Bank of America 2011 Annual Report Download - page 3

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“What does ‘customer-focused’
mean, and what are you
doing to make it real?”
In 2010, we established a clear goal — to be the finest
financial services firm in the world in the eyes of our custom-
ers, our employees and each of you as shareholders. There
is ample evidence that we are making progress on the course
we set. Our focus and strategy are clear: We deliver to three
groups of customers and clients the leading capabilities they
need to manage their financial lives and businesses. Simply
put: We can do more for people, companies and institutional
investors than any other financial services company. And day
after day, we are proving it in the marketplace.
Our financial results for 2011 show both the progress we
have made and the challenges that remain. For the full year,
the company reported net income of $1.4 billion, or $0.01
per diluted share, compared with a net loss of $2.2 billion,
or $0.37 per diluted share, in 2010. Revenue, net of
interest expense, on an FTE basis1
, declined 15 percent
to $94.4 billion, reflecting, among other things, increased
reserves for mortgage-related matters.
Obviously, our stock price does not yet reflect the work we
are doing to strengthen capital, reduce risk and attract more
business from our customers. There are many issues
weighing not only on us, but on the entire financial services
industry. These include concerns about the global economy;
a sustained period of near-record low interest rates; the
implementation of new regulations and capital requirements;
how these new rules may affect our ability to deliver for our
customers and clients; and the time it will take to resolve
mortgage issues.
There is more work to do, but today we are better organized
to serve our customers and clients; to offer customers more
reasons to do more business with us; to earn the profits our
shareholders expect; and to contribute to economic growth in
all of the communities we serve.
Continue to build a fortress balance sheet
When we set out to transform our company two years ago,
our first urgent challenge was to strengthen our foundation —
the balance sheet. We focused on selling non-core assets,
increasing capital ratios, building liquidity and reducing risk.
“We listen to our customers and clients, learn what
their needs are, and do all we can to provide the advice,
services and products that respond to those needs.
To do that best, we want to have the broadest possible
financial relationship with our customers and clients.
Simply put: We can do more for them than anyone else,
wherever they are in their financial lives.”
1 Fully taxable-equivalent (FTE) basis is a non-GAAP financial measure. For reconciliation
to GAAP financial measures, refer to Supplemental Financial Data on page 32 and
Statistical Table XV in the 2011 Financial Review section.