Bank of America 2013 Annual Report Download - page 273

Bank of America 2013 271
NOTE 24 Business Segment Information
The Corporation reports the results of its operations through five
business segments: Consumer & Business Banking (CBB),
Consumer Real Estate Services (CRES), Global Wealth & Investment
Management (GWIM), Global Banking and Global Markets, with the
remaining operations recorded in All Other.
Consumer & Business Banking
CBB offers a diversified range of credit, banking and investment
products and services to consumers and businesses. CBB product
offerings include traditional savings accounts, money market
savings accounts, CDs and IRAs, noninterest- and interest-bearing
checking accounts, investment accounts and products as well as
credit and debit cards in the U.S. to consumers and small
businesses. Customers and clients have access to a franchise
network that stretches coast to coast through 31 states and the
District of Columbia. The franchise network includes approximately
5,100 banking centers, 16,300 ATMs, nationwide call centers,
and online and mobile platforms. CBB also offers a wide range of
lending-related products and services, integrated working capital
management and treasury solutions through a network of offices
and client relationship teams along with various product partners
to U.S.-based companies generally with annual sales of $1 million
to $50 million. During 2013, consumer DFS results were moved
to CBB from Global Banking to align this business more closely
with the Corporation’s consumer lending activity and better serve
the needs of its customers. Prior periods were reclassified to
conform to current period presentation.
Consumer Real Estate Services
CRES provides an extensive line of consumer real estate products
and services to customers nationwide. CRES products include
fixed- and adjustable-rate first-lien mortgage loans for home
purchase and refinancing needs, HELOCs and home equity loans.
First mortgage products are generally either sold into the
secondary mortgage market to investors, while retaining MSRs
and the Bank of America customer relationships, or are held on
the balance sheet in All Other for ALM purposes. Newly originated
HELOCs and home equity loans are retained on the CRES balance
sheet. CRES services mortgage loans, including those loans it
owns, loans owned by other business segments and All Other, and
loans owned by outside investors.
The financial results of the on-balance sheet loans are reported
in the business segment that owns the loans or All Other. CRES
is not impacted by the Corporation’s first mortgage production
retention decisions as CRES is compensated for loans held for
ALM purposes on a management accounting basis, with a
corresponding offset recorded in All Other, and for servicing loans
owned by other business segments and All Other.
Global Wealth & Investment Management
GWIM provides comprehensive wealth management solutions to
a broad base of clients from emerging affluent to ultra high net-
worth. These services include investment and brokerage services,
estate and financial planning, fiduciary portfolio management,
cash and liability management, and specialty asset management.
GWIM also provides retirement and benefit plan services,
philanthropic management and asset management to individual
and institutional clients.
Global Banking
Global Banking provides a wide range of lending-related products
and services, integrated working capital management and treasury
solutions to clients, and underwriting and advisory services
through the Corporation’s network of offices and client relationship
teams. Global Banking’s lending products and services include
commercial loans, leases, commitment facilities, trade finance,
real estate lending and asset-based lending. Global Banking’s
treasury solutions business includes treasury management,
foreign exchange and short-term investing options. Global Banking
also works with clients to provide investment banking products
such as debt and equity underwriting and distribution, and merger-
related and other advisory services. The economics of most
investment banking and underwriting activities are shared primarily
between Global Banking and Global Markets based on the activities
performed by each segment. Global Banking clients generally
include middle-market companies, commercial real estate firms,
auto dealerships, not-for-profit companies, large global
corporations, financial institutions and leasing clients. During
2013, the results of consumer DFS, previously reported in Global
Banking, were moved into CBB and prior periods have been
reclassified to conform to current period presentation.
Global Markets
Global Markets offers sales and trading services, including
research, to institutional clients across fixed-income, credit,
currency, commodity and equity businesses. Global Markets
product coverage includes securities and derivative products in
both the primary and secondary markets. Global Markets provides
market-making, financing, securities clearing, settlement and
custody services globally to institutional investor clients in support
of their investing and trading activities. Global Markets also works
with commercial and corporate clients to provide risk management
products using interest rate, equity, credit, currency and commodity
derivatives, foreign exchange, fixed-income and mortgage-related
products. As a result of market-making activities in these products,
Global Markets may be required to manage risk in a broad range
of financial products including government securities, equity and
equity-linked securities, high-grade and high-yield corporate debt
securities, syndicated loans, MBS, commodities and ABS. The
economics of most investment banking and underwriting activities
are shared primarily between Global Markets and Global Banking
based on the activities performed by each segment.
All Other
All Other consists of ALM activities, equity investments, the
international consumer card business, liquidating businesses,
residual expense allocations and other. ALM activities encompass
the whole-loan residential mortgage portfolio and investment
securities, interest rate and foreign currency risk management
activities including the residual net interest income allocation,
gains/losses on structured liabilities, the impact of certain
allocation methodologies and accounting hedge ineffectiveness.
The results of certain ALM activities are allocated to the business
segments. Additionally, certain residential mortgage loans that are
managed by CRES are held in All Other.