Global Corporate Banking revenue increased to $1.6 billion in the fourth quarter, up $125 million from the year-ago quarter, and Global Commercial Banking revenue increased $117 million to $1.8 billion. Included in these results are Business Lending revenue of $1.8 billion, up $180 million from the year-ago quarter, and Treasury Services revenue of $1.5 billion, up $62 million from the year-ago period. Global Banking investment banking fees, excluding self-led deals, increased $101 million from the year-ago quarter.
Noninterest expense increased $174 million, or 10 percent, from the year-ago quarter to $1.9 billion, primarily from higher incentive compensation associated with the strong performance in investment banking.
|Three Months Ended||Year Ended|
|(Dollars in millions)||December 31 2013||December 312012||December 31 2013||December 312012|
|Total revenue, net of interest expense, FTE basis||$||3,624||$||3,020||$||16,058||$||14,284|
|Total revenue, net of interest expense, FTE basis, excluding DVA 1||3,824||3,296||16,566||16,732|
|Provision for credit losses||104||17||140||34|
|Net income, excluding DVA and U.K. tax 1||341||355||3,009||3,552|
|Return on average allocated capital, excluding DVA and U.K. tax 2, 3, 4||4.54||%||—||10.06||%||—|
|Return on average economic capital, excluding DVA and U.K. tax 2, 3, 4||—||9.98||%||—||25.76||%|
|Total average assets||$||603,110||$||645,808||$||632,804||$||606,249|
1 Total revenue, net of interest expense, on an FTE basis excluding DVA and net income excluding DVA and the U.K. corporate tax rate adjustments are non-GAAP financial measures. DVA losses were $200 million and $276 million for the three months ended December 31, 2013 and 2012, and $508 million and $2.4 billion for the years ended December 31, 2013 and 2012. U.K. corporate tax rate adjustments were $1.1 billion and $0.8 billion for the years ended December 31, 2013 and 2012.2 Effective January 1, 2013, the company revised, on a prospective basis, its methodology for allocating capital to the business segments. In connection with this change in methodology, the company updated the applicable terminology to allocated capital from economic capital as reported in prior periods. For reconciliation of allocated capital, refer to pages 23-25 of this press release. 3 Return on average allocated capital and return on average economic capital, excluding DVA and U.K. corporate tax rate adjustments, are non-GAAP financial measures. Return on average allocated capital was 5.24 percent for 2013 and return on average economic capital was 8.95 percent for 2012. 4 Return on average allocated capital and return on average economic capital are non-GAAP financial measures. The company believes the use of these non-GAAP financial measures provides additional clarity in assessing the results of the segments. Other companies may define or calculate these measures differently. For reconciliation to GAAP financial measures, refer to pages 23-25 of this press release. Business Highlights
- Sales and trading revenue, excluding DVA F, rose 19 percent from the fourth quarter of 2012 to $3.0 billion.
- Equities sales and trading revenue, excluding DVA G, rose 27 percent from the fourth quarter of 2012, due to continued gains in market share and increased market volumes.
- Bank of America Merrill Lynch was named "No. 1 Global Research" firm for the third consecutive year by Institutional Investor.
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