Business Analysis

Bank of America: A Financial Perspective

Bank of America: A Financial Perspective

Bank of America (BOA) is one of the world's largest financial institutions. It prides itself on the ability to serve individual consumers, small and middle-market businesses and large corporations with a full range of banking, investing, asset management and other financial and risk management products and services. The company provides unmatched convenience in the United States, serving approximately 57 million consumer and small business relationships with approximately 5,700 retail banking offices and approximately 17,750 ATMs and award-winning online banking with 30 million active users. Bank of America is among the world's leading wealth management companies and is a global leader in corporate and investment banking and trading across a broad range of asset classes, serving corporations, governments, institutions and individuals around the world. Bank of America offers industry-leading support to approximately 4 million small business owners through a suite of innovative, easy-to-use online products and services (Sustainability Report, 2005).

Bank of America’s Financial Status

Bank of America’s business environment had a history of bad decisions, lawsuits, and a declining stock value. Although these risks directly reflect how BOA conducts business, the fourth quarter 2011 financial release boasts a different perspective. Bank of America reported a net income of $2.0 billion for fourth quarter compared to a net loss of $1.2 billion just a year ago (Investor Fact Book, 2012). There were significant increases across the board for BOA and the Chief Executive Officer Brian Moynihan stated that, “BOA is stronger in the year 2012 and more efficient after two years of simplifying and streamlining the company (Investor Fact Book, 2012.” He also stated that, “We built the capital ratios to record levels during 2011 on the strength of our core businesses and by shedding those that are...