I am using GAAP Net Income here because there are so many large unusual items in each year for some of these companies.
Below here is the GAAP Net Income for both annual 2012 and 2008 for each of these 8 US Big Financial Corps:
|mils of $s||mils of $s||mils of $s|
|US Big 8 Financial|
|General Electric Capital||7,464||8,294||(830)||-10%|
|Bank of America||4,188||4,008||180||4%|
|Total all 8||73,932||(6,758)||80,690||1194%|
And Bank of America's 2008 Net Income above does not include its Merrill Lynch Subsidiary's Net Loss of $27,551 mil.
The main driver of this $80.7 bil earnings improvement is the extremely cheap interest rate environment that the US Fed has created for all 8 of these US Big Financial Corps.
And another driver of this $80.7 bil earnings improvement are the substantial reductions in the Provisions for Credit Losses recorded by 6 of these 8 US Big Financial Corps. These 6 US Big Financial Corps had their Total Provisions for Credit Losses go from $107.8 bil in 2008 to only $35.4 bil in 2012.
Below here are the Provisions for Credit Losses in each of the most recent five years for these 6 US Big Financial Corps:
|mils $s||mils $s||mils $s||mils $s||mils $s||mils $s|
|US Big 6 Financial|
|Bank of America||8,169||13,410||28,435||48,570||26,825||18,656|
|Total all 6||35,392||46,950||97,462||157,197||107,786||72,394|