Bank of America 2010 Annual Report Download - page 86

The table below presents certain state concentrations for the U.S. credit card portfolio on a held basis for 2010 and managed basis for December 31, 2009.
Table 30 U.S. Credit Card State Concentrations
(Dollars in millions) 2010 2009 2010 2009 2010 2009
Outstandings
Accruing Past Due
90 Days or More Net Charge-offs
December 31
Year Ended
December 31
California $17,028 $20,048 $612 $1,097 $2,752 $3,558
Florida
9,121 10,858 376 676 1,611 2,178
Texas
7,581 8,653 207 345 784 960
New York
6,862 7,839 192 295 694 855
New Jersey
4,579 5,168 132 189 452 559
Other U.S.
68,614 77,076 1,801 2,806 6,734 8,852
Total U.S. credit card portfolio $113,785 $129,642 $3,320 $5,408 $13,027 $16,962
Unused lines of credit for U.S. credit card totaled $399.7 billion at
December 31, 2010 compared to $438.5 billion at December 31, 2009
on a managed basis. The $38.8 billion decrease was driven by a combination
of account management initiatives on higher risk or inactive accounts and
tighter underwriting standards for new originations.
Non-U.S. Credit Card
Prior to the adoption of new consolidation guidance, the non-U.S. credit card
portfolio was reported on both a held and managed basis. Under the new
consolidation guidance effective January 1, 2010, we consolidated the credit
card securitization trusts and the new held basis is comparable to the
previously reported managed basis. For more information on the adoption
of the new consolidation guidance, see Note 8 – Securitizations and Other
Variable Interest Entities to the Consolidated Financial Statements.
The table below presents certain non-U.S. credit card key credit statistics
on a held basis for 2010 and managed basis for December 31, 2009.
Table 31 Non-U.S. Credit Card – Key Credit Statistics
(Dollars in millions)
December 31
2010
(1)
January 1
2010
(1)
December 31
2009
Outstandings $27,465 $31,182 $21,656
Accruing past due 30 days or more
1,354 1,744 1,104
Accruing past due 90 days or more
599 814 515
2010 2009
Net charge-offs
Amount $2,207 $1,239
Ratio
7.88% 6.30%
Supplemental managed basis data
Amount n/a $2,223
Ratio
n/a 7.43%
(1)
Balances reflect the impact of new consolidation guidance.
n/a = not applicable
The consumer non-U.S. credit card portfolio is managed in Global Card
Services. Outstandings in the non-U.S. credit card portfolio increased $5.8 bil-
lion compared to December 31, 2009 due to the adoption of the new
consolidation guidance. Additionally, net charge-off levels and ratios for
2010, when compared to 2009, were impacted by the adoption of the new
consolidation guidance. Net charge-offs increased $1.0 billion to $2.2 billion
in 2010.
Outstandings declined $3.7 billion compared to December 31, 2009 on a
managed basis primarily due to charge-offs, lower origination volume and the
strengthening of the U.S. dollar against certain foreign currencies. Net losses
were substantially flat for 2010, decreasing $16 million from managed losses
in 2009. The net loss ratio increased to 7.88 percent of total average
non-U.S. credit card compared to 7.43 percent in 2009, due to the decrease
in outstandings.
Unused lines of credit for non-U.S. credit card totaled $60.3 billion at
December 31, 2010 compared to $69.6 billion at December 31, 2009 on a
managed basis. The $9.3 billion decrease was driven by the combination of
account management initiatives on inactive accounts, tighter underwriting
standards for new originations and the strengthening of the U.S. dollar against
certain foreign currencies, particularly the British Pound and the Euro.
Direct/Indirect Consumer
At December 31, 2010, approximately 48 percent of the direct/indirect
portfolio was included in Global Commercial Banking (dealer financial serv-
ices – automotive, marine and recreational vehicle loans), 29 percent was
included in GWIM (principally other non-real estate-secured, unsecured per-
sonal loans and securities-based lending margin loans), 15 percent was
included in Global Card Services (consumer personal loans and other non-real
estate-secured loans) and the remainder was in All Other (student loans).
Outstanding loans and leases decreased $6.9 billion to $90.3 billion at
December 31, 2010 compared to December 31, 2009 as lower outstandings
in the Global Card Services unsecured consumer lending por tfolio and the
sale of a portion of the student loan portfolio were partially offset by the
adoption of new consolidation guidance, growth in securities-based lending
and the purchase of auto receivables within the dealer financial services
portfolio. Direct/indirect loans that were past due 30 days or more and still
accruing interest declined $1.1 billion compared to December 31, 2009, to
$2.6 billion due to a combination of reduced outstandings and improvement
in the unsecured consumer lending portfolio. Net charge-offs decreased
$2.1 billion to $3.3 billion in 2010, or 3.45 percent of total average di-
rect/indirect loans compared to 5.46 percent in 2009. This decrease was
primarily driven by reduced outstandings from changes in underwriting criteria
and lower levels of delinquencies and bankruptcies in the unsecured con-
sumer lending portfolio as a result of improvement in the U.S. economy
including stabilization in the levels of unemployment. An additional driver was
lower net charge-offs in the dealer financial services portfolio due to the
impact of higher credit quality originations and higher resale values. Net
charge-offs for the unsecured consumer lending portfolio decreased $1.6 bil-
lion to $2.7 billion and the net charge-off ratio decreased to 16.74 percent in
2010 compared to 17.75 percent in 2009. Net charge-offs for the dealer
financial services portfolio decreased $404 million to $487 million and the
loss rate decreased to 1.08 percent in 2010 compared to 2.16 percent in
2009.
84 Bank of America 2010