Bank of America 2014 Annual Report Download - page 44

42 Bank of America 2014
Global Corporate and Global Commercial Banking
Global Corporate and Global Commercial Banking each include
Business Lending and Global Transaction Services (formerly Global
Treasury Services) activities. Business Lending includes various
lending-related products and services and related hedging
activities including commercial loans, leases, commitment
facilities, trade finance, real estate lending and asset-based
lending. Global Transaction Services includes deposits, treasury
management, credit card, foreign exchange, and short-term
investment and custody solutions to corporate and commercial
banking clients.
The table below presents a summary of Global Corporate and
Global Commercial Banking results, which exclude certain capital
markets activity in Global Banking.
Global Corporate and Global Commercial Banking
Global Corporate Banking Global Commercial Banking Total
(Dollars in millions) 2014 2013 2014 2013 2014 2013
Revenue
Business Lending $ 3,421 $ 3,432 $ 3,936 $ 3,967 $ 7,357 $ 7,399
Global Transaction Services 3,027 2,804 2,893 2,939 5,920 5,743
Total revenue, net of interest expense $ 6,448 $ 6,236 $ 6,829 $ 6,906 $13,277 $ 13,142
Balance Sheet
Average
Total loans and leases $ 129,610 $126,630 $ 140,539 $130,606 $ 270,149 $ 257,236
Total deposits 143,649 128,198 117,664 108,532 261,313 236,730
Year end
Total loans and leases $ 131,019 $130,066 $ 141,555 $139,401 $ 272,574 $ 269,467
Total deposits 130,557 144,312 120,787 120,860 251,344 265,172
Business Lending revenue in Global Corporate Banking and
Global Commercial Banking remained relatively unchanged in
2014 compared to 2013 as the impact of growth in average loan
balances was offset by spread compression.
Global Transaction Services revenue in Global Corporate
Banking increased $223 million in 2014 driven by the impact of
growth in U.S. and non-U.S. deposit balances. Global Transaction
Services revenue in Global Commercial Banking remained
relatively unchanged as the impact of higher deposit balances was
more than offset by spread compression.
Average loans and leases in Global Corporate and Global
Commercial Banking increased five percent in 2014 driven by
growth in the commercial and industrial and commercial real estate
portfolios. Average deposits in Global Corporate and Global
Commercial Banking increased 10 percent in 2014 due to client
liquidity and international growth.
Investment Banking
Client teams and product specialists underwrite and distribute
debt, equity and loan products, and provide advisory services and
tailored risk management solutions. 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. To provide a complete discussion of
our consolidated investment banking fees, the table below
presents total Corporation investment banking fees including the
portion attributable to Global Banking.
Investment Banking Fees
Global Banking Total Corporation
(Dollars in millions) 2014 2013 2014 2013
Products
Advisory $ 1,098 $ 1,019 $ 1,207 $ 1,125
Debt issuance 1,532 1,620 3,583 3,804
Equity issuance 583 595 1,490 1,472
Gross investment banking
fees 3,213 3,234 6,280 6,401
Self-led deals (91) (92) (215) (275)
Total investment banking
fees $ 3,122 $ 3,142 $ 6,065 $ 6,126
Total Corporation investment banking fees of $6.1 billion,
excluding self-led deals, included within Global Banking and Global
Markets, remained relatively unchanged in 2014 compared to
2013 as strong investment-grade underwriting and advisory fees
were offset by lower underwriting fees for other debt products.