Use Bank of America (BA) 2012 annual report to answer the following questions:
1. What are the types of deposits that BA uses to obtain most of its funds?
2. What are the main uses of funds by BA?
3. Summarize any statements made by BA in its annual report about how recent or potential regulations will affect its performance.
4. Is BA attempting to or involved with offering securities services? If so, explain how?
5. Is BA attempting to or involved with offering insurance services? If so, explain how?
6. Assess BA's balance sheet as well as any comments in its annual report about the gap between its rate-sensitive assets and its rate-sensitive liabilities. Does BA have a positive gap or a negative gap?
7. What methods does BA use to reduce its gap and therefore reduce its exposure to interest rate risk?
8. Summarize any statements made by BA in its annual report about how it attempts to limit its exposure to credit risk on the loans it provides.
9. What is BA's interest income as a percentage of its total assets?
10. What is BA's interest expenses as a percentage of its total assets?
11. What is BA's net interest margin?
12. What is BA's noninterest income as a percentage of its total assets?
13. What is BA's noninterest expenses (excluding the addition to loan loss reserves) as a percentage of tis total assets?
14. What is BA's addition to loan loss reserves as a percentage of its total assets?
15. What is BA's return on assets? What is BA's return on equity?
16. Identify BA's income statement items that would be affected if interest rates rise in the next year, and explain how they would be affected.
17. Identify BA's income statement items that would be affected if U.S. economic conditions deteriorate, and explain how they would be affected.