investment activities including Principal
Investing, Corporate Investments and Strategic Investments, the residual
impact of the allowance for credit losses and the cost allocation proc-
esses, Merger and Restructuring Charges, intersegment eliminations, and
the results of certain consumer finance and commercial lending busi-
nesses that are being liquidated. All Other also includes certain amounts
associated with ALM activities, including the residual impact of funds
transfer pricing allocation methodologies, amounts associated with the
change in the value of derivatives used as economic hedges of interest
rate and foreign exchange rate fluctuations that do not qualify for SFAS
133 hedge accounting treatment, certain gains or losses on sales of
whole mortgage loans, and Gains (Losses) on Sales of Debt Securities.
Total Revenue includes Net Interest Income on a FTE basis and
Noninterest Income. The adjustment of Net Interest Income to a FTE basis
results in a corresponding increase in Income Tax Expense. The Net Inter-
est Income of the businesses includes the results of a funds transfer pric-
ing process that matches assets and liabilities with similar interest rate
sensitivity and maturity characteristics. Net Interest Income of the busi-
ness segments also includes an allocation of Net Interest Income gen-
erated by the Corporation’s ALM activities.
Certain expenses not directly attributable to a specific business
segment are allocated to the segments based on pre-determined means.
The most significant of these expenses include data processing costs,
item processing costs and certain centralized or shared functions. Data
processing costs are allocated to the segments based on equipment
usage. Item processing costs are allocated to the segments based on the
volume of items processed for each segment. The costs of certain central-
ized or shared functions are allocated based on methodologies which
reflect utilization.
The following table presents Total Revenue on a FTE basis and Net
Income in 2006, 2005 and 2004, and Total Assets at December 31,
2006 and 2005 for each business segment, as well as All Other.
Business Segments
At and for the Year Ended December 31
Total Corporation
Global Consumer and
Small Business Banking
(1, 2)
(Dollars in millions) 2006 2005 2004 2006 2005 2004
Net interest income (FTE basis) $ 35,815 $ 31,569 $28,677 $ 21,100 $ 16,898 $15,767
Noninterest income 38,432 25,354 21,005 20,591 11,425 8,958
Total revenue (FTE basis) 74,247 56,923 49,682 41,691 28,323 24,725
Provision for credit losses 5,010 4,014 2,769 5,172 4,243 3,331
Gains (losses) on sales of debt securities (443) 1,084 1,724 (1) (2) 117
Amortization of intangibles 1,755 809 664 1,511 551 441
Other noninterest expense 33,842 27,872 26,348 17,319 12,573 12,003
Income before income taxes 33,197 25,312 21,625 17,688 10,954 9,067
Income tax expense 12,064 8,847 7,678 6,517 3,933 3,300
Net income $ 21,133 $ 16,465 $13,947 $ 11,171 $ 7,021 $ 5,767
Period-end total assets $1,459,737 $1,291,803 $382,392 $331,259
Global Corporate
and Investment Banking
(1)
Global Wealth and
Investment Management
(1, 2)
(Dollars in millions) 2006 2005 2004 2006 2005 2004
Net interest income (FTE basis) $ 10,693 $ 11,156 $10,670 $ 3,881 $ 3,820 $ 2,921
Noninterest income 11,998 9,444 7,982 3,898 3,496 3,079
Total revenue (FTE basis) 22,691 20,600 18,652 7,779 7,316 6,000
Provision for credit losses (6) (291) (886) (40) (7) (22)
Gains (losses) on sales of debt securities 53 263 (10) — ——
Amortization of intangibles 164 174 152 76 79 66
Other noninterest expense 11,834 10,959 10,149 3,929 3,631 3,392
Income before income taxes 10,752 10,021 9,227 3,814 3,613 2,564
Income tax expense 3,960 3,637 3,311 1,411 1,297 932
Net income $ 6,792 $ 6,384 $ 5,916 $ 2,403 $ 2,316 $ 1,632
Period-end total assets $ 689,248 $ 633,362 $137,739 $129,232
All Other
(Dollars in millions) 2006 2005 2004
Net interest income (FTE basis) $ 141 $ (305) $ (681)
Noninterest income 1,945 989 986
Total revenue (FTE basis) 2,086 684 305
Provision for credit losses (116) 69 346
Gains (losses) on sales of debt securities (495) 823 1,617
Amortization of intangibles 4 55
Other noninterest expense 760 709 804
Income before income taxes 943 724 767
Income tax expense (benefit)
176 (20) 135
Net income $ 767 $ 744 $ 632
Period-end total assets $ 250,358 $ 197,950
(1) There were no material intersegment revenues among the segments.
(2) Total Assets include asset allocations to match liabilities (i.e., deposits).
146 Bank of America 2006