Bank of America 2007 Annual Report Download - page 101

Table II Analysis of Changes in Net Interest Income – FTE Basis
From 2006 to 2007 From 2005 to 2006
Due to Change in
(1)
Net
Change
Due to Change in
(1)
Net
Change
(Dollars in millions) Volume Rate Volume Rate
Increase (decrease) in interest income
Time deposits placed and other short-term investments
$ (102) $ 83 $ (19) $ 43 $ 131 $ 174
Federal funds sold and securities purchased under agreements to resell (873) 772 (101) 178 2,633 2,811
Trading account assets 2,187 8 2,195 526 1,143 1,669
Debt securities (2,037) 212 (1,825) 282 516 798
Loans and leases:
Residential mortgage 3,159 345 3,504 1,843 341 2,184
Credit card – domestic (806) (607) (1,413) 1,139 1,246 2,385
Credit card – foreign 404 (49) 355 1,147 – 1,147
Home equity 1,506 106 1,612 893 949 1,842
Direct/Indirect consumer 1,323 494 1,817 879 1,234 2,113
Other consumer (329) (70) (399) 46 77 123
Total consumer 5,476 9,794
Commercial – domestic 2,088 (101) 1,987 1,504 1,127 2,631
Commercial real estate 447 (42) 405 159 535 694
Commercial lease financing (20) 237 217 20 (17) 3
Commercial – foreign 70 (292) (222) 352 30 382
Total commercial 2,387 3,710
Total loans and leases 7,863 13,504
Other earning assets 1,016 115 1,131 952 443 1,395
Total interest income $ 9,244 $20,351
Increase (decrease) in interest expense
Domestic interest-bearing deposits:
Savings $ (17) $ (64) $ (81) $ (10) $ 68 $ 58
NOW and money market deposit accounts 41 397 438 (113) 1,197 1,084
Consumer CDs and IRAs 959 836 1,795 671 1,260 1,931
Negotiable CDs, public funds and other time deposits 333 158 491 195 38 233
Total domestic interest-bearing deposits 2,643 3,306
Foreign interest-bearing deposits:
Banks located in foreign countries 444 (252) 192 631 149 780
Governments and official institutions 179 47 226 169 179 348
Time, savings and other 153 399 552 145 409 554
Total foreign interest-bearing deposits 970 1,682
Total interest-bearing deposits 3,613 4,988
Federal funds purchased, securities sold under agreements to repurchase and other short-term
borrowings 679 1,456 2,135 3,021 5,204 8,225
Trading account liabilities 735 69 804 288 (12) 276
Long-term debt 2,155 170 2,325 1,464 1,152 2,616
Total interest expense 8,877 16,105
Net increase in net interest income (2) $ 367 $ 4,246
(1) The changes for each category of interest income and expense are divided between the portion of change attributable to the variance in volume and the portion of change attributable to the variance in rate for that category.
The unallocated change in rate or volume variance has been allocated between the rate and volume variances.
(2) Interest income (FTE basis) in 2006 does not include the cumulative tax charge resulting from a change in tax legislation relating to extraterritorial tax income and foreign sales corporation regimes. The FTE impact to net
interest income of this retroactive tax adjustment is a reduction of $270 million from 2005 to 2006. Management has excluded this one-time impact to provide a more comparative basis of presentation for net interest
income and net interest yield on earning assets on a FTE basis. The impact on any given future period is not expected to be material.
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