Agenda History Agenda Overview Performance Agenda Overview Performance Competition Agenda Overview Performance Competition ProductsServices Agenda Overview Performance Competition ProductsServices ID: 734965
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Slide1
Bank of America
ByBobby BaysdenSlide2
Agenda
HistorySlide3
Agenda
OverviewPerformanceSlide4
Agenda
Overview
Performance
CompetitionSlide5
Agenda
Overview
Performance
Competition
Products/ServicesSlide6
Agenda
Overview
Performance
Competition
Products/Services
SWOT AnalysisSlide7
Agenda
OverviewPerformance
Competition
Products/Services
SWOT Analysis
SummarySlide8
History
Bank of America’s history dates back to 1904 and was founded by
Amadeo
Giannini
However it wasn’t until 1930 that he named the bank, Bank of America
In 1958 Bank of America introduced
BankAmericard
, which
in 1976
became known as the Visa Card
In the past 30 years Bank of America has increased in size by or acquiring or merging with many smaller banks and businesses
In 1974 Tom Storrs becomes the CEO
In 1983 Hugh McColl takes over as CEO
In 1994 they established their first online website
In 2001 Ken Lewis takes over as CEO
They became the largest credit card issuer in the industry in 2006Slide9
History (continued)
In 2009 they acquired Merrill Lynch
In 2010 Brian Moynihan became the CEOSlide10
Performance
In 2012 they suffered 63% drop in 4
th
quarter
profits,
because
of
mortgage settlements with the government
.
Even
with this Bank of America is improving, they increased profits from 1.4 billion in 2011 to 4.2 billion in 2012. Also, they had the best performing stock on the Dow
Jones
They have made more not only by doing better business but also by cutting cost with there new program called Project New BAC.
One way they have cut cost is by reducing the amount of employees, in 2011 they had 281,791 employees and by the end of 2012 they had 267,190 employees. With this new project they plan to have cut 30,000 jobs by the end of 2013Slide11
Berkshire & Hathaway Investment
In August of 2011 Warren Buffett’s company Berkshire & Hathaway invested 5 billion in Bank of America
In this deal Berkshire & Hathaway are getting 50,000 preferred shares that pay 6% in dividends annually
They also get warrants to buy 700 million common shares at 7.14 per shareSlide12
Top 5 Shareholders
Top Holders
Shares Held
% O/S
Share Change
Filing Date
The Vanguard Group, Inc.
463,816,602
4.3
12,653,244
12/31/12
State Street Global Advisors (US)
450,353,705
4.2
17,339,729
12/31/12
BlackRock
Institutional Trust Company, N.A.
374,424,656
3.5
3,893,703
12/31/12
Citi Investment Research (US)
226,042,014
2.1
-4,228,81012/31/12JP Morgan Asset Management180,393,6721.716,654,54912/31/12
Top Holders
Shares Held
% O/S
Share Change
Filing Date
The Vanguard Group, Inc.
463,816,602
4.3
12,653,244
12/31/12
State Street Global Advisors (US)
450,353,705
4.2
17,339,729
12/31/12
BlackRock
Institutional Trust Company, N.A.
374,424,656
3.5
3,893,703
12/31/12
Citi Investment Research (US)
226,042,014
2.1
-4,228,810
12/31/12
JP Morgan Asset Management
180,393,672
1.7
16,654,549
12/31/12Slide13
PerformanceSlide14
Performance 2008-2012Slide15
Services
Bank of America offers a wide variety of services. They offer services to corporations and institutions in the global markets a couple examples of these global markets are the commodity markets and currency markets.
Some services they offer to corporations and institutions are investment advise, investment banking advise, and corporate banking adviseSlide16
Small Business Services/Products
Bank of America also provides services for small businesses including:
Cash management tools
Pay roll services
Remote deposits
Account permission
Bill payment
Invoicing
Tax services
Online banking
Investing Slide17
Products/Services for Individuals
CheckingSavings
CDs
Credit cards(#3 in the U.S.)
Student banking
Mobile and text banking
Online bankingSlide18
Industry
Bank of America is in the banking industry, and the financial sectorSlide19
Competitors
Bank of America’s main competitors are:BB&T
U.S. Bancorp
Wells Fargo & Company
PNC Financial Service Group
Sun Trust BanksSlide20
Competitors
One thing that sets Bank of America apart from its competitor’s is its Client Management ProcessThis is where the client deals with the client manager, and the client manager manages
a
team. Which is a team made up of people who know about each of BOA’s services and productsSlide21
SWOT Analysis
StrengthsBank of
A
merica is very large corporation, they serve 57 million people in America alone. They have 5,700 banking centers and 17,750 ATMs through out the U.S. Also, they are the primary dealer in 16 countries
The company has a wide range of revenue sources from global banking in global markets, card services, and global wealth and investment management
They also have good distribution between their assets and liabilities, which helps it avoid liquidity problemsSlide22
SWOT Analysis
Weaknesses
The class action law suits they are having to pay are in the billions
Also they have really bad PR right now. For 4
th
year in a row they were voted as the least popular bank.
One of the major reasons for this was the many fees they charge. They even tried to charge a five dollar fee every month if you own one of there debit cardsSlide23
SWOT Analysis
OpportuitesThe bank sector is expected to grow here in the U.S., and because Bank of America has so many customers in the U.S. they are expected to grow
They are going to try to keep improving their mobile banking so it will be easier for customers to pay bills, deposit checks, etc.
They are expecting to keep creating new products and services, which should bring in more revenueSlide24
SWOT Analysis
ThreatsRegulatory changes such as the Dodd Frank that was put into effect in 2010, is going cost them more money to follow the new regulations
Because of the recession there have been a lot more uncertainties, which decreases the demand for their
sevicesSlide25
Summary
I believe that with the new programs in place, and if the economy continues to come out of the recession Bank of America will contniue
to grow and become a stronger company. Slide26
Work Cited
Bank of America. (2013). Retrieved
April 15,
2013, from Bank of America: http://about.bankofamerica.com/en-us/global-impact/environmental-sustainability.html#fbid=I55G0ZS-bI6
Admin. (2012, June 20).
SWOT Analysis for Bank of America
. Retrieved April 11, 2013, from Marketing Mix Heaven for Business News: http://marketingmix.org/swot-analysis-of-bank-of-america-corporation
/
Schaefer, S. (2012, March 16).
Buffet $5 Billion Bank of America Bet Keeps Looking Better
. Retrieved April 11, 2013, from Forbes:
http://www.forbes.com/sites/steveschaefer/2012/03/16/buffetts-5-billion-bank-of-america-bet-keeps-looking-better
/
BofA
Speeds up plans to cut 16,000
jobs:WSJ
. (2012, September 20). Retrieved April 11, 2013, from Reuters: http://www.reuters.com/article/2012/09/20/us-bankofamerica-jobs-idUSBRE88J11G20120920Slide27
Work Cited
Bank of America Corporation. (2013, April 12). Retrieved April 12, 2013, from Morning Star: http://quotes.morningstar.com/stock/bac/s?t=bacSlide28
Questions?