bofa Archives • Page 22 of 58 • CardFlash®

BofA Ahead of Plan on 10-Year, $20b Eco Initiative

5, Country, Priority, UNITED STATESBy Robert McKinley 09/17/2010

Bank of America is ahead of schedule on its 10-year, $20 billion business initiative focused on addressing climate change launched in 2007, comprised of hundreds of transactions throughout the world. Through June 2010, Bank of America has directed $8.4 billion through lending, investing, capital markets activity, philanthropy and the company’s own operations
in 45 states, the District of Columbia, Canada and markets across Asia and Europe. The 2010 report provides an update on the company’s progress toward its environmental goals, commitments and activities for $2.2 billion in equipment financing for energy efficiency projects and renewable energy projects in solar, wind, biomass and biofuel technologies for both utilities and end users; $102 million in transactions that have financed emission reductions in the global carbon markets; and $21 million in philanthropic support for nonprofit organizations focused on addressing climate change and other environmental opportunities.

GTCR to Sell National Processing Co

5, Country, Priority, UNITED STATESBy Robert McKinley 09/16/2010

GTRC has signed a definitive purchase agreement with Fifth Third Processing Solutions to sell its National Processing Company (NPC). NPC merchant acquirers provides integrated electronic payment solutions and services targeted exclusively toward the small to medium sized enterprise segment. Through its broad distribution network and more than forty years experience in the payments industry, the payments processing business will extend Fifth Third Processing Solutionsâ ability to provide best-in-class capabilities to its client base and will expand the Companyâs already strong commitment of providing innovative electronic payment solutions to a more diversified client base that will now include ISOs and agent banks.

Credit Card Charge Off Rate Falls to 8.1%

5, Country, Priority, UNITED STATESBy Robert McKinley 09/07/2010

The credit card charge off rate has continued to slow after climbing for 2 years straight and now stands at 8.1%. This, after months of soaring past the 6% mark in December of 2008, the 8% mark that following spring, and finally the 10% mark in September of ’09, offers continued relief to rampant fear last year credit card-backed securities would realistically near 12% by this time. This follows average charge-offs in the first quarter having reached an unprecedented 10.93% in March, According to CardData (www.carddata.com). Moreover, Capital One international cards COF hit 7.86% in July compared with 8.3% in June; Discover COF declined to 7.28% from 8% in June; Chase net credit losses fell to 7.88% from 8.32% in June; the BofA charge-off rate fell to 11.39% from 11.98% in June and American Express said its charge-off rate fell to 5.5% from 5.7% in June. In Recent Months, skyrocketing card charge-offs have improved and will hopefully continue to recede far enough from the dreaded 11% mark. For complete details on credit card charge-offs visit Carddata.com (www.carddata.com).

Charge-Offs
JUN 08: 5.3%
SEP 08: 5.5%
DEC 08: 6.0%
MAR 09: 8.7%
JUN 09: 9.5%
SEP 09: 10.1%
DEC 09: 10.6%
MAR 10: 10.9%
JUN 10: 10.3%
JUL 10: 8.1%
Source: CardData
(www.carddata.com)

Wright Express to Acquire ReD Cards

5, Country, Priority, UNITED STATESBy Robert McKinley 07/30/2010

Wright Express payment processing has entered into a definitive share purchase agreements to acquire the Australian assets of Retail Decisions consisting of its fleet and prepaid card businesses from Palamon Capital Partners, Morgan Stanley and AlpInvest Partners for approximately AU$353 million in cash. The all cash transaction is anticipated to be immediately accretive to the Companyâs adjusted net income and is expected to close in the third quarter. ReD Fuel multi-branded fuel card issuer has 270,000 cards in circulation, accepted at approximately 90% of Australian fuel retailers; as a processor of prepaid cards holds a 60% market share; and generated 2009 revenues totaling AU$61.4 million combined.

Top Card Issuer Revenue Up 9.8% Q/Q

5, Country, Priority, UNITED STATESBy Robert McKinley 07/23/2010

Credit card revenue for the three largest U.S. issuers, ranked by outstandings, held strong across the board for 2Q/10, up more than 9.8% since the prior quarter. According to CardData (www.carddata.com), the nation’s top three issuers posted a total of $8.2 billion in second quarter net revenue, compared to $7.4 billion in 1Q/10. Chase reported 2Q/10 net revenue $343 million, an increase of more than 110% from the prior quarter. BofA posted global cards net income of $6.9 billion, compared to $6.8 in the prior quarter, while Citi reported revenue down only marginally from $936 million in 1Q/10 to $929 million. These performance results reflect an easing of the credit crunch, with issuers easing lending standards. For complete details on second quarter performance visit CardData (www.carddata.com).

REVENUE HISTORICAL ($mm)
BofA Chase Citi
1Q/10: 6,800 -300 936
2Q/10: 6,900 343 929
Source: CardData (www.carddata.com)

Bank of America Recognized as Best US Bank

5, Country, Priority, UNITED STATESBy Robert McKinley 07/20/2010

Bank of America has received seven awards from Euromoney magazine through the â2010 Awards for Excellenceâ program. Awards received include; Best Bank in the U.S; Best Debt House in North America; and Best Debt House in Japan. This was due in part thanks to Bank of America efforts to help simplify the financial lives of its customers with transparent solutions for customers. The bank extended more credit than any other bank in the country in both the consumer and commercial sectors throughout the year.

Bank Of America Card Services Down $400MM Y/Y

5, Country, Priority, UNITED STATESBy Robert McKinley 07/16/2010

Bank of America reported second-quarter 2010 net income of $3.1 billion, compared to net income of $3.2 billion a year ago. Results were driven by lower credit costs, which improved for the fourth straight quarter, and the sale of non-core assets as the company focused on strengthening key business lines and divesting assets that do not directly contribute to providing financial services to customers. With average retail deposit balances having risen 3% year over year to $649.6 billion, Bank of America extended approximately $174 billion in credit in the second quarter of 2010, including $3 billion in domestic consumer and small business cards and $8 billion in other consumer credit. Bank of America agreed to sell its equity position in MasterCard, resulting in a pretax gain of approximately $440 million to focus on its core businesses and strengthen capital ratios. Global Card Services net income increased $2.4 billion compared to a year ago due to declining credit costs reflecting continued improvement in the U.S. economy; Revenue decreased $401 million from a year ago, driven by lower average loans and reduced interest and fee income primarily resulting from the implementation of the CARD Act, partially offset by the $440 million pretax gain on the sale of the MasterCard position.

BOFA CARD REVENUE($billions)
2Q/10 6.9
1Q/10 6.8
2Q/09 7.3
SOURCE: BofA

Alliance Data Closes $450mm Term Asset-Backed Securities

5, Country, Priority, UNITED STATESBy Robert McKinley 07/12/2010

Alliance Data Systems Corporation loyalty and marketing solutions has been issued $450 million of public, fixed-rate, term asset-backed securities by World Financial Network Credit Card Master Note Trust. Issued as part of the securitization program for Alliance Data’s private label credit card banking subsidiary, World Financial Network National Bank (WFNNB), the securities consist of four series of notes rated AAA through BBB with an average life of five years and carry a weighted average fixed-rate of just under 5%. The Company’s private label credit card business currently employs three sources of funding for its roughly $5 billion portfolio, representing approximately 100 retailer programs.

New Bank of America TV Ad to Debut During All-Star Game

5, Country, Priority, UNITED STATESBy Robert McKinley 07/12/2010

Bank of America is set to debut its latest commercial during the 2010 Major League Baseball All-Star Game on Tuesday, July 13, at 8 p.m. on FOX, celebrating its commitment to MLB. This is the first time in three years that Bank of America has introduced new baseball-themed creative during the Midsummer Classic. Entitled âStitching,â the 30-second spot was designed by agency partner Hill Holliday and uses the imagery of a baseball being sewn together as a metaphor for how the game is deeply woven into the fabric of our national culture. Bank of America is leveraging its sponsorship of the MLB All-Star Game to deploy more than 250 associate volunteers to assist in baseball-themed community events benefitting organizations such as Little League Challenger Division and Rebuilding Together in and around Orange County, which ties to MLBâs overall theme of âGoing Beyondâ and giving back to the community.

U.S. Prime Card Charge-offs Up More Than 11%

5, Country, Priority, UNITED STATESBy Robert McKinley 06/07/2010

While delinquencies have been slowly improving, chargeoffs have been holding steady at over 10% for a full year now. Prime credit card chargeoffs rose by 17 basis points (bps) to 11.10%, driven mainly by a 168 bps increase in defaults within the BA Credit Card Trust. Credit card chargeoffs in U.S. have remained high for all of this year, with the index averaging 11.17% through April versus 8.59% during the same period last year. Year-over-year chargeoff comparisons fell to 15% from more than 50% in the first-quarter 2010. This, according to Fitch, also showed late payments dropped another nine bps to 4.18%. All credit card issuers that comprise Fitch’s index, with the exception of the Citibank Credit Card Issuance Trust (which only had a 1 bps increase), reported lower delinquency rates indicating fewer borrowers might default in the coming months. Meanwhile, 30+ day delinquencies also fell by 21 bps to 5.53%. Year-over-year, early stage delinquencies also declined by 61 bps (10%). Monthly excess spread fell 88 bps to 8.01% in April – a combined result of the drop in yield and increase in defaults, while the three-month average excess spread rose by 61 bps to 8.28%. The retail credit card chargeoff index rose 22 bps to 13.23 % in April. Retail chargeoffs were 115 bps (10%) higher than the same period last year but below its all-time record high of 13.41% in February 2010.

CREDIT CARD COF
SEP 09: 11.52%
OCT 09: 10.09%
NOV09: 10.68%
DEC 09: 12.56%
JAN 10: 11.37%
FEB 10: 11.27%
MAR10: 10.93%
APR10: 11.10%
SOURCE:Carddata.com

BofA Generates $168.2B for Community Development 1st Yr

5, Country, Priority, UNITED STATESBy Robert McKinley 05/28/2010

Bank of America released the first-year results of its 10-year, $1.5
trillion community development goal to lend and invest in underserved
communities. Having provided $168.2 billion in
community development lending and investments for low- and
moderate-income (LMI) communities and minority customers in in 2009-10,
the Bank of America program generated nearly $667 million every business
day throughout the past year. The $1.5 trillion goal tracks community
development lending and investing in affordable housing, small business,
consumer lending and economic development. The first year generated $147
billion for Affordable Housing; $12.8 billion for Small Business; $4.5
billion for Consumer Lending; and $3.8 billion in Economic Development.
In 2009, the bank made more than $200 million in charitable grants
toward its philanthropic goal.

BofA Global Credit Cards Posts 9% Revenue Decline

5, Country, Priority, UNITED STATESBy Robert McKinley 04/16/2010

Bank of America global credit cards posted $952 million in 1Q/10 compared to a $194 million loss in the previous quarter and a $1.9 billion loss in 1Q/09. 1Q/10 global cards revenues declined 9% to $6.8 billion due to lower net interest income from the decline in average loans and lower fee income resulting from the implementation of the CARD Act. Provision for credit losses decreased $4.7 billion to $3.5 billion from a year ago as lower delinquencies and lower expected losses from the improved economic outlook drove reserve reductions during the quarter. For complete details on Bank of America’s 1Q/10 performance, visit CardData (www.carddata.com).

BOFA CREDIT CARD NET INCOME
(Global Cards; Excludes Business Cards)
3Q/08: (-$167 million)
4Q/08: (-$9 million)
1Q/09: (-$1874 million)
2Q/09: (-$1617 million)
3Q/09: (-$1036 million)
4Q/09: (-$194 million)
1Q/10: $952 million
Source: CardData (www.carddata.com)

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