ROSS BABINEC ELLEN DALE LAUREN FACTOR BANK OF AMERICA & WELLS FARGO

CORPORATE ADDRESS 100 North Tryon Street Charlotte, NC Montgomery Street San Francisco, CA 94104

BANK OF AMERICA MARKET SHARE: 11.8% Headquartered in Charlotte, NC World’s largest holding-backed company in terms of assets and revenue In the next five years, revenue is forecasted to increase by 10% annually to $67.1 billion Like most banks in the industry it was hit hard by the recession Operates through three business segments: Global consumer and small business banking(GC&SBB), global corporate and investment banking, and global wealth and investment management

BANK OF AMERICA CONT. GC&SBB is most relevant to the Commercial Banking Industry, and is the source of 80% of its revenue Within the GC&SBB segment there are four primary businesses Deposits Card Services Consumer Real Estate Asset Liability Management

WELLS FARGO MARKET SHARE: 11.3% Headquartered in San Francisco, CA Diversified financial services company that provides banking, insurance, investment, mortgage and consumer finance Separated into three main segments Community Banking Wholesale Banking Wells Fargo Financial Largest business segment is commercial banking generating more than 80% of its revenue

WELLS FARGO CONT. Community banking business serves small-business clients as well as retail customers and high net worth individuals Provides a wide range of products ranging from home mortgages and debit cards to personal trusts In 2008 Wells Fargo acquired Wachovia As a result, it became the nation’s largest mortgage lender and the second-largest diversified service firm in the US in terms of deposits

COMMERCIAL BANKING The industry comprises banks that provide financial services to retail and business clients in the form of commercial, industrial and consumer loans Banks also accept deposits from customers, which are then used as a source of funding for the loans

COMMERCIAL BANKING CONT. Primary Activities Receiving deposits from customers and issuing consumer, commercial and industrial loans Major Products and Services Business lending Deposits Home equity loans Mortgages

EMPLOYMENT PROSPECTS The Bureau of Labor Statistics The commercial banking industry employs approximately 1,332,000 wage and salary workers in 2008, which is 74 percent of total banking industry. Most bank employees work in heavily populated States such as New York, California, Illinois, North Carolina, Pennsylvania, and Texas. Increase in American’s wealth and investments, along with the increase in local branch banking. Need for skilled workers in areas with high employee turnover.

EMPLOYMENT PROSPECTS CONT. IBISWorld A positive, however small, increase in employment growth. Troubled Asset Relief Program. Average rate of revenue increase over five years is approximately 5.5%.

RETURN ON EQUITY (PERCENTAGE) Wells FargoBank of America

STOCK PRICE Wells FargoBank of America

TOTAL ASSETS Wells FargoBank of America

OPERATIONAL EFFICIENCY: EFFICIENCY RATIO (PERCENTAGE) Wells FargoBank of America

SHARE OF INDUSTRY VALUE (PERCENTAGE) Wells FargoBank of America

SUMMARY OF RATIO’S In 2008 WF acquired Wachovia, and this significantly increased its share of industry value and total assets, but also caused a significant decrease in operational efficiency and ROE only in 2008, and was able to then significantly increase these numbers to percentages higher than they had been before the acquisition Bank of America’s stock price and ROE was hit hard by the 2007 financial crises but BOA has slowly been able to come back and redeem themselves since 2008 and has mostly seen positive growth in their ratios

SOURCES Bank of America Corporation. "Investor Relations Historical Price Look Up." Bank Of America. Bank Of America Corporation, 30 Mar Web. 30 Mar "Information in the Career Guide to Industries." Bureau Of Labor Statistics. United States Department Of Labor, 17 Dec Web. 31 Mar IBISWorld. "US Commerical Banking Industry Market Research Report." IBISWorld. IBISWorld, Web. 30 Mar Microsoft. "Bank of America Corp - Company Financial Statements (BAC):Interim Balance Sheet." MSN Money. MSN, Web. 30 Mar Microsoft. "Financial Results Wells Fargo & Co." MSN Money. MSN, Web. 30 Mar Morningstar. Morningstar, Inc., n.d. Web. 4 Apr Wells Fargo. "About Wells Fargo - Stock Price." BigCharts. Wells Fargo, 3 Mar Web. 30 Mar