Performance Overview
Net Income reached $21.1 billion, or $4.59 per diluted common share in 2006, increases of 28 percent and 14 percent from $16.5 billion, or $4.04 per diluted common share in 2005.
| Total Revenue | Net Income | |||
|---|---|---|---|---|
| (Dollars in millions) | 2006 | 2005 | 2006 | 2005 |
| Global Consumer and Small Business Banking |
$ |
$ |
$ |
$ |
| Global Corporate and Investment Banking | 22,691 | 20,600 | 6,792 | 6,384 |
| Global Wealth and Investment Management | 7,779 | 7,316 | 2,403 | 2,316 |
| All Other | 2,086 | 684 | 767 | 744 |
| Total FTE basis (1) | 74,247 | 56,923 | 21,133 | 16,465 |
| FTE adjustment (1) | (1,224) | (832) | — | — |
| Total Consolidated |
$ |
$ |
$ |
$ |
Global Consumer and Small Business Banking
Net Income increased $4.2 billion, or 59 percent, to $11.2 billion and Total Revenue increased $13.4 billion, or 47 percent, to $41.7 billion in 2006 compared to 2005. These increases were driven by higher Net Interest Income and Noninterest Income. Net Interest Income increased primarily due to the MBNA merger and organic growth which increased Average Loans and Leases. Noninterest Income increased primarily due to the MBNA merger which resulted in an increase in Card Income driven by increases in excess servicing income, cash advance fees, interchange income and late fees. These increases were partially offset by higher Noninterest Expense and Provision for Credit Losses, primarily driven by the addition of MBNA. For more information, see Global Consumer and Small Business Banking.
Global Corporate and Investment Banking
Net Income increased $408 million, or six percent, to $6.8 billion in 2006 compared to 2005. Total Revenue increased $2.1 billion, or 10 percent, to $22.7 billion in 2006 compared to 2005, driven primarily by higher Trading Account Profits and Investment Banking Income, and gains on the sales of our Brazilian operations and Asia Commercial Banking business. Offsetting these increases was spread compression in the loan portfolios which adversely impacted Net Interest Income. In addition, Net Income in 2006 was impacted by increases in Noninterest Expense and Provision for Credit Losses, and a decrease in Gains on Sales of Debt Securities. For more information, see Global Corporate and Investment Banking.
Global Wealth and Investment Management
Net Income increased $87 million, or four percent, to $2.4 billion in 2006 compared to 2005. The increase was due to higher Total Revenue of $463 million, or six percent, primarily as a result of an increase in Investment and Brokerage Services partially offset by an increase in Noninterest Expense of $295 million, or eight percent, driven by higher personnel-related costs.
Total assets under management increased $60.6 billion to $542.9 billion at December 31, 2006 compared to December 31, 2005. For more information, see Global Wealth and Investment Management.
All Other
Net Income increased $23 million to $767 million in 2006 compared to 2005. This increase was primarily a result of higher Equity Investment Gains of $902 million and Net Interest Income of $446 million offset by lower Gains (Losses) on Sales of Debt Securities of $(495) million in 2006 compared to $823 million in 2005. For more information, see All Other.