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10-KPeriod: FY2005

BANK OF AMERICA CORP /DE/ Annual Report, Year Ended Dec 31, 2005

Filed March 16, 2006For Securities:BACBAC-PBBAC-PKBAC-PLBAC-PMBAC-PNBAC-PSBML-PJBAC-PEBAC-PPBAC-PQBACRPBML-PGBML-PHBML-PLBAC-POMER-PK

Summary

Bank of America Corporation (BAC) reported solid financial performance for the fiscal year ended December 31, 2005, with net income increasing by 18% to $16.5 billion, or $4.04 per diluted share. This growth was driven by strong performance across its core business segments, including Global Consumer and Small Business Banking and Global Business and Financial Services, bolstered by the integration of the FleetBoston Financial Corporation merger. The company also announced a significant strategic move with the acquisition of MBNA Corporation for $35 billion, which closed in January 2006, aiming to expand its customer base and credit card operations. BAC maintained robust capital ratios, exceeding regulatory requirements and demonstrating a commitment to shareholder returns through a 11% increase in its quarterly cash dividend. The report also highlighted the company's proactive risk management strategies and its commitment to complying with evolving regulatory standards.

Key Highlights

  • 1Net income increased 18% to $16.5 billion ($4.04 per diluted share) in 2005, up from $13.9 billion ($3.64 per diluted share) in 2004.
  • 2The company completed the acquisition of MBNA Corporation for approximately $35 billion in stock and cash, a transaction that closed on January 1, 2006.
  • 3Total revenue grew 14% to $56.1 billion, driven by strong performance in all four business segments, particularly Global Consumer and Small Business Banking and Global Wealth and Investment Management.
  • 4The quarterly cash dividend on common stock was increased by 11% to $0.50 per share, reflecting confidence in the company's financial strength.
  • 5Bank of America maintained strong capital adequacy ratios, with a Tier 1 capital ratio of 8.25% and a Total Capital ratio of 11.08% at year-end 2005, exceeding regulatory requirements.
  • 6The company experienced a net increase in total assets of 16% to $1.3 trillion, driven by increased trading-related activity, ALM portfolio growth, and loan growth.
  • 7Noninterest income saw a significant increase of $4.3 billion, primarily due to growth in Card Income, Investment and Brokerage Services, and Trading Account Profits.

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