Noninterest expense decreased 6 percent from the year-ago quarter to $3.2 billion, due to lower FDIC expense and lower litigation and other related expenses, partially offset by higher revenue-related compensation. The provision for credit losses was $112 million which was relatively flat compared to $118 million in the year-ago quarter.
Client balances rose 7 percent to $2.17 trillion driven by higher market levels and net inflows, driven by client activity in long-term AUM, deposits and loans. Assets under management rose $62.5 billion from the fourth quarter of 2011 to $698.1 billion, driven by higher market levels and long-term AUM flows.
|Three Months Ended||Year Ended|
|(Dollars in millions)||December 31 2012||December 312011||December 31 2012||December 312011|
|Total revenue, net of interest expense, FTE basis||$||4,326||$||4,002||$||17,207||$||17,312|
|Provision for credit losses||180||(256||)||(103||)||(1,118||)|
|Return on average equity||12.47||%||11.51||%||12.47||%||12.76||%|
|Return on average economic capital 1||27.32||25.06||27.21||26.59|
|Average loans and leases||$||278,218||$||276,850||$||272,625||$||265,568|
1 Return on average economic capital is a non-GAAP financial measure. For reconciliation to GAAP financial measures, refer to pages 25-28 of this press release.Business Highlights
- BofA Merrill was ranked No. 2 globally in investment banking fees for both the fourth quarter and the full year of 2012, according to Dealogic. Based on deal volumes for the year, BofA Merrill was ranked among the top three banks in high-yield corporate debt, leveraged loans, investment-grade corporate debt, asset-backed securities and syndicated loans. Debt issuance fees of approximately $1.1 billion during the fourth quarter of 2012 were the highest since the merger between Bank of America and Merrill Lynch.
- Period-end loan and lease balances increased $10.1 billion, or 4 percent from the year-ago quarter, to $288.3 billion at the end of the fourth quarter of 2012, with growth in the commercial and industrial and leasing portfolios.
- Period-end deposits rose to $269.7 billion at the end of the fourth quarter of 2012 from $246.4 billion at the end of the fourth quarter of 2011.
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