Bank of America 2007 Annual Report Download - page 173

GCSBB is reported on a managed basis which includes a “securitization impact” adjustment which has the effect of presenting securitized loans in a
manner similar to the way loans that have not been sold are presented. All Other’s results include a corresponding “securitization offset” which removes the
impact of these securitized loans in order to present the consolidated results of the Corporation on a held basis. The tables below reconcile GCSBB and All
Other to a held basis by reclassifying net interest income, all other income and realized credit losses associated with the securitized loans to card income.
Global Consumer and Small Business Banking – Reconciliation
2007 2006 2005
(Dollars in millions)
Managed
Basis
(1)
Securitization
Impact
(2)
Held
Basis
Managed
Basis
(1)
Securitization
Impact
(2)
Held
Basis
Managed
Basis
(1)
Securitization
Impact
(2)
Held
Basis
Net interest income
(3)
$28,809 $(8,027) $20,782 $28,197 $(7,593) $20,604 $17,571 $(503) $17,068
Noninterest income:
Card income 10,189 3,356 13,545 9,374 4,566 13,940 4,512 69 4,581
Service charges 6,008 – 6,008 5,342 – 5,342 4,994 – 4,994
Mortgage banking income 1,333 – 1,333 877 – 877 1,012 – 1,012
All other income 1,343 (288) 1,055 1,136 (335) 801 330 – 330
Total noninterest income 18,873 3,068 21,941 16,729 4,231 20,960 10,848 69 10,917
Total revenue, net of interest expense 47,682 (4,959) 42,723 44,926 (3,362) 41,564 28,419 (434) 27,985
Provision for credit losses 12,929 (4,959) 7,970 8,534 (3,362) 5,172 4,706 (434) 4,272
Noninterest expense 20,060 – 20,060 18,375 – 18,375 12,757 – 12,757
Income before income taxes 14,693 – 14,693 18,017 – 18,017 10,956 – 10,956
Income tax expense
(3)
5,263 – 5,263 6,639 – 6,639 3,934 – 3,934
Net income $ 9,430 $ – $ 9,430 $11,378 $ – $11,378 $ 7,022 $ – $ 7,022
(1) Provision for credit losses represents provision for credit losses on held loans combined with realized credit losses associated with the securitized loan portfolio.
(2) The securitization impact on net interest income is on a funds transfer pricing methodology consistent with the way funding costs are allocated to the businesses.
(3) FTE basis
All Other – Reconciliation
2007 2006 2005
(Dollars in millions)
Reported
Basis
(1)
Securitization
Offset
(2)
As
Adjusted
Reported
Basis
(1)
Securitization
Offset
(2)
As
Adjusted
Reported
Basis
(1)
Securitization
Offset
(2)
As
Adjusted
Net interest income
(3)
$(7,701) $ 8,027 $ 326 $(5,930) $ 7,593 $1,663 $ 107 $503 $ 610
Noninterest income:
Card income 2,816 (3,356) (540) 3,795 (4,566) (771) 166 (69) 97
Equity investment income 3,745 – 3,745 2,872 – 2,872 2,033 – 2,033
Gains (losses) on sales of debt securities 180 – 180 (475) – (475) 969 – 969
All other income 6 288 294 98 335 433 (428) – (428)
Total noninterest income 6,747 (3,068) 3,679 6,290 (4,231) 2,059 2,740 (69) 2,671
Total revenue, net of interest expense (954) 4,959 4,005 360 3,362 3,722 2,847 434 3,281
Provision for credit losses (5,210) 4,959 (251) (3,494) 3,362 (132) (731) 434 (297)
Merger and restructuring charges 410 – 410 805 – 805 412 – 412
All other noninterest expense (20) – (20) 972 – 972 1,315 – 1,315
Income before income taxes 3,866 – 3,866 2,077 – 2,077 1,851 – 1,851
Income tax expense
(3)
947 – 947 577 – 577 374 – 374
Net income $ 2,919 $ – $2,919 $ 1,500 $ – $1,500 $1,477 $ – $1,477
(1) Provision for credit losses represents provision for credit losses in All Other combined with the GCSBB securitization offset.
(2) The securitization offset on net interest income is on a funds transfer pricing methodology consistent with the way funding costs are allocated to the businesses.
(3) FTE basis
Bank of America 2007 171