Bank of America Corporation (BAC) 2010年年度報告「NYSE」.pdf

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1、 Retirement Planning Checking Commercial Banking IPO2010 Annual ReportOpportunities are everywhereWe built Bank of America to meet the full range of financial needs for people,businesses and institutional investors;to attract the best employees to serve our customers and clients;to support the commu

2、nities where we do business;and to create long-term value for our shareholders.Todays Bank of America is a financial services leader serving customers and clients worldwide.We help them to see and act on opportunities to achieve their goals by delivering value,convenience,expertise and innovation.1D

3、earShareholders,Opportunity Seized:Bank of America has the best franchise in the industry with number one or two positions in the business segments in which we compete and the largest customer and client base in our industry.DearShareholders,Our work in 2010 was focused on two key goals:first,rebala

4、ncing and realigning our company so we can serve our customers and clients with the broadest and best financial services in the industry;and second,strengthening our balance sheet and capital position to create the right conditions for growth in long-term shareholder value.This work is well underway

5、,and we are making significant progress.As a result,we are a much stronger company today than we were a year ago.We have a vision for our company,a strategy to achieve that vision and well-defined operating principles to help guide our work as we pursue our goals.These are important to understanding

6、 how we intend to operate the company,serve customers and clients,and return value to shareholders.Our Vision and StrategyOur vision is for Bank of America to be the worlds finest financial services company.We think that this is an appropriate and achievable goal.I firmly believe that we have all th

7、e businesses and capabilities in place to meet the core financial needs of customers and clients more effectively than any other company.Our success in realizing this vision will be measured by our customers,by our own employees and by you,the shareholder.Well know we are succeeding when our custome

8、rs choose to bring us more of their business,and make us their primary financial institution;when employees choose to build their careers here,because they can achieve anything they set out to do;and when shareholders realize the long-term value this franchise can deliver.That means solid returns on

9、 equity and assets,steady growth in tangible book value per share,attractive total shareholder returns,and consistent performance through economic cycles.Opportunity Seized:Bank of America has the best franchise in the industry with number one or two positions in the business segments in which we co

10、mpete and the largest customer and client base in our industry.2To pursue our vision,we have laid out a clear strategy.We emerged from the economic downturn as a global financial services company with leading positions in all our major businesses.We serve one in two households in the U.S.and operate

11、 in more than 40 countries,with nearly 300,000 employees around the world.Despite our global scale and reach,our strategy is relatively straightforward.We serve three customer groups:people,businesses of all sizes,and institutional investors.For each of these groups,we provide core financial service

12、s.We serve people with a range of financial services,from secured and unsecured lending,to deposit,checking and savings accounts.We serve parents who want to help their children open their first savings accounts,young people graduating from school and setting up checking and retire-ment accounts,and

13、 the wealthiest families in the world with complex multigenerational wealth management needs.We help companies of all sizes grow by helping them transact,manage their cash,access the debt and equity markets,and manage the risk of currency and interest rate fluctuations.We provide strategic advice fo

14、r transactions such as public offerings,and mergers and acquisitions.Our institutional investor clients rely on our research to identify opportunities to invest wisely and confidently.We help them execute their transactions and connect them with the global financial markets through our sales and tra

15、ding technology.No other financial services company has assembled this breadth of capabilities for all of the customer groups we serve.And,our capabilities are at or near the top of the industry in every core financial product and service we offer.We provide the full range of these financial service

16、s for all three customer groups in the United States.Outside the U.S.,we deliver corporate and investment banking,global markets and wealth management services to business clients,institutional investors and wealthy individuals.Our Card Services business also serves customers in Canada,Ireland,the U

17、.K.and Spain.We run the franchise for every customer in full,delivering all of the services they may have traditionally sought separately from a retail bank,a commercial bank,an investment bank,Customers have many valuable choices for how to bank with us a great base for building any relationship.By

18、 attracting new customers and more business from existing customers,our deposit balances continue to grow,topping$1 trillion at the end of 2010.Brian T.Moynihan,Chief Executive OfficerBank of America Operating PrinciplesWearecustomer-driven Wearebuildingandwillmaintainafortressbalance sheet Wearepur

19、suingoperationalexcellencein both efficiency and risk management Wewilldeliveronourshareholderreturnmodel Wewillcontinuetocleanupourlegacyissues Wewillbethebestplaceforpeopletowork3100908$73,976$120,944$111,390100908$177,052$231,444$228,2481009084.80%7.81%8.60%Synergies provide big opportunities.In

20、the past year,our wealth managers referred thousands of clients to our commercial and global bankers and vice versa.With the launch of Merrill Edge,we can help turn millions of bank customers into early wealth management clients.a wealth management firm,a brokerage or a private bank.We serve them on

21、 an integrated,customer-focused basis.Thats our strategy.Deliver leading core financial products and services to these three groups of customers.Do that repeatedly,leave nothing to chance,develop broad,deep,long-term,profitable relationships,and deliver long-term value to you.Operating Principles to

22、 Move Us ForwardSo,we have a vision and a strategy.To execute our strategy we have outlined six operating principles that will help guide our activities and focus our resources.Be a customer-driven company What does it mean to be a“customer-driven company”?It simply means this:We are making business

23、 decisions by listening to our customers and responding to their needs and preferences.Retail customers have told us that they want,and will pay for,value they can see and understand.They value clarity,choice and a healthy sense of security and control in their banking services.We have taken a numbe

24、r of important steps to help customers take control.We eliminated overdraft fees for debit cards at the point of sale.We created Clarity Commitment state-ments that spell out in plain English key benefits and obligations of certain products.We offer deposit-image ATMs,and online and mobile banking t

25、echnologies to provide customers with more detailed and timely information.Our new Merrill Edge account enables customers to manage their banking and investing activities through an integrated platform.And we have developed employee incentive,reward and recognition programs that align with our custo

26、mer experience goals.These are important steps as we build a consumer business driven by profitable relation-ships.Some of these actions have cost us revenue in the short term.But we also are working to mitigate revenue losses,whether due to our own decisions or regulatory and legislative changes.An

27、d,we are seeing immediate improvements in customer satisfaction,problem resolution and willingness to broaden and deepen relationships.In serving businesses from our millions of small business customers to our largest corporate clients the idea is the same:We believe we can create more value by purs

28、uing broad,deep and long-lasting relationships.One very promising area involves our work to integrate the way we deliver wealth management products and services with the work we do for commercial,corporate and investment banking clients.Many of our business clients need employee benefits management,

29、for example,or access to global capital markets and wealth management solutions.These efforts are paying off.Clients consistently tell me how much more they know we can do for them than our competitors.As a result,they are giving us more opportunities,and we are seeing a steady increase in successfu

30、l customer referrals across our major lines of business.In focusing on expanding relationships,we exited several businesses that were not driven by the core financial needs of our customers and clients.Overall,we divested assets valued at more than$20 billion,strengthening our capital and liquidity

31、position and allowing us to sharpen our focus on serving customers.Total Net RevenueIn millions,full-year ended,FTE basisTotal Shareholders EquityIn millions,at year end Tier 1 Common Equity RatioAt year end Synergies provide big opportunities.In the past year,our wealth managers referred thousands

32、of clients to our commercial and global bankers and vice versa.With the launch of Merrill Edge,we can help turn millions of bank customers into early wealth management clients.4100908$931,446$900,128$940,440100908$523,159$749,851$643,955100908$1,817,943$2,230,232$2,264,909100908$882,997$991,611$1,01

33、0,430Build a fortress balance sheet Maintaining a fortress balance sheet through economic cycles entails strong liquidity and credit reserve positions,good asset quality,sufficient capital and a diverse mix of core businesses.We have been improving in all these areas.Although we held assets relative

34、ly flat last year,we significantly reduced risk-weighted assets while also taking down long-term debt,growing deposits and strengthening global excess liquidity to more than$336 billion.Most important,we improved tangible common equity by more than 10 percent to more than$130 billion,and also signif

35、icantly improved our loan loss coverage ratios.A key goal is to strengthen our capital base to meet new regulatory requirements without having to issue additional shares through the next economic cycle.Basel III rules as currently proposed will require a common equity Tier 1 ratio of at least 7 perc

36、ent by 2019,a threshold we are confident we will exceed.Pursue operational excellence and manage risk well An important element in our strategy is achieving operational excellence throughout the organization.This is where the oppor-tunity to build deeper relationships begins.Getting it right for cus

37、tomers every time is how we build customer loyalty.With merger transition work largely completed,we now are free to focus resources on driving operational excellence for our customers by upgrading tech-nology,increasing training and improving effectiveness and efficiency in all the companys core fun

38、ctions.Operational excellence in risk management is especially important,as we continue to build on our work to institute new,rigorous risk management controls and procedures through-out the organization.In combination with the improving economy,this work is contributing to our improving credit qual

39、ity results.Deliver on our shareholder return model Our shareholder return model is not complicated but it requires consistent and disciplined execution.It begins with the fortress balance sheet.The next steps are achieving reasonable and sustainable revenue growth from our core consumer businesses

40、in the U.S.;faster growth in our corporate and investment banking and wealth management businesses in the U.S.and internationally;and tight expense control.We believe that consistently executing these steps will lead to less volatile earnings per share growth and steady capital generation.The end re

41、sult,we believe,will be attractive growth in tangible book value per share and support for a higher multiple for the stock.We also believe that the implementation of this model will enable us to put in place a prudent capital management strategy in the near future that,pending regulatory approvals,i

42、ncludes a higher dividend and stock repurchases.Clean up legacy issues related to the economic downturn,primarily in the mortgage business The recession took a great toll on millions of families.While growth has returned,we continue to work through issues related to the downturn primarily delinquent

43、 mortgages.We are making progress.Bank of America(including Countrywide prior to the acquisition)has completed nearly 775,000 mortgage modifications since January of 2008 to help customers remain in their homes.We reached agreements at the end of last year with Freddie Mac and Fannie Mae to resolve

44、many of their repurchase claims on mortgages originated by Countrywide before we acquired Total Loans and LeasesIn millions,at year endAssets Under Management In millions,at year end Total AssetsIn millions,at year end Total DepositsIn millions,at year end In 2010,approximately 281,000 loan and depo

45、sit products were sold to customers who had an investment relationship with Merrill Lynch.Bank of America provided$92 billion in credit to small-and medium-sized businesses in 2010,exceeding our previously announced goal by more than 6 percent.5*Fully taxable-equivalent basis100908$2,263$5,551$5,520

46、$17,625$17,303$(6,882)100908$17,625$17,3031009082.93%5.56%5.99%100908$2,263$5,551$5,520$17,625$17,303$(6,882)100908$17,625$17,3031009082.93%5.56%5.99%that company.We continue to work toward an appropriate resolution of repurchase claims held by private investors and monoline insurers.It is important

47、 to the economic recovery that the housing market stabilizes.That will require moving through the modification and foreclosure process quickly but carefully.We took an important step in this direction in creating a new Legacy Asset Servicing group,which includes responsibility for residential mortga

48、ge repurchase claims and management of default servicing.This change will clear the way for leaders in our Home Loans business to focus on building the leading mortgage origination business in the country.In addition to mitigating mortgage issues,we also reduced certain capital markets risk expo-sur

49、es that were originated prior to the downturn to$23 billion in 2010.Be the best place for people to work We want to be the best place for our teammates to achieve their professional goals,while helping build the worlds finest financial services company for our customers and shareholders.To meet this

50、 goal,we are aligning our training,reward and recognition programs to our customer strategy.We made changes to our benefits programs to make health care cover-age more affordable for most of our employees;and,we continued to strengthen our leading diversity and inclusion programs to ensure that ever

51、y member of our team can achieve his or her potential.We also conducted a company-wide employee survey(95 percent of our employees participated)that led to valuable feedback about what we can do to build an even more engaging workplace.Focused on the FutureOur 2010 results show that,while we have ma

52、de progress in strengthening the balance sheet and focusing our capital to support core capabilities for customers,the overhang of issues related to recent acquisitions and regulatory changes remained significant.Excluding two non-cash,non-tax deductible goodwill impairment charges,we earned$10.2 bi

53、llion for the full year.Including these charges,we posted a net loss of$2.2 billion.Even so,the underlying results show the strength and promise of the company.Credit costs fell,resulting in a reduction of provision expense to$28.4 billion from$48.6 billion in 2009.Deposit balances reached a record$

54、1 trillion at the end of the year,showing that customers continue to see our company as a trusted and stable partner.And referrals among our businesses are increasing,demonstrating the power of our relationship-based,customer-centered strategy.As I wrote above,our company is much stronger today than

55、 it was a year ago,as we made tough decisions in 2010 aimed at putting issues related to the recession behind us.We have the number one or number two market position in almost every business in which we choose to compete.We serve millions of consumers,businesses and institutional investors,each of w

56、hich provides an opportunity for us to expand our relationship with them.We are leaving nothing to chance in our efforts to pursue these opportunities.For your additional information,we have posted presentations from a recent all-day investor conference in New York at which members of our management

57、 team and I discussed in detail the items Ive outlined here.I encourage you to view the presentations in the investor section of our public website at http:/.Investment Banking Income In millions,full-year endedSales and Trading Revenue*In millions,full-year ended*Fully taxable-equivalent basisTangi

58、ble Common Equity RatioAt year end In 2010,Bank of America Merrill Lynch achieved the No.1 position in the United States for investment banking revenues and maintained its No.2 global ranking(source:Dealogic).Bank of America Merrill Lynch participated in eight of the top 10 investment banking deals

59、of the year by fees.6As we build on the foundation we have laid,I want to thank our employees for their tremendous focus and effort over the past year;our customers and clients for giving us the opportunity to serve their needs;and our shareholders for your continued faith in the bright future of ou

60、r company.We are guided by our vision,have a strategy to pursue it,and operating principles to keep us focused and to guide our growth.I welcome your feedback as we proceed.Brian T.Moynihan Chief Executive Officer March 15,2011 To Our Shareholders,2010 was a rebuilding year for our company.Brian Moy

61、nihan and our management team accomplished a great deal,from implementing a new customer-focused business strategy,to strengthening our capital position,to working through issues related to the economic downturn.The board worked closely with Brian and the team on a range of issues,including the impl

62、ementation of the companys new risk management process and manage-ments thoughtful and aggressive plans to put matters resulting from the mortgage crisis behind us.Together,we also focused on ensuring productive interactions with regulators and elected officials.I would like to note the retirement f

63、rom our board of my predecessor as chairman,Walter Massey.Walter retired last spring after 17 years on the board,and one year as chairman.He guided the board with a steady hand during a challenging period for the company.Walter has our best wishes for the future,and my personal appre-ciation for the

64、 skill with which he discharged his responsibilities.With leading positions in the major markets in which we compete,I see boundless opportunities for Bank of America to grow and prosper.I believe we are on the right path,and that we have a CEO and management team with a vision and strategy that is

65、appropriate and achievable.Charles O.Holliday Chairman of the Board of Directors March 15,2011Executive Management TeamBrian Moynihan Chief Executive OfficerCatherine Bessant Global Technology and Operations ExecutiveDavid Darnell President,Global Commercial BankingBarbara Desoer President,Bank of A

66、merica Home Loans and InsuranceAnne Finucane Global Strategy and Marketing OfficerSallie Krawcheck President,Global Wealth and Investment ManagementTerrence Laughlin Legacy Asset Servicing ExecutiveThomas Montag President,Global Banking and MarketsCharles Noski Executive Vice President and Chief Fin

67、ancial OfficerEdward OKeefe General CounselJoe Price President,Consumer and Small Business BankingAndrea Smith Global Head of Human ResourcesBruce Thompson Chief Risk Officer Were working to keep families in their homes.Since the start of 2008,Bank of America and previously Countrywide have complete

68、d nearly 775,000 loan modifications with customers.In 2010,Bank of America extended nearly$685 billion in credit to businesses around the world,helping fuel the economic recovery.Opportunities are everywhere.At Bank of America,our strength comes from the relationships we have and building on them to

69、 create opportunities for our customers at every point in their financial lives.We are confident that no competitor can match our ability to deliver our suite of products,services and solutions.For our company and our shareholders,focusing on what our customers need and building our teams and capabi

70、lities around them is the key to long-term growth.The promise is compelling,and the results are real.8At Bank of America,were leading the industry toward a better way of banking and wealth management.To help our customers and clients meet their financial goals,were responding to their needs and buil

71、ding deeper relationships.We do this by offering clear and straight forward banking that provides greater choice and control,services and products they value,personalized advice,a quality service experience,unmatched accessibility,and world-class technology that is reliable and secure.Text Banking M

72、yAccess Checking Home Equity Credit Line Personal Loan Auto LoanToday,we serve one out of every two U.S.households.Were doing more than ever to listen to our customers and clients to understand their needs and enable them to do business with us wherever,whenever and however they choose.It all starts

73、 with being the best at what we do.We offer an industry-leading range of banking products,including debit cards,checking account and savings account options,access to simple and affordable unsecured debt and credit card financing,and a full range of responsible home financing options.Our solutions i

74、nclude products and services for customers wherever they are in their financial life cycle.From customers just beginning a banking relationship to those with more sophisticated banking needs,we can bring the full capability of Bank of America to their doorstep.Our customers benefit from access to th

75、e largest ATM network in the country,including more deposit-image ATMs than any other bank,and more than 5,800 banking centers with friendly,knowledgeable employees who are active in their communities.Weve created many of the most advanced features in banking,including our award-winning online and m

76、obile banking capabilities,and top-ranking online security and account fraud protection guarantees.At Bank of America,our goal is to deliver the right solutions as customers need them,provide quality service at a fair price,and reward customers with increasing value as they expand their relationship

77、s with us.9Right Start College senior Patrick Brescia(above)is balancing a major in communications,volunteering with the campus police department,and a new internship.He wants a bank that works as hard as he does and helps make meeting his financial goals easy,including staying on budget and buildin

78、g a strong credit history.He relies on tools from Bank of America,including Keep the Change,online bill pay and mobile banking to manage his accounts with confidence and help him save for his future.Technology and convenience are also important for busy mom Jenn Wylie(above),who has her hands full w

79、ith a growing home business and three kids growing just as fast.One of her favorite time-saving tips Bank of Americas award-winning online banking website.Jenn chooses to bank from home,and loves the convenience of accessing her accounts online to check balances,pay bills and transfer funds whenever

80、 she wants.With 24/7 account access,and debits and deposits that show up immediately,Jenn feels in control of her familys finances with time to spare.Home Mortgage Keep the Change BankAmericard CDsOnline and Mobile Banking10Growth Track For more than a decade,Dennis Dayman(above)has trusted Bank of

81、America with his banking needs.When he was ready to take the next step in securing his familys financial future,he looked to Merrill Edge to help him move closer to reaching his familys goals,which include paying for his twin sons college tuition and living comfortably in retirement.With the help of

82、 a Merrill Edge Financial Solutions Advisor,Dennis established two 529-college savings plans and an individual retirement account,which he can access,along with Bank of America checking and savings accounts,through a single online view.Easy access to their comprehensive portfolio and financial guida

83、nce help give Dennis and his family the control they need to feel confident about their financial future.Merrill Edge Cash Management Account College Savings Preparing for RetirementLong View When he needed help developing a wealth strategy after the sale of his business,David Bessey(above)looked to

84、 his Merrill Lynch Financial Advisor for guidance.Understanding that David had complex wealth preservation and estate planning needs,the Financial Advisor tapped U.S.Trusts considerable resources and expertise.Together,the Financial Advisor and U.S.Trust Private Client Advisor worked with David to c

85、reate a strategy to help secure his familys future.The Merrill Lynch-U.S.Trust partnership,supported by a dedicated port-folio manager,wealth strategist and trust officer,is key to helping David move closer to his wealth management goals.For individuals with more complex wealth management needs,we b

86、elieve there are no better partners than Merrill Lynch and U.S.Trust.Thats because our client relationships are built one at a time and each begins with listening.We separate ourselves from our competitors through the quality of our relationships,the skills and advice of our people,and the strength

87、of our wealth management capabilities and solutions.We define our success by enabling our clients to realize their personal aspirations.Our products,services and advice are designed to provide a path to their wealth management goals.Whether its investing in the post-recession market,man-aging risk w

88、ithin a portfolio,transferring wealth to the next generation,or planning an exciting life after retirement,our advisors are well-positioned to deliver the widest range of capabilities to clients.Our wealth management services include banking,investing,retirement,philanthropy and trusts,and internati

89、onal offerings with access to a number of global equity exchanges backed by award-winning research,innovative thought leadership and a comprehensive,solutions-based investment platform.We draw upon the strengths of our 20,000-plus client-facing professionals at Merrill Lynch and U.S.Trust to serve t

90、he needs of our clients and their fami-lies from recent college graduates learning about the importance of saving,to clients reaching their peak earning years,to ultra high net worth families with complex private banking needs.We provide our services in the way they want to receive them.For example,

91、our newest offering,Merrill Edge,is suited for self-directed investors or individuals who want team-based financial guidance including the vast number of our traditional banking customers.And when wealth management needs become more com-plex,our Merrill Lynch and U.S.Trust advisors are among the bes

92、t in the business ready to offer their advice and expertise.Wealth Management Investment Management&Advice Wealth Structuring Estate Planning&Philanthropy1112From business checking and business loans,to employee retirement planning,to access to capital markets worldwide,theres nothing growing compan

93、ies cant find through Bank of America.This gives us a significant opportunity to deepen relationships among the hundreds of thousands of companies we already serve,including small businesses,mid-sized companies,and some of the largest multi-national corporations in the world.Business Advantage Check

94、ing Business Card Easy Online PayrollEven small businesses want big ideas,and no one can deliver like Bank of America.We serve nearly four million small-business customers 12 percent of U.S.small businesses more than any other bank.By supporting the unique needs of small businesses,the backbone of t

95、he U.S.economy,were helping fuel economic stability and job growth across our communities.Our commitment to small-and medium-sized businesses is strong.In 2010,we extended$92 billion of credit to companies with less than$50 million in revenues.Weve also pledged to increase our own spending with smal

96、l-and medium-sized companies by$10 billion over the next five years,because many small businesses told us their biggest challenge is not access to credit,but lack of demand for their products and services.And weve funded grants and launched partnerships with nonprofit lenders to help them deploy cap

97、ital in underserved com-munities.In the coming years,we intend to take our commitment even further,including hiring more than 1,000 small business bankers.Based in communities across the United States,these bankers will consult with small-business owners,spend time at their offices and assess their

98、companies deposit,credit and cash management needs.13Giant Step For 13 years,Virgo Medical Services has been providing safe and convenient medical transportation across Northern New Jersey,and Bank of America is proud to help.In 2010,Virgo President Ahmed Hassan(above)approached his dedicated Bank o

99、f America client manager in our Client Development Group for new financing to support their growth.The funding was essential to help them execute a new multimillion dollar contract with the Department of Veterans Affairs to transport veterans to medical and physical therapy appointments.We responded

100、 with financing solutions to meet all of their needs,including new lines of credit to provide liquidity and vehicle financing,a commercial Visa to improve management of daily expenses,and group banking for Virgos employees.With the new liquidity,Virgo added a registered nurse and medical director to

101、 their staff and dozens of new EMT-certified drivers and ambulances to their fleet,including their first critical care ambulance for emergency services.Online Banking with Quickbooks Business Advice Remote DepositSmall BusinessLending14Good Move Bradford Hills family has worked at the base of one of

102、 Americas greatest icons since 1931,operating the concessions at the Statue of Liberty.When the National Park Service announced that it was combining the concession contracts for Liberty Island and Ellis Island,Brad(above)found himself competing with the nations largest food-service companies for th

103、e contract.Brad reached out to his longtime Merrill Lynch Financial Advisor for advice,who quickly assembled a team of Bank of America commercial bank-ers to develop a plan that would keep the Hill family business alive.With guidance from his Financial Advisor and a construction loan and line of cre

104、dit from Bank of America Merrill Lynch,Brads ambitious proposal to replace two cramped Liberty Island shops with a 6,400-square-foot retail pavilion became a reality.Credit Treasury Management Liquidity SolutionsBusinessExpansion Financing15When small businesses become larger and need more sophistic

105、ated products,services and advice,our commercial banking team delivers tailored solutions that meet those changing needs.A robust referral partnership between our small business bankers and our commercial banking experts ensures that smaller businesses experiencing more complex credit and treasury n

106、eeds can get the advice and more sophisticated solutions they require.Our more than 7,000 commercial banking professionals serve 198,000 companies with revenues generally between$1 million and$2 billion.As part of our unique client coverage model,our commercial client teams partner with product expe

107、rts from across the bank to seamlessly deliver integrated solutions ranging from credit,treasury and liquidity to capital markets and investment banking,as well as wealth management and retirement services.As we put this coverage model to work for our clients,were finding ample opportunities to deep

108、en our relationships with them and better serve their needs.For example,last year our commercial banking team received more than 6,400 referrals from our wealth management advisors,and in turn they referred more than 5,100 opportunities with commercial clients to our wealth management experts.Our co

109、mmercial bankers have an equally robust partnership with professionals in our Global Banking&Markets organization,which enables our commercial clients to take advantage of our expertise in investment banking,capital markets,municipal finance,derivatives and foreign exchange,among many other products

110、 and services.Our No.1 goal is to deepen relationships with our clients.The best way to do that is to leverage every resource that our company has to offer.Wealth Management Foreign Exchange Capital Markets16For large corporate clients,were a leader in supporting growth and executing critical transa

111、ctions globally.From M&A advice,launching IPOs and raising debt and equity capital,to providing comprehensive treasury solutions we help businesses through each growth phase.But we know that truly valuable banking relationships go beyond supporting major deals.At Bank of America Merrill Lynch,we und

112、er-stand that its the day-to-day,ongoing partnerships with our clients that lead to mutual success and a better future.Clients value our commitment to building long-standing relationships focused on understanding their strategic needs and creating opportunities and solutions.We deepen our client rel

113、ationships by deliver-ing a full suite of solutions when and how they need them,in more than 150 countries.As a result,our clients view us as more than their“big deal banker”were also their“everyday banker.”At Bank of America Merrill Lynch our work knows no borders,as we are able to leverage our glo

114、bal footprint across products,sectors and geographies to help large corporations succeed wherever they do business,in ways that few of our competitors can.Our Global Capital Markets and Global Corporate&Investment Banking professionals work in close coordination to advise on,structure and underwrite

115、 capital-raising transactions in the equity and debt capital markets on behalf of issuer clients globally.In 2010,we helped thousands of companies raise more than$684 billion of capital around the world,enabling them to grow their businesses and achieve their goals.Increasingly,were helping companie

116、s in places like Brazil,Russia,India and China emerging markets that are transforming into growth markets.We share our clients vision in that these areas represent some of the greatest opportunities now and in years to come.As more of our clients expand their inter-national presence,were right there

117、 with them,utilizing a measured,strategic approach to ensuring we have the right infrastructure and systems in place to help them navigate often complex market conditions.Our commitment is for the long term whether its in Indianapolis or Istanbul,well be there to meet all of our clients needs.Corpor

118、ate Banking Treasury Solutions Leasing M&A Advisory Investment Banking17Big Deal To support the continued global expansion of the Volkswagen Group,Chief Financial Officer Hans Dieter Ptsch(above)worked with the capital markets experts at Bank of America Merrill Lynch.With the teams knowledge and gui

119、dance,the worlds No.3 car-maker raised 4.1 billion in one of the industrys biggest capital increases ever.The transaction enhanced Volkswagens balance sheet and secured funding for the planned creation of an integrated automotive group with Porsche two key initiatives to becoming the most successful

120、 auto-motive company globally by 2018.Despite the challenging economy,Volkswagen has continued to invest in growth including the creation of 2,000 direct and about 10,000 indirect jobs in the U.S.via a new plant in Chattanooga,Tennessee to support its expansion in the region.The Volkswagen Group has

121、 emerged from the global economic downturn stronger than ever before:in 2010,it delivered 7.2 million vehicles to its customers,a new company record.Equity&Debt Capital Raising Corporate Finance&Restructuring Financial Sponsors Derivatives&Foreign Exchange18Street Smart MFS Investment Management inv

122、ented the open-end mutual fund in 1924.Today,MFS is a global investment firm managing more than$224 billion across all major asset classes,and serving millions of individuals and hundreds of institutions in more than 70 countries.One thing that has not changed in MFS 86-year history is its emphasis

123、on rigorous research.Chief Investment Officer Michael Roberge(above)relies on BofA Merrill Lynch Global Research to play a part in providing MFS with insightful,objective and decisive research,helping him and other investment professionals at MFS package their best ideas into client portfolios.As MF

124、S continues to grow its global platform,Bank of America Merrill Lynch stands ready as a steadfast partner to provide it with innovative liquidity solutions and advisory services.Prime Brokerage Futures&Options CommoditiesGlobal Research19For the worlds leading institutions and asset managers,the ove

125、rriding goal is performance and few partners are as able to help them as Bank of America Merrill Lynch.Weve created one of the worlds best research and strategic advisory platforms as well as one of the premier sales and trading organizations,bringing global intelligence,insight and ideas to our cli

126、ents.We believe this makes us a vital partner for institutional investors,for whom driving returns and managing risk are more challenging than ever.Whether a pension plan is looking to help fund future benefits;a mutual fund manager is seeking to out-perform a benchmark and deliver solid returns for

127、 investors;or a hedge fund wants the most efficient financing and services our institutional clients turn to us for guidance in navigating todays complex and rapidly changing global markets.BofA Merrill Lynch Global Research has more than 800 research analysts who cover more than 4,000 securities wo

128、rking alongside our global network of sales and trading professionals to identify opportunities and provide the perspective to turn those insights into trade ideas.The depth and breadth of our platform mean we can offer clients thousands of products across the globe to invest in,ranging from equitie

129、s,fixed income and securitized assets to commodities and currencies,helping individual investors and institutions of all kinds meet their investment and risk management objectives.Building on our strong global platform,we will continue to focus on deepening our relationships with clients and leverag

130、ing our position as a global thought leader to provide customized,innovative solutions across products,sectors and geographies.Continuing to expand our businesses outside the United States represents one of our greatest opportunities,and we are taking a strategic and measured approach to our interna

131、tional development.Importantly,we continue to attract some of the best talent in the industry,and are well-positioned to meet the needs of our clients anywhere in the world.Execution Services Risk Management Cross Asset Solutions20Community Strong As part of our ongoing efforts to stimulate economic

132、 strength in communities,we recognize nonprofit organizations and individuals through our signature philanthropic program,the Neighborhood Excellence Initiative(NEI),which operates in 44 U.S.communi-ties and London.Since 2004,Bank of America has invested$130 million in communities through the Neighb

133、orhood Excellence Initiative,recognizing nearly 600 nonprofit organizations and nearly 3,000 community leaders and high school students.Just some of the examples of how NEI helps set opportunity in motion in local communities include the service and leadership of a Los Angeles local hero who advocat

134、es for academic and cultural enrichment opportunities for at-risk children,a New York nonprofit that provides access to fresh food while sup-porting local produce providers,and a Boston high school senior who leads homework assistance efforts for underserved youth.Tony Brown,Just Food,and Sandy Lian

135、g,represented above,were all selected as 2010 awardees based on their outstanding community contributions.Philanthropy Responsible Business Practices Environmental Initiatives21Were working hard to strengthen the communities we serve supporting individuals,families and businesses during challenging

136、economic times.Were advancing growth and development through innovative partnerships and initiatives,and helping set opportunity in motion by acting as a catalyst for economic and social success.At Bank of America,we know that our growth depends on the economic vitality of communities worldwide.That

137、s why weve made corporate social responsibility a fundamental way we do business.From providing clear and transparent products and services that meet the needs of our customers to investing in our communities through innovative grants and programs,we are strengthening the neighborhoods we serve thro

138、ugh a unique combination of assets.We help generate economic and social opportunities through responsible business practices,community-development lending and investing,philanthropy,diversity and inclusion,volunteerism,support of arts and culture and environmental initiatives.Through$200 million in

139、charitable giving in 2010,part of our 10-year,$2 billion philanthropic goal,we continued to address the most pressing challenges facing our communities during difficult economic times,including immediate needs such as hunger relief,as well as longer-term issues including education and workforce deve

140、lopment to help individuals and families move ahead.We also contributed an additional$1.6 billion toward our 10-year,$20 billion environmental business initiative(more than$11 billion since 2007),to address global climate change.We know our involvement in the community is important to our customers,

141、clients,shareholders and teammates.Please visit for more detail on our commitment.Volunteerism Supporting the Arts Commitment to Diversity Community Development22Bank of America Corporation(NYSE:BAC)is headquartered in Charlotte,N.C.As of December 31,2010,we operated in all 50 states,the District of

142、 Columbia and more than 40 countries.Through our banking and various nonbanking subsidiaries throughout the United States and in selected international markets,we provide a diversified range of banking and nonbanking financial services and products through six business segments:Deposits,Global Card

143、Services,Home Loans&Insurance,Global Commercial Banking,Global Banking&Markets and Global Wealth&Investment Management.Bank of America is a member of the Dow Jones Industrial Average.Financial Highlights(in millions,except per share information)For the year 2010 2009Revenue net of interest expense1$

144、111,390$120,944Net income(loss)(2,238)6,276Net income excluding goodwill impairment charges2 10,162 n/aEarnings(loss)per common share (0.37)(0.29)Diluted earnings(loss)per common share (0.37)(0.29)Diluted earnings(loss)per common share excluding goodwill impairment charges2 0.86 n/aDividends paid pe

145、r common share 0.04 0.04Return on average assets n/m 0.26%Return on average tangible shareholders equity n/m 4.18Efficiency ratio1 74.61 55.16Average diluted common shares issued and outstanding 9,790 7,729At year end 2010 2009Total loans and leases$940,440$900,128Total assets 2,264,909 2,230,232Tot

146、al deposits 1,010,430 991,611Total shareholders equity 228,248 231,444Book value per common share 20.99 21.48Tangible book value per common share2 12.98 11.94Market price per common share 13.34 15.06Common shares issued and outstanding 10,085 8,650Tier 1 common equity ratio 8.60%7.81%Tangible common

147、 equity ratio2 5.99%5.56%1 Fully taxable-equivalent(FTE)basis2 Measures reported above using FTE basis,excluding goodwill impairment charges,tangible book value per common share and tangible equity are non-GAAP measures.Other companies may define or calculate these measures differently.For additiona

148、l information on the goodwill impairment charges,refer to Note 10 Goodwill and Intangible Assets and for reconciliations to GAAP measures,refer to Table XIII in the 2010 Financial Review section.n/a=not applicablen/m=not meaningful3 This graph compares the yearly change in the Corporations total cum

149、ulative shareholder return on its common stock with(i)the Standard&Poors 500 Index and(ii)the KBW Bank Index for the years ended December 31,2006 through 2010.The graph assumes an initial investment of$100 at the end of 2005 and the reinvestment of all dividends during the years indicated.Total Cumu

150、lative Shareholder Return3 HIGH$54.90$54.05$45.03$18.59$19.48 LOW 43.09 41.10 11.25 3.14 10.95 CLOSE 53.39 41.26 14.08 15.06 13.34 December 31 2005 2006 2007 2008 2009 2010 BAC BANK OF AMERICA CORPORATION$100$121$98$36$39$35 SPX S&P 500 INDEX$100$116$122$77$97$112 BKX KBW BANK INDEX$100$117$92$115$4

151、7$59BAC 5-Year Stock PerformanceBank of America Corporation Financial Highlights$0$20$40$60$80$100$120201020092008200720062005$0$10$20$30$40$50$60201020092008200720062359%44%35%6%15%2010 Total Net Revenue Per Line of Business1(dollars in billions)Our customers provide the foundation for opportunity:

152、2010 Net Income(Loss)Per Line of Business(dollars in billions)Revenue Contribution by Client View Deposits Global Card Services Home Loans and Insurance Revenue:$49.4 Billion Companies and Institutional Investors Revenue:$39.4 Billion All Other2 Revenue:$5.9 Billion Global Wealth&Investment Manageme

153、nt Revenue:$16.7 Billion Consumers Total Revenue1:$111.4 BillionConsumers 57MillionConsumerandSmallBusiness Relationships5,856RetailBranches19,700WealthAdvisors$2.2TrillioninClientBalances$643BillioninLoans$699BillioninDepositsCompanies 158,000BusinessBankingClients40,000MiddleMarketClients10,000Cor

154、porateClients$297BillioninFundedLoansand Leases$311BillioninDepositsInstitutional Investors12,000InstitutionalClients 3,200CompaniesResearched in 60 CountriesPrimaryDealerin15Countries$414BillioninTrading-RelatedAssets$0$5$10$15$20$25$30$13.2$25.6$10.6$10.9$28.5$16.7$5.9AllOther2Global Wealth&Invest

155、mentManagementGlobalBanking&MarketsGlobalCommercialBankingHomeLoans&InsuranceGlobalCardServicesDeposits$(10.0)$(7.5)$(5.0)$(2.5)$0.0$2.5$5.0$7.5$1.4$(6.6)$(8.9)$3.2$6.3$1.3$1.1AllOther2Global Wealth&InvestmentManagementGlobalBanking&MarketsGlobalCommercialBankingHomeLoans&InsuranceGlobalCardServices

156、Deposits1 FTE basis2 All Other consists primarily of equity investments,the residential mortgage portfolio associated with asset and liability management(ALM)activities,the residual impact of the cost allocation process,allowance for credit losses and the cost allocation processes,Merger and Restruc

157、turing Charges,intersegment eliminations,fair value adjustments related to structured liabilities and the results of certain consumer finance,investment management and commercial lending businesses that are being liquidated.24Our Business SegmentsGlobal Commercial Banking provides a wide range of le

158、nding-related products and services,integrated working capital management and treasury solutions to clients through our network of offices and client relationship teams along with various product partners.Our clients include business banking and middle-market companies,commercial real estate firms a

159、nd governments.Our lending products and services include commercial loans and commitment facilities,real estate lending,asset-based lending and indirect consumer loans.Our capital management and treasury solutions include treasury management,foreign exchange and short-term investing options.Global B

160、anking&Markets(GBAM)provides financial products,advisory services,financing,securities clearing,settle ment and custody services globally to our institutional investor clients in support of their investing and trading activities.We also work with our commercial and corpo-rate clients to provide debt

161、 and equity underwriting and distribution capabilities,merger-related and other advisory services,and risk management products using interest rate,equity,credit,currency and commodity derivatives,foreign exchange,fixed-income and mortgage-related products.GBAM is a leader in the global distribution

162、of fixed income,currency and energy commodity products and derivatives,has one of the largest equity trading operations in the world and is a leader in the origination and distribution of equity and equity-related products.Our corporate banking services provide a wide range of lending-related produc

163、ts and services,integrated working capital management and treasury solutions to clients.Global Wealth&Investment Management(GWIM)pro-vides comprehensive wealth management capabilities to a broad base of clients from the emerging affluent to the ultra high net worth.These services include investment

164、and brokerage services,estate and financial planning,fiduciary portfolio management,cash and liability manage-ment and specialty asset management.GWIM also provides retirement and benefit plan services,philanthropic man-agement,asset management and lending and banking to individuals and institutions

165、.Our primary wealth and invest-ment management businesses are Merrill Lynch Global Wealth Management,U.S.Trust,Bank of America Private Wealth Management and Retirement Services.Deposits includes a comprehensive range of products provided to consumers and small businesses,including traditional saving

166、s accounts,money market savings accounts,CDs and IRAs,and noninterest-and interest-bearing checking accounts.Deposit products provide a relatively stable source of funding and liquidity.In the U.S.,we serve approximately 57 million consumer and small business relationships through a franchise that s

167、tretches coast to coast through 32 states and the District of Columbia utilizing our network of more than 5,800 banking centers,18,000 ATMs,nationwide call centers and leading online and mobile banking platforms.Global Card Services is one of the leading issuers of credit cards in the United States

168、and Europe.We provide a broad offering of products including U.S.consumer and business cards,consumer lending,international cards and debit cards to consumers and small businesses.We provide credit card products to customers in the U.S.,Canada,Ireland,Spain and the U.K.We offer a variety of co-brand

169、ed and affinity credit and debit card products and are one of the leading issuers of credit cards through endorsed marketing in the U.S.and Europe.Home Loans&Insurance provides an extensive line of consumer real estate products and services including fixed and adjustable rate first-lien mortgage loa

170、ns for home purchase and refinancing needs,home equity lines of credit and home equity loans to customers nationwide.Home Loans&Insurance products are available to our customers through our banking centers,mortgage loan officers in 750 locations and a sales force offering our customers direct teleph

171、one and online access to our products.These products are also offered through our correspondent loan acquisition channel.Opportunities are Everywhere Our market-leading positions,products and capabilities allow us to offer a full range of financial products and services to the entire spectrum of cus

172、tomers to help them meet their financial goals.Bank of America 2010 Financial ReviewFinancial Review ContentsPageExecutive Summary28Financial Highlights32Balance Sheet Overview33Recent Events37Supplemental Financial Data40Business Segment Operations42Deposits43Global Card Services44Home Loans&Insura

173、nce45Global Commercial Banking48Global Banking&Markets49Global Wealth&Investment Management52All Other54Off-Balance Sheet Arrangements and Contractual Obligations55Regulatory Matters60Managing Risk63Strategic Risk Management66Capital Management67Liquidity Risk71Credit Risk Management75Consumer Portf

174、olio Credit Risk Management76Commercial Portfolio Credit Risk Management87Non-U.S.Portfolio98Provision for Credit Losses100Allowance for Credit Losses101Market Risk Management104Trading Risk Management104Interest Rate Risk Management for Nontrading Activities107Mortgage Banking Risk Management110Com

175、pliance Risk Management110Operational Risk Management110Complex Accounting Estimates1112009 Compared to 2008117Overview117Business Segment Operations118Statistical Tables119Glossary136Throughout the MD&A,we use certain acronyms andabbreviations which are defined in the Glossary.26Bank of America 201

176、0Managements Discussion and Analysis of Financial Condition and Results ofOperationsThis report,the documents that it incorporates by reference and the docu-ments into which it may be incorporated by reference may contain,and fromtimetotimeBankofAmericaCorporation(collectivelywithitssubsidiaries,the

177、Corporation)and its management may make,certain statements that con-stitute forward-looking statements within the meaning of the Private Securi-tiesLitigationReform Actof 1995.Thesestatements can beidentifiedbythefact that they do not relate strictly to historical or current facts.Forward-looking st

178、atements often use words such as“expects,”“anticipates,”“be-lieves,”“estimates,”“targets,”“intends,”“plans,”“goal”and other similarexpressions or future or conditional verbs such as“will,”“may,”“might,”“should,”“would”and“could.”The forward-looking statements made repre-sentthecurrentexpectations,pl

179、ansor forecastsoftheCorporationregardingthe Corporations future results and revenues,and future business andeconomic conditions more generally,including statements concerning:theadequacy of the liability for the remaining representations and warrantiesexposure to the government-sponsored enterprises

180、(GSEs)and the futureimpact to earnings;the potential assertion and impact of additional claimsnot addressed by the GSE agreements;the expected repurchase claims onthe 2004-2008 loan vintages;representationsand warranties liabilities(alsocommonly referred to as reserves),and range of possible loss es

181、timates,expensesandrepurchaseclaimsandresolutionofthoseclaims;theproposalto modestly increase dividends in the second half of 2011;the charge toincome tax expense resulting from a reduction in the United Kingdom(U.K.)corporate income tax rate;future payment protection insurance claims in theU.K.;fut

182、ure risk-weighted assets and any mitigation efforts to reduce risk-weighted assets;net interest income;credit trends and conditions,includingcredit losses,credit reserves,charge-offs,delinquency trends and nonper-forming asset levels;consumer and commercial service charges,includingtheimpactofchange

183、sintheCorporationsoverdraftpolicyaswellasfromtheElectronicFundTransferAct andtheCorporationsabilitytomitigateadeclinein revenues;liquidity;capital levels determined by or established in accor-dance with accounting principles generally accepted in the United States ofAmerica(GAAP)and with the require

184、ments of various regulatory agencies,includingourabilitytocomplywithanyBaselcapitalrequirementsendorsedbyU.S.regulators without raising additional capital;the revenue impact of theCredit Card Accountability Responsibility and Disclosure Act of 2009(theCARD Act);the revenue impact resulting from,and

185、any mitigation actionstaken in response to,the Dodd-Frank Wall Street Reform and ConsumerProtection Act(the Financial Reform Act)including the impact of the VolckerRule and derivatives regulations;mortgage production levels;long-term debtlevels;run-off of loan portfolios;the impact of various legal

186、proceedingsdiscussed in“Litigation and Regulatory Matters”in Note 14 Commitmentsand Contingencies to the Consolidated Financial Statements;the number ofdelayed foreclosure sales and the resulting financial impact and other similarmatters;andother matters relating to the Corporation and the securitie

187、s thatwe may offer from time to time.The foregoing is not an exclusive list of allforward-looking statements the Corporation makes.These statements arenot guarantees of future results or performance and involve certain risks,uncertainties and assumptions that are difficult to predict and often arebe

188、yond the Corporations control.Actual outcomes and results may differmaterially from those expressed in,or implied by,the Corporations forward-looking statements.Youshouldnotplaceunduerelianceonanyforward-lookingstatementandshouldconsider thefollowinguncertaintiesandrisks,aswellastherisksanduncertain

189、tiesmorefullydiscussedelsewhereinthisreport,includingItem1A.“Risk Factors”of this Annual Report on Form 10-K,and in any of theCorporationssubsequentSecuritiesandExchangeCommission(SEC)filings:the Corporations resolution of certain representations and warrantiesobligations with the GSEs and our abili

190、ty to resolve any remaining claims;the Corporations ability to resolve any representations and warranties obli-gations with monolinesand privateinvestors;failure tosatisfyour obligationsas servicer in the residential mortgage securitization process;the adequacyoftheliabilityand/or rangeofpossiblelos

191、sestimatesfor therepresentationsandwarrantiesexposurestotheGSEs,monolinesandprivate-labelandotherinvestors;the potential assertion and impact of additional claims not ad-dressed by the GSE agreements;the foreclosure review and assessmentprocess,the effectiveness of the Corporations response and any

192、govern-mental or private third-party claims asserted in connection with these fore-closure matters;the adequacy of the reserve for future payment protectioninsuranceclaimsintheU.K.;negativeeconomicconditionsgenerallyincludingcontinued weakness in the U.S.housing market,high unemployment in theU.S.,a

193、s well as economic challenges in many non-U.S.countries in which weoperate and sovereign debt challenges;the Corporations mortgage modifi-cation policies and related results;the level and volatility of the capitalmarkets,interest rates,currency values and other market indices;changesin consumer,inve

194、stor and counterpartyconfidence in,and the related impacton,financial markets and institutions,including the Corporation as wellas itsbusinesspartners;theCorporationscreditratingsandthecreditratingsofitssecuritizations;estimates of the fair value of certain of the Corporationsassets and liabilities;

195、legislative and regulatory actions in the U.S.(includingthe impact of the Financial Reform Act,the Electronic Fund Transfer Act,theCARDActand relatedregulations andinterpretations)and internationally;theidentification and effectiveness of any initiatives to mitigate the negativeimpact of the Financi

196、al Reform Act;the impact of litigation and regulatoryinvestigations,includingcosts,expenses,settlementsandjudgmentsaswellas any collateral effects on our ability to do business and access the capitalmarkets;various monetary,tax and fiscal policies and regulations of theU.S.and non-U.S.governments;ch

197、anges in accounting standards,rules andinterpretations(including new consolidation guidance),inaccurate estimatesor assumptions in the application of accounting policies,including in deter-mining reserves,applicable guidance regarding goodwill accounting and theimpact on the Corporations financial s

198、tatements;increased globalization ofthe financial services industry and competition with other U.S.and interna-tional financial institutions;adequacy of the Corporations risk managementframework;the Corporations ability to attract new employees and retain andmotivate existing employees;technology ch

199、anges instituted by the Corpora-tion,its counterparties or competitors;mergers and acquisitions and theirintegration into the Corporation,including the Corporations ability to realizethe benefits and cost savings from and limit any unexpected liabilities ac-quired as a result of the Merrill Lynch an

200、d Countrywide acquisitions;theCorporations reputation,including the effects of continuing intense publicandregulatory scrutinyof the Corporation and the financialservices industry;theeffectsofanyunauthorizeddisclosuresofourorourcustomersprivateorconfidential information and any negative publicity di

201、rected toward the Cor-poration;and decisions to downsize,sell or close units or otherwise changethe business mix of the Corporation.Forward-lookingstatements speak only asof the date they are made,andthe Corporation undertakes no obligation to update any forward-lookingstatement to reflect the impac

202、t of circumstances or events that arise afterthe date the forward-looking statement was made.Notes to the Consolidated Financial Statements referred to in the Man-agements Discussion and Analysis of Financial Condition and Results ofOperations(MD&A)areincorporatedbyreferenceintotheMD&A.Certainpriorp

203、eriod amounts have been reclassified to conform to current periodpresentation.Bank of America 201027Executive SummaryBusiness OverviewThe Corporation is a Delaware corporation,a bank holding company and afinancial holding company.When used in this report,“the Corporation”mayrefer to the Corporation

204、individually,the Corporation and its subsidiaries,orcertain of the Corporations subsidiaries or affiliates.Our principal executiveoffices are located in the Bank of America Corporate Center in Charlotte,North Carolina.Through our banking and various nonbanking subsidiariesthroughouttheUnitedStatesan

205、dincertaininternationalmarkets,weprovideadiversifiedrangeofbankingandnonbankingfinancialservicesandproductsthrough six business segments:Deposits,Global Card Services,HomeLoans&Insurance,Global Commercial Banking,Global Banking&Markets(GBAM)and Global Wealth&Investment Management(GWIM),with theremai

206、ning operations recorded in All Other.Effective January 1,2010,werealigned the Global Corporate and Investment Banking portion of the formerGlobal Banking business segment with the former Global Markets businesssegment to form GBAM and to reflect Global Commercial Banking as astandalone segment.At D

207、ecember 31,2010,the Corporation had$2.3trillion in assets and approximately 288,000 full-time equivalent employees.On January 1,2009,we acquiredMerrillLynch&Co.,Inc.(Merrill Lynch)and,asaresult,wenowhaveoneofthelargestwealthmanagementbusinessesinthe world with nearly 17,000 wealth advisors,an additi

208、onal 3,000 client-facing professionals and more than$2.2 trillion in client assets.Additionally,weareagloballeaderincorporateandinvestmentbankingandtradingacrossa broad range of asset classes serving corporations,governments,institu-tions and individuals around the world.As of December 31,2010,we op

209、erate in all 50 states,the District ofColumbia and more than 40 non-U.S.countries.Our retail banking footprintcovers approximately 80 percent of the U.S.population and in the U.S.,weserve approximately 57 million consumer and small business relationshipswith 5,900 banking centers,18,000 ATMs,nationw

210、ide call centers,andleading online and mobile banking platforms.We have banking centers in13 of the 15 fastest growing states and have leadership positions in marketsharefor depositsinsevenofthosestates.Weofferindustry-leadingsupportto approximately four million small business owners.For information

211、 on recent and proposed legislative and regulatory initia-tives that may affect our business,see Regulatory Matters beginning onpage 60.The table below provides selected consolidated financial data for 2010and 2009.Table 1 Selected Financial Data(Dollars in millions,except per share information)2010

212、2009Income statementRevenue,net of interest expense(FTE basis)(1)$111,390$120,944Net income(loss)(2,238)6,276Net income,excluding goodwill impairment charges(2)10,1626,276Diluted earnings(loss)per common share(0.37)(0.29)Diluted earnings(loss)per common share,excluding goodwill impairment charges(2)

213、0.86(0.29)Dividends paid per common share$0.04$0.04Performance ratiosReturn on average assetsn/m0.26%Return on average assets,excluding goodwill impairment charges(2)0.42%0.26Return on average tangible shareholders equity(1)n/m4.18Return on average tangible shareholders equity,excluding goodwill imp

214、airment charges(1,2)7.114.18Efficiency ratio(FTE basis)(1)74.6155.16Efficiency ratio(FTE basis),excluding goodwill impairment charges(1,2)63.4855.16Asset qualityAllowance for loan and lease losses at December 31$41,885$37,200Allowance for loan and lease losses as a percentage of total loans and leas

215、es outstanding at December 31(3)4.47%4.16%Nonperforming loans,leases and foreclosed properties at December 31(3)$32,664$35,747Net charge-offs34,33433,688Net charge-offs as a percentage of average loans and leases outstanding(3,4)3.60%3.58%Ratio of the allowance for loan and lease losses at December

216、31 to net charge-offs(3,5)1.221.10Balance sheet at year endTotal loans and leases$940,440$900,128Total assets2,264,9092,230,232Total deposits1,010,430991,611Total common shareholders equity211,686194,236Total shareholders equity228,248231,444Capital ratios at year endTier 1 common equity8.60%7.81%Ti

217、er 1 capital11.2410.40Total capital15.7714.66Tier 1 leverage7.216.88(1)Fully taxable-equivalent(FTE)basis,return on average tangible shareholders equity(ROTE)and the efficiency ratio are non-GAAP measures.Other companies may define or calculate these measures differently.For additionalinformation on

218、 these measures and ratios,see Supplemental Financial Data beginning on page 40,and for a corresponding reconciliation to GAAP financial measures,see Table XIII.(2)Netincome(loss),dilutedearnings(loss)percommonshare,returnonaverageassets,ROTEandtheefficiencyratiohavebeencalculatedexcludingtheimpacto

219、fgoodwillimpairmentchargesof$12.4billionin2010andaccordingly,these are non-GAAP measures.For additional information on these measures and ratios,see Supplemental Financial Data beginning on page 40,and for a corresponding reconciliation to GAAP financial measures,see Table XIII.(3)Balancesandratiosd

220、onotincludeloansaccountedforunder thefair valueoption.Foradditionalexclusionsonnonperformingloans,leasesandforeclosedproperties,seeNonperformingConsumerLoansandForeclosedPropertiesActivity beginning on page 85 and corresponding Table 33,and Nonperforming Commercial Loans,Leases and Foreclosed Proper

221、ties Activity and corresponding Table 41 on page 93.(4)Net charge-offs as a percentage of average loans and leases outstanding excluding purchased credit-impaired(PCI)loans were 3.73 percent and 3.71 percent for 2010 and 2009.(5)Ratio of the allowance for loan and lease losses to net charge-offs exc

222、luding(PCI)loans was 1.04 percent and 1.00 percent for 2010 and 2009.n/m=not meaningful28Bank of America 20102010 Economic and Business EnvironmentThe banking environment and markets in which we conduct our businesseswill continue to be strongly influenced bydevelopments in the U.S.and globaleconomi

223、es,as well as the continued implementation and rulemaking fromrecent financial reforms.The global economy continued to recover in 2010,but growth was very uneven across countries and regions.Emerging nations,led by China,India and Brazil,expanded rapidly,while the U.S.,U.K.,Europeand Japan continued

224、 to grow modestly.United StatesIn the U.S.,the economy began to recover early in 2010,fueled by moderategrowth in consumption and inventory rebuilding,but slowed in late spring,coincident with the intensification of Europes financial crisis.A slowdown inconsumption and domestic demand growth contrib

225、uted to weak employmentgains and an unemployment rate that drifted close to 10 percent.Year-over-year inflation measures receded below one percent and stockmarket indices declined.Concerns about high unemployment and fears thattheU.S.mightincurdeflationledtheFederalReservetoadoptasecondroundofquanti

226、tativeeasingthatinvolvedpurchasesof$600billionofU.S.Treasurysecurities scheduled to occur through June 2011.The announcement of thispolicy led to lower interest rates.Bond yields rebounded in the second half of2010 as the U.S.economy reaccelerated,driven by stronger consumerspending,rapid growth of

227、exports and business investment in equipmentand software.The strong holiday retail season provided healthy economicmomentum toward year end.Despite only moderate economic growth in2010,corporateprofitsrosesharply,benefitingfromstrongproductivitygainsand constraints on hiring and operating costs.Caut

228、ious business financialpractices resulted in a record-breaking$1.5 trillion in free cash flows at non-financial businesses.The housing market remained weak throughout 2010.Home sales weresoft,despite lower home prices and low interest rates.There were delays intheforeclosureprocessonthelargenumberof

229、distressedmortgagesandthesupply of unsold homes remained high.Based on available Home Price Index(HPI)information,the mild improvement in home prices that occurred in thesecond half of 2009 continued into early 2010.However,housing pricesrenewed a downward trend in the second half of 2010,due in par

230、t to theexpiration of tax incentives for home buyers.Credit quality of bank loans to businesses and households improvedsignificantly in 2010 and the continued economic recovery improved theenvironment for bank lending.Bank commercial and industrial loans to busi-nesses increased in the last few mont

231、hs of 2010,following their steeprecession-related declines,reflecting increasing loan demand relating tostronger production,inventory building and capital spending.Rising dispos-able personal income,household deleveraging and improving householdfinances contributed to improving consumer credit quali

232、ty.EuropeIn Europe,a financial crisis emerged in mid-2010,triggered by high budgetdeficits and rising direct and contingent sovereign debt in Greece,Ireland,Italy,Portugal and Spain that created concerns about the ability of theseEuropean Union(EU)“peripheral nations”to continue to service their deb

233、tobligations.Theseconditionsimpactedfinancialmarketsandresultedinhighand volatile bond yields on the sovereign debt of many EU nations.Thefinancial crisis and efforts by the European Commission,European CentralBank(ECB)and International Monetary Fund(IMF)to negotiate a financialsupport package to fi

234、nancially challenged EU nations unsettled global finan-cialmarketsandcontributedtoEuroexchangerateandinterest ratevolatility.Economic performance of certain EU“core nations,”led by Germany,re-mained healthy throughout 2010,while the economies of Greece,Ireland,Italy,Portugal and Spain experienced re

235、cessionary conditions and slowinggrowth in response to the financial crisis and the implementation of fiscalausterityprograms.Additionally,SpainandIrelandseconomiesdeclinedasaresult of material deterioration in their housing sectors.Uncertainty over theoutcome of the EU governments financial support

236、 programs and worriesabout sovereign finances continued through year end.For information on ourexposure in Europe,see Non-U.S.Portfolio beginning on page 98 andNote 28 Performance by Geographical Area to the Consolidated FinancialStatements.AsiaAsia,excludingJapan,continuedto outperform all other re

237、gions in 2010 withstrong growth across most countries.China and India continued to lead theregion in terms of growth and China became the second largest economy inthe world after the U.S.,eclipsing Japan.Growth across the region becamebroader based with consumer demand,investment activity and export

238、s allperforming well.Asia remained well positioned to withstand global shocksbecause of record international reserves,current account surpluses andreduced external leverage.Many Asian nations,including China,Taiwan,South Korea,Thailand and Malaysia,are net external creditors,with Chinaand Japan amon

239、g the largest holders of U.S.Treasury bonds.Bank balancesheetshaveimprovedacrossmostoftheregionandassetqualityissueshaveremained manageable.Among the key challenges faced by the region werelarge capital inflows that placed appreciation pressures on most currenciesagainst the U.S.Dollar(USD),complica

240、ting monetary policy and adding toexcess liquidity pressures.Most countries in the region,including China,India,SouthKorea,ThailandandIndonesia,begantowithdrawfiscalstimulusand tighten monetary policy with hikes in interest rates as growth gatheredmomentum and as food and broader price inflation pre

241、ssures began toincrease.Japan performed well early in the year,but the economy weakenedat the end of the year due to weakening consumer demand,and appreciationof the yen that hurt export competitiveness.For information on our exposurein Asia,see Non-U.S.Portfolio beginning on page 98 and Note 28 Per

242、for-mance by Geographical Area to the Consolidated Financial Statements.Emerging NationsIn the emerging nations,inflation pressures began to mount and their centralbanks raised interest rates or took steps to tighten monetary policyand slowbanklending.Stronggrowthinemergingnationsandtheir favorablee

243、conomicoutlooks attracted capital from the industrialized nations.The excess globalliquidity generated by the accommodative monetary policies of the FederalReserve,Bank of Japan and other central banks also flowed into emergingnations.These capital inflows put upward pressure on many emerging nation

244、currencies.As a result,some emerging nations,such as Brazil,experiencedstrong currency appreciation.However,in other nations,that peg their cur-rencies to the U.S.dollar,currency appreciation was muted causing inflation-ary pressures and rapid real estate price appreciation.Global economicmomentum,a

245、long with the generally weak U.S.dollar and easing monetarypolicies in several industrialized nations,contributed to rising prices forindustrialcommoditiesintheseemergingnations.Throughyearend,inflationpressures in key emerging nations continued to mount.For more informationon our emerging nations e

246、xposure,see Table 48 on page 99.Performance OverviewIn 2010,we reported a net loss of$2.2 billion compared to net income of$6.3 billion in 2009.After preferred stock dividends and accretion of$1.4 bil-lionin2010comparedwith$8.5billionin2009,netlossapplicabletocommonshareholders was$3.6 billion,or$0.

247、37 per diluted common share,comparedto$2.2 billion,or$0.29 per diluted common share in 2009.Our 2010 resultsreflected,among other things,$12.4 billion in goodwill impairment charges,including non-cash,non-tax deductible goodwill impairment charges ofBank of America 201029$10.4 billion in Global Card

248、 Services and$2.0 billion in Home Loans&Insurance.For more information about the goodwill impairment charges in2010,see Complex Accounting Estimates beginning on page 111 andNote 10 Goodwill and Intangible Assets to the Consolidated FinancialStatements.Excluding the$12.4 billion of goodwill impairme

249、nt charges,net incomewas$10.2billionfor2010.Afterpreferredstockdividendsandaccretion,netincome applicable to common shareholders,excluding the goodwill impair-mentchargeswas$8.8billion,or$0.86perdilutedcommonshare,for2010.Revenue,net of interest expense on a FTE basis decreased$9.6 billion oreight p

250、ercent to$111.4 billion in 2010.Net interest income on a FTE basis increased$4.3 billion to$52.7 billionfor 2010 compared to 2009.The increase was due to the impact of depositpricing and the adoption of new consolidation guidance.The increase waspartiallyoffsetbylower commercialandconsumerloanlevels

251、andlower rateson the core assets and trading assets and liabilities.Noninterest income decreased$13.8 billion to$58.7 billion in 2010compared to$72.5 billion in 2009.Contributing to the decline was lowermortgage banking income,down$6.1 billion,largely due to$6.8 billion inrepresentationsandwarrantie

252、sprovision,anddecreasesinequityinvestmentincomeof$4.8billion,gainsonsalesofdebtsecuritiesof$2.2billion,tradingaccount profits of$2.2 billion,service charges of$1.6 billion and insuranceincome of$694 million,compared to 2009.These declines were partiallyoffset by an increase in other income of$2.4 bi

253、llion and a decrease inimpairment losses of$1.9 billion.Representationsandwarrantiesexpenseincreased$4.9billionto$6.8bil-lionin2010comparedto$1.9billionin2009.Theincreasewasprimarilydrivenby a$4.1 billion provision for representations and warranties in the fourthquarter of 2010.The fourth quarter pr

254、ovision includes$3.0 billion related tothe impact of the agreements reached with the GSEs on December 31,2010,pursuant to which we paid$2.8 billion to resolve repurchase claims involvingcertain residential mortgage loans sold directly to the GSEs by entities relatedto legacy Countrywide Financial Co

255、rporation(Countrywide)as well as adjust-ments made to the representations and warranties liability for other loans solddirectly to the GSEs and not covered by these agreements.For moreinformation about the GSE agreements,see Recent Events beginning onpage 37 and Note 9 Representations and Warranties

256、 Obligations and Cor-porate Guarantees to the Consolidated Financial Statements.The provision for credit losses decreased$20.1 billion to$28.4 billion in2010 compared to 2009.The provision for credit losses was$5.9 billionlower than net charge-offs in 2010,resulting in a reduction in reserves,compar

257、ed with the 2009 provision for credit losses that was$14.9 billionhigher than net charge-offs,reflecting reserve additions throughout the year.The reserve reduction in 2010 was due to improving portfolio trends acrossmostoftheconsumerandcommercialbusinesses,particularlytheU.S.creditcard,consumer len

258、ding and small business products,as well as core com-mercial loan portfolios.Noninterest expense increased$16.4 billion to$83.1 billion in 2010compared to 2009.The increase was driven by the$12.4 billion of goodwillimpairment charges recognized in 2010.Excluding the goodwill impairmentcharges,nonint

259、erest expense increased$4.0 billion in 2010 compared to2009,driven bya$3.6billionincreaseinpersonnel costsreflecting thebuild-out of several businesses and a$1.6 billion increase in litigation expense,partially offset by lower merger and restructuring charges.FTE basis,net income excluding the goodw

260、ill impairment charges,non-interest expense excluding goodwill impairment charges and net incomeapplicable to common shareholders excluding the goodwill impairmentcharges are non-GAAP measures.For corresponding reconciliations to GAAPfinancial measures,see Table XIII.Segment ResultsEffectiveJanuary

261、1,2010,management realigned the former Global Bankingand Global Markets business segments into Global Commercial Banking andGBAM.Prior year amounts have been reclassified to conform to the currentperiod presentation.These changes did not have an impact on the previouslyreported consolidated results

262、of the Corporation.For additional informationrelated to the business segments,see Note 26 Business Segment Infor-mation to the Consolidated Financial Statements.Table 2 Business Segment Results(Dollars in millions)2010200920102009Total Revenue(1)Net Income(Loss)Deposits$13,181$13,890$1,352$2,576Glob

263、al Card Services(2)25,62129,046(6,603)(5,261)Home Loans&Insurance10,64716,903(8,921)(3,851)Global Commercial Banking10,90311,1413,181(290)Global Banking&Markets28,49832,6236,31910,058Global Wealth&Investment Management16,67116,1371,3471,716All Other(2)5,8691,2041,0871,328Total FTE basis111,390120,94

264、4(2,238)6,276FTE adjustment(1,170)(1,301)Total Consolidated$110,220$119,643$(2,238)$6,276(1)Total revenueisnetofinterest expenseandisonaFTEbasiswhichisanon-GAAPmeasure.For moreinformationonthismeasure,seeSupplementalFinancialDatabeginningonpage40,andforacorrespondingreconciliationtoaGAAP financial m

265、easure,see Table XIII.(2)In2010,GlobalCardServicesandAllOtherarepresentedinaccordancewithnewconsolidationguidance.Accordingly,currentyearGlobalCardServicesresultsarecomparabletoprior yearresultswhicharepresentedonamanagedbasis.For more information on the reconciliation of Global Card Services and Al

266、l Other,see Note 26 Business Segment Information to the Consolidated Financial Statements.Deposits net income decreased from the prior year due to a decline inrevenue and higher noninterest expense.Net interest income increased as aresult of a customer shift to more liquid products and continued pri

267、cing disci-pline,partially offset by a lower net interest income allocation related to assetand liability management(ALM)activities.The noninterest income decline wasdriven by the impact of Regulation E,which was effective in the third quarter of2010 and our overdraft policy changes implemented in l

268、ate 2009.Noninterestexpense increased as a higher proportion of banking center sales and servicecostswasalignedtoDepositsfromtheothersegments,andincreasedlitigationexpenses.TheincreasewaspartiallyoffsetbytheabsenceofaspecialFederalDeposit Insurance Corporation(FDIC)assessment in 2009.Global Card Ser

269、vices net loss increased compared to the prior year dueprimarily to a$10.4 billion goodwill impairment charge.Revenue decreasedcomparedtotheprior yeardrivenbyloweraverageloans,reducedinterestandfee income primarily resulting from the implementation of the CARD Act andthe impact of recording a reserv

270、e related to future payment protection30Bank of America 2010insurance claims in the U.K.that have not yet been asserted.Provision forcredit losses improved due to lower delinquencies and bankruptcies as aresult of the improved economic environment,which resulted in reservereductions in 2010 compared

271、 to reserve increases in the prior year.Non-interest expense increased primarily due to the goodwill impairment charge.Home Loans&Insurance net loss increased in 2010 compared to theprior year primarily due to an increase in representations and warrantiesprovision and a$2.0 billion goodwill impairme

272、nt charge,partially offset by adecline in provision for credit losses driven by improving portfolio trends.Mortgage banking income declined driven by increased representations andwarranties provision and lower production volume reflecting a drop in theoverall size of the mortgage market.Noninterest

273、expense increased primarilydue to the goodwill impairment charge,higher litigation expense and anincrease in default-related servicing expense,partially offset by lower pro-duction expense and insurance losses.Global Commercial Banking net income increased due to lower creditcosts.Revenue was negati

274、vely impacted by additional costs related to ouragreement to purchase certain retail automotive loans.Net interest incomeincreased due to a growth in average deposits,partially offset by a lower netinterest income allocation related to ALM activities.Credit pricing disciplineoffset the impact of the

275、 decline in average loan balances.The provision forcreditlossesdecreaseddrivenbyimprovementsfromstabilizingvaluesinthecommercial real estate portfolio.GBAMnet incomedecreaseddrivenbytheabsenceof thegainintheprioryear relatedtothecontributionofour merchantprocessingbusinesstoajointventure.Additionall

276、y,the decrease was driven by lower sales and tradingrevenue due to more favorable market conditions in the prior year,partiallyoffset by credit valuation gains on derivative liabilities and gains on legacyassets compared to losses in the prior year.Provision for credit lossesdeclined driven by lower

277、 net charge-offs and reserve levels,as well as areduction in reservable criticized balances.Noninterest expense increaseddrivenbyhigher compensation costsasaresultof therecognition of expenseon a proportionately larger amount of prior year incentive deferrals andinvestments in infrastructure and per

278、sonnel associated with further devel-opment of the business.Income tax expense was adversely affected by acharge related to the U.K.tax rate reduction impacting the carrying value ofdeferred tax assets.GWIMnetincomedecreaseddrivenbyhighernoninterestexpenseandthetax-related effect of the sale of the

279、Columbia Management long-term assetmanagementbusinesspartiallyoffsetbyhighernoninterestincomeandlowercreditcosts.Revenueincreaseddrivenbyhigherassetmanagementfeesandtransactional revenue.Provision for credit losses decreased driven by stabi-lization of the portfolios and the recognition of a single

280、large commercialcharge-off in 2009.Noninterest expense increased due primarily to higherrevenue-related expenses,support costs and personnel costs associatedwith further investment in the business.AllOther netincomedecreasedcomparedtotheprior yeardrivenprimarilyby decreases in net interest income an

281、d noninterest income,partially offsetby a lower provision for credit losses.Revenue decreased due primarily tolower equity investment gains as the prior year included a gain resulting fromthe sale of a portion of our investment in China Construction Bank(CCB)combined with reduced gains on the sale o

282、f debt securities.The decrease inthe provision for credit losses was due to improving portfolio trends in theresidential mortgage portfolio.Bank of America 201031Financial HighlightsNet Interest IncomeNet interest income on a FTE basis increased$4.3 billion to$52.7 billion for2010 compared to 2009.T

283、he increase was due to the impact of depositpricing and the adoption of new consolidation guidance which contributed$10.5billiontonetinterestincomein2010.Theincreasewaspartiallyoffsetby lower commercial and consumer loan levels,the sale of First Republic in2010 and lower rates on the core assets and

284、 trading assets and liabilities,includingderivativesexposure.ThenetinterestyieldonaFTEbasisincreased13 basis points(bps)to 2.78 percent for 2010 compared to 2009 due tothese same factors.Noninterest IncomeTable 3 Noninterest Income(Dollars in millions)20102009Card income$8,108$8,353Service charges9,

285、39011,038Investment and brokerage services11,62211,919Investment banking income5,5205,551Equity investment income5,26010,014Trading account profits10,05412,235Mortgage banking income2,7348,791Insurance income2,0662,760Gains on sales of debt securities2,5264,723Other income(loss)2,384(14)Net impairme

286、nt losses recognized in earnings onavailable-for-sale debt securities(967)(2,836)Total noninterest income$58,697$72,534Noninterest income decreased$13.8 billion to$58.7 billion for 2010compared to 2009.The following items highlight the significant changes.Card income decreased$245 million due to the

287、 implementation of theCARD Act partially offset by the impact of the new consolidation guidanceand higher interchange income.Service charges decreased$1.6 billion largely due to the impact of Reg-ulation E,which became effective in the third quarter of 2010 and theimpact of our overdraft policy chan

288、ges implemented in late 2009.Equity investment income decreased by$4.8 billion,as net gains on thesales of certain strategic investments during 2010,including Ita Uni-banco,MasterCard,Santander and a portion of our investment in Black-Rock,Inc.(BlackRock)were less than gains in 2009 that included a$

289、7.3 billion gain related to the sale of a portion of our investment inCCB and the$1.1 billion gain related to our BlackRock investment.Trading account profits decreased$2.2 billion due to more favorablemarket conditions in the prior year and investor concerns regarding sov-ereign debt fears and regu

290、latory uncertainty.Net credit valuation gains onderivative liabilities of$262 million for 2010 compared to losses of$662 million for 2009.Mortgage banking income decreased$6.1 billion due to an increase of$4.9 billion in representations and warranties provision and lower volumeand margins.Insurance

291、income decreased$694 million due to a liability recorded forfuture claims related topayment protectioninsurance(PPI)sold intheU.K.Gains on sales of debt securities decreased$2.2 billion driven by a lowervolume of sales of debt securities.The decrease also included the impactof losses in 2010 related

292、 to portfolio restructuring activities.Other income(loss)improved by$2.4 billion.The prior year included a netnegative fair value adjustment of$4.9 billion on structured liabilities com-pared to a net positive adjustment of$18 million in 2010,and the prior yearalso included a$3.8 billion gain on the

293、 contribution of our merchant pro-cessing business to a joint venture.Legacy asset write-downs included inother income(loss)were$1.7 billion in 2009 compared to net gains of$256 million in 2010.Impairment losses recognized in earnings on available-for-sale(AFS)debtsecurities decreased$1.9 billion re

294、flecting lower impairment write-downson non-agency residential mortgage-backed securities(RMBS)and collat-eralized debt obligations(CDOs).Provision for Credit LossesThe provision for credit losses decreased$20.1 billion to$28.4 billion in2010 compared to 2009.The provision for credit losses was$5.9

295、billionlower than net charge-offs for 2010,resulting in a reduction in reservesprimarily due to improving portfolio trends throughout the year across theconsumer and commercial businesses.The provision for credit losses related to our consumer portfolio de-creased$11.4 billion to$25.4 billion for 20

296、10 compared to 2009.Theprovision for credit losses related to our commercial portfolio including theprovision for unfunded lending commitments decreased$8.7 billion to$3.0 billion for 2010 compared to 2009.Netcharge-offstotaled$34.3billion,or3.60percentofaverageloansandleases for 2010 compared with$

297、33.7 billion,or 3.58 percent for 2009.Formore information on the provision for credit losses,see Provision for CreditLosses on page 100.Noninterest ExpenseTable 4 Noninterest Expense(Dollars in millions)20102009Personnel$35,149$31,528Occupancy4,7164,906Equipment2,4522,455Marketing1,9631,933Professio

298、nal fees2,6952,281Amortization of intangibles1,7311,978Data processing2,5442,500Telecommunications1,4161,420Other general operating16,22214,991Goodwill impairment12,400Merger and restructuring charges1,8202,721Total noninterest expense$83,108$66,713Excluding the goodwill impairment charges of$12.4 b

299、illion,noninterestexpense increased$4.0 billion for 2010 compared to 2009.The increasewasdrivenbya$3.6billionincreaseinpersonnelcostsreflectingthebuildoutof several businesses,the recognition of expense on proportionally largerprior year incentive deferrals and the U.K.payroll tax on certain year-en

300、dincentivepayments,aswellasa$1.6billionincreaseinlitigationcosts.Theseincreaseswerepartiallyoffsetbya$901milliondeclineinpre-taxmergerandrestructuring charges compared to the prior year.The prior year included aspecial FDIC assessment of$724 million.Income Tax ExpenseIncome tax expense was$915 milli

301、on for 2010 compared to a benefit of$1.9 billion for 2009.The effective tax rate for 2010 was not meaningful dueto the impact of non-deductible goodwill impairment charges of$12.4 billion.The effective tax rate for 2010 excluding goodwill impairment chargesfrom pre-tax income was 8.3 percent compare

302、d to(44.0)percent for 2009,primarily driven by an increase in pre-tax income excluding the non-deductiblegoodwillimpairmentcharges.Alsoimpactingthe2010effectivetaxratewasa32Bank of America 2010$392 million charge from a U.K.law change referred to below and a$1.7 bil-lion tax benefit from the release

303、 of a portion of the deferred tax assetvaluation allowance related to acquired capital loss carryforward tax benefitscompared to$650 million in 2009.For more information,see Note 21 Income Taxes to the Consolidated Financial Statements.During 2010,the U.K.government enacted a tax law change reducing

304、 thecorporate income tax rate by one percent effective for the 2011 U.K.taxfinancial year beginning on April 1,2011.This reduction favorably affectsincome tax expense on future U.K.earnings,but also required us to re-measure our U.K.net deferred tax assets using the lower tax rate.The U.K.corporate

305、tax rate reduction resulted in an income tax charge of$392 millionin 2010.If future rate reductions were to be enacted as suggested in U.K.Treasury announcements and assuming no change in the deferred tax assetbalance,a similar charge to income tax expense for each one percentreduction in the rate w

306、ould result during each period of enactment.For moreinformation,see Regulatory Matters beginning on page 60.Balance Sheet OverviewTable 5 Selected Balance Sheet Data(Dollars in millions)2010200920102009December 31Average BalanceAssetsFederal funds sold and securities borrowed or purchased under agre

307、ements to resell$209,616$189,933$256,943$235,764Trading account assets194,671182,206213,745217,048Debt securities338,054311,441323,946271,048Loans and leases940,440900,128958,331948,805Allowance for loan and lease losses(41,885)(37,200)(45,619)(33,315)All other assets624,013683,724732,256803,718Tota

308、l assets$2,264,909$2,230,232$2,439,602$2,443,068LiabilitiesDeposits$1,010,430$991,611$988,586$980,966Federal funds purchased and securities loaned or sold under agreements to repurchase245,359255,185353,653369,863Trading account liabilities71,98565,43291,66972,207Commercial paper and other short-ter

309、m borrowings59,96269,52476,676118,781Long-term debt448,431438,521490,497446,634All other liabilities200,494178,515205,290209,972Total liabilities2,036,6611,998,7882,206,3712,198,423Shareholders equity228,248231,444233,231244,645Total liabilities and shareholders equity$2,264,909$2,230,232$2,439,602$

310、2,443,068At December 31,2010,total assets were$2.3 trillion,an increase of$34.7 billion,or two percent,fromDecember31,2009.Averagetotalassetsin 2010 decreased$3.5 billion from 2009.At December 31,2010,totalliabilities were$2.0 trillion,an increase of$37.9 billion,or two percent,fromDecember 31,2009.

311、Average total liabilities for 2010 increased$7.9 billionfrom 2009.Period-end balance sheet amounts may vary from average balance sheetamounts due to liquidity and balance sheet management functions,primarilyinvolvingourportfoliosofhighlyliquidassets,thataredesignedtoensuretheadequacy of capital whil

312、e enhancing our ability to manage liquidity require-ments for the Corporationand for our customers,andtoposition the balancesheet in accordance with the Corporations risk appetite.The execution ofthese functions requires the use of balance sheet and capital-related limitsincluding spot,average and r

313、isk-weighted asset limits,particularly in ourtradingbusinesses.Oneofourkeymetrics,Tier1leverageratio,iscalculatedbased on adjusted quarterly average total assets.Impact of Adopting New Consolidation GuidanceOn January 1,2010,the Corporation adopted new consolidation guidanceresulting in the consolid

314、ation of certain former qualifying special purposeentities and VIEs that were not recorded on the Corporations ConsolidatedBalance Sheet prior to that date.The adoption of this new consolidationguidance resulted in a net incremental increase in assets of$100.4 billion,including$69.7 billion resultin

315、g from consolidation of credit card trusts and$30.7 billion from consolidation of other special purpose entities includingmulti-seller conduits,and a net increase of$106.7 billion in total liabilities,including$84.4 billion of long-term debt.These amounts are net of retainedinterests in securitizati

316、ons held on the Consolidated Balance Sheet at De-cember 31,2009 and a$10.8 billion increase in the allowance for loan andlease losses,the majority of which relates to credit card receivables.TheCorporationrecordeda$6.2billioncharge,net-of-tax,toretainedearningsonJanuary 1,2010 for the cumulative eff

317、ect of the adoption of this newconsolidation guidance due primarily to the increase in the allowance for loanand lease losses,and a$116 million charge to accumulated other compre-hensiveincome(OCI).Theinitialrecording of theseassets,related allowancefor loan and lease losses and liabilities on the C

318、orporations ConsolidatedBalance Sheet had no impact at the date of adoption on consolidated resultsof operations.For additional detail on the impact of adopting this new con-solidation guidance,refer to Note 8 Securitizations and Other VariableInterest Entities to the Consolidated Financial Statemen

319、ts.Bank of America 201033AssetsFederal Funds Sold and Securities Borrowed or PurchasedUnder Agreements to ResellFederal funds transactions involve lending reserve balances on a short-termbasis.Securities borrowed and securities purchased under agreements toresell are utilized to accommodate customer

320、 transactions,earn interest ratespreadsandobtainsecuritiesfor settlement.Year-endfederalfundssoldandsecurities borrowed or purchased under agreements to resell increased$19.7billionandaverageamountsincreased$21.2billionin2010comparedto 2009,attributable primarily to a favorable rate environment and

321、increasedcustomer activity.Trading Account AssetsTrading account assets consist primarily of fixed-income securities(includinggovernment and corporate debt),and equity and convertible instruments.Year-endtradingaccountassetsincreased$12.5billionin2010comparedto2009 primarily due to the adoption of n

322、ew consolidation guidance as well asthe consolidation of a VIE late in 2010.Average trading account assetsdecreased slightly in 2010 as compared to 2009.Debt SecuritiesDebt securities include U.S.Treasury and agency securities,mortgage-backed securities(MBS),principally agency MBS,foreign bonds,corp

323、oratebonds and municipal debt.We use the debt securities portfolio primarily tomanage interest rate and liquidity risk and to take advantage of marketconditions that create more economically attractive returns on these invest-ments.Year-endandaveragebalancesofdebtsecuritiesincreased$26.6bil-lion and

324、$52.9 billion in 2010 compared to 2009 due to agency MBSpurchases.For additional information on AFS debt securities,see MarketRisk Management Securities beginning on page 107 and Note 5 Securi-ties to the Consolidated Financial Statements.Loans and LeasesYear-endandaverageloans and leasesincreased$4

325、0.3 billionto$940.4bil-lion and$9.5 billion to$958.3 billion in 2010 compared to 2009.Theincrease was primarily due to the impact of adopting new consolidationguidance partially offset by continued deleveraging by consumers,tighterunderwriting and the elevated levels of liquidity of commercial clien

326、ts.For amore detailed discussion of the loan portfolio,see Credit Risk Managementbeginning on page 75 and Note 6 Outstanding Loans and Leases to theConsolidated Financial Statements.Allowance for Loan and Lease LossesYear-end and average allowance for loan lease losses increased$4.7 billionand$12.3b

327、illionin2010comparedto2009primarilyduetothe$10.8billionof reserves recorded on January 1,2010 in connection with the adoption ofnewconsolidationguidanceandreserveadditionsinthePCIportfoliothrough-out 2010.These were partially offset by reserve reductions during 2010 dueto the impacts of the improvin

328、g economy.For a more detailed discussion ofthe Allowance for Loan and Lease Losses,see Allowance for Loan and LeaseLosses beginning on page 101.All Other AssetsYear-end and average other assets decreased$59.7 billion and$71.5 billionin 2010 compared to 2009 driven primarily by the sale of strategic

329、invest-ments and goodwill impairment charges.LiabilitiesDepositsYear-end and average deposits increased$18.8 billion to$1.0 trillion and$7.6 billion to$988.6 billion in 2010 compared to 2009.The increase wasattributable to growth in our noninterest-bearing deposits,NOW and moneymarket accounts prima

330、rily driven by affluent,and commercial and corporateclients,partiallyoffsetbyadecrease intimedepositsasa result ofcustomershift to more liquid products.Federal Funds Purchased and Securities Loaned or Sold Un-der Agreements to RepurchaseFederal funds transactions involve borrowing reserve balances o

331、n a short-term basis.Securities loaned and securities sold under agreements torepurchasearecollateralizedborrowingtransactionsutilizedtoaccommodatecustomer transactions,earn interest rate spreads and finance assets on thebalance sheet.Year-end and average federal funds purchased and securitiesloaned

332、 or sold under agreements to repurchase decreased$9.8 billion and$16.2 billion in 2010 compared to 2009 primarily due to lower fundingrequirements.Trading Account LiabilitiesTrading account liabilities consist primarily of short positions in fixed-incomesecurities(including government and corporate

333、debt),equity and convertibleinstruments.Year-end and average trading account liabilities increased$6.5 billion and$19.5 billion in 2010 compared to 2009 due to tradingactivity in fixed-income securities.Commercial Paper and Other Short-term BorrowingsCommercial paper and other short-term borrowings provide a funding sourceto supplement deposits in our ALM strategy.Year-end and average commer-cialp