Bank of America      

Throughout the banking as well as various non banking subsidiaries in the US and the international market, the bank offers a range of banking and non banking financial experiences that include: card services, consumer Real Estate Services, Global Commercial Banking, deposits and investment management. In the December period, the cooperation had a $2.1 trillion in assets as well as approximately 282,000 full time equivalent employees. Additionally, the bank operates in 40 countries. The retail banking covers approximately, 80 percent of the population in the US. On the other hand, the bank serves an approximated 57 million consumer as well as a small business relationship with 5700 centers of banking, 17750 ATM’s, nationwide call centers. Tentatively, the bank is the leading support to approximately four million small business owners, as such; the bank is a global leader in corporate and investment banking and trading across a range of asset that serves governments, institutions as well as individuals worldwide.

Economic and business Environment

The banking environment, as well as, the markets continues to be strongly affected by the developments in the US and global economies that include the results of the European Union sovereign debt crisis, continued large budget imbalances in key developing nations. Undoubtedly, the global economy expanded at a diminished pace in 2011, where the US, UK Europe, as well as, Japan all losing momentum, whereas economic growth in the rising nations diminished that remained robust.

The United States

The Us economy expanded only modestly in the wake of 2011, as a promising start with an augmenting labour market that gave way to an appreciable slowdown in domestic demand early in the beginning of the year. During the mid year, the markets slowed down that followed the sharp reversal in the stock market as well as the consumer sentiment. Additionally, the increasing oil prices and supply chain disruption stemming from Japan’s earthquake along the continued market anxiety as a result of the European Sovereign crisis. On the other hand, the difficult protracted US budget negotiations that related to the federal debt contributed to the weakness. As some of these factors dissipated, the domestic demand [picked up in the second part of the 2011, as such, easing the US recession fears. The fourth quarter, equities rebounded from their mid –year declines consumer confidence edged up as well labour market showed clear signs of improvement. As such, the unemployment rate that ended at 8.5 percent in comparison to 9.4 percent at December 2011. Despite the subdued US economic growth, inflation shifted higher over the first three quarters of 2011, lifting in part of the flow in cost of energy, before edging lower in the fourth quarter. Deflation fears prevalent in 2010, faded as the year over year core inflation, began 2011 below one percent shifted.


The financial crisis of Europe escalated in 201 despite a series of initiatives by policymakers, and various European nations were experiencing recessionary condition in the fourth quarter. On the other hand, the European problems pertains unsustainable high public debt in some nations that includes, Greece and Portugal, slow growth as well as significant refinancing risk that relates to the maturing of sovereign debt in Italy. These national challenges closely intertwined with the issues that face the Europe banks, which are some of the largest holders of the bonds of the troubled European nations.


Japans economic environment in 2011 was as a result of the massive earthquake in early 2011 causing a dramatic decline in the economic activity that followed a quick rebound. As such, a sharp decline in the domestic as well as consumption demand accompanied by temporary production halt of the various durable as well as durable goods disrupting the supply chains throughout the world. As such, the ripple affected Asia as a continent. As such, China continued to grow throughout 2011, whereas GDP growth exceeding nine percent, despite the elevated inflation as well government efforts that constrain the price pressures throughout the tightening of the monetary policy as well as bank credit. Additionally, the regulation that limits the speculation and price augment in the real estate business.

Segment result

The net deposit income depreciated in comparison to the prior year as a result of a decline in revenue partly counterbalanced by the lower noninterest expense. As such, the decline in revenue driven by a reduction in service charges that reflects the impact of the overdraft policy that alters in the conjunction of regulation. Tentatively, the regulation implementation happened in the third quarter of 2010. The implementation partially offset by an augment in the net increase, in the interest income, as a result of customer shift to more liquid merchandise as well as continued pricing discipline.

Noninterest expense decreased as a result, to lower litigation, as well as, operational costs partly offset by an augment in federal deposit Insurance Corporation (FDIC) cost. On the other hand, card services net income augmented in comparison to the prior year, as a result, to primarily to $10.4 billion non cash, none tax deductible goodwill impairment charge in 20120. As such, the decreased revenue driven by reduces primarily as a result of the Durbin implementation of the Durbin Amendment, the absence of the gain on the sale of the master Card position in 20120 and the performance of the Credit card Accountability dependability and Disclosure Act of 2009(CARD Act). CRES net loss augmented in comparison to the prior year primarily due to decline in revenue and an augmented in noninterest expense.

As such, the declined revenue due to an increase in representation as well as a reduced insurance income as a result of Balboa Insurance Company’s lenders placed in the business. Global Commercial Banking net income augmented compared to the prior year as a result of an improvement in the provision for the losses in credit. The decrease in the provision forms the losses in credit driven by improved economic characteristics and an augmented rate of loan resolution in the commercial real estate. GBAM net income reduced in comparison to the prior year driven by a reduced sale as well as trading revenue to a challenging market environment, partially offset by DVA gains, net of hedges.

The stipulation for credit loss reduced drives by the positive brunt of the economic environment on the credit portfolio in 2011. GWIM net income, on the other hand, in comparison to the prior years drives by higher net interest income, higher asset management fees as well as lower credit costs, partly offset by higher noninterest expenditure. The long term asset, as well as, the highest market levels drives the increased higher management fees, flow and high net interest income.

Citi group

The most imperative roles in the banks are to assist the people build savings, access a variety of financial services and learn the basics of prudently handling their money. Several years, Citi has been leading in the promotion of financial inclusion. As such, the established Citi Microfinance of 2005 functions across Citi’s business and regions to offer services, as well as, products for microfinance institutions. Undoubtedly, the Microfinance project serves more than 100 MFI's in more than 40 countries worldwide and has assisted in making microfinance an integral part of the financial structure.

As such, Citi were one of first banks to join the Bank on California initiative offering the unbanked and under banked the chance to gain access to financial services. On the other hand, the program created nearly, 10,000 bank accounts. Recently, Citi partnered with the city of San Francisco in launching the kindergarten to College saving program (K2C). Citigroup

Citigroup reported a net income for 2010 at $ 10.6 billion, in comparison to a net loss of $ 1.6 billion in 2009. As such, the dilution of Eps was at $ 0.35 per share in 2010 in comparison to a loss of $ 0.8 per share in 2009 and net revenues of $86.6 billion in 2010 as compared to $9.1 billion in 2009. The net interest revenue increased by $5.7 billion, or 12%, to $ 54.7 billion in 2010, as a result of the adoption of SFAS 166/167, partly offset by the continued run-off of higher yield asset in Citi holdings.

Noninterest revenue, on the other hand, augmented by approximately $ 578 million, or 2 % to 31.9 billion in 2010, as a result of the positive gross marks in the Special Asset Pool, in the holdings. A $11.1 billion gain in 2009 made due to the sale of Smith Barney sale in 2009, additionally, a $ 1.4 billion pretax increase related to the public as well as private exchange offers consummated in July and September of 2009. Tentatively, a $ 10.1 billion pretax linked to the repayment of TARP and exit from the sharing loss agreement with the US government in December 2009. Citicorp

In spite of the continued weaker conditions for the market, Citicorp net income remained strong in 2010 at $ 14.9 billion in 2009. The earning in Latin America and Asia contributed more than half of the total revenue of Citi. The continued strength of the core Citi contract, demonstrated by Citicorp revenues of $65.6 billion for 2010, had a 3% growth in revenue by Citicorp revenues. Citi experienced a growth of 3% in the regional Consumer Banking as compared to basis and a 3 % growth. As such, the transaction services were as a result of lower revenues in banking and security.

Citi holdings

The net loss decreased 52% from $8.8 % billion as compared to 2009. As such, the lower revenues reflected the lack of the $11.1 billion pretax gain on the Smith Barney sale of 2009, as well as the decreased loan balance that resulted from the net pay downs and the assets. As such, the holdings stood at $359 billion at the end of 2009.

Credit costs

The global credit continued to recover with the sixth consecutive quarter of the sustained improvement in credit costs in the fourth quarter of 2010. As such, Citigroup net credit losses declined by $11.4 billion or 27 % to $ 30.9 billion in 2010 on a comparable basis that reflects improvements in net credit loss. In 2010, the group released $ 5.8 billion in net reserves for the loan losses as well unfunded lending commitments, driven primarily by the International Regional Consumer Banking. The total provision for the losses, as well as, for the benefits and claims of $ 26.0 billion, that decreased 50 % on a comparable basis. Operating Expenses

The operating expenses for the group were down 1 % in comparison to the prior year that had $ 47.4 billion. This was as a result of increased investment spending; FX translations, as well as, inflation in Citigroup were more than offset by lower expenses in the holdings. The group the expenses augmented 10 % year over a year to $ 35.9 billion as a result of higher investment spending across all the Citicorp business, as well as, inflation and FX translations. Capital and loan Loss Reserve Positions

Citi augmented the Tier 1 common as well as Tier 1 Capital ratios during 2010. In December 2010, Citi’s Tier 1 common ratio was 10.8 %, and the capital ratio was 12.9 5 in comparison to 2009, 9.6 %.

Balance sheet

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