Bank of America 2007 Annual Report Download - page 10

to be somewhat lower than in retail banking — but scores have shown a positive trend since last March.
Banking center scores finished the year at an all-time high, and overall consumer problem incidence rates
from July through the end of the year were down 13 percent.
In retail financial services, the result of a customer experience marked by convenience, innovation and service
quality is customer loyalty. Loyalty leads to a growing customer base and expanded relationships with existing
customers — just the right recipe for the organic growth that will drive our company forward in 2008 and beyond.
Global Wealth & Investment Management (GWIM)
In many respects, Global Wealth & Investment Management is one of our greatest opportunities for
growth. This business includes Premier Banking & Investments (PB&I), which serves affluent clients
through Premier Banking and Banc of America Investment Services, Inc., our brokerage; U.S. Trust,
Bank of America Private Wealth Management, which serves high-net-worth clients; and Columbia Management,
our asset management team. In each of these groups, associates’ top priority is client relationship
expansion — by working with teammates throughout GWIM and across the company.
Premier Banking serves about 850,000 clients — although more than seven million Bank of
America customers or households qualify for this higher level of service. One of the most impor-
tant investments we are making is to grow our distribution and service capabilities so that we can
continue to move qualifying customers from the mass consumer segment into PB&I.
A key measure of success in serving affluent clients is whether they choose to bring us their
investing business. At the end of 2007, about one-third of our Premier Banking clients had
investment accounts with us. That number grew at an annual rate of 14 percent in 2007, while client
balances have grown at a rate of 11 percent and self-directed brokerage assets were up 20 percent.
One of our best opportunities to expand these relationships is retirement. The demographics
are compelling: The first of the 78 million baby boomers turn 62 in 2008, and the over-69
population will increase by 55 percent by 2030. This is where the money is: $15.1 trillion in total assets and
an annual profit pool of about $35 billion. We are building our team to take advantage of this opportunity.
The biggest news in our private banking business in 2007 was the acquisition of U.S. Trust Corporation.
This acquisition creates the nation’s pre-eminent wealth management provider, U.S. Trust, Bank of America
Private Wealth Management. The group manages more than $225 billion in assets through offices in 32
states, and we’ve been expanding the team in selected cities to better serve a growing client base. The
opportunity here is large. While the group currently serves about 130,000 wealthy clients, this number
represents fewer than half of the more than 300,000 wealthy families in the Bank of America footprint.
Columbia Management’s $440 billion in assets under management supported the continued growth of
GWIM’s total assets under management to more than $640 billion, and the group was recognized with
five Lipper Awards for its mutual funds’ performance. Columbia’s investment performance contributed to
our company’s growing brand as a strong player in the wealth management industry and lent momentum
to the market share gains we made across our client segments.
Global Corporate & Investment Banking (GCIB)
Early this year, we announced the results of a strategic review of our investment banking business. This
study was conducted to determine the right mix of capabilities that will enable us to most effectively serve
8 Bank of America 2007
“We believe the best
companies have the skills,
knowledge, resources and
will to pursue multiple
paths to growth.”
A LEADING
PRIVATE BANK,
with more than
$225 billion in
assets under
management.
Insights Innovations Opportunities
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