Bank of America 2010 Annual Report Download - page 54

Global Wealth & Investment Management
(Dollars in millions) 2010 2009 % Change
Net interest income
(1)
$5,831 $ 5,988 (3)%
Noninterest income:
Investment and brokerage services
8,832 8,425 5
All other income
2,008 1,724 16
Total noninterest income
10,840 10,149 7
Total revenue, net of interest expense
16,671 16,137 3
Provision for credit losses
646 1,061 (39)
Noninterest expense
13,598 12,397 10
Income before income taxes
2,427 2,679 (9)
Income tax expense
(1)
1,080 963 12
Net income $1,347 $ 1,716 (22)
Net interest yield
(1)
2.37% 2.64%
Return on average tangible shareholders’ equity
18.40 27.63
Return on average equity
7.44 10.35
Efficiency ratio
(1)
81.57 76.82
Balance Sheet
Average
Total loans and leases $99,491 $103,384 (4)%
Total earning assets
245,812 226,856 8
Total assets
266,638 249,887 7
Total dep osits
236,350 225,979 5
Allocated equity
18,098 16,582 9
Year end
Total loans and leases $101,020 $99,571 1%
Total earning assets
275,598 227,796 21
Total assets
297,301 250,963 18
Total dep osits
266,444 224,839 19
Allocated equity
18,349 17,730 3
(1)
FTE basis
GWIM consists of three primary businesses: Merrill Lynch Global Wealth
Management (MLGWM), U.S. Trust, Bank of America Private Wealth Manage-
ment (U.S. Trust) and Retirement Services.
MLGWM’s advisory business provides a high-touch client experience
through a network of approximately 15,500 financial advisors focused on
clients with more than $250,000 in total investable assets. MLGWM also
includes Merrill Edge, a new integrated investing and banking service which is
targeted at clients with less than $250,000 in total assets. Merrill Edge
provides team-based investment advice and guidance, brokerage services, a
self-directed online investing platform and key banking capabilities including
access to the Corporation’s branch network and ATMs. In addition, MLGWM
includes the Private Banking & Investments Group.
U.S. Trust, together with MLGWM’s Private Banking & Investments Group,
provides comprehensive wealth management solutions targeted at wealthy
and ultra-wealthy clients with investable assets of more than $5 million, as
well as customized solutions to meet clients’ wealth structuring, investment
management, trust and banking needs, including specialty asset manage-
ment services.
Retirement Services partners with financial advisors to provide institu-
tional and personal retirement solutions including investment management,
administration, recordkeeping and custodial services for 401(k), pension,
profit-sharing, equity award and non-qualified deferred compensation plans.
Retirement Services also provides comprehensive investment advisory ser-
vices to individuals, small to large corporations and pension plans. Included in
Retirement Services’ results is the consolidation of a collective investment
fund that did not have a significant impact on our consolidated results. For
additional information, see Note 8 – Securitizations and Other Variable Inter-
est Entities to the Consolidated Financial Statements.
GWIM results also include the BofA Global Capital Management (BACM)
business, which is comprised primarily of the cash and liquidity asset man-
agement business that Bank of America retained following the sale of the
Columbia Management long-term asset management business on May 1,
2010. The historical results of Columbia Management’s long-term asset
management business were transferred to All Other along with the Corpo-
ration’s economic ownership interest in BlackRock.
Revenue from MLGWM was $13.1 billion, up four percent in 2010 com-
pared to 2009. Revenue from U.S. Trust was $2.7 billion, up five percent in
2010 compared to 2009. Revenue from Retirement Services was $950 mil-
lion, up four percent compared to 2009.
52 Bank of America 2010