THE BUSINESSWEEK 50 RANKINGS + 25

67

Bank of America

Newly branded as the Bank of Opportunity, Bank of America has enjoyed several years of solid growth following a series of well-placed acquisitions. After digesting the $50 billion purchase of FleetBoston Financial in 2004, which gave the bank a stronghold in the hotly competitive Northeast, CEO Kenneth Lewis led acquisitions last year of credit-card giant MBNA and the private bank and asset management business of U.S. Trust, formerly owned by Charles Schwab. Those moves have propelled BofA into the role of second-largest bank by assets, at $1.5 billion, behind Citigroup. In addition to a brokerage, robust commercial bank, and burgeoning investment bank, the Charlotte (N.C.) company has the most extensive footprint of any U.S. retail bank, with more than 5,700 locations in some 30 states. The challenge now is for Lewis to make all the different pieces work harmoniously, squeezing more profits from existing corporate and individual customers in its quest for organic growth.

Overall Grade

A-

Market Data

BAC

Market Value
(2/28/2007)

$226.6 Billion

Profitability*

24.4%

B-

Sales Growth Rate**

33.0%

A

12-Month Sales

$115.7 Billion

12-Month Net Income

$21.1 Billion

Total Return Past 12 Months

16.9%

Past 36 Months

42.0%

Economic SectorFinancials
IndustryOther Diversified Financial Services
The overall sector letter grade reflects how the weighted average of the return on income, or return on equity, and sales growth grades compare with others in the same sector. For the overall grade as well as the ROE/ROI and sales growth grades, an "A" places a company in the top 7% of its sector and an "A-" in the top 14% of the sector. The actual ranking was done using the underlying numerical measures. Grades are for information only.
* For nonfinancial companies, three-year average pretax operating profit before interest and special items as a percentage of average invested capital. For financial companies, pretax profits as a percentage of average shareholder's equity.
*Three-year average annual sales growth based on the most recently reported 36 months, calculated using the least-squares method.

Kenneth D. Lewis

Kenneth D. Lewis, 59

CEO since 2001


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Data as of 2/28/07 provided by Standard & Poor's Compustat