Consumer and Business Banking (CBB)

    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 $ 7,204   $ 7,606 $ 29,023   $ 32,880
Provision for credit losses 963 1,297 3,941 3,490
Noninterest expense 4,121 4,429 16,793 17,719
Net income $ 1,428 $ 1,242 $ 5,321 $ 7,447
Return on average equity 10.48 % 9.30 % 9.92 % 14.07 %
Return on average economic capital 1 23.94 22.08 23.01 33.52
Average loans $ 132,421 $ 147,150 $ 136,171 $ 153,641
Average deposits 486,467 459,819 477,440 462,087
 

At December 31, 2012
 

At December 31,2011
Client brokerage assets             $ 75,946     $ 66,576  

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
  • Average deposit balances increased $26.6 billion from the year-ago quarter, driven by growth in liquid products in a low-rate environment. The average rate paid on deposits declined 5 basis points to 16 basis points in the fourth quarter of 2012 from the year-ago quarter due to pricing discipline and a shift in the mix of deposits.
  • During the fourth quarter of 2012, purchase volumes per average active credit card account rose 7 percent from the year ago quarter; the number of BankAmericard Cash Rewards cards increased by nearly 24 percent in the fourth quarter of 2012 to a total of 2.1 million cards since the product was launched in the third quarter of 2011.

Financial Overview

Consumer and Business Banking net income was $1.4 billion, up $186 million, or 15 percent, from the year-ago quarter due to lower credit costs and noninterest expense, partially offset by a decrease in net interest income primarily from lower average loans and the continued low-rate environment. Noninterest income of $2.5 billion remained relatively flat.

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