Bank of America 2008 Annual Report Download - page 102

Table II Analysis of Changes in Net Interest Income – FTE Basis
From 2007 to 2008 From 2006 to 2007
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
$ (117) $ (70) $ (187) $ (102) $ 83 $ (19)
Federal funds sold and securities purchased under agreements to resell (1,371) (3,038) (4,409) (873) 772 (101)
Trading account assets 322 (810) (488) 2,187 8 2,195
Debt securities 3,435 (72) 3,363 (2,037) 212 (1,825)
Loans and leases:
Residential mortgage (254) (187) (441) 3,159 345 3,504
Home equity 2,720 (2,513) 207 1,507 106 1,613
Discontinued real estate n/a n/a 858 n/a n/a n/a
Credit card – domestic 677 (1,059) (382) (806) (607) (1,413)
Credit card – foreign 506 34 540 404 (49) 355
Direct/Indirect consumer 1,070 (138) 932 1,325 492 1,817
Other consumer (59) (9) (68) (315) (85) (400)
Total consumer 1,646 5,476
Commercial – domestic 2,886 (4,068) (1,182) 2,088 (101) 1,987
Commercial real estate 1,482 (1,570) (88) 447 (42) 405
Commercial lease financing 110 (523) (413) (20) 237 217
Commercial – foreign 472 (421) 51 70 (292) (222)
Total commercial (1,632) 2,387
Total loans and leases 14 7,863
Other earning assets (156) (312) (468) 1,016 115 1,131
Total interest income $ (2,175) $ 9,244
Increase (decrease) in interest expense
Domestic interest-bearing deposits:
Savings $ (1) $ 43 $ 42 $ (17) $ (64) $ (81)
NOW and money market deposit accounts 942 (1,522) (580) 41 397 438
Consumer CDs and IRAs 1,684 (2,097) (413) 959 836 1,795
Negotiable CDs, public funds and other time deposits 555 (453) 102 333 158 491
Total domestic interest-bearing deposits (849) 2,643
Foreign interest-bearing deposits:
Banks located in foreign countries (261) (850) (1,111) 444 (252) 192
Governments and official institutions (174) (327) (501) 179 47 226
Time, savings and other 323 (705) (382) 153 399 552
Total foreign interest-bearing deposits (1,994) 970
Total interest-bearing deposits (2,843) 3,613
Federal funds purchased, securities sold under agreements to repurchase and other short-
term borrowings 1,593 (11,198) (9,605) 682 1,448 2,130
Trading account liabilities (313) (357) (670) 735 69 804
Long-term debt 3,382 (2,803) 579 2,155 170 2,325
Total interest expense (12,539) 8,872
Net increase in net interest income (2) $ 10,364 $ 372
(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 2006 to 2007. 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.
n/a = not applicable
100 Bank of America 2008