Bank of America 2010 Q4 Presentation

Supplemental Information Fourth Quarter 2013
This information is preliminary and based on company data available at the time of the earnings presentation. It speaks only as of the particular date or dates included in the accompanying pages. Bank of America does not undertake an obligation to, and disclaims any duty to, update any of the information provided. Any forward-looking statements in this information are subject to the forward-looking language contained in Bank of America's reports filed with the SEC pursuant to the Securities Exchange Act of 1934, which are available at the SEC's website (www.sec.gov) or at Bank of America's website (www.bankofamerica.com). Bank of America's future financial performance is subject to risks and uncertainties as described in its SEC filings.
Bank of America Corporation and Subsidiaries
Table of Contents
Consolidated Financial Highlights Supplemental Financial Data Consolidated Statement of Income Consolidated Statement of Comprehensive Income Consolidated Balance Sheet Capital Management Net Interest Income Excluding Trading-related Net Interest Income Quarterly Average Balances and Interest Rates Annual Average Balances and Interest Rates Debt Securities and Available-for-Sale Marketable Equity Securities Quarterly Results by Business Segment Annual Results by Business Segment Consumer & Business Banking Total Segment Results Business Results Key Indicators Consumer Real Estate Services Total Segment Results Business Results Key Indicators Global Banking Total Segment Results Key Indicators Investment Banking Product Rankings Global Markets Total Segment Results Key Indicators Global Wealth & Investment Management Total Segment Results Key Indicators All Other Total Results Equity Investments Outstanding Loans and Leases Quarterly Average Loans and Leases by Business Segment Commercial Credit Exposure by Industry Net Credit Default Protection by Maturity Profile and Credit Exposure Debt Rating Top 20 Non-U.S. Countries Exposure Select European Countries Nonperforming Loans, Leases and Foreclosed Properties Nonperforming Loans, Leases and Foreclosed Properties Activity Quarterly Net Charge-offs and Net Charge-off Ratios Annual Net Charge-offs and Net Charge-off Ratios Allocation of the Allowance for Credit Losses by Product Type Exhibit A: Non-GAAP Reconciliations
Page
2 3 4 5 6 8 9 10 12 14 15 16 17 18 21 22 23 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47
Consolidated Financial Highlights

(Dollars in millions, except per share information; shares in thousands) Year Ended December 31 2013 Income statement Net interest income Noninterest income Total revenue, net of interest expense Provision for credit losses Noninterest expense Income tax expense (benefit) Net income Preferred stock dividends Net income applicable to common shareholders Diluted earnings per common share Average diluted common shares issued and outstanding Dividends paid per common share Performance ratios Return on average assets Return on average common shareholders' equity Return on average tangible common shareholders' equity (1) Return on average tangible shareholders' equity (1) 0.53% 4.62 6.97 7.13 0.19% 1.27 1.94 2.60 0.64% 5.74 8.61 8.53 0.47% 4.06 6.15 6.32 0.74% 6.55 9.88 9.98 0.27% 2.06 3.12 3.69 0.13% 0.67 1.01 1.77 $ $ 42,265 46,677 88,942 3,556 69,214 4,741 11,431 1,349 10,082 0.90 11,491,418 0.04 $ $ 40,656 42,678 83,334 8,169 72,093 (1,116) 4,188 1,428 2,760 0.25 10,840,854 0.04 $ $ 10,786 10,702 21,488 336 17,307 406 3,439 256 3,183 0.29 11,404,438 0.01 $ $ 10,266 11,264 21,530 296 16,389 2,348 2,497 279 2,218 0.20 11,482,226 0.01 $ $ 10,549 12,178 22,727 1,211 16,018 1,486 4,012 441 3,571 0.32 11,524,510 0.01 $ $ 10,664 12,533 23,197 1,713 19,500 501 1,483 373 1,110 0.10 11,154,778 0.01 $ $ 10,324 8,336 18,660 2,204 18,360 (2,636) 732 365 367 0.03 10,884,921 0.01 2012 Fourth Quarter 2013 Third Quarter 2013 Second Quarter 2013 First Quarter 2013 Fourth Quarter 2012
At period end Book value per share of common stock Tangible book value per share of common stock (1) Market price per share of common stock: Closing price High closing price for the period Low closing price for the period Market capitalization Number of banking centers - U.S. Number of branded ATMs - U.S. Full-time equivalent employees
(1)
20.71 13.79
20.24 13.36
20.71 13.79
20.50 13.62
20.18 13.32
20.19 13.36
20.24 13.36
15.57 15.88 11.03 164,914 5,151 16,259 242,117
11.61 11.61 5.80 125,136 5,478 16,347 267,190
15.57 15.88 13.69 164,914 5,151 16,259 242,117
13.80 14.95 12.83 147,429 5,243 16,201 247,943
12.86 13.83 11.44 138,156 5,328 16,354 257,158
12.18 12.78 11.03 131,817 5,389 16,311 262,812
11.61 11.61 8.93 125,136 5,478 16,347 267,190
Tangible equity ratios and tangible book value per share of common stock are non-GAAP financial measures. We believe the use of these non-GAAP financial measures provides additional clarity in assessing the results of the Corporation. Other companies may define or calculate non-GAAP financial measures differently. (See Exhibit A: Non-GAAP Reconciliations - Reconciliations to GAAP Financial Measures on pages 47-50.)
Certain prior period amounts have been reclassified to conform to current period presentation.
This information is preliminary and based on company data available at the time of the presentation.
Supplemental Financial Data

(Dollars in millions) Fully taxable-equivalent (FTE) basis data (1) Year Ended December 31 2013 Net interest income Total revenue, net of interest expense Net interest yield (2) Efficiency ratio
(1)
2012 $ 41,557 84,235 2.35% 85.59 $
Fourth Quarter 2013 10,999 21,701 2.56% 79.75 $
Third Quarter 2013 10,479 21,743 2.44% 75.38 $
Second Quarter 2013 10,771 22,949 2.44% 69.80 $
First Quarter 2013 10,875 23,408 2.43% 83.31 $
Fourth Quarter 2012 10,555 18,891 2.35% 97.19
43,124 89,801 2.47% 77.07
(2)
FTE basis is a non-GAAP financial measure. FTE basis is a performance measure used by management in operating the business that management believes provides investors with a more accurate picture of the interest margin for comparative purposes. (See Exhibit A: Non-GAAP Reconciliations - Reconciliations to GAAP Financial Measures on pages 47-50.) Calculation includes fees earned on overnight deposits placed with the Federal Reserve and, beginning in the third quarter of 2012, fees earned on deposits, primarily overnight, placed with certain non-U.S. central banks of $182 million and $189 million for the years ended December 31, 2013 and 2012; $59 million, $50 million, $40 million and $33 million for the fourth, third, second and first quarters of 2013, respectively, and $42 million for the fourth quarter of 2012. For more information, see Quarterly and Annual Average Balances and Interest Rates - Fully Taxable-equivalent Basis on pages 10-11 and 12-13.
Consolidated Statement of Income

(Dollars in millions, except per share information; shares in thousands) Year Ended December 31 2013 Interest income Loans and leases Debt securities Federal funds sold and securities borrowed or purchased under agreements to resell Trading account assets Other interest income Total interest income Interest expense Deposits Short-term borrowings Trading account liabilities Long-term debt Total interest expense Net interest income Noninterest income Card income Service charges Investment and brokerage services Investment banking income Equity investment income Trading account profits Mortgage banking income (loss) Gains on sales of debt securities Other income (loss) Other-than-temporary impairment losses on available-for-sale debt securities: Total other-than-temporary impairment losses Less: Portion of other-than-temporary impairment losses recognized in other comprehensive income Net impairment losses recognized in earnings on available-for-sale debt securities Total noninterest income Total revenue, net of interest expense Provision for credit losses Noninterest expense Personnel Occupancy Equipment Marketing Professional fees Amortization of intangibles Data processing Telecommunications Other general operating Total noninterest expense Income (loss) before income taxes Income tax expense (benefit) Net income Preferred stock dividends Net income applicable to common shareholders Per common share information Earnings Diluted earnings Dividends paid Average common shares issued and outstanding Average diluted common shares issued and outstanding $ 0.94 0.90 0.04 10,731,165 11,491,418 $ 0.26 0.25 0.04 10,746,028 10,840,854 $ 0.30 0.29 0.01 10,633,030 11,404,438 $ 0.21 0.20 0.01 10,718,918 11,482,226 $ 0.33 0.32 0.01 10,775,867 11,524,510 $ 0.10 0.10 0.01 10,798,975 11,154,778 $ 0.03 0.03 0.01 10,777,204 10,884,921 $ $ 34,719 4,475 2,146 1,834 2,884 1,086 3,170 1,593 17,307 69,214 16,172 4,741 11,431 1,349 10,082 $ $ 35,648 4,570 2,269 1,873 3,574 1,264 2,961 1,660 18,274 72,093 3,072 (1,116) 4,188 1,428 2,760 $ $ 7,987 1,116 526 457 839 266 800 376 4,940 17,307 3,845 406 3,439 256 3,183 $ $ 8,310 1,096 538 511 702 270 779 397 3,786 16,389 4,845 2,348 2,497 279 2,218 $ $ 8,531 1,109 532 437 694 274 779 411 3,251 16,018 5,498 1,486 4,012 441 3,571 $ $ 9,891 1,154 550 429 649 276 812 409 5,330 19,500 1,984 501 1,483 373 1,110 $ $ 8,300 1,151 551 480 996 309 773 433 5,367 18,360 (1,904) (2,636) 732 365 367 (21) 1 (20) 46,677 88,942 3,556 (57) 4 (53) 42,678 83,334 8,169 10,702 21,488 336 (8) 1 (7) 11,264 21,530 296 (5) 1 (4) 12,178 22,727 1,211 (14) 5 (9) 12,533 23,197 1,713 (1) (1) 8,336 18,660 2,204 5,826 7,390 12,282 6,126 2,901 7,056 3,874 1,271 (29) 6,121 7,600 11,393 5,299 2,070 5,870 4,750 1,662 (2,034) 1,503 1,870 3,117 1,738 474 863 848 390 (101) 1,444 1,884 2,995 1,297 1,184 1,266 585 356 260 1,469 1,837 3,143 1,556 680 1,938 1,178 457 (76) 1,410 1,799 3,027 1,535 563 2,989 1,263 68 (112) 1,548 1,820 2,889 1,600 699 792 (540) 171 (642) 1,396 2,923 1,638 6,798 12,755 42,265 1,990 3,572 1,763 9,419 16,744 40,656 314 682 364 1,566 2,926 10,786 334 683 375 1,724 3,116 10,266 366 809 427 1,674 3,276 10,549 382 749 472 1,834 3,437 10,664 438 855 420 1,934 3,647 10,324 $ 36,470 9,749 1,229 4,706 2,866 55,020 $ 38,880 8,908 1,502 5,094 3,016 57,400 $ 9,086 2,447 304 1,139 736 13,712 $ 9,146 2,205 291 1,049 691 13,382 $ 9,060 2,548 319 1,181 717 13,825 $ 9,178 2,549 315 1,337 722 14,101 $ 9,366 2,196 329 1,307 773 13,971 2012 Fourth Quarter 2013 Third Quarter 2013 Second Quarter 2013 First Quarter 2013 Fourth Quarter 2012
Consolidated Statement of Comprehensive Income

(Dollars in millions) Year Ended December 31 2013 Net income Other comprehensive income (loss), net-of-tax: Net change in available-for-sale debt and marketable equity securities Net change in derivatives Employee benefit plan adjustments Net change in foreign currency translation adjustments Other comprehensive income (loss) Comprehensive income (loss) $ (8,166) 592 2,049 (135) (5,660) 5,771 $ 1,802 916 (65) (13) 2,640 6,828 $ (2,396) 227 536 (1) (1,634) 1,805 $ (631) 180 1,380 (43) 886 3,383 $ (4,233) 13 48 (49) (4,221) (209) $ (906) 172 85 (42) (691) 792 $ (1,169) 381 (1,171) (27) (1,986) (1,254) $ 11,431 $ 2012 4,188 $ Fourth Quarter 2013 3,439 $ Third Quarter 2013 2,497 $ Second Quarter 2013 4,012 $ First Quarter 2013 1,483 $ Fourth Quarter 2012 732
Consolidated Balance Sheet

(Dollars in millions) December 31 2013 Assets Cash and cash equivalents Time deposits placed and other short-term investments Federal funds sold and securities borrowed or purchased under agreements to resell Trading account assets Derivative assets Debt securities: Carried at fair value Held-to-maturity, at cost Total debt securities Loans and leases Allowance for loan and lease losses Loans and leases, net of allowance Premises and equipment, net Mortgage servicing rights (includes $5,042, $5,058 and $5,716 measured at fair value) Goodwill Intangible assets Loans held-for-sale Customer and other receivables Other assets Total assets $ 268,795 55,150 323,945 928,233 (17,428) 910,805 10,475 5,052 69,844 5,574 11,362 59,448 124,090 2,102,273 $ 266,349 54,649 320,998 934,392 (19,432) 914,960 10,703 5,068 69,891 5,843 15,001 60,065 122,068 2,126,653 $ 310,850 49,481 360,331 907,819 (24,179) 883,640 11,858 5,851 69,976 6,684 19,413 71,467 150,112 2,209,974 $ 131,322 11,540 190,328 200,993 47,495 $ 121,233 14,449 212,007 201,206 53,161 $ 110,752 18,694 219,924 227,775 53,497 September 30 2013 December 31 2012
Assets of consolidated variable interest entities included in total assets above (isolated to settle the liabilities of the variable interest entities) Trading account assets Derivative assets Loans and leases Allowance for loan and lease losses Loans and leases, net of allowance Loans held-for-sale All other assets Total assets of consolidated variable interest entities $ $ 8,412 185 109,118 (2,674) 106,444 1,384 4,577 121,002 $ $ 8,743 199 109,996 (2,962) 107,034 1,875 4,314 122,165 $ $ 7,906 333 123,227 (3,658) 119,569 1,969 4,654 134,431
Consolidated Balance Sheet (continued)

(Dollars in millions) December 31 2013 Liabilities Deposits in U.S. offices: Noninterest-bearing Interest-bearing Deposits in non-U.S. offices: Noninterest-bearing Interest-bearing Total deposits Federal funds purchased and securities loaned or sold under agreements to repurchase Trading account liabilities Derivative liabilities Short-term borrowings Accrued expenses and other liabilities (includes $484, $480 and $513 of reserve for unfunded lending commitments) Long-term debt Total liabilities Shareholders equity Preferred stock, $0.01 par value; authorized 100,000,000 shares; issued and outstanding 3,407,790, 3,407,790 and 3,685,410 shares Common stock and additional paid-in capital, $0.01 par value; authorized 12,800,000,000 shares; issued and outstanding 10,591,808,296, 10,683,282,112 and 10,778,263,628 shares Retained earnings Accumulated other comprehensive income (loss) Total shareholders' equity Total liabilities and shareholders' equity Liabilities of consolidated variable interest entities included in total liabilities above Short-term borrowings Long-term debt All other liabilities Total liabilities of consolidated variable interest entities $ $ 1,150 19,448 253 20,851 $ $ 2,180 24,481 382 27,043 $ $ 3,731 34,256 360 38,347 $ 13,352 155,293 72,497 (8,457) 232,685 2,102,273 $ 13,315 156,371 69,419 (6,823) 232,282 2,126,653 $ 18,768 158,142 62,843 (2,797) 236,956 2,209,974 8,233 70,232 1,119,271 198,106 83,469 37,407 45,999 135,662 249,674 1,869,588 7,394 70,963 1,110,118 226,274 82,713 44,568 40,769 134,598 255,331 1,894,371 7,573 70,810 1,105,261 293,259 73,587 46,016 30,731 148,579 275,585 1,973,018 $ 373,092 667,714 $ 374,284 657,477 $ 372,546 654,332 September 30 2013 December 31 2012
Capital Management
(Dollars in millions) Fourth Quarter 2013 Risk-based capital (1, 2): Tier 1 common capital Tier 1 capital Total capital Risk-weighted assets (3) Tier 1 common capital ratio (3, 4) Tier 1 capital ratio Total capital ratio Tier 1 leverage ratio Tangible equity ratio (5) Tangible common equity ratio (5)
(1) (2)
Third Quarter 2013 $ 142,825 159,008 198,001 1,289,444 11.08% 12.33 15.36 7.79 7.73 7.08 $
Second Quarter 2013 139,519 156,689 196,752 1,288,159 10.83 % 12.16 15.27 7.49 7.67 6.98 $
First Quarter 2013 136,119 158,677 201,211 1,298,187 10.49 % 12.22 15.50 7.49 7.78 6.88 $
Fourth Quarter 2012 133,403 155,461 196,680 1,205,976 11.06 % 12.89 16.31 7.37 7.62 6.74
145,235 161,456 200,281 1,297,529 11.19% 12.44 15.44 7.87 7.86 7.20
(3) (4) (5)
Regulatory capital ratios are preliminary until filed with the Federal Reserve on Form Y-9C. Basel 1 includes the Market Risk Final Rule for the fourth, third, second and first quarters of 2013 (Basel 1 2013 Rules). Basel 1 did not include the Market Risk Final Rule for the fourth quarter of 2012. On a pro-forma basis, under the Basel 1 2013 Rules, fourth quarter 2012 risk-weighted assets and the Tier 1 common capital ratio would have been $1,284,799 million and 10.38 percent. Tier 1 common capital ratio equals Tier 1 capital excluding preferred stock, trust preferred securities, hybrid securities and minority interest divided by risk-weighted assets. Tangible equity ratio equals period-end tangible shareholders' equity divided by period-end tangible assets. Tangible common equity equals period-end tangible common shareholders' equity divided by period-end tangible assets. Tangible shareholders' equity and tangible assets are non-GAAP financial measures. We believe the use of these non-GAAP financial measures provides additional clarity in assessing the results of the Corporation. (See Exhibit A: Non-GAAP Reconciliations - Reconciliation to GAAP Financial Measures on pages 47-50.)
Basel 1 to Basel 3 (fully phased-in) Reconciliation (1, 2)

(Dollars in millions) December 31 2013 Regulatory capital Basel 1 to Basel 3 (fully phased-in) Basel 1 Tier 1 capital Deduction of qualifying preferred stock and trust preferred securities Basel 1 Tier 1 common capital Deduction of defined benefit pension assets Deferred tax asset and threshold deductions (deferred tax asset temporary differences, mortgage servicing rights and significant investments) Other deductions, net Basel 3 Advanced approach (fully phased-in) Tier 1 common capital Risk-weighted assets Basel 1 to Basel 3 (fully phased-in) Basel 1 risk-weighted assets Credit and other risk-weighted assets Increase due to Market Risk Final Rule Basel 3 Advanced approach (fully phased-in) risk-weighted assets Tier 1 common capital ratios Basel 1 Basel 3 Advanced approach (fully phased-in)
(1)
September 30 2013 $ 159,008 (16,183) 142,825 (935) (4,758) (5,319) $ 131,813 $ $
June 30 2013 156,689 (17,170) 139,519 (787) (6,761) (6,125) 125,846 $ $
March 31 2013 158,677 (22,558) 136,119 (776) (4,501) (2,032) 128,810
December 31 2012 $ 155,461 (22,058) 133,403 (737) (3,020) (1,020) $ 128,626
161,456 (16,221) 145,235 (829) (4,803) (7,288)
132,315
1,297,529 31,515
1,289,444 37,140
1,288,159 22,276
1,298,187 55,454
1,205,976 103,085 81,811
1,329,044
1,326,584
1,310,435
1,353,641
1,390,872
11.19% 9.96
11.08% 9.94
10.83% 9.60
10.49% 9.52
11.06% 9.25
(2)
Basel 3 (fully phased-in) estimates are based on the Advanced approach under the final Basel rules issued on July 2, 2013, assuming all regulatory model approvals, except for the potential reduction to risk-weighted assets resulting from the Comprehensive Risk Measure after one year. Basel 1 includes the Market Risk Final Rule at December 31, 2013, September 30, 2013, June 30, 2013 and March 31, 2013. Basel 1 did not include the Market Risk Final Rule at December 31, 2012.
Net Interest Income Excluding Trading-related Net Interest Income

(Dollars in millions) Year Ended December 31 2013 Net interest income (FTE basis) As reported (1) Impact of trading-related net interest income Net interest income excluding trading-related net interest income (2) Average earning assets As reported Impact of trading-related earning assets Average earning assets excluding trading-related earning assets (2) Net interest yield contribution (FTE basis) (3) As reported (1) Impact of trading-related activities Net interest yield on earning assets excluding trading-related activities (2)
(1)
2012 $ $ 41,557 (3,308) 38,249 $ $
Fourth Quarter 2013 10,999 (1,051) 9,948 $ $
Third Quarter 2013 10,479 (888) 9,591 $ $
Second Quarter 2013 10,771 (919) 9,852 $ $
First Quarter 2013 10,875 (1,010) 9,865 $ $
Fourth Quarter 2012 10,555 (1,012) 9,543
$ $
43,124 (3,868) 39,256
$1,746,974 (469,048) $1,277,926
$ 1,769,969 (449,660) $ 1,320,309
$1,708,501 (445,725) $1,262,776
$ 1,710,685 (446,212) $ 1,264,473
$ 1,769,336 (487,345) $ 1,281,991
$ 1,800,786 (497,730) $ 1,303,056
$ 1,788,936 (482,366) $ 1,306,570
2.47% 0.60 3.07%
2.35% 0.55 2.90%
2.56% 0.57 3.13%
2.44% 0.58 3.02%
2.44% 0.64 3.08%
2.43% 0.62 3.05%
2.35% 0.56 2.91%
(2) (3)
Net interest income and net interest yield include fees earned on overnight deposits placed with the Federal Reserve and, beginning in the third quarter of 2012, deposits, primarily overnight, placed with certain non-U.S. central banks of $182 million and $189 million for the years ended December 31, 2013 and 2012; $59 million, $50 million, $40 million and $33 million for the fourth, third, second and first quarters of 2013, respectively, and $42 million for the fourth quarter of 2012. Represents a non-GAAP financial measure. Quarterly results are calculated on an annualized basis.
Quarterly Average Balances and Interest Rates Fully Taxable-equivalent Basis

(Dollars in millions) Fourth Quarter 2013 Average Balance Earning assets Time deposits placed and other short-term investments (1) Federal funds sold and securities borrowed or purchased under agreements to resell Trading account assets Debt securities (2) Loans and leases (3): Residential mortgage Home equity U.S. credit card Non-U.S. credit card Direct/Indirect consumer Other consumer Total consumer U.S. commercial Commercial real estate Commercial lease financing Non-U.S. commercial Total commercial Total loans and leases Other earning assets Total earning assets (4) Cash and cash equivalents (1) Other assets, less allowance for loan and lease losses Total assets
(1)
Third Quarter 2013 Yield/ Rate 1.21% 0.59 3.01 3.02 3.74 3.97 9.36 11.01 2.70 3.73 4.72 2.99 3.20 3.37 2.20 2.84 3.92 3.61 3.23 $ Average Balance 17,256 223,434 144,502 327,493 256,297 98,172 90,005 10,633 83,773 1,867 540,747 221,542 43,164 23,869 94,656 383,231 923,978 74,022 1,710,685 113,064 299,681 $ 2,123,430 $ Interest Income/ Expense 47 291 1,093 2,211 2,359 930 2,226 317 587 19 6,438 1,704 352 204 528 2,788 9,226 677 13,545 50 Yield/ Rate 1.07% 0.52 3.01 2.70 3.68 3.77 9.81 11.81 2.78 3.89 4.74 3.05 3.24 3.41 2.22 2.89 3.97 3.62 3.15 $
Fourth Quarter 2012 Average Balance 16,967 241,950 186,252 360,213 256,564 110,270 92,849 13,081 82,583 1,602 556,949 209,496 38,192 22,839 65,690 336,217 893,166 90,388 1,788,936 111,671 309,758 $ 2,210,365 $ Interest Income/ Expense 50 329 1,362 2,201 2,292 1,068 2,336 383 662 19 6,760 1,729 341 184 433 2,687 9,447 771 14,160 42 Yield/ Rate 1.14% 0.54 2.91 2.44 3.57 3.86 10.01 11.66 3.19 4.57 4.84 3.28 3.55 3.23 2.62 3.18 4.21 3.40 3.16
Interest Income/ Expense $ 48 304 1,182 2,455 2,374 953 2,125 310 565 17 6,344 1,700 374 206 544 2,824 9,168 709 13,866 59
15,782 203,415 156,194 325,119 253,974 95,388 90,057 11,171 82,990 1,929 535,509 225,596 46,341 24,468 97,863 394,268 929,777 78,214 1,708,501 125,259 301,115
$ 2,134,875
(2) (3)
(4)
For this presentation, fees earned on overnight deposits placed with the Federal Reserve are included in the cash and cash equivalents line, consistent with the Consolidated Balance Sheet presentation of these deposits. In addition, beginning in the third quarter of 2012, fees earned on deposits, primarily overnight, placed with certain non-U.S. central banks, which are included in the time deposits placed and other short-term investments line in prior periods, have been included in the cash and cash equivalents line. Net interest income and net interest yield are calculated excluding these fees. Yields on debt securities carried at fair value are calculated based on fair value rather than the cost basis. The use of fair value does not have a material impact on net interest yield. Nonperforming loans are included in the respective average loan balances. Income on these nonperforming loans is generally recognized on a cost recovery basis. Purchased credit-impaired loans were recorded at fair value upon acquisition and accrete interest income over the remaining life of the loan. The impact of interest rate risk management derivatives on interest income is presented below. Interest income includes the impact of interest rate risk management contracts, which increased (decreased) interest income on: Fourth Quarter 2013 Third Quarter 2013 15 (1) (14) $ $ $ 15 (2) (14) (1) $ Fourth Quarter 2012 $ (1) 11 (134) (21) (1) (146)
Time deposits placed and other short-term investments Federal funds sold and securities borrowed or purchased under agreements to resell Debt securities U.S. commercial Non-U.S. commercial Net hedge expenses on assets
10
Quarterly Average Balances and Interest Rates Fully Taxable-equivalent Basis (continued)
(Dollars in millions) Fourth Quarter 2013 Average Balance Interest-bearing liabilities U.S. interest-bearing deposits: Savings NOW and money market deposit accounts Consumer CDs and IRAs Negotiable CDs, public funds and other deposits Total U.S. interest-bearing deposits Non-U.S. interest-bearing deposits: Banks located in non-U.S. countries Governments and official institutions Time, savings and other Total non-U.S. interest-bearing deposits Total interest-bearing deposits Federal funds purchased, securities loaned or sold under agreements to repurchase and short-term borrowings Trading account liabilities Long-term debt Total interest-bearing liabilities (1) Noninterest-bearing sources: Noninterest-bearing deposits Other liabilities Shareholders equity Total liabilities and shareholders equity Net interest spread Impact of noninterest-bearing sources Net interest income/yield on earning assets (2)
(1)
Third Quarter 2013 Yield/ Rate Average Balance Interest Income/ Expense Yield/ Rate
Fourth Quarter 2012 Average Balance Interest Income/ Expense Yield/ Rate
Interest Income/ Expense
43,665 514,220 77,424 26,271 661,580 13,878 1,258 59,029 74,165 735,745 271,538 82,393 251,055 1,340,731 376,929 183,800 233,415
5 89 97 28 219 18 77 95 314 682 364 1,566 2,926
0.05% 0.07 0.50 0.40 0.13 0.52 0.22 0.51 0.51 0.17 1.00 1.75 2.48 0.87
43,968 508,136 81,190 24,079 657,373 12,789 1,041 55,446 69,276 726,649 279,425 84,648 258,717 1,349,439 363,962 179,637 230,392
5 100 116 25 246 16 1 71 88 334 683 375 1,724 3,116
0.05% 0.08 0.56 0.42 0.15 0.47 0.25 0.52 0.50 0.18 0.97 1.76 2.65 0.92
41,294 479,130 91,256 19,904 631,584 11,970 876 53,649 66,495 698,079 336,341 80,084 277,894 1,392,398 379,997 199,458 238,512
6 146 156 27 335 22 1 80 103 438 855 420 1,934 3,647
0.06% 0.12 0.68 0.54 0.21 0.71 0.29 0.60 0.62 0.25 1.01 2.09 2.77 1.04
$ 2,134,875 2.36% 0.19 $ 10,940 2.55%
$ 2,123,430 2.23% 0.20 $ 10,429 2.43%
$ 2,210,365 2.12% 0.22 $ 10,513 2.34%
The impact of interest rate risk management derivatives on interest expense is presented below. Interest expense includes the impact of interest rate risk management contracts, which increased (decreased) interest expense on: Fourth Quarter 2013 Third Quarter 2013 20 3 4 260 (875) $ (588) $ $ 23 3 2 260 (844) (556) $ Fourth Quarter 2012 $ 15 3 3 311 (930) (598)
NOW and money market deposit accounts Consumer CDs and IRAs Negotiable CDs, public funds and other deposits Banks located in non-U.S. countries Federal funds purchased, securities loaned or sold under agreements to repurchase and short-term borrowings Long-term debt Net hedge income on liabilities
(2)
For this presentation, fees earned on overnight deposits placed with the Federal Reserve are included in the cash and cash equivalents line, consistent with the Consolidated Balance Sheet presentation of these deposits. In addition, beginning in the third quarter of 2012, fees earned on deposits, primarily overnight, placed with certain non-U.S. central banks, which are included in the time deposits placed and other short-term investments line in prior periods, have been included in the cash and cash equivalents line. Net interest income and net interest yield are calculated excluding these fees.
11
Annual Average Balances and Interest Rates Fully Taxable-equivalent Basis

(Dollars in millions) 2013 Average Balance Earning assets Time deposits placed and other short-term investments (1) Federal funds sold and securities borrowed or purchased under agreements to resell Trading account assets Debt securities (2) Loans and leases (3): Residential mortgage Home equity U.S. credit card Non-U.S. credit card Direct/Indirect consumer Other consumer Total consumer U.S. commercial Commercial real estate Commercial lease financing Non-U.S. commercial Total commercial Total loans and leases Other earning assets Total earning assets (4) Cash and cash equivalents (1) Other assets, less allowance for loan and lease losses Total assets
(1)
2012 Yield/ Rate 1.16% 0.55 2.89 2.89 3.63 3.82 9.73 11.70 2.86 4.02 4.73 3.11 3.29 3.56 2.29 2.96 4.00 3.50 3.19 $ Average Balance 22,888 236,042 170,647 353,577 264,164 117,339 94,863 13,549 84,424 2,359 576,698 201,352 37,982 21,879 60,857 322,070 898,768 88,047 1,769,969 115,739 305,648 $ 2,191,356 $ Interest Income/ Expense 237 1,502 5,306 8,931 9,845 4,426 9,504 1,572 2,900 140 28,387 6,979 1,332 874 1,594 10,779 39,166 2,970 58,112 189 Yield/ Rate 1.03% 0.64 3.11 2.53 3.73 3.77 10.02 11.60 3.44 5.95 4.92 3.47 3.51 4.00 2.62 3.35 4.36 3.36 3.28
Interest Income/ Expense $ 187 1,229 4,879 9,779 9,319 3,831 8,792 1,271 2,370 72 25,655 6,811 1,392 851 2,082 11,136 36,791 2,832 55,697 182
16,066 224,331 168,998 337,953 256,531 100,267 90,369 10,861 82,907 1,805 542,740 218,875 42,346 23,865 90,815 375,901 918,641 80,985 1,746,974 109,014 307,525
2,163,513
(2) (3)
(4)
For this presentation, fees earned on overnight deposits placed with the Federal Reserve are included in the cash and cash equivalents line, consistent with the Consolidated Balance Sheet presentation of these deposits. In addition, beginning in the third quarter of 2012, fees earned on deposits, primarily overnight, placed with certain non-U.S. central banks, which are included in the time deposits placed and other short-term investments line in prior periods, have been included in the cash and cash equivalents line. Net interest income and net interest yield are calculated excluding these fees. Yields on debt securities carried at fair value are calculated based on fair value rather than the cost basis. The use of fair value does not have a material impact on net interest yield. Nonperforming loans are included in the respective average loan balances. Income on these nonperforming loans is generally recognized on a cost recovery basis. Purchased credit-impaired loans were recorded at fair value upon acquisition and accrete interest income over the remaining life of the loan. The impact of interest rate risk management derivatives on interest income is presented below. Interest income includes the impact of interest rate risk management contracts, which increased (decreased) interest income on: 2013 2012 54 (173) (84) (2) $ (205) $ $ (1) 121 (799) (72) (3) (754)
Time deposits placed and other short-term investments Federal funds sold and securities borrowed or purchased under agreements to resell Debt securities U.S. commercial Non-U.S. commercial Net hedge expenses on assets
12
Annual Average Balances and Interest Rates Fully Taxable-equivalent Basis (continued)
(Dollars in millions) 2013 Average Balance Interest-bearing liabilities U.S. interest-bearing deposits: Savings NOW and money market deposit accounts Consumer CDs and IRAs Negotiable CDs, public funds and other deposits Total U.S. interest-bearing deposits Non-U.S. interest-bearing deposits: Banks located in non-U.S. countries Governments and official institutions Time, savings and other Total non-U.S. interest-bearing deposits Total interest-bearing deposits Federal funds purchased, securities loaned or sold under agreements to repurchase and short-term borrowings Trading account liabilities Long-term debt Total interest-bearing liabilities (1) Noninterest-bearing sources: Noninterest-bearing deposits Other liabilities Shareholders equity Total liabilities and shareholders equity Net interest spread Impact of noninterest-bearing sources Net interest income/yield on earning assets (2)
(1)
2012 Yield/ Rate Average Balance Interest Income/ Expense Yield/ Rate
Interest Income/ Expense
43,868 506,082 82,963 23,504 656,417 12,419 1,032 56,193 69,644 726,061 301,417 88,323 263,416 1,379,217 363,674 186,675 233,947
22 413 481 106 1,022 70 2 302 374 1,396 2,923 1,638 6,798 12,755
0.05% 0.08 0.58 0.45 0.16 0.56 0.24 0.54 0.54 0.19 0.97 1.85 2.58 0.92
41,453 466,096 95,559 20,928 624,036 14,737 1,019 53,318 69,074 693,110 318,400 78,554 316,393 1,406,457 354,672 194,550 235,677
45 693 693 128 1,559 94 4 333 431 1,990 3,572 1,763 9,419 16,744
0.11% 0.15 0.73 0.61 0.25 0.64 0.35 0.63 0.62 0.29 1.12 2.24 2.98 1.19
2,163,513 2.27% 0.19 $ 42,942 2.46%
2,191,356 2.09% 0.25 $ 41,368 2.34%
The impact of interest rate risk management derivatives on interest expense is presented below. Interest expense includes the impact of interest rate risk management contracts, which increased (decreased) interest expense on: 2013 2012 (1) 77 13 12 1,039 (3,562) $ (2,422) $ $ (1) 87 13 13 1,266 (3,679) (2,301)
NOW and money market deposit accounts Consumer CDs and IRAs Negotiable CDs, public funds and other deposits Banks located in non-U.S. countries Federal funds purchased, securities loaned or sold under agreements to repurchase and short-term borrowings Long-term debt Net hedge income on liabilities
(2)
For this presentation, fees earned on overnight deposits placed with the Federal Reserve are included in the cash and cash equivalents line, consistent with the Consolidated Balance Sheet presentation of these deposits. In addition, beginning in the third quarter of 2012, fees earned on deposits, primarily overnight, placed with certain non-U.S. central banks, which are included in the time deposits placed and other short-term investments line in prior periods, have been included in the cash and cash equivalents line. Net interest income and net interest yield are calculated excluding these fees.
13
Debt Securities and Available-for-Sale Marketable Equity Securities

(Dollars in millions) December 31, 2013 Amortized Cost Available-for-sale debt securities U.S. Treasury and agency securities Mortgage-backed securities: Agency Agency-collateralized mortgage obligations Non-agency residential Commercial Non-U.S. securities Corporate/Agency bonds Other taxable securities, substantially all asset-backed securities Total taxable securities Tax-exempt securities Total available-for-sale debt securities Other debt securities carried at fair value Total debt securities carried at fair value Held-to-maturity debt securities, substantially all U.S. agency mortgage-backed securities Total debt securities Available-for-sale marketable equity securities (1) $ $ 170,112 22,731 6,124 2,429 7,207 860 16,805 235,178 5,967 241,145 34,145 275,290 55,150 330,440 230 $ $ 777 76 238 63 37 20 30 1,347 10 1,357 34 1,391 20 1,411 $ $ (5,954) (315) (123) (12) (24) (7) (5) (6,502) (49) (6,551) (1,335) (7,886) (2,740) (10,626) (7) $ $ 164,935 22,492 6,239 2,480 7,220 873 16,830 230,023 5,928 235,951 32,844 268,795 52,430 321,225 223 $ 8,910 $ 106 $ (62) $ 8,954 Gross Unrealized Gains Gross Unrealized Losses Fair Value
September 30, 2013 Available-for-sale debt securities U.S. Treasury and agency securities Mortgage-backed securities: Agency Agency-collateralized mortgage obligations Non-agency residential Commercial Non-U.S. securities Corporate/Agency bonds Other taxable securities, substantially all asset-backed securities Total taxable securities Tax-exempt securities Total available-for-sale debt securities Other debt securities carried at fair value Total debt securities carried at fair value Held-to-maturity debt securities, substantially all U.S. agency mortgage-backed securities Total debt securities Available-for-sale marketable equity securities (1)
(1)
2,872 170,911 27,187 6,788 2,751 6,217 1,152 13,142 231,020 5,264 236,284 32,365 268,649 54,649
127 1,311 340 239 84 35 28 29 2,193 6 2,199 98 2,297 67
(28) (3,197) (192) (98) (8) (12) (10) (6) (3,551) (36) (3,587) (1,010) (4,597) (1,865)
2,971 169,025 27,335 6,929 2,827 6,240 1,170 13,165 229,662 5,234 234,896 31,453 266,349 52,851
$ $
323,298 119
$ $
2,364
$ $
(6,462) (5)
$ $
319,200 114
Classified in other assets on the Consolidated Balance Sheet.
Other Debt Securities Carried at Fair Value

(Dollars in millions) U.S. Treasury and agency securities Mortgage-backed securities: Agency Agency-collateralized mortgage obligations Commercial Non-U.S. securities (1) Total
(1)
December 31 2013 $ 4,062 16,500 218 749 11,315 $ 32,844 $ $
September 30 2013 18,626 563 758 11,506 31,453
These securities are used to satisfy certain international regulatory liquidity requirements.
14
Quarterly Results by Business Segment

(Dollars in millions) Fourth Quarter 2013 Total Corporation Net interest income (FTE basis) Noninterest income (loss) Total revenue, net of interest expense (FTE basis) Provision for credit losses Noninterest expense Income (loss) before income taxes Income tax expense (benefit) (FTE basis) Net income (loss) Average Total loans and leases Total assets (1) Total deposits Period end Total loans and leases Total assets (1) Total deposits $ 10,999 10,702 21,701 336 17,307 4,058 619 3,439 Consumer & Business Banking $ 4,948 2,549 7,497 427 4,042 3,028 1,061 1,967 Consumer Real Estate Services $ 715 997 1,712 (474) 3,794 (1,608) (547) (1,061) $ Global Banking 2,301 2,004 4,305 441 1,927 1,937 670 1,267 $ Global Markets 1,142 2,482 3,624 104 3,284 236 21 215 $ All Other $ 408 (325) 83 (188) 996 (725) (999) 274
GWIM 1,485 2,995 4,480 26 3,264 1,190 413 777
929,777 2,134,875 1,112,674 928,233 2,102,273 1,119,271
163,152 590,073 528,808 165,090 592,978 531,707
89,687 113,584 n/m 89,753 113,386 n/m
268,849 380,496 259,762 269,469 379,207 265,718
n/m 603,110 n/m n/m 575,709 n/m
115,546 268,683 240,395 115,846 274,112 244,901
226,049 178,929 34,030 220,694 166,881 27,702
Third Quarter 2013 Total Corporation Net interest income (FTE basis) Noninterest income Total revenue, net of interest expense (FTE basis) Provision for credit losses Noninterest expense Income (loss) before income taxes Income tax expense (benefit) (FTE basis) Net income (loss) Average Total loans and leases Total assets (1) Total deposits Period end Total loans and leases Total assets (1) Total deposits $ 10,479 11,264 21,743 296 16,389 5,058 2,561 2,497 Consumer & Business Banking $ 5,056 2,468 7,524 761 3,980 2,783 1,004 1,779 $ Consumer Real Estate Services 733 844 1,577 (308) 3,419 (1,534) (534) (1,000) $ Global Banking 2,201 1,807 4,008 322 1,927 1,759 625 1,134 $ Global Markets 975 2,401 3,376 47 2,884 445 1,223 (778) $ All Other $ 36 832 868 (549) 930 487 (156) 643
GWIM 1,478 2,912 4,390 23 3,249 1,118 399 719
923,978 2,123,430 1,090,611 934,392 2,126,653 1,110,118
165,707 583,855 522,023 167,254 588,627 526,876
88,406 118,226 n/m 87,586 115,424 n/m
260,085 347,062 239,839 267,165 373,110 263,121
n/m 602,632 n/m n/m 601,139 n/m
112,752 268,611 239,663 114,175 270,484 241,553
232,538 203,044 35,126 229,550 177,869 30,705
Fourth Quarter 2012 Total Corporation Net interest income (FTE basis) Noninterest income (loss) Total revenue, net of interest expense (FTE basis) Provision for credit losses Noninterest expense Income (loss) before income taxes Income tax expense (benefit) (FTE basis) Net income (loss) Average Total loans and leases Total assets (1) Total deposits Period end Total loans and leases Total assets (1) Total deposits
(1)
Consumer & Business Banking $ 4,869 2,532 7,401 1,078 4,174 2,149 703 1,446 $
Consumer Real Estate Services 729 (254) 475 485 5,607 (5,617) (1,913) (3,704) $
Global Banking 2,099 1,852 3,951 62 1,753 2,136 744 1,392 $
Global Markets 1,114 1,906 3,020 17 2,627 376 195 181 $
GWIM 1,489 2,704 4,193 112 3,196 885 309 576 $
All Other 255 (404) (149) 450 1,003 (1,602) (2,443) 841
10,555 8,336 18,891 2,204 18,360 (1,673) (2,405) 732
893,166 2,210,365 1,078,076 907,819 2,209,974 1,105,261
167,219 540,787 484,086 169,266 554,915 496,159
96,605 131,663 n/m 94,660 131,059 n/m
232,396 336,332 242,817 242,340 331,611 243,306
n/m 645,808 n/m n/m 632,263 n/m
103,785 276,408 249,658 105,928 297,326 266,188
247,128 279,367 36,939 241,981 262,800 36,061
Total assets include asset allocations to match liabilities (i.e., deposits).
n/m = not meaningful Certain prior period amounts have been reclassified among the segments to conform to current period presentation. This information is preliminary and based on company data available at the time of the presentation. 15
Annual Results by Business Segment

(Dollars in millions) Year Ended December 31, 2013 Total Corporation Net interest income (FTE basis) Noninterest income Total revenue, net of interest expense (FTE basis) Provision for credit losses Noninterest expense Income (loss) before income taxes Income tax expense (benefit) (FTE basis) Net income (loss) Average Total loans and leases Total assets (1) Total deposits Period end Total loans and leases Total assets (1) Total deposits $ 43,124 46,677 89,801 3,556 69,214 17,031 5,600 11,431 Consumer & Business Banking $ 20,051 9,816 29,867 3,107 16,357 10,403 3,815 6,588 Consumer Real Estate Services $ 2,890 4,826 7,716 (156) 16,013 (8,141) (2,986) (5,155) $ Global Banking 8,914 7,567 16,481 1,075 7,552 7,854 2,880 4,974 $ Global Markets 4,239 11,819 16,058 140 12,013 3,905 2,342 1,563 $ All Other $ 966 923 1,889 (666) 4,241 (1,686) (2,173) 487
GWIM 6,064 11,726 17,790 56 13,038 4,696 1,722 2,974
918,641 2,163,513 1,089,735 928,233 2,102,273 1,119,271
164,570 580,714 518,980 165,090 592,978 531,707
90,278 120,560 n/m 89,753 113,386 n/m
257,245 343,464 237,457 269,469 379,207 265,718
n/m 632,804 n/m n/m 575,709 n/m
111,023 270,788 242,161 115,846 274,112 244,901
235,454 215,183 34,617 220,694 166,881 27,702
Year Ended December 31, 2012 Total Corporation Net interest income (FTE basis) Noninterest income (loss) Total revenue, net of interest expense (FTE basis) Provision for credit losses Noninterest expense Income (loss) before income taxes Income tax expense (benefit) (FTE basis) Net income (loss) Average Total loans and leases Total assets (1) Total deposits Period end Total loans and leases Total assets (1) Total deposits
(1)
Consumer & Business Banking $ 19,853 9,937 29,790 4,148 16,995 8,647 3,101 5,546 $
Consumer Real Estate Services 2,930 5,821 8,751 1,442 17,190 (9,881) (3,442) (6,439) $
Global Banking 8,135 7,539 15,674 (342) 7,619 8,397 3,053 5,344 $
Global Markets 3,672 10,612 14,284 34 11,295 2,955 1,726 1,229 $
GWIM 5,827 10,691 16,518 266 12,721 3,531 1,286 2,245 $
All Other 1,140 (1,922) (782) 2,621 6,273 (9,676) (5,939) (3,737)
41,557 42,678 84,235 8,169 72,093 3,973 (215) 4,188
898,768 2,191,356 1,047,782 907,819 2,209,974 1,105,261
173,036 532,827 475,180 169,266 554,915 496,159
103,524 145,369 n/m 94,660 131,059 n/m
224,336 322,701 223,940 242,340 331,611 243,306
n/m 606,249 n/m n/m 632,263 n/m
100,456 268,475 242,384 105,928 297,326 266,188
259,241 315,735 43,087 241,981 262,800 36,061
Total assets include asset allocations to match liabilities (i.e., deposits).
n/m = not meaningful Certain prior period amounts have been reclassified among the segments to conform to current period presentation.
16
Consumer & Business Banking Segment Results

(Dollars in millions) Year Ended December 31 2013 Net interest income (FTE basis) Noninterest income: Card income Service charges All other income Total noninterest income Total revenue, net of interest expense (FTE basis) Provision for credit losses Noninterest expense Income before income taxes Income tax expense (FTE basis) Net income Net interest yield (FTE basis) Return on average allocated capital (1, 2) Return on average economic capital (1, 2) Efficiency ratio (FTE basis) Balance Sheet Average Total loans and leases Total earning assets (3) Total assets (3) Total deposits Allocated capital (1,2) Economic capital (1, 2) Period end Total loans and leases Total earning assets (3) Total assets (3) Total deposits
(1)
2012 $ 19,853 5,315 4,277 345 9,937 29,790 4,148 16,995 8,647 3,101 $ 5,546 4.04% 23.12 57.05 $ $
Fourth Quarter 2013 4,948 1,236 1,097 216 2,549 7,497 427 4,042 3,028 1,061 1,967 3.58% 26.03 53.92 $ $
Third Quarter 2013 5,056 1,175 1,063 230 2,468 7,524 761 3,980 2,783 1,004 1,779 3.70% 23.55 52.90 $ $
Second Quarter 2013 5,034 1,186 1,035 179 2,400 7,434 967 4,178 2,289 894 1,395 3.72% 18.68 56.19 $ $
First Quarter 2013 5,013 1,207 1,013 179 2,399 7,412 952 4,157 2,303 856 1,447 3.89% 19.59 56.09 $ $
Fourth Quarter 2012 4,869 1,342 1,034 156 2,532 7,401 1,078 4,174 2,149 703 1,446 3.88% 23.46 56.39
20,051 4,804 4,208 804 9,816 29,867 3,107 16,357 10,403 3,815
6,588 3.72% 21.98 54.76
$ 164,570 539,213 580,714 518,980 30,000
$ 173,036 491,767 532,827 475,180 24,051
$ 163,152 548,174 590,073 528,808 30,000
$ 165,707 542,545 583,855 522,023 30,000
$ 163,593 542,697 584,143 522,259 30,000
$ 165,845 523,125 564,469 502,508 30,000
$ 167,219 499,241 540,787 484,086 24,561
$ 165,090 550,610 592,978 531,707
$ 169,266 513,109 554,915 496,159
$ 165,090 550,610 592,978 531,707
$ 167,254 547,187 588,627 526,876
$ 164,851 545,685 587,576 525,099
$ 163,820 550,989 593,167 530,581
$ 169,266 513,109 554,915 496,159
(2)
(3)
Effective January 1, 2013, the Corporation revised, on a prospective basis, its methodology for allocating capital to the business segments. In connection with the change in methodology, the Corporation updated the applicable terminology in the above table to allocated capital from economic capital as reported in prior periods. For more information, see Exhibit A: Non-GAAP Reconciliations - Reconciliations to GAAP Financial Measures on pages 47-50. Return on average allocated capital and return on average economic capital are calculated as net income, adjusted for cost of funds and earnings credits and certain expenses related to intangibles, divided by average allocated capital or average economic capital, as applicable. Allocated capital, economic capital and the related returns are non-GAAP financial measures. The Corporation 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. (See Exhibit A: Non-GAAP Reconciliations - Reconciliations to GAAP Financial Measures on pages 47-50.) Total earning assets and total assets include asset allocations to match liabilities (i.e., deposits) and allocated shareholders' equity.
Certain prior period amounts have been reclassified among the segments to conform to current period presentation.
17
Consumer & Business Banking Annual Results

(Dollars in millions)
Year Ended December 31, 2013 Total Consumer & Business Banking Net interest income (FTE basis) Noninterest income: Card income Service charges All other income Total noninterest income Total revenue, net of interest expense (FTE basis) Provision for credit losses Noninterest expense Income before income taxes Income tax expense (FTE basis) Net income Net interest yield (FTE basis) Return on average allocated capital (3, 4) Efficiency ratio (FTE basis) Balance Sheet Average Total loans and leases Total earning assets (5) Total assets (5) Total deposits Allocated capital (3, 4) Period end Total loans and leases Total earning assets (5) Total assets (5) Total deposits $ 165,090 550,610 592,978 531,707 $ 22,574 534,946 567,837 530,947 $ 142,516 143,917 153,394 n/m $ 164,570 539,213 580,714 518,980 30,000 $ 22,437 522,870 555,653 518,470 15,400 $ 142,133 142,725 151,443 n/m 14,600 $ 20,051 4,804 4,208 804 9,816 29,867 3,107 16,357 10,403 3,815 6,588 3.72% 21.98 54.76 $ Deposits (1) 9,808 60 4,208 509 4,777 14,585 299 10,927 3,359 1,232 2,127 1.88% 13.82 74.92 $ Consumer Lending (2) 10,243 4,744 295 5,039 15,282 2,808 5,430 7,044 2,583 4,461 7.18% 30.60 35.53
Year Ended December 31, 2012 Total Consumer & Business Banking Net interest income (FTE basis) Noninterest income: Card income Service charges All other income (loss) Total noninterest income Total revenue, net of interest expense (FTE basis) Provision for credit losses Noninterest expense Income before income taxes Income tax expense (FTE basis) Net income Net interest yield (FTE basis) Return on average economic capital (3, 4) Efficiency ratio (FTE basis) Balance Sheet Average Total loans and leases Total earning assets (5) Total assets (5) Total deposits Economic capital (3, 4) Period end Total loans and leases Total earning assets (5) Total assets (5) Total deposits
For footnotes see page 20.
Deposits (1) $ 9,046 62 4,277 397 4,736 13,782 488 11,310 1,984 723 1,261 1.90 % 9.72 82.07 $
Consumer Lending (2) 10,807 5,253 (52) 5,201 16,008 3,660 5,685 6,663 2,378 4,285 7.18 % 38.83 35.51
19,853 5,315 4,277 345 9,937 29,790 4,148 16,995 8,647 3,101 5,546 4.04 % 23.12 57.05
173,036 491,767 532,827 475,180 24,051
23,369 477,142 510,384 474,822 12,985
149,667 150,515 158,333 n/m 11,066
169,266 513,109 554,915 496,159
22,907 498,147 531,354 495,711
146,359 146,809 155,408 n/m
18
Consumer & Business Banking Quarterly Results

Fourth Quarter 2013 Total Consumer & Business Banking Net interest income (FTE basis) Noninterest income: Card income Service charges All other income Total noninterest income Total revenue, net of interest expense (FTE basis) Provision for credit losses Noninterest expense Income before income taxes Income tax expense (FTE basis) Net income Net interest yield (FTE basis) Return on average allocated capital (3, 4) Efficiency ratio (FTE basis) Balance Sheet Average Total loans and leases Total earning assets (5) Total assets (5) Total deposits Allocated capital (3, 4) Period end Total loans and leases Total earning assets (5) Total assets (5) Total deposits $ 165,090 550,610 592,978 531,707 $ 22,574 534,946 567,837 530,947 $ 142,516 143,917 153,394 n/m $ 163,152 548,174 590,073 528,808 30,000 $ 22,333 532,312 565,219 528,204 15,400 $ 140,819 141,869 150,861 n/m 14,600 $ 4,948 1,236 1,097 216 2,549 7,497 427 4,042 3,028 1,061 1,967 3.58% 26.03 53.92 $ Deposits (1) 2,492 15 1,097 164 1,276 3,768 105 2,624 1,039 365 674 1.86% 17.36 69.63 $ Consumer Lending (2) 2,456 1,221 52 1,273 3,729 322 1,418 1,989 696 1,293 6.87% 35.18 38.03
Third Quarter 2013 Total Consumer & Business Banking Net interest income (FTE basis) Noninterest income: Card income Service charges All other income Total noninterest income Total revenue, net of interest expense (FTE basis) Provision for credit losses Noninterest expense Income before income taxes Income tax expense (FTE basis) Net income Net interest yield (FTE basis) Return on average allocated capital (3, 4) Efficiency ratio (FTE basis) Balance Sheet Average Total loans and leases Total earning assets (5) Total assets (5) Total deposits Allocated capital (3, 4) Period end Total loans and leases Total earning assets (5) Total assets (5) Total deposits
For footnotes see page 20. Certain prior period amounts have been reclassified among the segments to conform to current period presentation.
Deposits (1) $ 2,457 15 1,063 126 1,204 3,661 96 2,670 895 323 572 1.85 % 14.74 72.92 $
Consumer Lending (2) 2,599 1,160 104 1,264 3,863 665 1,310 1,888 681 1,207 7.17 % 32.84 33.92
5,056 1,175 1,063 230 2,468 7,524 761 3,980 2,783 1,004 1,779 3.70 % 23.55 52.90
165,707 542,545 583,855 522,023 30,000
22,371 525,998 558,638 521,511 15,400
143,336 143,771 152,441 n/m 14,600
167,254 547,187 588,627 526,876
22,369 530,658 563,110 526,318
144,885 145,323 154,311 n/m
19
Consumer & Business Banking Quarterly Results (continued)

Fourth Quarter 2012 Total Consumer & Business Banking Net interest income (FTE basis) Noninterest income: Card income Service charges All other income Total noninterest income Total revenue, net of interest expense (FTE basis) Provision for credit losses Noninterest expense Income before income taxes Income tax expense (FTE basis) Net income Net interest yield (FTE basis) Return on average economic capital (3, 4) Efficiency ratio (FTE basis) Balance Sheet Average Total loans and leases Total earning assets (5) Total assets (5) Total deposits Economic capital (3, 4) Period end Total loans and leases Total earning assets (5) Total assets (5) Total deposits
(1) (2)
Deposits (1) $ 2,213 16 1,034 123 1,173 3,386 74 2,799 513 180 333 1.81% 9.85 82.61 $
Consumer Lending (2) 2,656 1,326 33 1,359 4,015 1,004 1,375 1,636 523 1,113 7.29% 39.99 34.27
4,869 1,342 1,034 156 2,532 7,401 1,078 4,174 2,149 703 1,446 3.88% 23.46 56.39
167,219 499,241 540,787 484,086 24,561
22,695 485,908 519,064 483,686 13,467
144,524 145,008 153,398 n/m 11,094
169,266 513,109 554,915 496,159
22,907 498,147 531,354 495,711
146,359 146,809 155,408 n/m
(3)
(4)
(5)
During the first quarter of 2013, Business Banking results were moved into Deposits and prior periods were reclassified to conform to current period presentation. During the second quarter of 2013, consumer Dealer Financial Services results were moved into Card Services from Global Banking. As a result, Card Services was renamed Consumer Lending. Prior periods were reclassified to conform to current period presentation. Effective January 1, 2013, the Corporation revised, on a prospective basis, its methodology for allocating capital to the business segments. In connection with the change in methodology, the Corporation updated the applicable terminology in the above table to allocated capital from economic capital as reported in prior periods. For more information, see Exhibit A: Non-GAAP Reconciliations - Reconciliations to GAAP Financial Measures on pages 47-50. Return on average allocated capital and return on average economic capital are calculated as net income, adjusted for cost of funds and earnings credits and certain expenses related to intangibles, divided by average allocated capital or average economic capital, as applicable. Allocated capital, economic capital and the related returns are non-GAAP financial measures. The Corporation 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. (See Exhibit A: Non-GAAP Reconciliations - Reconciliations to GAAP Financial Measures on pages 47-50.) For presentation purposes, in segments or businesses where the total of liabilities and equity exceeds assets, the Corporation allocates assets from All Other to match the segments' and businesses' liabilities and allocated shareholders' equity. As a result, total earning assets and total assets of the businesses may not equal total Consumer & Business Banking.
n/m = not meaningful
20
Consumer & Business Banking Key Indicators

(Dollars in millions) Year Ended December 31 2013 Average deposit balances Checking Savings MMS CDs and IRAs Non-U.S. and other Total average deposit balances Deposit spreads (excludes noninterest costs) Checking Savings MMS CDs and IRAs Non-U.S. and other Total deposit spreads Client brokerage assets Online banking active accounts (units in thousands) Mobile banking active accounts (units in thousands) Banking centers ATMs Total Corporation U.S. credit card (1) Loans Average credit card outstandings Ending credit card outstandings Credit quality Net charge-offs 30+ delinquency 90+ delinquency Other Total Corporation U.S. credit card indicators (1) Gross interest yield Risk adjusted margin New account growth (in thousands) Purchase volumes Debit card data Purchase volumes
(1)
2012 $ 210,499 39,224 143,500 77,689 4,268 $ 475,180
Fourth Quarter 2013 $ 246,752 42,139 167,362 68,192 4,363 $ 528,808
Third Quarter 2013 $ 240,037 42,365 164,402 70,888 4,331 $ 522,023
Second Quarter 2013 $ 238,033 43,183 162,432 74,064 4,547 $ 522,259
First Quarter 2013 $ 227,920 40,959 155,088 74,217 4,324 $ 502,508
Fourth Quarter 2012 $ 217,811 39,121 148,171 74,589 4,394 $ 484,086
$ 238,242 42,165 162,361 71,821 4,391 $ 518,980
2.03% 2.21 1.07 0.52 0.95 1.52 $ 96,048 29,950 14,395 5,151 16,259 $
2.55% 2.71 1.20 0.58 1.00 1.81 75,946 29,638 12,013 5,478 16,347 $
2.02% 2.23 1.10 0.50 0.85 1.54 96,048 29,950 14,395 5,151 16,259 $
2.01% 2.21 1.07 0.51 0.93 1.52 89,517 30,197 13,967 5,243 16,201 $
2.02% 2.20 1.05 0.51 1.00 1.51 84,182 29,867 13,214 5,328 16,354 $
2.06% 2.20 1.04 0.55 1.02 1.52 82,616 30,102 12,641 5,389 16,311 $
2.28% 2.48 1.11 0.57 0.93 1.66 75,946 29,638 12,013 5,478 16,347
90,369 92,338
94,863 94,835
90,057 92,338
90,005 90,280
89,722 90,523
91,712 90,047
92,849 94,835
$ $ $
3,376 3.74% 2,074 2.25% 1,053 1.14% 9.73% 8.68 3,911
$ $ $
4,632 4.88% 2,748 2.90% 1,437 1.52% 10.02% 7.54 3,258
$ $ $
724 3.19% 2,074 2.25% 1,053 1.14% 9.36% 9.11 1,000
$ $ $
788 3.47% 2,112 2.34% 1,049 1.16% 9.82% 8.68 1,048
$ $ $
917 4.10% 2,200 2.43% 1,167 1.29% 9.80% 8.41 957
$ $ $
947 4.19% 2,510 2.79% 1,360 1.51% 9.95% 8.51 906
$ $ $
978 4.19% 2,748 2.90% 1,437 1.52% 10.01% 8.48 837
$ 205,914
$ 193,500
54,514
52,823
51,945
46,632
51,628
$ 267,087
$ 258,363
68,000
66,712
67,740
64,635
66,217
In addition to the U.S. credit card portfolio in Consumer & Business Banking, the remaining U.S. credit card portfolio is primarily in GWIM.
21
Consumer Real Estate Services Segment Results

(Dollars in millions; except as noted) Year Ended December 31 2013 Net interest income (FTE basis) Noninterest income: Mortgage banking income (loss) All other income Total noninterest income (loss) Total revenue, net of interest expense (FTE basis) Provision for credit losses Noninterest expense Loss before income taxes Income tax benefit (FTE basis) Net loss Net interest yield (FTE basis) Balance Sheet Average Total loans and leases Total earning assets Total assets Allocated capital (1, 2) Economic capital (1, 2) Period end Total loans and leases Total earning assets Total assets Period end (in billions) Mortgage servicing portfolio (3, 4)
(1)
2012 $ 2,930 5,553 268 5,821 8,751 1,442 17,190 (9,881) (3,442) $ (6,439) 2.43% $ $
Fourth Quarter 2013 715 912 85 997 1,712 (474) 3,794 (1,608) (547) (1,061) 2.89% $ $
Third Quarter 2013 733 775 69 844 1,577 (308) 3,419 (1,534) (534) (1,000) 2.91% $ $
Second Quarter 2013 699 1,411 5 1,416 2,115 291 3,394 (1,570) (633) (937) 2.75% $ $
First Quarter 2013 743 1,487 82 1,569 2,312 335 5,406 (3,429) (1,272) (2,157) 2.85% $ $
Fourth Quarter 2012 729 (284) 30 (254) 475 485 5,607 (5,617) (1,913) (3,704) 2.66%
2,890 4,585 241 4,826 7,716 (156) 16,013 (8,141) (2,986)
(5,155) 2.85%
90,278 101,420 120,560 24,000
$ 103,524 120,636 145,369 13,676
89,687 98,220 113,584 24,000
88,406 99,759 118,226 24,000
90,114 102,086 122,276 24,000
92,963 105,715 128,340 24,000
96,605 109,139 131,663 12,474
89,753 97,163 113,386
94,660 106,974 131,059
89,753 97,163 113,386
87,586 98,247 115,424
89,257 102,211 124,032
90,971 105,544 129,118
94,660 106,974 131,059
810.0
1,331.8
810.0
889.4
986.4
1,185.0
1,331.8
(2)
(3) (4)
Effective January 1, 2013, the Corporation revised, on a prospective basis, its methodology for allocating capital to the business segments. In connection with the change in methodology, the Corporation updated the applicable terminology in the above table to allocated capital from economic capital as reported in prior periods. For more information, see Exhibit A: Non-GAAP Reconciliations - Reconciliations to GAAP Financial Measures on pages 47-50. Allocated capital and economic capital are non-GAAP financial measures. The Corporation 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. (See Exhibit A: Non-GAAP Reconciliations - Reconciliations to GAAP Financial Measures on pages 47-50.) Includes servicing of residential mortgage loans, home equity lines of credit and home equity loans. Excludes loans for which servicing transferred to third parties as of December 31, 2013 with an effective mortgage servicing right sales date of January 2, 2014.
22
Consumer Real Estate Services Annual Results (1)

(Dollars in millions) Year Ended December 31, 2013 Total Consumer Real Estate Services Net interest income (FTE basis) Noninterest income: Mortgage banking income All other income (loss) Total noninterest income Total revenue, net of interest expense (FTE basis) Provision for credit losses Noninterest expense Loss before income taxes Income tax benefit (FTE basis) Net loss Balance Sheet Average Total loans and leases Total earning assets Total assets Allocated capital (2, 3) Period end Total loans and leases Total earning assets Total assets $ 2,890 4,585 241 4,826 7,716 (156) 16,013 (8,141) (2,986) (5,155) $ Home Loans 1,349 1,916 (6) 1,910 3,259 127 3,318 (186) (68) (118) $ Legacy Assets & Servicing 1,541 2,669 247 2,916 4,457 (283) 12,695 (7,955) (2,918) (5,037)
90,278 101,420 120,560 24,000
47,675 53,148 53,429 6,000
42,603 48,272 67,131 18,000
89,753 97,163 113,386
51,021 54,071 53,927
38,732 43,092 59,459
Year Ended December 31, 2012 Total Consumer Real Estate Services Net interest income (FTE basis) Noninterest income: Mortgage banking income All other income Total noninterest income Total revenue, net of interest expense (FTE basis) Provision for credit losses Noninterest expense Income (loss) before income taxes Income tax expense (benefit) (FTE basis) Net income (loss) Balance Sheet Average Total loans and leases Total earning assets Total assets Economic capital (2, 3) Period end Total loans and leases Total earning assets Total assets For footnotes see page 25. Certain prior period amounts have been reclassified among the segments to conform to current period presentation. $ 2,930 5,553 268 5,821 8,751 1,442 17,190 (9,881) (3,442) (6,439) $ Home Loans 1,361 3,284 1 3,285 4,646 72 3,195 1,379 502 877 $ Legacy Assets & Servicing 1,569 2,269 267 2,536 4,105 1,370 13,995 (11,260) (3,944) (7,316)
103,524 120,636 145,369 13,676
50,023 56,581 57,552 3,734
53,501 64,055 87,817 9,942
94,660 106,974 131,059
47,742 54,394 55,465
46,918 52,580 75,594
23
Consumer Real Estate Services Quarterly Results (1)

(Dollars in millions) Fourth Quarter 2013 Total Consumer Real Estate Services Net interest income (FTE basis) Noninterest income: Mortgage banking income All other income Total noninterest income Total revenue, net of interest expense (FTE basis) Provision for credit losses Noninterest expense Loss before income taxes Income tax benefit (FTE basis) Net loss Balance Sheet Average Total loans and leases Total earning assets Total assets Allocated capital (2, 3) Period end Total loans and leases Total earning assets Total assets $ 89,753 97,163 113,386 $ 51,021 54,071 53,927 Third Quarter 2013 Total Consumer Real Estate Services Net interest income (FTE basis) Noninterest income: Mortgage banking income All other income Total noninterest income Total revenue, net of interest expense (FTE basis) Provision for credit losses Noninterest expense Loss before income taxes Income tax benefit (FTE basis) Net loss Balance Sheet Average Total loans and leases Total earning assets Total assets Allocated capital (2, 3) Period end Total loans and leases Total earning assets Total assets For footnotes see page 25. Certain prior period amounts have been reclassified among the segments to conform to current period presentation. $ 87,586 98,247 115,424 $ 46,875 51,248 51,075 $ 40,711 46,999 64,349 $ 88,406 99,759 118,226 24,000 $ 46,878 52,074 52,309 6,000 $ 41,528 47,685 65,917 18,000 $ 775 69 844 1,577 (308) 3,419 (1,534) (534) (1,000) $ 345 35 380 709 (11) 880 (160) (61) (99) $ 430 34 464 868 (297) 2,539 (1,374) (473) (901) $ 733 $ Home Loans 329 $ Legacy Assets & Servicing 404 $ 38,732 43,092 59,459 $ 89,687 98,220 113,584 24,000 $ 49,706 53,052 52,932 6,000 $ 39,981 45,168 60,652 18,000 $ 912 85 997 1,712 (474) 3,794 (1,608) (547) (1,061) $ 220 17 237 567 (18) 755 (170) (62) (108) $ 692 68 760 1,145 (456) 3,039 (1,438) (485) (953) $ 715 $ Home Loans 330 $ Legacy Assets & Servicing 385
24
Consumer Real Estate Services Quarterly Results (1) (continued)

(Dollars in millions) Fourth Quarter 2012 Total Consumer Real Estate Services Net interest income (FTE basis) Noninterest income: Mortgage banking income (loss) All other income Total noninterest income (loss) Total revenue, net of interest expense (FTE basis) Provision for credit losses Noninterest expense Income (loss) before income taxes Income tax expense (benefit) (FTE basis) Net income (loss) Balance Sheet Average Total loans and leases Total earning assets Total assets Economic capital (2, 3) Period end Total loans and leases Total earning assets Total assets
(1)
Home Loans $ 348 891 13 904 1,252 77 747 428 151 $ 277 $ $
Legacy Assets & Servicing 381 (1,175) 17 (1,158) (777) 408 4,860 (6,045) (2,064) (3,981)
729 (284) 30 (254) 475 485 5,607 (5,617) (1,913)
(3,704)
96,605 109,139 131,663 12,474
48,312 54,720 55,611 3,888
48,293 54,419 76,052 8,586
94,660 106,974 131,059
47,742 54,394 55,465
46,918 52,580 75,594
(2)
(3)
Consumer Real Estate Services includes Home Loans and Legacy Assets & Servicing. The results of certain mortgage servicing rights activities, including net hedge results, together with any related assets or liabilities used as economic hedges, are included in Legacy Assets & Servicing. Effective January 1, 2013, the Corporation revised, on a prospective basis, its methodology for allocating capital to the business segments. In connection with the change in methodology, the Corporation updated the applicable terminology in the above table to allocated capital from economic capital as reported in prior periods. For more information, see Exhibit A: Non-GAAP Reconciliations - Reconciliations to GAAP Financial Measures on pages 47-50. Allocated capital and economic capital are non-GAAP financial measures. The Corporation 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. (See Exhibit A: Non-GAAP Reconciliations - Reconciliations to GAAP Financial Measures on pages 47-50.)
25
Consumer Real Estate Services Key Indicators

(Dollars in millions, except as noted) Year Ended December 31 2013 Mortgage servicing rights at fair value rollforward: Balance, beginning of period Net additions (sales) Amortization of expected cash flows (1) Other changes in mortgage servicing rights fair value (2) Balance, end of period Capitalized mortgage servicing rights (% of loans serviced for investors) Mortgage loans serviced for investors (in billions) Loan production: Total Corporation (3) First mortgage Home equity Consumer Real Estate Services First mortgage Home equity Mortgage banking income (loss) Production income (loss): Core production revenue Representations and warranties provision Total production income (loss) Servicing income: Servicing fees Amortization of expected cash flows (1) Fair value changes of mortgage servicing rights, net of risk management activities used to hedge certain market risks (4) Other servicing-related revenue Total net servicing income Total Consumer Real Estate Services mortgage banking income (loss) Other business segments' mortgage banking loss (5) Total consolidated mortgage banking income (loss)
(1) (2)
2012 $ 7,378 252 (1,484) (430) $ 5,716
Fourth Quarter 2013 $ 5,058 (197) (229) 410 $ 5,042
Third Quarter 2013 $ 5,827 (600) (240) 71 $ 5,058
Second Quarter 2013 $ 5,776 (715) (260) 1,026 $ 5,827
First Quarter 2013 $ 5,716 (60) (314) 434 $ 5,776
Fourth Quarter 2012 $ 5,087 97 (335) 867 $ 5,716
5,716 (1,572) (1,043) 1,941
5,042
92 bps $ 550 $
55 bps 1,045 $
92 bps 550 $
82 bps 616 $
77 bps 759 $
61 bps 949 $
55 bps 1,045
$ 83,421 6,355 $ 66,914 5,498
$ 75,074 3,585 $ 55,518 2,832
$ 11,624 1,915 $ 9,303 1,674
$ 22,601 1,828 $ 17,833 1,599
$ 25,276 1,496 $ 20,509 1,283
$ 23,920 1,116 $ 19,269 942
$ 21,516 962 $ 16,561 765
2,543 (840) 1,703 3,030 (1,043) 867 28 2,882 4,585 (711)
3,760 (3,939) (179) 4,729 (1,484) 1,852 635 5,732 5,553 (803)
403 (70) 333 629 (229) 174 5 579 912 (64)
465 (323) 142 700 (240) 167 6 633 775 (190)
860 (197) 663 785 (260) 215 8 748 1,411 (233)
815 (250) 565 916 (314) 311 9 922 1,487 (224)
986 (2,955) (1,969) 1,096 (335) 912 12 1,685 (284) (256)
3,874
4,750
848
585
1,178
1,263
(540)
(3) (4) (5)
Represents the net change in fair value of the MSR asset due to the recognition of modeled cash flows. These amounts reflect the changes in modeled mortgage servicing rights fair value primarily due to observed changes in interest rates, volatility, spreads and the shape of the forward swap curve. In addition, these amounts reflect periodic adjustments to the valuation model to reflect changes in the modeled relationship between inputs and their impact on projected cash flows, changes in certain cash flow assumptions such as cost to service and ancillary income per loan, changes in OAS rate inputs and the impact of periodic recalibrations of the model to reflect changes in the relationship between market interest rate spreads and projected cash flows. In addition to loan production in Consumer Real Estate Services, the remaining first mortgage and home equity loan production is primarily in GWIM. Includes gains and losses on sales of mortgage servicing rights. Includes the effect of transfers of mortgage loans from Consumer Real Estate Services to the asset and liability management portfolio included in All Other.
26
Global Banking Segment Results (1)

(Dollars in millions) Year Ended December 31 2013 Net interest income (FTE basis) Noninterest income: Service charges Investment banking income All other income Total noninterest income Total revenue, net of interest expense (FTE basis) Provision for credit losses Noninterest expense Income before income taxes Income tax expense (FTE basis) Net income Net interest yield (FTE basis) Return on average allocated capital (2, 3) Return on average economic capital (2, 3) Efficiency ratio (FTE basis) Balance Sheet Average Total loans and leases Total earnings assets (4) Total assets (4) Total deposits Allocated capital (2,3) Economic capital (2, 3) Period end Total loans and leases Total earnings assets (4) Total assets (4) Total deposits
(1)
2012 $ 8,135 2,867 2,793 1,879 7,539 15,674 (342) 7,619 8,397 3,053 $ 5,344 2.90% 27.69 48.61 $ $
Fourth Quarter 2013 2,301 684 960 360 2,004 4,305 441 1,927 1,937 670 1,267 2.71% 21.86 44.76 $ $
Third Quarter 2013 2,201 716 693 398 1,807 4,008 322 1,927 1,759 625 1,134 2.86% 19.57 48.06 $ $
Second Quarter 2013 2,252 701 792 393 1,886 4,138 163 1,856 2,119 827 1,292 3.16% 22.55 44.87 $ $
First Quarter 2013 2,160 686 790 394 1,870 4,030 149 1,842 2,039 758 1,281 3.17% 22.59 45.71 $ $
Fourth Quarter 2012 2,099 694 842 316 1,852 3,951 62 1,753 2,136 744 1,392 2.85% 28.97 44.41
8,914 2,787 3,235 1,545 7,567 16,481 1,075 7,552 7,854 2,880
4,974 2.96% 21.64 45.82
$ 257,245 301,204 343,464 237,457 23,000
$ 224,336 280,605 322,701 223,940 19,312
$ 268,849 336,941 380,496 259,762 23,000
$ 260,085 305,376 347,062 239,839 23,000
$ 255,674 285,755 327,531 227,668 23,000
$ 244,068 276,030 318,043 222,120 23,000
$ 232,396 292,999 336,332 242,817 19,123
$ 269,469 337,154 379,207 265,718
$ 242,340 288,072 331,611 243,306
$ 269,469 337,154 379,207 265,718
$ 267,165 330,625 373,110 263,121
$ 258,502 292,952 334,820 229,586
$ 250,985 280,104 322,039 228,248
$ 242,340 288,072 331,611 243,306
(2)
(3)
(4)
During the second quarter of 2013, the results of consumer Dealer Financial Services, previously reported in Global Banking, were moved to Consumer & Business Banking. Prior periods have been reclassified to conform to current period presentation. Effective January 1, 2013, the Corporation revised, on a prospective basis, its methodology for allocating capital to the business segments. In connection with the change in methodology, the Corporation updated the applicable terminology in the above table to allocated capital from economic capital as reported in prior periods. For additional information, see Exhibit A: Non-GAAP Reconciliations - Reconciliations to GAAP Financial Measures on pages 47-50. Return on average allocated capital and return on average economic capital are calculated as net income, adjusted for cost of funds and earnings credits and certain expenses related to intangibles, divided by average allocated capital or average economic capital, as applicable. Allocated capital, economic capital and the related returns are non-GAAP financial measures. The Corporation 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. (See Exhibit A: Non-GAAP Reconciliations - Reconciliations to GAAP Financial Measures on pages 47-50.) Total earning assets and total assets include asset allocations to match liabilities (i.e., deposits) and allocated shareholders' equity.
27
Global Banking Key Indicators

(Dollars in millions) Year Ended December 31 2013 Investment Banking fees (1) Advisory (2) Debt issuance Equity issuance Total Investment Banking fees (3) Business Lending Corporate Commercial Total Business Lending revenue Treasury Services Corporate Commercial Total Treasury Services revenue Average deposit balances Interest-bearing Noninterest-bearing Total average deposits Loan spread Provision for credit losses Credit quality (4, 5) Reservable utilized criticized exposure $ 9,357 3.17% Nonperforming loans, leases and foreclosed properties $ 639 0.24% Average loans and leases by product U.S. commercial Commercial real estate Commercial lease financing Non-U.S. commercial Other Total average loans and leases Total Corporation Investment Banking fees Advisory (2) Debt issuance Equity issuance Total investment banking fees including self-led Self-led Total Investment Banking fees
(1) (2) (3)
2012 $ 995 1,390 408 $ 2,793 $ $
Fourth Quarter 2013 323 443 194 960 $ $
Third Quarter 2013 226 343 124 693 $ $
Second Quarter 2013 240 405 147 792 $ $
First Quarter 2013 233 429 128 790 $ $
Fourth Quarter 2012 285 450 107 842
1,022 1,620 593
3,235
$ $
3,407 3,967 7,374
$ $
3,201 3,622 6,823
$ $
817 1,011 1,828
$ $
884 960 1,844
$ $
855 1,050 1,905
$ $
851 946 1,797
$ $
739 909 1,648
$ $
2,815 2,939 5,754
$ $
2,633 2,988 5,621
$ $
734 747 1,481
$ $
713 741 1,454
$ $
702 733 1,435
$ $
666 718 1,384
$ $
687 732 1,419
72,870 164,587
65,400 158,540
78,862 180,900
73,699 166,140
70,158 157,510
68,639 153,481
68,240 174,577
$ 237,457 1.82% $ 1,075
$ 223,940 1.88% $ (342)
$ 259,762 1.75% $ 441
$ 239,839 1.78% $ 322
$ 227,668 1.89% $ 163
$ 222,120 1.86% $ 149
$ 242,817 1.83% $ 62
10,952 4.06%
9,357 3.17%
10,111 3.44%
10,632 3.73%
10,342 3.71%
10,952 4.06%
2,052 0.86%
639 0.24%
919 0.35%
1,087 0.43%
1,643 0.66%
2,052 0.86%
$ 128,392 38,349 24,762 65,738 4 $ 257,245
$ 117,635 32,827 23,446 50,416 12 $ 224,336
$ 132,249 42,622 25,115 68,860 3 $ 268,849
$ 128,602 39,172 24,853 67,455 3 $ 260,085
$ 127,742 36,684 24,584 66,655 9 $ 255,674
$ 124,891 34,825 24,486 59,859 7 $ 244,068
$ 121,535 33,404 24,057 53,392 8 $ 232,396
1,131 3,805 1,469 6,405 (279)
1,066 3,362 1,026 5,454 (155)
356 986 461 1,803 (65)
256 810 329 1,395 (98)
262 987 356 1,605 (49)
257 1,022 323 1,602 (67)
301 1,078 250 1,629 (29)
6,126
5,299
1,738
1,297
1,556
1,535
1,600
(4)
(5)
Investment banking fees represent total investment banking fees for Global Banking inclusive of self-led deals and fees included within Business Lending. Advisory includes fees on debt and equity advisory and mergers and acquisitions. Investment banking fees represent only the fee component of Global Banking and do not include certain less significant items shared with the Investment Banking Group under internal revenue sharing agreements. Criticized exposure corresponds to the Special Mention, Substandard and Doubtful asset categories defined by regulatory authorities. The reservable criticized exposure is on an end-of-period basis and is also shown as a percentage of total commercial utilized reservable criticized exposure, including loans and leases, standby letters of credit, financial guarantees, commercial letters of credit and bankers' acceptances. Nonperforming loans, leases and foreclosed properties are on an end-of-period basis. The nonperforming ratio is nonperforming assets divided by loans, leases and foreclosed properties.
28
Investment Banking Product Rankings

Year Ended December 31, 2013 Global Product Ranking High-yield corporate debt Leveraged loans Mortgage-backed securities Asset-backed securities Convertible debt Common stock underwriting Investment-grade corporate debt Syndicated loans Net investment banking revenue Announced mergers and acquisitions Equity capital markets Debt capital markets 3 2 5 2 4 4 2 2 2 4 4 5 Market Share 8.2% 10.0 8.5 11.5 7.7 6.8 6.3 9.1 7.4 19.5 6.9 5.4 Product Ranking 2 2 5 2 3 4 2 2 2 3 4 3 U.S. Market Share 10.0% 12.4 9.4 13.9 12.8 10.3 11.8 12.9 10.8 28.4 10.7 9.2
Source: Dealogic data as of January 2, 2014. Figures above include self-led transactions. Rankings based on deal volumes except for net investment banking revenue rankings which reflect fees. Debt capital markets excludes loans but includes agencies. Mergers and acquisitions fees included in investment banking revenues reflect 10 percent fee credit at announcement and 90 percent fee credit at completion as per Dealogic. Mergers and acquisitions volume rankings are for announced transactions and provide credit to all investment banks advising the target or acquiror. Each advisor receives full credit for the deal amount unless advising a minor stakeholder.
Highlights
Global top 3 rankings in: High-yield corporate debt Leveraged loans Asset-backed securities U.S. top 3 rankings in: High-yield corporate debt Leveraged loans Asset-backed securities Convertible debt Top 3 rankings excluding self-led deals: Global: U.S.: High-yield corporate debt, Leveraged loans, Asset-backed securities, Investment-grade corporate debt, Syndicated loans High-yield corporate debt, Leveraged loans, Asset-backed securities, Convertible debt, Investment-grade corporate debt, Syndicated loans, Announced mergers and acquisitions Investment-grade corporate debt Syndicated loans Announced mergers and acquisitions Debt capital markets Investment-grade corporate debt Syndicated loans
29
Global Markets Segment Results

(Dollars in millions) Year Ended December 31 2013 Net interest income (FTE basis) Noninterest income: Investment and brokerage services Investment banking fees Trading account profits All other income (loss) Total noninterest income Total revenue, net of interest expense (FTE basis) (1) Provision for credit losses Noninterest expense Income before income taxes Income tax expense (FTE basis) Net income (loss) Return on average allocated capital (2, 3) Return on average economic capital (2, 3) Efficiency ratio (FTE basis) Balance Sheet Average Total trading-related assets (4) Total earning assets (4) Total assets Allocated capital (2, 3) Economic capital (2, 3) Period end Total trading-related assets (4) Total earning assets (4) Total assets Trading-related assets (average) Trading account securities Reverse repurchases Securities borrowed Derivative assets Total trading-related assets (4)
(1)
2012 $ 3,672 1,820 2,214 5,706 872 10,612 14,284 34 11,295 2,955 1,726 $ 1,229 8.95% 79.08 $ $
Fourth Quarter 2013 1,142 489 753 795 445 2,482 3,624 104 3,284 236 21 215 2.87% 90.63 $ $
Third Quarter 2013 975 480 622 1,201 98 2,401 3,376 47 2,884 445 1,223 (778) n/m 85.45% $ $
Second Quarter 2013 1,013 549 668 1,848 111 3,176 4,189 (16) 2,771 1,434 476 958 12.84% 66.15 $ $
First Quarter 2013 1,109 528 679 2,890 (337) 3,760 4,869 5 3,074 1,790 622 1,168 15.82% 63.12 $ $
Fourth Quarter 2012 1,114 430 668 725 83 1,906 3,020 17 2,627 376 195 181 5.12% 86.97
4,239 2,046 2,722 6,734 317 11,819 16,058 140 12,013 3,905 2,342
1,563 5.24% 74.81
$ 468,934 481,482 632,804 30,000
$ 466,045 461,487 606,249 13,824
$ 438,909 458,988 603,110 30,000
$ 442,597 458,657 602,632 30,000
$ 490,972 499,396 656,258 30,000
$ 504,266 509,694 670,284 30,000
$ 493,188 493,901 645,808 14,184
$ 411,080 432,821 575,709
$ 465,836 486,470 632,263
$ 411,080 432,821 575,709
$ 438,137 464,613 601,139
$ 446,505 465,166 608,907
$ 467,826 480,039 626,797
$ 465,836 486,470 632,263
$ 215,885 137,670 65,532 49,847 $ 468,934
$ 197,618 162,348 51,188 54,891 $ 466,045
$ 209,734 114,417 67,862 46,896 $ 438,909
$ 193,108 128,426 73,820 47,243 $ 442,597
$ 225,796 150,568 62,813 51,795 $ 490,972
$ 235,437 157,847 57,425 53,557 $ 504,266
$ 220,434 166,399 52,391 53,964 $ 493,188
(2)
(3)
(4)
Substantially all of Global Markets total revenue is sales and trading revenue and investment banking fees, with a small portion related to certain revenue sharing agreements with other business segments. For additional sales and trading revenue information, see page 31. Effective January 1, 2013, the Corporation revised, on a prospective basis, its methodology for allocating capital to the business segments. In connection with the change in methodology, the Corporation updated the applicable terminology in the above table to allocated capital from economic capital as reported in prior periods. For more information, see Exhibit A: Non-GAAP Reconciliations - Reconciliations to GAAP Financial Measures on pages 47-50. Return on average allocated capital and return on average economic capital are calculated as net income, adjusted for cost of funds and earnings credits and certain expenses related to intangibles, divided by average allocated capital or average economic capital, as applicable. Allocated capital, economic capital and the related returns are non-GAAP financial measures. The Corporation 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. (See Exhibit A: Non-GAAP Reconciliations - Reconciliations to GAAP Financial Measures on pages 47-50.) Trading-related assets include derivative assets, which are considered non-earning assets.
n/m = not meaningful Certain prior period amounts have been reclassified among the segments to conform to current period presentation.
30
Global Markets Key Indicators

(Dollars in millions) Year Ended December 31 2013 Sales and trading revenue (1) Fixed income, currency and commodities Equities Total sales and trading revenue Sales and trading revenue, excluding debit valuation adjustment (2) Fixed income, currency and commodities Equities Total sales and trading revenue, excluding debit valuation adjustment $ $ 9,373 4,217 13,590 $ $ 11,007 3,267 14,274 $ $ 2,080 904 2,984 $ $ 2,033 970 3,003 $ $ 2,259 1,194 3,453 $ $ 3,001 1,149 4,150 $ $ 1,788 713 2,501 $ $ 8,882 4,200 13,082 $ $ 8,812 3,014 11,826 $ $ 1,887 897 2,784 $ $ 1,767 945 2,712 $ $ 2,292 1,199 3,491 $ $ 2,936 1,159 4,095 $ $ 1,551 674 2,225 2012 Fourth Quarter 2013 Third Quarter 2013 Second Quarter 2013 First Quarter 2013 Fourth Quarter 2012
Sales and trading revenue breakdown Net interest income Commissions Trading Other Total sales and trading revenue
(1)
3,907 2,046 6,734 395
3,308 1,820 5,706 992
1,059 489 795 441
898 480 1,201 133
930 549 1,848 164
1,020 528 2,890 (343)
1,014 430 725 56
13,082
11,826
2,784
2,712
3,491
4,095
2,225
(2)
Includes Global Banking sales and trading revenue of $385 million and $522 million for the years ended December 31, 2013 and 2012; $66 million, $109 million, $142 million and $68 million for the fourth, third, second and first quarters of 2013, respectively, and $49 million for the fourth quarter of 2012. For this presentation, sales and trading revenue excludes debit valuation adjustment gains/losses which represents a non-GAAP financial measure. Net debit valuation adjustment losses included in fixed income, currency and commodities revenue were $491 million and $2.2 billion for the years ended December 31, 2013 and 2012; losses of $193 million, losses of $266 million, gains of $33 million and losses of $65 million for the fourth, third, second and first quarters of 2013, respectively, and losses of $237 million for the fourth quarter of 2012. Net debit valuation adjustment losses included in equities revenue were $17 million and $253 million for the years ended December 31, 2013 and 2012; losses of $7 million, losses of $25 million, gains of $5 million and gains of $10 million for the fourth, third, second and first quarters of 2013, respectively, and losses of $39 million for the fourth quarter of 2012.
31
Global Wealth & Investment Management Segment Results

(Dollars in millions) Year Ended December 31 2013 Net interest income (FTE basis) Noninterest income: Investment and brokerage services All other income Total noninterest income Total revenue, net of interest expense (FTE basis) Provision for credit losses Noninterest expense Income before income taxes Income tax expense (FTE basis) Net income Net interest yield (FTE basis) Return on average allocated capital (1, 2) Return on average economic capital (1, 2) Efficiency ratio (FTE basis) Balance sheet Average Total loans and leases Total earning assets (3) Total assets (3) Total deposits Allocated capital (1, 2) Economic capital (1, 2) Period end Total loans and leases Total earning assets (3) Total assets (3) Total deposits
(1)
2012 $ 5,827 8,849 1,842 10,691 16,518 266 12,721 3,531 1,286 $ 2,245 2.35% 30.80 77.02 $ $
Fourth Quarter 2013 1,485 2,524 471 2,995 4,480 26 3,264 1,190 413 777 2.37% 30.97 72.87 $ $
Third Quarter 2013 1,478 2,413 499 2,912 4,390 23 3,249 1,118 399 719 2.35% 28.68 74.00 $ $
Second Quarter 2013 1,505 2,441 553 2,994 4,499 (15) 3,272 1,242 484 758 2.47% 30.57 72.72 $ $
First Quarter 2013 1,596 2,331 494 2,825 4,421 22 3,253 1,146 426 720 2.46% 29.38 73.58 $ $
Fourth Quarter 2012 1,489 2,272 432 2,704 4,193 112 3,196 885 309 576 2.30% 28.36 76.24
6,064 9,709 2,017 11,726 17,790 56 13,038 4,696 1,722
2,974 2.41% 29.90 73.29
$ 111,023 251,394 270,788 242,161 10,000
$ 100,456 248,475 268,475 242,384 7,359
$ 115,546 248,156 268,683 240,395 10,000
$ 112,752 249,203 268,611 239,663 10,000
$ 109,589 244,859 263,735 235,344 10,000
$ 106,082 263,551 282,298 253,413 10,000
$ 103,785 257,399 276,408 249,658 8,149
$ 115,846 254,031 274,112 244,901
$ 105,928 277,121 297,326 266,188
$ 115,846 254,031 274,112 244,901
$ 114,175 250,677 270,484 241,553
$ 111,785 244,340 263,867 235,012
$ 107,048 248,939 268,263 239,853
$ 105,928 277,121 297,326 266,188
(2)
(3)
Effective January 1, 2013, the Corporation revised, on a prospective basis, its methodology for allocating capital to the business segments. In connection with the change in methodology, the Corporation updated the applicable terminology in the above table to allocated capital from economic capital as reported in prior periods. For more information, see Exhibit A: Non-GAAP Reconciliations - Reconciliations to GAAP Financial Measures on pages 47-50.) Return on average allocated capital and return on average economic capital are calculated as net income, adjusted for cost of funds and earnings credits and certain expenses related to intangibles, divided by average allocated capital or average economic capital, as applicable. Allocated capital, economic capital and the related returns are non-GAAP financial measures. The Corporation 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. (See Exhibit A: Non-GAAP Reconciliations - Reconciliations to GAAP Financial Measures on pages 47-50.) Total earning assets and total assets include asset allocations to match liabilities (i.e., deposits) and allocated shareholders' equity.
32
Global Wealth & Investment Management Key Indicators

(Dollars in millions, except as noted) Year Ended December 31 2013 Revenues Merrill Lynch Global Wealth Management U.S. Trust Other (1) Total revenues Client Balances Client Balances by Business Merrill Lynch Global Wealth Management U.S. Trust Other (1) Client Balances by Type Assets under management Brokerage Assets Assets in custody Deposits Loans and leases (2) Total client balances Assets Under Management Flows Liquidity assets under management (3) Long-term assets under management (4) Total assets under management flows Associates (5) Number of Financial Advisors Total Wealth Advisors Total Client Facing Professionals Merrill Lynch Global Wealth Management Metrics Financial Advisory Productivity (6) (in thousands) U.S. Trust Metrics Client Facing Professionals
(1) (2) (3)
2012 $ 13,735 2,709 74 $ 16,518 $ $
Fourth Quarter 2013 3,703 762 15 4,480 $ $
Third Quarter 2013 3,646 730 14 4,390 $ $
Second Quarter 2013 3,742 740 17 4,499 $ $
First Quarter 2013 3,680 721 20 4,421 $ $
Fourth Quarter 2012 3,500 690 3 4,193
14,771 2,953 66
17,790
$ 1,916,803 376,487 73,148
$ 1,743,459 341,292 66,874
$ 1,916,803 376,487 73,148
$ 1,853,980 362,791 66,665
$ 1,800,151 351,119 63,781
$ 1,812,412 354,721 64,603
$ 1,743,459 341,292 66,874
821,449 1,045,122 136,190 244,901 118,776
698,095 960,351 117,686 266,188 109,305
821,449 1,045,122 136,190 244,901 118,776
779,614 1,013,688 131,386 241,553 117,195
743,613 992,664 128,854 235,012 114,908
745,260 1,009,507 127,013 239,853 110,103
698,095 960,351 117,686 266,188 109,305
$ 2,366,438
$ 2,151,625
$ 2,366,438
$ 2,283,436
$ 2,215,051
$ 2,231,736
$ 2,151,625
$ $
6,502 47,819 54,321
$ $
618 26,390 27,008
$ $
6,492 9,425 15,917
$ $
2,932 10,341 13,273
$ $
(695) 7,692 6,997
$ $
(2,227) 20,361 18,134
$ $
2,545 9,120 11,665
15,316 16,517 19,229
16,411 17,640 20,386
15,316 16,517 19,229
15,624 16,846 19,534
15,759 16,989 19,689
16,065 17,293 20,018
16,411 17,640 20,386
1,005
902
1,039
1,000
1,012
971
927
2,103
2,077
2,103
2,090
2,084
2,090
2,077
(4) (5)
(6)
Other includes the results of BofA Global Capital Management and other administrative items. Includes margin receivables which are classified in customer and other receivables on the Corporation's Consolidated Balance Sheet. Defined as assets under advisory and discretion of GWIM in which the investment strategy seeks a high level of income while maintaining liquidity and capital preservation. The duration of these strategies is less than one year. Defined as assets under advisory and discretion of GWIM in which the duration of the investment strategy is longer than one year. Includes Financial Advisors in the Consumer & Business Banking segment of 1,545, 1,585, 1,587, 1,591 and 1,496 at December 31, 2013, September 30, 2013, June 30, 2013, March 31, 2013 and December 31, 2012, respectively. Financial Advisor Productivity is defined as annualized Merrill Lynch Global Wealth Management total revenue divided by the total number of Financial Advisors (excluding Financial Advisors in the Consumer & Business Banking segment). Total revenue excludes corporate allocation of net interest income related to certain ALM activities.
33
All Other Results (1)

(Dollars in millions) Year Ended December 31 2013 Net interest income (FTE basis) Noninterest income: Card income Equity investment income Gains on sales of debt securities All other loss Total noninterest income (loss) Total revenue, net of interest expense (FTE basis) Provision for credit losses Noninterest expense Income (loss) before income taxes Income tax benefit (FTE basis) Net income (loss) Balance Sheet Average Total loans and leases Total assets (2) Total deposits Period end Total loans and leases Total assets (3) Total deposits
(1)
2012 966 328 $ 1,140 360 1,135 1,510 (4,927) (1,922) (782) 2,621 6,273 (9,676) (5,939) $ (3,737) $ $
Fourth Quarter 2013 408 83 392 364 (1,164) (325) 83 (188) 996 (725) (999) 274 $ $
Third Quarter 2013 36 79 1,122 347 (716) 832 868 (549) 930 487 (156) 643 $ $
Second Quarter 2013 268 81 576 452 (803) 306 574 (179) 547 206 (340) 546 $ $
First Quarter 2013 254 85 520 67 (562) 110 364 250 1,768 (1,654) (678) (976) $ $
Fourth Quarter 2012 255 96 569 117 (1,186) (404) (149) 450 1,003 (1,602) (2,443) 841
2,610 1,230 (3,245) 923 1,889 (666) 4,241 (1,686) (2,173) $ 487
235,454 215,183 34,617
259,241 315,735 43,087
226,049 178,929 34,030
232,538 203,044 35,126
238,910 230,667 33,774
244,557 248,996 35,549
247,128 279,367 36,939
220,694 166,881 27,702
241,981 262,800 36,061
220,694 166,881 27,702
229,550 177,869 30,705
234,047 204,118 34,597
241,406 235,435 35,759
241,981 262,800 36,061
(2)
(3)
All Other consists of ALM activities, equity investments, the international consumer card business, liquidating businesses, residual expense allocations and other. ALM activities encompass the whole-loan residential mortgage portfolio and investment securities, interest rate and foreign currency risk management activities including the residual net interest income allocation, gains/ losses on structured liabilities, the impact of certain allocation methodologies and accounting hedge ineffectiveness. The results of certain ALM activities are allocated to our business segments. Equity investments include Global Principal Investments and certain other investments. Additionally, All Other includes certain residential mortgage loans that are managed by Legacy Assets & Servicing. Includes elimination of segments excess asset allocations to match liabilities (i.e., deposits) and allocated shareholders' equity of $539.5 billion and $504.2 billion for the years ended December 31, 2013 and 2012; $564.6 billion, $541.0 billion, $525.1 billion and $526.8 billion for the fourth, third, second and first quarters of 2013, respectively, and $526.2 billion for the fourth quarter of 2012. Includes elimination of segments excess asset allocations to match liabilities (i.e., deposits) and allocated shareholders' equity of $570.3 billion, $558.0 billion, $529.5 billion, $537.7 billion and $537.6 billion at December 31, 2013, September 30, 2013, June 30, 2013, March 31, 2013 and December 31, 2012, respectively.
34
Equity Investments
(Dollars in millions) Global Principal Investments Exposures December 31, 2013 Book Value Global Principal Investments Private Equity Investments Global Real Estate Global Strategic Capital Legacy/Other Investments Total Global Principal Investments $ $ 20 296 759 529 1,604 $ $ 31 96 127 $ $ 20 327 855 529 1,731 $ $ 352 330 864 541 2,087 $ $ 6 51 1 42 100 $ $ 190 (2) 6 184 378 Unfunded Commitments Total September 30 2013 Total Equity Investment Income (Loss) December 31, 2013 Three Months Ended Year Ended
Components of Equity Investment Income

(Dollars in millions) Year Ended December 31 2013 Global Principal Investments Strategic and other investments Total equity investment income included in All Other Total equity investment income included in the business segments Total consolidated equity investment income $ $ 378 2,232 2,610 291 2,901 $ $ 2012 589 546 1,135 935 2,070 $ $ Fourth Quarter 2013 100 292 392 82 474 $ $ Third Quarter 2013 122 1,000 1,122 62 1,184 $ $ Second Quarter 2013 52 524 576 104 680 $ $ First Quarter 2013 104 416 520 43 563 $ $ Fourth Quarter 2012 167 402 569 130 699
35
Outstanding Loans and Leases

(Dollars in millions) December 31 2013 Consumer Residential mortgage (1) Home equity U.S. credit card Non-U.S. credit card Direct/Indirect consumer (2) Other consumer (3) Total consumer loans excluding loans accounted for under the fair value option Consumer loans accounted for under the fair value option (4) Total consumer Commercial U.S. commercial (5) Commercial real estate (6) Commercial lease financing Non-U.S. commercial Total commercial loans excluding loans accounted for under the option Commercial loans accounted for under the fair value option (4) Total commercial Total loans and leases
(1)
September 30 2013 $ 253,496 96,653 90,280 11,083 84,035 1,913 537,460 2,186 539,646 $
December 31 2012 252,929 108,140 94,835 11,697 83,205 1,628 552,434 1,005 553,439
248,066 93,672 92,338 11,541 82,192 1,977 529,786 2,164 531,950
225,851 47,893 25,199 89,462 388,405 7,878 396,283 $ 928,233 $
224,262 44,940 24,589 92,945 386,736 8,010 394,746 934,392 $
209,719 38,637 23,843 74,184 346,383 7,997 354,380 907,819
(2)
(3)
(4)
(5)
(6)
Includes pay option loans of $4.4 billion, $5.2 billion and $6.7 billion and non-U.S. residential mortgage loans of $0, $87 million and $93 million at December 31, 2013, September 30, 2013 and December 31, 2012, respectively. The Corporation no longer originates pay option loans. Includes dealer financial services loans of $38.5 billion, $39.5 billion and $35.9 billion, consumer lending loans of $2.7 billion, $3.1 billion and $4.7 billion, U.S. securities-based lending loans of $31.2 billion, $30.4 billion and $28.3 billion, non-U.S. consumer loans of $4.7 billion, $5.7 billion and $8.3 billion, student loans of $4.1 billion, $4.3 billion and $4.8 billion and other consumer loans of $1.0 billion, $1.0 billion and $1.2 billion at December 31, 2013, September 30, 2013 and December 31, 2012, respectively. Includes consumer finance loans of $1.2 billion, $1.2 billion and $1.4 billion, consumer leases of $606 million, $492 million, and $34 million, consumer overdrafts of $176 million, $175 million and $177 million and other non-U.S. consumer loans of $5 million, $5 million and $5 million at December 31, 2013, September 30, 2013 and December 31, 2012, respectively. Consumer loans accounted for under the fair value option were residential mortgage loans of $2.0 billion, $2.2 billion and $1.0 billion and home equity loans of $147 million, $0 and $0 at December 31, 2013, September 30, 2013 and December 31, 2012, respectively. Commercial loans accounted for under the fair value option were U.S. commercial loans of $1.5 billion, $1.8 billion and $2.3 billion and non-U.S. commercial loans of $6.4 billion, $6.2 billion and $5.7 billion at December 31, 2013, September 30, 2013 and December 31, 2012, respectively. Includes U.S. small business commercial loans, including card-related products, of $13.3 billion, $13.1 billion and $12.6 billion at December 31, 2013, September 30, 2013 and December 31, 2012, respectively. Includes U.S. commercial real estate loans of $46.3 billion, $43.5 billion and $37.2 billion and non-U.S. commercial real estate loans of $1.6 billion, $1.4 billion and $1.5 billion at December 31, 2013, September 30, 2013 and December 31, 2012, respectively.
36
Quarterly Average Loans and Leases by Business Segment

Fourth Quarter 2013 Total Corporation Consumer Residential mortgage Home equity U.S. credit card Non-U.S. credit card Direct/Indirect consumer Other consumer Total consumer Commercial U.S. commercial Commercial real estate Commercial lease financing Non-U.S. commercial Total commercial Total loans and leases $ 253,974 95,388 90,057 11,171 82,990 1,929 535,509 Consumer & Business Banking $ 678 145 86,746 42,002 707 130,278 Consumer Real Estate Services $ 4,262 85,274 45 89,581 $ Global Banking 1 2 3 $ Global Markets 56 144 37 237 $ All Other $ 201,571 1,461 11,171 5,811 1,216 221,230
GWIM 47,407 8,364 3,311 35,094 4 94,180
225,596 46,341 24,468 97,863 394,268 929,777
32,134 732 8 32,874 163,152
106 106 89,687
132,249 42,622 25,115 68,860 268,846 268,849
35,430 1,075 929 28,823 66,257 66,494
19,624 1,587 4 151 21,366 115,546
6,053 325 (1,580) 21 4,819 226,049
Third Quarter 2013 Total Corporation Consumer Residential mortgage Home equity U.S. credit card Non-U.S. credit card Direct/Indirect consumer Other consumer Total consumer Commercial U.S. commercial Commercial real estate Commercial lease financing Non-U.S. commercial Total commercial Total loans and leases $ 256,297 98,172 90,005 10,633 83,773 1,867 540,747 Consumer & Business Banking $ 628 146 90,005 41,745 597 133,121 $ Consumer Real Estate Services 3,516 84,761 47 88,324 $ Global Banking 3 3 $ Global Markets 83 108 37 228 $ All Other $ 206,409 1,438 10,633 7,713 1,265 227,458
GWIM 45,661 11,719 34,228 5 91,613
221,542 43,164 23,869 94,656 383,231 923,978
31,356 1,218 12 32,586 165,707
82 82 88,406
128,602 39,172 24,853 67,455 260,082 260,085
35,771 887 636 26,968 64,262 64,490
19,464 1,488 4 183 21,139 112,752
6,267 399 (1,624) 38 5,080 232,538
Fourth Quarter 2012 Total Corporation Consumer Residential mortgage Home equity U.S. credit card Non-U.S. credit card Direct/Indirect consumer Other consumer Total consumer Commercial U.S. commercial Commercial real estate Commercial lease financing Non-U.S. commercial Total commercial Total loans and leases $ 256,564 110,270 92,849 13,081 82,583 1,602 556,949 Consumer & Business Banking $ 426 146 92,849 41,096 152 134,669 $ Consumer Real Estate Services 1,113 95,343 75 96,531 $ Global Banking 4 4 8 $ Global Markets 93 84 23 200 $ All Other $ 214,727 1,533 13,081 10,160 1,439 240,940
GWIM 40,205 13,164 31,225 7 84,601
209,496 38,192 22,839 65,690 336,217 893,166
30,202 2,330 18 32,550 167,219
73 1 74 96,605
121,535 33,404 24,057 53,392 232,388 232,396
32,898 341 458 12,136 45,833 46,033
17,691 1,427 4 62 19,184 103,785
7,097 689 (1,680) 82 6,188 247,128
37
Commercial Credit Exposure by Industry (1, 2, 3)

(Dollars in millions) Commercial Utilized December 31 2013 Diversified financials Real estate (4) Retailing Capital goods Healthcare equipment and services Government and public education Banking Materials Energy Consumer services Commercial services and supplies Food, beverage and tobacco Utilities Media Transportation Individuals and trusts Software and services Pharmaceuticals and biotechnology Technology hardware and equipment Insurance, including monolines Telecommunication services Consumer durables and apparel Automobiles and components Food and staples retailing Religious and social organizations Other Total commercial credit exposure by industry Net credit default protection purchased on total commitments (5)
(1)
Total Commercial Committed December 31 2012 $ 66,102 47,479 28,065 25,071 29,396 41,441 39,829 21,809 17,661 23,093 19,020 14,738 8,403 13,091 13,791 13,916 5,549 3,846 5,111 8,491 4,008 4,246 3,312 3,528 6,850 3,881 $ 471,727 $ $ December 31 2013 $ 121,075 76,418 54,616 52,849 49,063 48,322 45,095 42,699 41,156 34,217 32,007 30,541 25,243 22,655 22,595 18,681 14,172 13,986 12,733 12,203 11,423 9,757 8,424 7,909 7,677 8,309 823,825 (8,085) $ $ September 30 2013 $ 122,314 72,271 54,516 51,637 49,221 48,031 49,920 43,638 43,241 35,378 31,312 31,390 25,068 22,194 23,159 18,209 14,312 14,818 11,516 12,165 14,244 9,479 8,390 7,928 7,677 8,166 830,194 (11,204) $ $ $ December 31 2012 99,574 65,639 47,719 49,196 45,488 50,277 44,822 40,493 38,441 36,367 30,257 37,344 23,425 21,705 20,255 17,801 12,125 11,401 11,101 14,117 10,276 8,438 7,675 6,838 9,107 7,124 767,005 (14,657)
September 30 2013 $ 80,219 51,529 32,593 27,053 31,560 39,672 43,350 22,607 21,212 21,647 19,249 14,185 9,799 12,897 15,951 14,699 7,543 7,303 5,462 5,875 4,543 5,103 3,258 3,884 5,492 5,331 $ 512,016
78,423 54,336 32,859 28,016 30,828 40,253 39,649 22,384 19,739 21,080 19,770 14,437 9,253 13,070 15,280 14,864 6,814 6,455 6,166 5,926 4,541 5,427 3,165 3,950 5,452 5,357
507,494
(2)
(3) (4)
(5)
Includes loans and leases, standby letters of credit and financial guarantees, derivative assets, assets held-for-sale, commercial letters of credit, bankers acceptances, securitized assets, foreclosed properties and other collateral acquired. Derivative assets are carried at fair value, reflect the effects of legally enforceable master netting agreements and have been reduced by the amount of cash collateral applied of $47.3 billion, $47.3 billion and $58.1 billion at December 31, 2013, September 30, 2013 and December 31, 2012, respectively. Not reflected in utilized and committed exposure is additional derivative collateral held of $17.1 billion, $18.6 billion and $18.7 billion which consists primarily of other marketable securities at December 31, 2013, September 30, 2013 and December 31, 2012, respectively. Total commercial utilized and total commercial committed exposure includes loans and letters of credit measured at fair value and are comprised of loans outstanding of $7.9 billion, $8.0 billion and $8.0 billion and issued letters of credit at notional value of $503 million, $577 million and $672 million at December 31, 2013, September 30, 2013 and December 31, 2012, respectively. In addition, total commercial committed exposure includes unfunded loan commitments at notional value of $12.5 billion, $14.1 billion and $17.6 billion at December 31, 2013, September 30, 2013 and December 31, 2012, respectively. Includes U.S. small business commercial exposure. Industries are viewed from a variety of perspectives to best isolate the perceived risks. For purposes of this table, the real estate industry is defined based on the borrowers or counterparties primary business activity using operating cash flows and primary source of repayment as key factors. Represents net notional credit protection purchased.
38
Net Credit Default Protection by Maturity Profile (1)

December 31 2013 Less than or equal to one year Greater than one year and less than or equal to five years Greater than five years Total net credit default protection
(1)
September 30 2013 29% 69 2 100%
35% 63 2 100%
To mitigate the cost of purchasing credit protection, credit exposure can be added by selling credit protection. The distribution of maturities for net credit default protection purchased is shown above.
Net Credit Default Protection by Credit Exposure Debt Rating (1)

(Dollars in millions) December 31, 2013 Ratings (2, 3) AAA AA A BBB BB B CCC and below NR (5) Total net credit default protection
(1)
September 30, 2013 Net Notional (4) $ (107) (231) (4,464) (4,565) (1,125) (509) (128) (75) $ (11,204) Percent of Total 1.0% 2.1 39.8 40.7 10.0 4.5 1.1 0.8 100.0% % 0.1 31.7 48.0 14.1 5.6 1.4 (0.9) 100.0%
Net Notional (4) $ (7) (2,560) (3,880) (1,137) (452) (115) 66 $ (8,085)
Percent of Total
(2) (3) (4) (5)
To mitigate the cost of purchasing credit protection, credit exposure can be added by selling credit protection. The distribution of debt rating for net notional credit default protection purchased is shown as a negative and the net notional credit protection sold is shown as a positive amount. Ratings are refreshed on a quarterly basis. Ratings of BBB- or higher are considered to meet the definition of investment grade. Represents net credit default protection (purchased) sold. NR is comprised of index positions held and any names that have not been rated.
39
Top 20 Non-U.S. Countries Exposure

(Dollars in millions) Country Exposure at December 31 2013 $ 48,015 19,808 13,811 13,409 17,208 10,464 14,908 9,498 9,123 9,408 7,635 7,384 7,164 5,598 9,760 4,131 4,503 3,976 5,001 2,710 $ 223,514 $ Net Country Exposure at December 31 2013 (5) $ 43,586 18,411 13,632 12,921 12,718 10,251 10,163 8,115 7,997 7,635 6,722 6,435 5,546 5,357 5,202 4,072 3,999 3,829 3,403 2,693 $ 192,687 $ Increase (Decrease) from September 30 2013 $ (1,337) 225 200 1,798 (342) (108) (2,214) (510) (2,545) 1,720 216 (289) (181) (1,947) (923) (59) (371) (1,499) 180 333 (7,653)
Funded Loans and Loan Equivalents (1) United Kingdom Canada Brazil China Germany India France Japan Australia Netherlands Russian Federation South Korea Switzerland Hong Kong Italy Taiwan Mexico Singapore Spain Turkey Total top 20 non-U.S. countries exposure
(1)
Unfunded Loan Commitments $ 12,046 6,942 698 587 4,973 643 6,790 477 2,136 2,758 960 811 3,150 374 3,573 687 138 892 75 $ 48,710
Net Counterparty Exposure (2) $ 5,259 1,568 416 642 2,800 361 976 1,827 565 555 230 566 625 81 2,328 132 129 157 115 10 $ 19,342
Securities/ Other Investments (3) $ 4,812 5,223 4,106 1,468 3,173 3,204 5,228 2,854 2,048 2,496 621 2,236 629 847 763 1,385 657 1,280 519 271 $ 43,820
Hedges and Credit Default Protection (4) $ (4,429) (1,397) (179) (488) (4,490) (213) (4,745) (1,383) (1,126) (1,773) (913) (949) (1,618) (241) (4,558) (59) (504) (147) (1,598) (17) (30,827)
25,898 6,075 8,591 10,712 6,262 6,256 1,914 4,340 4,374 3,599 5,824 3,771 2,760 4,296 3,096 2,614 3,030 2,401 3,475 2,354
111,642
(2)
(3)
(4)
(5)
Includes loans, leases and other extensions of credit and funds, including letters of credit and due from placements, which have not been reduced by collateral, hedges or credit default protection. Funded loans and loan equivalents are reported net of charge-offs but prior to any allowance for loan and lease losses. Net counterparty exposure includes the fair value of derivatives, including the counterparty risk associated with credit default swaps, and secured financing transactions. Derivative exposures are presented net of $35.7 billion in collateral, which is predominantly cash, pledged under legally enforceable master netting agreements. Secured financing transaction exposures are presented net of eligible cash or securities pledged as collateral. The notional amount of reverse repurchase transactions was $88.8 billion. Counterparty exposure is not presented net of hedges or credit default protection. Long securities exposures are netted on a single-name basis to, but not below, zero by short exposures and net credit default swaps purchased, consisting of single-name and net indexed and tranched credit default swaps. Represents credit default protection purchased, net of credit default protection sold, which is used to mitigate the Corporation's risk to country exposures as listed, consisting of net single-name and net indexed and tranched credit default swaps. Amounts are calculated based on the credit default swaps notional amount assuming a zero recovery rate less any fair value receivable or payable. Represents country exposure less hedges and credit default protection purchased, net of credit default protection sold.
40
Select European Countries

(Dollars in millions) Funded Loans and Loan Equivalents (1) Greece Sovereign Financial institutions Corporates Total Greece Ireland Sovereign Financial institutions Corporates Total Ireland Italy Sovereign Financial institutions Corporates Total Italy Portugal Sovereign Financial institutions Corporates Total Portugal Spain Sovereign Financial institutions Corporates Total Spain Total Sovereign Financial institutions Corporates Total select European exposure
(1)
Unfunded Loan Commitments $ 61 $ $ 61 10 338 $ $ 348 348 3,225 $ $ 3,573 103 $ $ 103 1 891 $ $ 892 359 4,618 $ 4,977 $ $ $ $ $ $ $ $ $ $ $ $
Net Counterparty Exposure (2) 2 2 19 124 69 212 1,611 179 538 2,328 15 2 17 63 14 38 115 1,708 319 647 2,674
Securities/ Other Investments (3) $ 58 27 13 $ $ 98 44 55 $ $ 99 269 175 319 $ $ 763 35 40 $ $ 75 2 131 386 $ $ 519 364 377 813 $ 1,554 $ $ $ $ $ $ $ $ $ $ $ $
Country Exposure at December 31 2013 58 27 139 224 38 990 818 1,846 1,882 2,640 5,238 9,760 50 6 233 289 102 1,369 3,530 5,001 2,130 5,032 9,958 17,120
Hedges and Credit Default Protection (4) $ (30) (41) $ $ (71) (43) (10) (49) $ $ (102) (2,095) (1,230) (1,233) $ $ (4,558) (27) (108) (292) $ $ (427) (163) (421) (1,014) $ $ (1,598) (2,328) (1,799) (2,629) $ (6,756) $ $ $ $ $ $ $ $ $ $ $ $
Net Country Exposure at December 31 2013 (5) 58 (3) 98 153 (5) 980 769 1,744 (213) 1,410 4,005 5,202 23 (102) (59) (138) (61) 948 2,516 3,403 (198) 3,233 7,329 10,364
Increase (Decrease) from September 30 2013 $ 20 1 (47) $ $ (26) (47) 463 (50) $ $ 366 (1,310) 88 299 $ $ (923) 42 (57) (47) $ $ (62) (479) 261 398 $ $ 180 (1,774) 756 553 $ (465)
63
$ $
63 19 812 356
$ $
1,187 2 1,938 1,156
$ $
3,096 4 90
$ $
94 37 1,223 2,215
$ $
3,475 58 3,977 3,880
7,915
(2)
(3)
(4)
(5)
Includes loans, leases and other extensions of credit and funds, including letters of credit and due from placements, which have not been reduced by collateral, hedges or credit default protection. Funded loans and loan equivalents are reported net of charge-offs but prior to any allowance for loan and lease losses. Net counterparty exposure includes the fair value of derivatives, including the counterparty risk associated with credit default swaps, and secured financing transactions. Derivative exposures are presented net of $1.1 billion in collateral, which is predominantly cash, pledged under legally enforceable master netting agreements. Secured financing transaction exposures are presented net of eligible cash or securities pledged as collateral. The notional amount of reverse repurchase transactions was $4.0 billion. Counterparty exposure is not presented net of hedges or credit default protection. Long securities exposures are netted on a single-name basis to, but not below, zero by short exposures of $4.9 billion and net credit default swaps purchased of $1.9 billion, consisting of $1.5 billion of net single-name credit default swaps purchased and $406 million of net indexed and tranched credit default swaps sold. Represents credit default protection purchased, net of credit default protection sold, which is used to mitigate the Corporation's risk to country exposures as listed, including $4.5 billion, consisting of $3.0 billion in net single-name credit default swaps purchased and $1.5 billion in net indexed and tranched credit default swaps purchased, to hedge loans and securities, $2.3 billion in additional credit default protection purchased to hedge derivative assets and $127 million in other short exposures. Amounts are calculated based on the credit default swaps notional amount assuming a zero recovery rate less any fair value receivable or payable. Represents country exposure less hedges and credit default protection purchased, net of credit default protection sold.
41
Nonperforming Loans, Leases and Foreclosed Properties

(Dollars in millions) December 31 2013 Residential mortgage (1) Home equity (1) Direct/Indirect consumer Other consumer Total consumer U.S. commercial Commercial real estate Commercial lease financing Non-U.S. commercial U.S. small business commercial Total commercial Total nonperforming loans and leases Foreclosed properties (2) Total nonperforming loans, leases and foreclosed properties (3, 4, 5) Fully-insured home loans past due 30 days or more and still accruing Consumer credit card past due 30 days or more and still accruing Other loans past due 30 days or more and still accruing Total loans past due 30 days or more and still accruing (4, 6, 7) Fully-insured home loans past due 90 days or more and still accruing Consumer credit card past due 90 days or more and still accruing Other loans past due 90 days or more and still accruing Total loans past due 90 days or more and still accruing (4, 6, 7) Nonperforming loans, leases and foreclosed properties/Total assets (8) Nonperforming loans, leases and foreclosed properties/Total loans, leases and foreclosed properties (8) Nonperforming loans and leases/Total loans and leases (8) Commercial utilized reservable criticized exposure (9) Commercial utilized reservable criticized exposure/Commercial utilized reservable exposure (9) Total commercial utilized criticized exposure/Commercial utilized exposure (9)
(1)
September 30 2013 $ 13,328 4,176 59 18 17,581 1,059 488 49 86 1,682 103 1,785 19,366 662 $ $ 20,028 21,797 2,376 5,512 $ $ 29,685 17,960 1,191 723 $ 19,874 0.95% 2.17 2.10 $ 14,086 3.31% 3.48 $ $ $ $ $ $ $
June 30 2013 14,316 4,151 72 1 18,540 1,279 627 10 80 1,996 107 2,103 20,643 637 21,280 24,072 2,487 5,587 32,146 20,604 1,325 662 22,591 1.01% 2.33 2.26 14,928 3.62% 3.64 $ $ $ $ $ $ $
March 31 2013 15,001 4,196 84 1 19,282 1,354 1,139 19 112 2,624 110 2,734 22,016 826 22,842 24,733 2,847 6,147 33,727 21,617 1,541 655 23,813 1.05% 2.53 2.44 15,006 3.75% 4.08
December 31 2012 $ 15,055 4,282 92 2 19,431 1,484 1,513 44 68 3,109 115 3,224 22,655 900 $ $ 23,555 25,698 3,151 6,692 $ $ 35,541 22,157 1,649 776 $ 24,582 1.07% 2.62 2.52 $ 15,936 4.10% 4.40
11,712 4,075 35 18 15,840 819 322 16 64 1,221 88 1,309 17,149 623
$ $
17,772 20,681 2,321 5,416
$ $
28,418 16,961 1,184 614
18,759 0.85% 1.93 1.87
12,861 3.02% 3.08
(2)
(3)
(4)
During the fourth quarter of 2012, as a result of regulatory guidance, we changed the treatment of loans discharged in Chapter 7 bankruptcy to write down these loans to collateral value and classify as nonperforming. As a result of this change, we reclassified residential mortgage loans of $49 million, home equity loans of $5 million and direct/indirect consumer loans of $58 million to nonperforming as of December 31, 2012. Foreclosed property balances do not include loans that are insured by the Federal Housing Administration and have entered foreclosure of $1.4 billion, $1.6 billion, $1.6 billion, $2.3 billion and $2.5 billion at December 31, 2013, September 30, 2013, June 30, 2013, March 31, 2013 and December 31, 2012, respectively. Balances do not include past due consumer credit card, consumer loans secured by real estate where repayments are insured by the Federal Housing Administration and individually insured long-term stand-by agreements (fully-insured home loans), and in general, other consumer and commercial loans not secured by real estate. Balances do not include purchased credit-impaired loans even though the customer may be contractually past due. Purchased credit-impaired loans were recorded at fair value upon acquisition and accrete interest income over the remaining life of the loan. December 31 2013 $ 672 448 260 September 30 2013 $ 972 467 356 $ June 30 2013 891 398 485 $ March 31 2013 1,050 412 512 December 31 2012 $ 1,059 401 521
(5)
Balances do not include the following: Nonperforming loans held-for-sale Nonperforming loans accounted for under the fair value option Nonaccruing troubled debt restructured loans removed from the purchased credit-impaired portfolio prior to January 1, 2010
(6)
(7) (8)
(9)
Balances do not include loans held-for-sale past due 30 days or more and still accruing of $106 million, $301 million, $374 million, $315 million and $518 million at December 31, 2013, September 30, 2013, June 30, 2013, March 31, 2013 and December 31, 2012, respectively and loans held-for-sale past due 90 days or more and still accruing of $8 million, $0, $17 million, $18 million and $130 million at December 31, 2013, September 30, 2013, June 30, 2013, March 31, 2013 and December 31, 2012, respectively. At December 31, 2013, September 30, 2013, June 30, 2013, March 31, 2013 and December 31, 2012, there were $158 million, $153 million, $81 million, $83 million and $87 million, respectively, of loans accounted for under the fair value option past due 30 days or more and still accruing interest. These balances are excluded from total nonperforming loans, leases and foreclosed properties. Total assets and total loans and leases do not include loans accounted for under the fair value option of $10.0 billion, $10.2 billion, $9.5 billion, $8.8 billion and $9.0 billion at December 31, 2013, September 30, 2013, June 30, 2013, March 31, 2013 and December 31, 2012, respectively. Criticized exposure corresponds to the Special Mention, Substandard and Doubtful asset categories defined by regulatory authorities. The reservable criticized exposure excludes loans heldfor-sale, exposure accounted for under the fair value option and other nonreservable exposure.
42
Nonperforming Loans, Leases and Foreclosed Properties Activity (1)

(Dollars in millions) Fourth Quarter 2013 Nonperforming Consumer Loans and Leases: Balance, beginning of period Additions to nonperforming loans and leases: New nonperforming loans and leases Implementation of change in treatment of loans discharged in bankruptcies (2) Reductions to nonperforming loans and leases: Paydowns and payoffs Sales Returns to performing status (3) Charge-offs (4) Transfers to foreclosed properties Transfers to loans held-for-sale Total net reductions to nonperforming loans and leases Total nonperforming consumer loans and leases, end of period Foreclosed properties Nonperforming consumer loans, leases and foreclosed properties, end of period Nonperforming Commercial Loans and Leases (5): Balance, beginning of period Additions to nonperforming loans and leases: New nonperforming loans and leases Advances Reductions to nonperforming loans and leases: Paydowns Sales Return to performing status (6) Charge-offs Transfers to foreclosed properties Transfers to loans held-for-sale Total net reductions to nonperforming loans and leases Total nonperforming commercial loans and leases, end of period Foreclosed properties Nonperforming commercial loans, leases and foreclosed properties, end of period
(1) (2)
Third Quarter 2013 $ 18,540 2,503 n/a (544) (624) (1,079) (758) (131) (326) (959) 17,581 546 $ 18,127 $ $
Second Quarter 2013 19,282 2,289 n/a (695) (175) (1,139) (932) (90) (742) 18,540 508 19,048 $ $
First Quarter 2013 19,431 2,661 n/a (680) (943) (1,072) (115) (149) 19,282 620 19,902 $ $
Fourth Quarter 2012 19,753 3,211 112 (968) (47) (1,076) (1,439) (115) (322) 19,431 650 20,081
17,581 2,199 n/a (863) (729) (1,112) (752) (147) (337) (1,741) 15,840 533
16,373
1,785 143 12 (322) (92) (87) (98) (12) (20) (476) 1,309 90
2,103 350 9 (380) (88) (91) (104) (14) (318) 1,785 116
2,734 269 3 (312) (171) (243) (170) (7) (631) 2,103 129
3,224 350 6 (328) (147) (167) (177) (21) (6) (490) 2,734 206
3,948 473 5 (445) (198) (249) (273) (37) (724) 3,224 250
1,399
1,901
2,232
2,940
3,474
(3)
(4)
(5) (6)
For amounts excluded from nonperforming loans, leases and foreclosed properties, see footnotes to Nonperforming Loans, Leases and Foreclosed Properties table on page 42. During the fourth quarter of 2012, as a result of regulatory guidance, we changed the treatment of loans discharged in Chapter 7 bankruptcy to write down these loans to collateral value and classify as nonperforming. Consumer loans and leases may be returned to performing status when all principal and interest is current and full repayment of the remaining contractual principal and interest is expected, or when the loan otherwise becomes well-secured and is in the process of collection. Certain troubled debt restructurings are classified as nonperforming at the time of restructuring and may only be returned to performing status after considering the borrowers sustained repayment performance for a reasonable period, generally six months. Our policy is not to classify consumer credit card and non-bankruptcy related consumer loans not secured by real estate as nonperforming; therefore, the charge-offs on these loans have no impact on nonperforming activity and accordingly are excluded from this table. Includes U.S. small business commercial activity. Small business card loans are excluded as they are not classified as nonperforming. Commercial loans and leases may be returned to performing status when all principal and interest is current and full repayment of the remaining contractual principal and interest is expected or when the loan otherwise becomes well-secured and is in the process of collection. Troubled debt restructurings are generally classified as performing after a sustained period of demonstrated payment performance.
n/a = not applicable Certain prior period amounts have been reclassified to conform to current period presentation.
43
Quarterly Net Charge-offs and Net Charge-off Ratios (1, 2, 3)

(Dollars in millions) Fourth Quarter 2013 Net Charge-offs Residential mortgage (4) Home equity (4) U.S. credit card Non-U.S. credit card Direct/Indirect consumer Other consumer Total consumer (4) U.S. commercial (5) Commercial real estate Commercial lease financing Non-U.S. commercial U.S. small business commercial Total commercial Total net charge-offs (4) By Business Segment Consumer & Business Banking Consumer Real Estate Services Global Banking Global Markets Global Wealth & Investment Management All Other Total net charge-offs
(1)
Third Quarter 2013 Amount 221 302 788 89 62 65 1,527 68 11 (8) (2) 69 91 160 $ 1,687 $ Percent 0.35% 1.22 3.47 3.32 0.30 13.81 1.12 0.13 0.11 (0.13) (0.01) 0.08 2.86 0.17 0.73 $
Second Quarter 2013 Amount 271 486 917 104 86 51 1,915 43 44 (5) 16 98 98 196 $ 2,111 Percent 0.43% 1.92 4.10 3.93 0.42 11.57 1.42 0.09 0.43 (0.08) 0.08 0.11 3.15 0.22 0.94 $
First Quarter 2013 Amount 383 684 947 112 124 52 2,302 45 93 (10) (15) 113 102 215 $ 2,517 Percent 0.60% 2.62 4.19 4.14 0.61 12.76 1.70 0.09 0.96 (0.18) (0.08) 0.14 3.33 0.25 1.14 $
Fourth Quarter 2012 Amount 729 768 978 119 195 64 2,853 27 84 1 17 129 122 251 $ 3,104 Percent 1.14% 2.77 4.19 3.62 0.94 15.78 2.04 0.05 0.88 0.02 0.12 0.16 3.86 0.30 1.40
Amount $ 209 331 724 94 73 66 1,497 (28) 1 (2) 46 17 68 85 $ 1,582
Percent 0.33% 1.38 3.19 3.34 0.35 13.58 1.11 (0.05) (0.03) 0.20 0.02 2.07 0.09 0.68
922 323 7 1 35 294 1,582
2.24% 1.45 0.01 0.01 0.12 0.52 0.68
1,027 281 35 26 318 1,687
2.46% 1.28 0.05 0.09 0.54 0.73
1,158 465 78 (1) 51 360 2,111
2.84% 2.09 0.12 0.19 0.60 0.94
1,241 660 68 2 61 485 2,517
3.03% 2.91 0.12 0.01 0.23 0.80 1.14
1,383 732 132 1 91 765 3,104
3.29% 3.05 0.23 0.01 0.35 1.23 1.40
(2)
(3)
(4)
(5)
Net charge-off ratios are calculated as annualized net charge-offs divided by average outstanding loans and leases excluding loans accounted for under the fair value option during the period for each loan and lease category. Excluding the purchased credit-impaired loan portfolio, total annualized net charge-offs as a percentage of total average loans and leases outstanding were 0.70, 0.75, 0.97, 1.18 and 1.44 for the three months ended December 31, 2013, September 30, 2013, June 30, 2013, March 31, 2013 and December 31, 2012, respectively. Excludes write-offs of purchased credit-impaired loans of $741 million, $443 million, $313 million, $839 million and $1.1 billion for the three months ended December 31, 2013, September 30, 2013, June 30, 2013, March 31, 2013 and December 31, 2012, respectively. Including the write-offs of purchased credit-impaired loans, total annualized net charge-offs and purchased creditimpaired write-offs as a percentage of total average loans and leases outstanding were 1.00, 0.92, 1.07, 1.52 and 1.90 for the three months ended December 31, 2013, September 30, 2013, June 30, 2013, March 31, 2013 and December 31, 2012, respectively. During 2012, the Corporation changed the treatment of loans discharged in Chapter 7 bankruptcy to write down these loans to collateral value irrespective of the borrower's payment status. As a result of the completion of implementation, the Corporation charged off $73 million of current or less than 60 days delinquent loans for the three months ended December 31, 2012. Includes the impact of a clarification of regulatory guidance on accounting for troubled debt restructurings of $56 million for residential mortgage loans and $88 million for home equity loans for the three months ended December 31, 2013. Excluding this impact, annualized net charge-offs as a percentage of total average loans and leases outstanding were 0.24 for residential mortgage loans, 1.01 for home equity loans, 1.01 for total consumer loans and 0.62 for total net charge-offs for the three months ended December 31, 2013. Excludes U.S. small business commercial loans.
44
Annual Net Charge-offs and Net Charge-off Ratios (1, 2, 3, 4)

(Dollars in millions) Year Ended December 31 2013 Net Charge-offs Residential mortgage (5) Home equity (5) U.S. credit card Non-U.S. credit card Direct/Indirect consumer Other consumer Total consumer (5) U.S. commercial (6) Commercial real estate Commercial lease financing Non-U.S. commercial U.S. small business commercial Total commercial Total net charge-offs (5) By Business Segment Consumer & Business Banking Consumer Real Estate Services Global Banking Global Markets Global Wealth & Investment Management All Other Total net charge-offs
(1)
2012 Percent 0.42% 1.80 3.74 3.68 0.42 12.96 1.34 0.06 0.35 (0.10) 0.05 0.08 2.84 0.18 0.87 $ $ Amount 3,111 4,242 4,632 581 763 232 13,561 242 384 (6) 28 648 699 1,347 14,908 Percent 1.18% 3.62 4.88 4.29 0.90 9.85 2.36 0.13 1.01 (0.03) 0.05 0.21 5.46 0.43 1.67
Amount $ 1,084 1,803 3,376 399 345 234 7,241 128 149 (25) 45 297 359 656 $ 7,897
4,348 1,729 188 2 173 1,457
2.64% 1.94 0.07 0.16 0.62 0.87
6,452 4,059 436 14 370 3,577
3.73% 3.97 0.20 0.04 0.37 1.38 1.67
7,897
14,908
(2)
(3)
(4) (5)
(6)
Net charge-off ratios are calculated as net charge-offs divided by average outstanding loans and leases excluding loans accounted for under the fair value option during the period for each loan and lease category. Excluding the purchased credit-impaired loan portfolio, total net charge-offs as a percentage of total average loans and leases outstanding were 0.90 and 1.73 for the years ended December 31, 2013 and 2012. Excludes write-offs of purchased credit-impaired loans of $2.3 billion and $2.8 billion for the years ended December 31, 2013 and 2012. Including the write-offs of purchased credit-impaired loans, total net charge-offs and purchased credit-impaired write-offs as a percentage of total average loans and leases outstanding were 1.13 and 1.99 for the years ended December 31, 2013 and 2012. During 2012, the Corporation changed the treatment of loans discharged in Chapter 7 bankruptcy to write down these loans to collateral value irrespective of the borrower's payment status. As a result of the completion of implementation, the Corporation charged off $551 million of current or less than 60 days delinquent loans for the year ended December 31, 2012. The 2012 amounts include $435 million of charge-offs incurred as a result of National Mortgage Settlement activities. Includes the impact of a clarification of regulatory guidance on accounting for troubled debt restructurings of $56 million for residential mortgage loans and $88 million for home equity loans for the year ended December 31, 2013. Excluding this impact, net charge-offs as a percentage of total average loans and leases outstanding were 0.40 for residential mortgage loans, 1.71 for home equity loans, 1.31 for total consumer loans and 0.85 for total net charge-offs for the year ended December 31, 2013. Excludes U.S. small business commercial loans.
45
Allocation of the Allowance for Credit Losses by Product Type

(Dollars in millions) December 31, 2013 Percent of Total 23.43% 25.44 22.55 2.63 2.39 0.58 77.02 13.74 5.26 0.68 3.30 22.98 100.00% Percent of Loans and Leases Outstanding (1) 1.65% 4.73 4.26 3.98 0.51 5.02 2.53 1.06 1.91 0.47 0.64 1.03 1.90 September 30, 2013 Percent of Total 25.19% 28.91 22.11 2.51 2.81 0.52 82.05 10.35 4.61 0.50 2.49 17.95 100.00% Percent of Loans and Leases Outstanding (1) 1.93% 5.81 4.76 4.40 0.65 5.21 2.97 0.90 1.99 0.40 0.52 0.90 2.10 December 31, 2012 Percent of Total 29.31% 32.45 19.51 2.48 2.97 0.43 87.15 7.80 3.50 0.32 1.23 12.85 100.00% Percent of Loans and Leases Outstanding (1) 2.80% 7.26 4.97 5.13 0.86 6.40 3.81 0.90 2.19 0.33 0.40 0.90 2.69
Allowance for loan and lease losses Residential mortgage Home equity U.S. credit card Non-U.S.credit card Direct/Indirect consumer Other consumer Total consumer U.S. commercial (2) Commercial real estate Commercial lease financing Non-U.S.commercial Total commercial (3) Allowance for loan and lease losses Reserve for unfunded lending commitments Allowance for credit losses Asset Quality Indicators Allowance for loan and lease losses/Total loans and leases (4) Allowance for loan and lease losses (excluding the valuation allowance for purchased creditimpaired loans)/Total loans and leases (excluding purchased credit-impaired loans) (4, 5) Allowance for loan and lease losses/Total nonperforming loans and leases (6) Allowance for loan and lease losses (excluding the valuation allowance for purchased creditimpaired loans)/Total nonperforming loans and leases (5) Ratio of the allowance for loan and lease losses/ Annualized net charge-offs (7) Ratio of the allowance for loan and lease losses (excluding purchased credit-impaired loans)/ Annualized net charge-offs (5) Ratio of the allowance for loan and lease losses/ Annualized net charge-offs and purchased credit-impaired write-offs
(1)
Amount $ 4,084 4,434 3,930 459 417 99 13,423 2,394 917 118 576 4,005 17,428 484 $ 17,912
Amount $ 4,895 5,618 4,296 488 546 100 15,943 2,012 895 98 484 3,489 19,432 480 $ 19,912
Amount $ 7,088 7,845 4,718 600 718 104 21,073 1,885 846 78 297 3,106 24,179 513 $ 24,692
1.90%
2.10%
2.69%
1.67 102
1.81 100
2.14 107
87 2.78
84 2.90
82 1.96
2.38
2.42
1.51
1.89
2.30
1.44
(2)
(3)
(4)
(5) (6)
(7)
Ratios are calculated as allowance for loan and lease losses as a percentage of loans and leases outstanding excluding loans accounted for under the fair value option. Consumer loans accounted for under the fair value option included residential mortgage loans of $2.0 billion, $2.2 billion and $1.0 billion and home equity loans of $147 million, $0 and $0 at December 31, 2013, September 30, 2013 and December 31, 2012, respectively. Commercial loans accounted for under the fair value option included U.S. commercial loans of $1.5 billion, $1.8 billion and $2.3 billion and non-U.S. commercial loans of $6.4 billion, $6.2 billion and $5.7 billion at December 31, 2013, September 30, 2013 and December 31, 2012, respectively. Includes allowance for loan and lease losses for U.S. small business commercial loans of $462 million, $510 million and $642 million at December 31, 2013, September 30, 2013 and December 31, 2012, respectively. Includes allowance for loan and lease losses for impaired commercial loans of $277 million, $286 million and $475 million at December 31, 2013, September 30, 2013 and December 31, 2012, respectively. Total loans and leases do not include loans accounted for under the fair value option of $10.0 billion, $10.2 billion and $9.0 billion at December 31, 2013, September 30, 2013 and December 31, 2012, respectively. Excludes valuation allowance on purchased credit-impaired loans of $2.5 billion, $3.2 billion and $5.5 billion at December 31, 2013, September 30, 2013 and December 31, 2012, respectively. Allowance for loan and lease losses includes $7.7 billion, $9.0 billion and $12.0 billion allocated to products (primarily the Consumer Lending portfolios within Consumer & Business Banking and purchased credit-impaired loans) that are excluded from nonperforming loans and leases at December 31, 2013, September 30, 2013 and December 31, 2012, respectively. Excluding these amounts, allowance for loan and lease losses as a percentage of total nonperforming loans and leases was 57 percent, 54 percent and 54 percent at December 31, 2013, September 30, 2013 and December 31, 2012, respectively. Net charge-offs exclude $741 million, $443 million and $1.1 billion of write-offs in the purchased credit-impaired loan portfolio at December 31, 2013, September 30, 2013 and December 31, 2012, respectively. These write-offs decreased the purchased credit-impaired valuation allowance included as part of the allowance for loan and lease losses.
46
Exhibit A: Non-GAAP Reconciliations Bank of America Corporation and Subsidiaries
Reconciliations to GAAP Financial Measures

(Dollars in millions) The Corporation evaluates its business based on a fully taxable-equivalent basis, a non-GAAP financial measure. The Corporation believes managing the business with net interest income on a fully taxable-equivalent basis provides a more accurate picture of the interest margin for comparative purposes. Total revenue, net of interest expense, includes net interest income on a fully taxable-equivalent basis and noninterest income. The Corporation views related ratios and analyses (i.e., efficiency ratios and net interest yield) on a fully taxable-equivalent basis. To derive the fully taxable-equivalent basis, net interest income is adjusted to reflect tax-exempt income on an equivalent before-tax basis with a corresponding increase in income tax expense. For purposes of this calculation, the Corporation uses the federal statutory tax rate of 35 percent. This measure ensures comparability of net interest income arising from taxable and tax-exempt sources. The efficiency ratio measures the costs expended to generate a dollar of revenue, and net interest yield measures the basis points the Corporation earns over the cost of funds. The Corporation also evaluates its business based on the following ratios that utilize tangible equity, a non-GAAP financial measure. Tangible equity represents an adjusted shareholders' equity or common shareholders' equity amount which has been reduced by goodwill and intangible assets (excluding mortgage servicing rights), net of related deferred tax liabilities. Return on average tangible common shareholders' equity measures the Corporation's earnings contribution as a percentage of adjusted average common shareholders' equity. Return on average tangible shareholders' equity measures the Corporation's earnings contribution as a percentage of adjusted average total shareholders' equity. The tangible common equity ratio represents adjusted ending common shareholders' equity divided by total assets less goodwill and intangible assets (excluding mortgage servicing rights), net of related deferred tax liabilities. The tangible equity ratio represents adjusted ending shareholders' equity divided by total assets less goodwill and intangible assets (excluding mortgage servicing rights), net of related deferred tax liabilities. Tangible book value per common share represents adjusted ending common shareholders' equity divided by ending common shares outstanding. These measures are used to evaluate the Corporation's use of equity. In addition, profitability, relationship and investment models all use return on average tangible shareholders' equity as key measures to support our overall growth goals. Effective January 1, 2013, on a prospective basis, the Corporation adjusted the amount of capital being allocated to its business segments. The adjustment reflects a refinement to the prior-year methodology (economic capital) which focused solely on internal risk-based economic capital models. The refined methodology (allocated capital) now also considers the effect of regulatory capital requirements in addition to internal risk-based economic capital models. The Corporation's internal risk-based capital models use a risk-adjusted methodology incorporating each segment's credit, market, interest rate, business and operational risk components. The capital allocated to the Corporation's business segments is currently referred to as allocated capital and, prior to January 1, 2013, was referred to as economic capital, both of which represent non-GAAP financial measures. The Corporation plans to further refine, in the first quarter of 2014, the capital being allocated to the Corporations business segments with the result being additional capital allocated to the business segments. Allocated capital is subject to change over time. See the tables below and on pages 48-50 for reconciliations of these non-GAAP financial measures to financial measures defined by GAAP for the years ended December 31, 2013 and 2012, and the three months ended December 31, 2013, September 30, 2013, June 30, 2013, March 31, 2013 and December 31, 2012. The Corporation believes the use of these non-GAAP financial measures provides additional clarity in assessing the results of the Corporation. Other companies may define or calculate supplemental financial data differently. Year Ended December 31 2013 Reconciliation of net interest income to net interest income on a fully taxable-equivalent basis Net interest income Fully taxable-equivalent adjustment Net interest income on a fully taxable-equivalent basis $ $ 42,265 859 43,124 $ $ 40,656 901 41,557 $ $ 10,786 213 10,999 $ $ 10,266 213 10,479 $ $ 10,549 222 10,771 $ $ 10,664 211 10,875 $ $ 10,324 231 10,555 2012 Fourth Quarter 2013 Third Quarter 2013 Second Quarter 2013 First Quarter 2013 Fourth Quarter 2012
Reconciliation of total revenue, net of interest expense to total revenue, net of interest expense on a fully taxable-equivalent basis Total revenue, net of interest expense Fully taxable-equivalent adjustment Total revenue, net of interest expense on a fully taxable-equivalent basis $ $ 88,942 859 89,801 $ $ 83,334 901 84,235 $ $ 21,488 213 21,701 $ $ 21,530 213 21,743 $ $ 22,727 222 22,949 $ $ 23,197 211 23,408 $ $ 18,660 231 18,891
Reconciliation of income tax expense (benefit) to income tax expense (benefit) on a fully taxable-equivalent basis Income tax expense (benefit) Fully taxable-equivalent adjustment Income tax expense (benefit) on a fully taxable-equivalent basis $ $ 4,741 859 5,600 $ $ (1,116) 901 (215) $ $ 406 213 619 $ $ 2,348 213 2,561 $ $ 1,486 222 1,708 $ $ 501 211 712 $ $ (2,636) 231 (2,405)
Reconciliation of average common shareholders' equity to average tangible common shareholders' equity Common shareholders' equity Goodwill Intangible assets (excluding mortgage servicing rights) Related deferred tax liabilities Tangible common shareholders' equity $ 218,468 (69,910) (6,132) 2,328 $ 144,754 $ 216,996 (69,974) (7,366) 2,593 $ 142,249 $ 220,088 (69,864) (5,725) 2,231 $ 146,730 $ 216,766 (69,903) (5,993) 2,296 $ 143,166 $ 218,790 (69,930) (6,270) 2,360 $ 144,950 $ 218,225 (69,945) (6,549) 2,425 $ 144,156 $ 219,744 (69,976) (6,874) 2,490 $ 145,384
Reconciliation of average shareholders' equity to average tangible shareholders' equity Shareholders' equity Goodwill Intangible assets (excluding mortgage servicing rights) Related deferred tax liabilities Tangible shareholders' equity $ 233,947 (69,910) (6,132) 2,328 $ 160,233 $ 235,677 (69,974) (7,366) 2,593 $ 160,930 $ 233,415 (69,864) (5,725) 2,231 $ 160,057 $ 230,392 (69,903) (5,993) 2,296 $ 156,792 $ 235,063 (69,930) (6,270) 2,360 $ 161,223 $ 236,995 (69,945) (6,549) 2,425 $ 162,926 $ 238,512 (69,976) (6,874) 2,490 $ 164,152
47
Exhibit A: Non-GAAP Reconciliations (continued) Bank of America Corporation and Subsidiaries

(Dollars in millions) Year Ended December 31 2013 2012 Fourth Quarter 2013 Third Quarter 2013 Second Quarter 2013 First Quarter 2013 Fourth Quarter 2012
Reconciliation of period-end common shareholders' equity to period-end tangible common shareholders' equity Common shareholders' equity Goodwill Intangible assets (excluding mortgage servicing rights) Related deferred tax liabilities Tangible common shareholders' equity $ 219,333 (69,844) (5,574) 2,166 $ 146,081 $ 218,188 (69,976) (6,684) 2,428 $ 143,956 $ 219,333 (69,844) (5,574) 2,166 $ 146,081 $ 218,967 (69,891) (5,843) 2,231 $ 145,464 $ 216,791 (69,930) (6,104) 2,297 $ 143,054 $ 218,513 (69,930) (6,379) 2,363 $ 144,567 $ 218,188 (69,976) (6,684) 2,428 $ 143,956
Reconciliation of period-end shareholders' equity to period-end tangible shareholders' equity Shareholders' equity Goodwill Intangible assets (excluding mortgage servicing rights) Related deferred tax liabilities Tangible shareholders' equity Reconciliation of period-end assets to period-end tangible assets Assets Goodwill Intangible assets (excluding mortgage servicing rights) Related deferred tax liabilities Tangible assets $2,102,273 (69,844) (5,574) 2,166 $2,029,021 $2,209,974 (69,976) (6,684) 2,428 $2,135,742 $2,102,273 (69,844) (5,574) 2,166 $2,029,021 $2,126,653 (69,891) (5,843) 2,231 $2,053,150 $2,123,320 (69,930) (6,104) 2,297 $2,049,583 $2,174,819 (69,930) (6,379) 2,363 $2,100,873 $2,209,974 (69,976) (6,684) 2,428 $2,135,742 $ 232,685 (69,844) (5,574) 2,166 $ 159,433 $ 236,956 (69,976) (6,684) 2,428 $ 162,724 $ 232,685 (69,844) (5,574) 2,166 $ 159,433 $ 232,282 (69,891) (5,843) 2,231 $ 158,779 $ 231,032 (69,930) (6,104) 2,297 $ 157,295 $ 237,293 (69,930) (6,379) 2,363 $ 163,347 $ 236,956 (69,976) (6,684) 2,428 $ 162,724
48

(Dollars in millions) Year Ended December 31 2013 Reconciliation of return on average allocated capital/economic capital (1) Consumer & Business Banking Reported net income Adjustment related to intangibles (2) Adjusted net income Average allocated equity (3) Adjustment related to goodwill and a percentage of intangibles Average allocated capital/economic capital Global Banking Reported net income Adjustment related to intangibles (2) Adjusted net income Average allocated equity (3) Adjustment related to goodwill and a percentage of intangibles Average allocated capital/economic capital Global Markets Reported net income (loss) Adjustment related to intangibles (2) Adjusted net income (loss) Average allocated equity (3) Adjustment related to goodwill and a percentage of intangibles Average allocated capital/economic capital Global Wealth & Investment Management Reported net income Adjustment related to intangibles (2) Adjusted net income Average allocated equity (3) Adjustment related to goodwill and a percentage of intangibles Average allocated capital/economic capital For footnotes see page 50. Certain prior period amounts have been reclassified to conform to current period presentation. $ $ $ $ 2,974 16 2,990 20,292 (10,292) 10,000 $ $ $ $ 2,245 22 2,267 17,729 (10,370) 7,359 $ $ $ $ 777 4 781 20,265 (10,265) 10,000 $ $ $ $ 719 4 723 20,283 (10,283) 10,000 $ $ $ $ 758 4 762 20,300 (10,300) 10,000 $ $ $ $ 720 4 724 20,323 (10,323) 10,000 $ $ $ $ 576 5 581 18,489 (10,340) 8,149 $ $ $ $ 1,563 8 1,571 35,373 (5,373) 30,000 $ $ $ $ 1,229 9 1,238 19,193 (5,369) 13,824 $ $ $ $ 215 2 217 35,381 (5,381) 30,000 $ $ $ $ (778) 2 (776) 35,369 (5,369) 30,000 $ $ $ $ 958 2 960 35,372 (5,372) 30,000 $ $ $ $ 1,168 2 1,170 35,372 (5,372) 30,000 $ $ $ $ 181 2 183 19,562 (5,378) 14,184 $ $ $ $ 4,974 2 4,976 45,412 (22,412) 23,000 $ $ $ $ 5,344 4 5,348 41,742 (22,430) 19,312 $ $ $ $ 1,267 1,267 45,410 (22,410) 23,000 $ $ $ $ 1,134 1 1,135 45,413 (22,413) 23,000 $ $ $ $ 1,292 1,292 45,416 (22,416) 23,000 $ $ $ $ 1,281 1 1,282 45,407 (22,407) 23,000 $ $ $ $ 1,392 1 1,393 41,546 (22,423) 19,123 $ $ $ $ 6,588 7 6,595 62,045 (32,045) 30,000 $ $ $ $ 5,546 13 5,559 56,214 (32,163) 24,051 $ $ $ $ 1,967 1 1,968 62,007 (32,007) 30,000 $ $ $ $ 1,779 2 1,781 62,032 (32,032) 30,000 $ $ $ $ 1,395 2 1,397 62,058 (32,058) 30,000 $ $ $ $ 1,447 2 1,449 62,083 (32,083) 30,000 $ $ $ $ 1,446 3 1,449 56,673 (32,112) 24,561 2012 Fourth Quarter 2013 Third Quarter 2013 Second Quarter 2013 First Quarter 2013 Fourth Quarter 2012
49

(Dollars in millions) Year Ended December 31 2013 Consumer & Business Banking Deposits Reported net income Adjustment related to intangibles (2) Adjusted net income Average allocated equity (3) Adjustment related to goodwill and a percentage of intangibles Average allocated capital/economic capital Consumer Lending Reported net income Adjustment related to intangibles (2) Adjusted net income Average allocated equity (3) Adjustment related to goodwill and a percentage of intangibles Average allocated capital/economic capital
(1) (2) (3)
2012
Fourth Quarter 2013
Third Quarter 2013
Fourth Quarter 2012
$ $ $ $
2,127 1 2,128 35,400 (20,000) 15,400
$ $ $ $
1,261 2 1,263 33,006 (20,021) 12,985
$ $ $ $
674 674 35,394 (19,994) 15,400
$ $ $ $
572 572 35,398 (19,998) 15,400
$ $ $ $
333 333 33,479 (20,012) 13,467
$ $ $ $
4,461 7 4,468 26,644 (12,044) 14,600
$ $ $ $
4,285 12 4,297 23,208 (12,142) 11,066
$ $ $ $
1,293 1 1,294 26,613 (12,013) 14,600
$ $ $ $
1,207 1 1,208 26,634 (12,034) 14,600
$ $ $ $
1,113 3 1,116 23,194 (12,100) 11,094
There are no adjustments to reported net income (loss) or average allocated equity for Consumer Real Estate Services. Represents cost of funds, earnings credits and certain expenses related to intangibles. Average allocated equity is comprised of average allocated capital (or economic capital prior to 2013) plus capital for the portion of goodwill and intangibles specifically assigned to the business segment.
50

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Supplemental Information Fourth Quarter 2013

Bank of America Corporation and Subsidiaries

Bank of America Corporation and Subsidiaries

Consolidated Financial Highlights

15.57 15.88 11.03 164,914 5,151 16,259 242,117

11.61 11.61 5.80 125,136 5,478 16,347 267,190

15.57 15.88 13.69 164,914 5,151 16,259 242,117

13.80 14.95 12.83 147,429 5,243 16,201 247,943

12.86 13.83 11.44 138,156 5,328 16,354 257,158

12.18 12.78 11.03 131,817 5,389 16,311 262,812

11.61 11.61 8.93 125,136 5,478 16,347 267,190

Bank of America Corporation and Subsidiaries

Supplemental Financial Data

2012 $ 41,557 84,235 2.35% 85.59 $

Fourth Quarter 2013 10,999 21,701 2.56% 79.75 $

Third Quarter 2013 10,479 21,743 2.44% 75.38 $

Second Quarter 2013 10,771 22,949 2.44% 69.80 $

First Quarter 2013 10,875 23,408 2.43% 83.31 $

Fourth Quarter 2012 10,555 18,891 2.35% 97.19

43,124 89,801 2.47% 77.07

Bank of America Corporation and Subsidiaries

Consolidated Statement of Income

Bank of America Corporation and Subsidiaries

Consolidated Statement of Comprehensive Income

Bank of America Corporation and Subsidiaries

Consolidated Balance Sheet

Bank of America Corporation and Subsidiaries

Consolidated Balance Sheet (continued)

Bank of America Corporation and Subsidiaries

(3) (4) (5)

Basel 1 to Basel 3 (fully phased-in) Reconciliation (1, 2)

September 30 2013 $ 159,008 (16,183) 142,825 (935) (4,758) (5,319) $ 131,813 $ $

June 30 2013 156,689 (17,170) 139,519 (787) (6,761) (6,125) 125,846 $ $

March 31 2013 158,677 (22,558) 136,119 (776) (4,501) (2,032) 128,810

December 31 2012 $ 155,461 (22,058) 133,403 (737) (3,020) (1,020) $ 128,626

161,456 (16,221) 145,235 (829) (4,803) (7,288)

1,205,976 103,085 81,811

Bank of America Corporation and Subsidiaries

Net Interest Income Excluding Trading-related Net Interest Income

2012 $ $ 41,557 (3,308) 38,249 $ $

Fourth Quarter 2013 10,999 (1,051) 9,948 $ $

Third Quarter 2013 10,479 (888) 9,591 $ $

Second Quarter 2013 10,771 (919) 9,852 $ $

First Quarter 2013 10,875 (1,010) 9,865 $ $

Fourth Quarter 2012 10,555 (1,012) 9,543

43,124 (3,868) 39,256

$1,746,974 (469,048) $1,277,926

$ 1,769,969 (449,660) $ 1,320,309

$1,708,501 (445,725) $1,262,776

$ 1,710,685 (446,212) $ 1,264,473

$ 1,769,336 (487,345) $ 1,281,991

$ 1,800,786 (497,730) $ 1,303,056

$ 1,788,936 (482,366) $ 1,306,570

2.47% 0.60 3.07%

2.35% 0.55 2.90%

2.56% 0.57 3.13%

2.44% 0.58 3.02%

2.44% 0.64 3.08%

2.43% 0.62 3.05%

2.35% 0.56 2.91%

Bank of America Corporation and Subsidiaries

Quarterly Average Balances and Interest Rates Fully Taxable-equivalent Basis

Bank of America Corporation and Subsidiaries

Interest Income/ Expense