Fixed exchange rate and flexible exchange rate.pptx
Credit Suisse First Boston Financial Services Conference
1. Bank of America
The Business View
Al de Molina
Chief Financial Officer
Credit Suisse Financial Services Conference
February 10, 2006
2. Forward Looking Statements
This presentation contains forward-looking statements, including statements about the
financial conditions, results of operations and earnings outlook of Bank of America
Corporation. The forward-looking statements involve certain risks and uncertainties.
Factors that may cause actual results or earnings to differ materially from such forward-
looking statements include, among others, the following: 1) projected business increases
following process changes and other investments are lower than expected; 2) competitive
pressure among financial services companies increases significantly; 3) general economic
conditions are less favorable than expected; 4) political conditions including the threat of
future terrorist activity and related actions by the United States abroad may adversely affect
the company’s businesses and economic conditions as a whole; 5) changes in the interest
rate environment reduce interest margins and impact funding sources; 6) changes in foreign
exchange rates increases exposure; 7) changes in market rates and prices may adversely
impact the value of financial products; 8) legislation or regulatory environments,
requirements or changes adversely affect the businesses in which the company is engaged;
9) litigation liabilities, including costs, expenses, settlements and judgments, may adversely
affect the company or its businesses; and 10) decisions to downsize, sell or close units or
otherwise change the business mix of any of the company. For further information regarding
Bank of America Corporation, please read the Bank of America reports filed with the SEC
and available at www.sec.gov.
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3. Business Mix
Business Unit % of 2005 Earnings
More Predictable Less Predictable
Global Consumer & Small Business 42%
Global Wealth & Investment Management 14%
Global Treasury Services 9%
Global Business & Financial Services 20%
(excl. Global Treasury Services)
Global Capital Markets & Investment Banking 8%
(excl. Global Treasury Services)
All Other (incl. Equity Investments) 7%
85% 15%
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4. 2006 Outlook
Bank of America standalone
• Expect GDP growth of 3 – 3.5%
• Core net interest income growth of 3 - 4%
• Total revenue growth expected at low end of 6-9% long-term target range
• Minimal securities gains planned in 2006 vs. $1.1 bb in 2005
• Consumer credit stable
• Commercial credit costs normalizing
• Positive operating leverage
MBNA
• MBNA impact expected to be neutral to EPS in 2006
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5. Global Consumer & Small Business Banking (GCSB)
Revenue by Product GCSB (excluding Card Services)
Business Predictability: High
2006 Earnings Outlook: Mid-single digit growth
Card Long-term Outlook: 10%
Services
31%
Deposit
Services &
Debit
52%
Other
6%
Card Services (Bank of America only)
Consumer Business Predictability: High
Real Estate
2006 Earnings Outlook: 25% +
11%
Long-term Outlook: 10% +
Excludes impact of MBNA
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6. America’s Leading Financial Solutions Company
Serving 38 million consumer & small business households
Through…
• 5,873 banking centers
• 16,785 ATMs
• Leading online bank
In our footprint…
• 76% of U.S. population
• 80% of small businesses
• 93% of Hispanic households
• 86% of Asians
• 77% of African-Americans
• 16 of 20 fastest growing states
Bank of America stores
Excludes impact of MBNA
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7. Unparalleled Distribution and Convenience
Stores Online Banking ATMs Telephone
• 5,873 stores • Ranked #1 for • 16,785 ATMs • 700 million calls
• 29 states + D.C. customer • 70%+ of customer • 85% delight with
experience households are phone
• 600 million (Vividence)
customer visits active users representatives
annually • #1 small business • 1.1 billion
website (Gomez) transactions
• 1 billion face-to-
face teller • 59% bill pay • 155 million
transactions market share deposit
transactions
Excludes impact of MBNA
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8. Leading Product Market Share
2005 Market Share
No. 1 Retail deposits 13.2 %
No. 1 Online Banking 34.6 %
No. 1 Online Bill Pay 58.6 %
No. 1 Small Business Banking 20.8 %
No. 1 Credit Card 20.0 %
No. 1 Debit Card* 15.5 %
No. 1 Home equity (estimated) 8.0 + %
No. 5 First mortgage 3.1 %
8 *2004 Total Purchase volume, The Nilson Report
10. Diversifying Distribution
Product Sales Mix by Channel
All Other
9.6% 12.6%
14.3% 8.9% Direct Mail
7.7% 11.9% E-commerce
Banking
Stores
68.4% 66.6%
2004 2005
Excludes impact of MBNA
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11. Leveraging the Franchise to Reduce Costs
Card Sales Mix By Channel Delivery Costs per Channel
45% Direct Mail Approximately $100
70%
34% Banking Stores 50% of Direct Mail costs
20%
10% E-commerce 50% of Banking Store costs
6%
4%
11% Other
2004 2005
Excludes impact of MBNA
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12. MBNA Brings Together Superior Distribution With Products
MBNA Brings
• Best-in-class credit quality
• International presence
– Leading market positions in
Canada, UK, Ireland and Spain
• Affinity Relationships
– More than 5,000 affinity partners
worldwide
• Experienced management team
• Proven marketing skills
• Service focus
Unparalleled Distribution and Convenience
Stores Online Banking ATMs Telephone
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13. Global Wealth & Investment Management (GWIM)
Revenue by Product
Brokerage
Income Deposit
8% revenue
38%
GWIM
Asset Business Predictability: High
Management
2006 Earnings Outlook: High-single digit growth
Fees
34% Long-term Outlook: High-single digit growth
Loan
Other revenue
7% 13%
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14. Banking and Investment Services across the Wealth Spectrum
Mass Very
Affluent Wealthy
Market Wealthy
INVESTABLE
ASSETS
To $100K $100K - $3MM $3MM - $50MM $50MM
RELATIONSHIP
Consumer with Premier Banking The Private Bank The Private Bank’s
Banc of America and Investments Family Wealth
Investment Advisors Group
Services, Inc.
Mass affluent market segment represents 75% of investable assets
in the US
Bank of America has relationships with 3.5MM (or 25%) of 14MM
affluent households in its footprint
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15. Success With Affluent Customers – Premier Banking
Increasing Customers with
Dual Relationships
% of Premier Relationship Households
with Bank of America Investment Services
Relationships
28%
25%
2004 2005
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16. Columbia Management:
Driving AUM and Fund Performance
Assets Under Management
($ in billions) • 82% of the assets in Columbia
$482
$456
Management's equity, fixed income and
$452
money market funds are in the 35th
percentile or better among their peer
groups1
• 79% of active equity funds surpassed their
benchmark, based on 1-year performance
2003 2004 2005
as of 12/31/05, up from 25% in 2004 and
Asset Management Fees 13% in 2003
($ in millions)
$2,529
$2,377
$2,139
1) as measured by Lipper, based on funds with three-year annualized total
returns as of 12/31/05. Lipper Inc. is an independent mutual fund performance
monitor. Lipper ranks mutual funds’ total performance (assuming reinvestment
of distributions) against other funds having similar investment objectives and
strategies. Lipper makes no adjustment for the effect of sales loads.
2003 2004 2005
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17. Global Corporate & Investment Banking (GCIB)
GBFS (excluding Global Treasury Services)
Revenue by Product
Business Predictability: High
2006 Earnings Outlook: down mid-single digits
Long-term Outlook: 7 - 10%
Global Markets Credit
& Advisory 33%
33%
GCIB (excluding Global Treasury Services)
Business Predictability: Low
2006 Earnings Outlook: More than 25%
Long-term Outlook: 10 - 15%
Treasury Mgmt
Global Treasury Services
& Deposits
34% Business Predictability: High
2006 Earnings Outlook: less than 10%
Long-term Outlook: 7 – 10 %
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18. Competitive Advantages in Wholesale Banking
Leading Market Position, Industry Expertise and Local Delivery
• Relationships with more than 230,000 clients, including 97% of U.S. Fortune 500 companies
• Leading commercial bank in the U.S., serving one in four midsize companies
• Leading Positions and Strong Momentum in Investment banking:
– Top 5 US Rankings in:
• Syndicated Loans
• Leveraged Loans
• High Yield Debt
• Investment Grade Debt
• Private Placements
– Top 10 US Rankings in
• Asset-Backed Securities
• Equity
• M&A
• 30,000 associates worldwide
– 5,000 sales professionals
– National Market President network providing local market leadership and accountability
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19. Enhanced Business Delivery Channels
GCIB Client Coverage Client Needs & Characteristics
FULL
• Frequent Capital Markets User
Global
Global • Strategic or Restructuring Advisory Needs
Investment Banking/
Investment Banking/ • Broad Product Offering & Best Execution
GM Institutional Sales
GM Institutional Sales • Equity & Fixed Income Sales & Trading
Integrated Product Delivery
(3,000 Clients)
(3,000 Clients)
• Periodic Capital Markets User
Mid-Cap
Mid-Cap • Heavy User of Treasury Products
Corporate Banking
Corporate Banking • Opportunistic Equity and M&A
(1,100 Clients)
(1,100 Clients)
• Primarily Single Bank Debt Issuer
Global Commercial
Global Commercial • Debt Needs Growing and Structured
Banking
Banking • Heavy User of Treasury Products
(50,000 Clients)
(50,000 Clients)
• Basic Debt / Capital Needs
Business
Business • Strong Linkages to Retail Network
Banking
Banking • User of Treasury Products
(117,000 Clients)
(117,000 Clients) LIMITED
• Latin America Banking REGIONAL
International Banking
International Banking • EMEA Banking
(60,000 Clients)
(60,000 Clients) • Asia Banking
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24. Additional Disclosures
Additional disclosures to consider regarding slide 16 of this presentation
Please consider the investment objectives, risks, charges and expenses of Columbia funds carefully
before investing. Contact your financial advisor for a prospectus which contains this and other important
information about the fund. Read it carefully before you invest.
An investment in money market mutual funds is not insured or guaranteed by the Federal Deposit
Insurance Corporation or any other government agency. Although money market mutual funds seek to
preserve the value of your investment at $1.00 per share, it is possible to lose money by investing in
money market mutual funds.
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