Bank of America
By
Bobby Baysden
Agenda
• History
Agenda
• Overview
• Performance
Agenda
• Overview
• Performance
• Competition
Agenda
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Overview
Performance
Competition
Products/Services
Agenda
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Overview
Performance
Competition
Products/Services
SWOT Analysis
Agenda
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Overview
Performance
Competition
Products/Services
SWOT Analysis
Summary
History
• Bank of America’s history dates back to 1904 and was founded by
Amadeo Giannini
• However it wasn’t until 1930 that he named the bank, Bank of
America
• In 1958 Bank of America introduced BankAmericard, which in 1976
became known as the Visa Card
• In the past 30 years Bank of America has increased in size by or
acquiring or merging with many smaller banks and businesses
• In 1974 Tom Storrs becomes the CEO
• In 1983 Hugh McColl takes over as CEO
• In 1994 they established their first online website
• In 2001 Ken Lewis takes over as CEO
• They became the largest credit card issuer in the industry in 2006
History (continued)
• In 2009 they acquired Merrill Lynch
• In 2010 Brian Moynihan became the CEO
Performance
• In 2012 they suffered 63% drop in 4th quarter profits,
because of mortgage settlements with the government.
• Even with this Bank of America is improving, they increased
profits from 1.4 billion in 2011 to 4.2 billion in 2012. Also,
they had the best performing stock on the Dow Jones
• They have made more not only by doing better business
but also by cutting cost with there new program called
Project New BAC.
• One way they have cut cost is by reducing the amount of
employees, in 2011 they had 281,791 employees and by
the end of 2012 they had 267,190 employees. With this
new project they plan to have cut 30,000 jobs by the end of
2013
Berkshire & Hathaway Investment
• In August of 2011 Warren Buffett’s company Berkshire &
Hathaway invested 5 billion in Bank of America
• In this deal Berkshire & Hathaway are getting 50,000
preferred shares that pay 6% in dividends annually
• They also get warrants to buy 700 million common shares at
7.14 per share
Top 5 Shareholders
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Top Holders
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Shares Held
% O/S
Share Change
Filing Date
The Vanguard Group, Inc.
463,816,602
4.3
12,653,244
12/31/12
State Street Global Advisors (US)
450,353,705
4.2
17,339,729
12/31/12
BlackRock Institutional Trust Company, N.A.
374,424,656
3.5
3,893,703
12/31/12
Citi Investment Research (US)
226,042,014
2.1
-4,228,810
12/31/12
JP Morgan Asset Management
180,393,672
1.7
16,654,549
12/31/12
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Top
Holders
The Vanguard
Group, Inc.
State Street
Global Advisors
(US)
BlackRock
Institutional
Trust Company,
N.A.
Citi Investment
Research (US)
JP Morgan Asset
Management
Shares Held
463,816,602
% O/S
4.3
Share Change
12,653,244
Filing Date
12/31/12
450,353,705
4.2
17,339,729
12/31/12
374,424,656
3.5
3,893,703
12/31/12
226,042,014
2.1
-4,228,810
12/31/12
180,393,672
1.7
16,654,549
12/31/12
Performance
Performance 2008-2012
Services
• Bank of America offers a wide variety of services.
• They offer services to corporations and institutions in the
global markets a couple examples of these global markets are
the commodity markets and currency markets.
• Some services they offer to corporations and institutions are
investment advise, investment banking advise, and corporate
banking advise
Small Business Services/Products
• Bank of America also provides services for small businesses
including:
• Cash management tools
• Pay roll services
• Remote deposits
• Account permission
• Bill payment
• Invoicing
• Tax services
• Online banking
• Investing
Products/Services for Individuals
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Checking
Savings
CDs
Credit cards(#3 in the U.S.)
Student banking
Mobile and text banking
Online banking
Industry
• Bank of America is in the banking industry,
and the financial sector
Competitors
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Bank of America’s main competitors are:
BB&T
U.S. Bancorp
Wells Fargo & Company
PNC Financial Service Group
Sun Trust Banks
Competitors
• One thing that sets Bank of America apart
from its competitor’s is its Client Management
Process
• This is where the client deals with the client
manager, and the client manager manages a
team. Which is a team made up of people
who know about each of BOA’s services and
products
SWOT Analysis
• Strengths
• Bank of America is very large corporation, they serve 57
million people in America alone. They have 5,700 banking
centers and 17,750 ATMs through out the U.S. Also, they are
the primary dealer in 16 countries
• The company has a wide range of revenue sources from global
banking in global markets, card services, and global wealth
and investment management
• They also have good distribution between their assets and
liabilities, which helps it avoid liquidity problems
SWOT Analysis
• Weaknesses
• The class action law suits they are having to pay are in the
billions
• Also they have really bad PR right now. For 4th year in a row
they were voted as the least popular bank. One of the major
reasons for this was the many fees they charge. They even
tried to charge a five dollar fee every month if you own one of
there debit cards
SWOT Analysis
• Opportuites
• The bank sector is expected to grow here in the U.S., and
because Bank of America has so many customers in the U.S.
they are expected to grow
• They are going to try to keep improving their mobile banking
so it will be easier for customers to pay bills, deposit checks,
etc.
• They are expecting to keep creating new products and
services, which should bring in more revenue
SWOT Analysis
• Threats
• Regulatory changes such as the Dodd Frank that was put into
effect in 2010, is going cost them more money to follow the
new regulations
• Because of the recession there have been a lot more
uncertainties, which decreases the demand for their sevices
Summary
• I believe that with the new programs in place,
and if the economy continues to come out of
the recession Bank of America will contniue to
grow and become a stronger company.
Work Cited
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Bank of America. (2013). Retrieved April 15, 2013, from Bank of America:
http://about.bankofamerica.com/en-us/global-impact/environmentalsustainability.html#fbid=I55G0ZS-bI6
Admin. (2012, June 20). SWOT Analysis for Bank of America. Retrieved April
11, 2013, from Marketing Mix Heaven for Business News:
http://marketingmix.org/swot-analysis-of-bank-of-america-corporation/
Schaefer, S. (2012, March 16). Buffet $5 Billion Bank of America Bet Keeps
Looking Better. Retrieved April 11, 2013, from Forbes:
http://www.forbes.com/sites/steveschaefer/2012/03/16/buffetts-5-billionbank-of-america-bet-keeps-looking-better/
• BofA Speeds up plans to cut 16,000 jobs:WSJ. (2012, September 20).
Retrieved April 11, 2013, from Reuters:
http://www.reuters.com/article/2012/09/20/us-bankofamericajobs-idUSBRE88J11G20120920
Work Cited
• Bank of America Corporation. (2013, April 12). Retrieved April
12, 2013, from Morning Star:
http://quotes.morningstar.com/stock/bac/s?t=bac
Questions?