Net income (loss)
In its simplest terms, net income is revenues less expenses, loan losses and income taxes.
Reported net income was $1,076 million in 2003, compared with reported net loss of $67 million in 2002 and reported net income of $1,392 million in 2001. Reported basic earnings per share were $1.52 in 2003 compared with a loss per share of $.25 in 2002 and reported basic earnings per share of $2.07 in 2001. Reported diluted earnings per share were $1.51 in 2003 compared with a loss per share of $.25 in 2002 and reported diluted earnings per share of $2.05 in 2001. Reported return on total common equity was 8.7% in 2003 compared with (1.3)% in 2002 and 11.3% in 2001.
In 2003, operating cash basis net income was $1,567 million, compared with $535 million in 2002 and $2,167 million in 2001. On an operating cash basis, basic earnings per share were $2.28 in 2003 compared with $.69 in 2002 and $3.31 in 2001. Diluted earnings per share on an operating cash basis were $2.26 in 2003 compared with $.68 in 2002 and $3.27 in 2001. Operating cash basis return on total common equity was 13.0% compared with 3.6% in 2002 and 18.0% in 2001.
Reconciliation of economic profit and operating cash basis results
|
(millions of dollars)
|
|
2003
|
|
2002
|
|
2001
|
|
|
Average common equity
|
$
|
11,396
|
$
|
12,144
|
$
|
11,505
|
|
Average cumulative amount of non-cash goodwill/intangible amortization, net of income taxes
|
|
2,396
|
|
1,881
|
|
1,196
|
|
|
Average invested capital
|
$
|
13,792
|
$
|
14,025
|
$
|
12,701
|
|
Rate charged for invested capital
|
|
10.9%
|
|
11.2
|
|
12.0%
|
|
|
Charge for invested capital1
|
|
(1,530)
|
|
(1,574)
|
|
(1,526)
|
|
Net income applicable to common shares – operating cash basis
|
|
1,480
|
|
442
|
|
2,075
|
|
|
Economic profit (loss)
|
$
|
(50)
|
$
|
(1,132)
|
$
|
549
|
|
Return on average invested capital
|
|
10.5%
|
|
3.2%
|
|
16.3%
|
|
|
1 Includes $26 million after-tax charge for past amortization of impaired goodwill recognized in the second quarter of 2003.
|
| |
