Top Banking Brands - Bank of America Profile
Bank of America
Brand Strapline Bank of Opportunity
Offices: 5,700
Employees: 210,000
Country: United States
Bank of America Brand 2009 - Facts & Figures
2009 |
2008 |
|||
|---|---|---|---|---|
Brand Value |
$21,017m |
Brand Value |
$25,417m |
|
Brand Ranking |
2 |
Brand Ranking |
3 |
|
Market Cap |
$71,228m |
Market Cap |
$144,179m |
|
Brand Value / Market Cap (%) |
30% |
Brand Value / Market Cap (%) |
18% |
|
Brand Rating |
AAA |
Brand Rating |
AA+ |
|
History of the Company
Three weeks after receiving $15Bn from the US government, Bank of America announced a doubling of its stake in China Construction Banking Corp. by investing another $ 7bn, increasing its stake in the bank to 19.13%, from the 10.8 % it acquired for $7Bn in 2005. This signals a continuation of Bank of America's aggressive acquisitions, which over the past decade has led to its transformation from a regional institution into America's largest brokerage house and consumer banking franchise.Taking advantage of the mortgage meltdown, it moved rapidly to acquire Merrill Lynch, the most recognised name on Wall Street, at a cost of $50Bn, transforming itself almost overnight into the nation's largest player in wealth management; and Countrywide Financial for $4Bn rescuing it from possible bankruptcy. Previously, in 2005, it acquired MBNA for $35Bn becoming America's largest issuer of credit cards, and FleetBoston Financial for $35Bn in 2003, becoming through this the American bank with the most branches, customers and checking accounts.
The bank traces its origins to 1874, when the Commercial National Bank was formed in Charlotte, North Carolina, but most accounts credit the founding of the bank to A.P. Giannini who formed the Bank of Italy in San Francisco in 1904.
The bank claims to have played a leading role, over the years, in financing outstanding public works such as the Golden Gate bridge in San Fransisco, the Hoover Dam, and also the first Disneyland.
Geography and Products
Bank of America currently has offices in Hong Kong, Shanghai, and Guangzhou, and is looking to greatly expand its Chinese business as a result of its deal with China Construction Bank. New branches have been opened in India. It operated as BankBoston in many Latin American countries including Brazil, till it sold all BankBoston operations to Brazilian bank Banco Itau, in exchange for Banco Itau shares. The agreement excluded the use of the Bank Boston name.
 Fig1. Bank of America Product Segmentation 2009 - Click on image to Expand into another window |
 Fig2. Bank of America Geographic Segmentation 2009 - Click on image to Expand into another window |
Bank of America's Global Corporate and Investment Banking spans the globe. Serves individual consumers, small & middle market businesses with a full range of banking, investing, asset management, financial & risk management services. 55 million customers in the US. Serves clients in 175 countries & has relationships with 98% of US Fortune 500 companies & 80% of the Global Fortune 500. Three business segments - Global Consumer & small Business banking, Global Corporte & Investment Banking, and Global Wealth & Investment Management.
History of the Brand
Before 1993, Bank of America was known as NationsBank. In 1998 NationsBank merged with San Fransisco based BankAmerica and changed its name to Bank of America.
The brand has a history of innovation, starting with offering the first term loans in 1930, the BankAmericard in 1955, which subsequently became VISA, ATM 's IN 1972, PC banking in 1983, and has the largest online customer base in the world - 25 million.
The brand has grown through acquisitions, absorbing the operations of the merged entities. Post the 2007 acquisition of ABN AMRO North American Holding Company, it merged the operations of LaSalle Bank NA, including the branch network.
Performance of the Brand
The brand appears to have had a relatively minor impact from the US sub prime mortgage and credit market crisis. It emerged stronger, adding Merill Lynch's 'thundering herd' of 17,000 brokers to its empire and aquiring CountrywideFinancial. The latters exposure to sub prime mortages could hurt the bank, which has already had to make a $8.4Bn settlement on loan modification claims in California.
Bank of America Sub-brands
Countrywide FinancialCountrywide Financial is a subsidiary of Bank of America. It is the nations largest mortgage lender, offering refinance, Home equity, Purchase and reverse mortgage products. The cmpany had 62,000 employees, 900 ofices and assets of 200Bn. It was acuired by Bank of America for 4Bn in January 2008. Countrywide Financial has been accused of questionable practises & was sued by the state of Illinois for defrauding borrowers by selling them costly & defective loans that quickly went into foreclosure. As part of the settlement with Illinois & 10 other states that subsequently sued the company, a $8.4Bn laon relief programme for 400,000 borrowers nationwide was announced.
Bank of America Videos
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Answers.com - Bank of AmericaNY Times Profile
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Reuters - News
Bank of America Heritage Center
Master Liness
Bank of America Press Release
Bank of America Press Release
Berkshire Capital Corp
Loan Workout
NY Times - Countrywide Financial Profile