1) Make use of Bank of America 2012 annual report to reply the problems given below:

a) What is BA’s interest expenses as the percentage of its total assets? Determine BA’s net interest margin? What is BA’s noninterest income as the percentage of its total assets? What are BA’s noninterest expenses (not including addition to loan loss reserves) as the percentage of total assets?

b) Find out BA’s addition to loan loss reserves as the percentage of its total assets? What is BA’s return on assets? What is BA’s return on equity? Recognize BA’s income statement items which would be affected if interest rates rise in next year, and describe how they would be affected. Recognize BA’s income statement items which would be affected if U.S. economic conditions decline, and describe how they would be affected.