Form 8-K BANK OF AMERICA CORP For: Jul 14
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1 Q2-21 Financial Highlights1 Q2-21 Business Segment Highlights1,2(B) Consumer Banking Global Wealth and Investment Management Global Banking Global Markets Bank of America Reports Q2 Net Income of $9.2 Billion, EPS of $1.03 CET1 Ratio of 11.5%, Average Deposits up $231 Billion to $1.9 Trillion(A) See page 10 for endnotes. 1 Financial Highlights and Business Segment Highlights are compared to the year-ago quarter unless noted. Loan and deposit balances are shown on an average basis unless noted. 2 The Corporation reports the results of operations of its four business segments and All Other on a fully taxable-equivalent (FTE) basis. 3 Source: Dealogic as of July 1, 2021 4 Source: Dealogic as of July 1, 2021. Global Capital Raise includes Equity, Debt, Loans (MBS, ABS, and self-funded deals are excluded). Shown on a proportional share basis. • Net income of $3.0 billion • Deposits up 21% to a record $979 billion • Consumer investment assets up $100 billion, or 40%, to a record $346 billion, driven by market valuations and client flows of $21 billion since Q2-20 • Accelerated Client Activity – Combined credit and debit card spend up 16% QoQ to $200 billion – Total mortgage originations up 36% QoQ to $21.4 billion – 70% of overall households actively using digital platforms • Net income of $9.2 billion, or $1.03 per diluted share, including: – $1.6 billion provision for credit losses benefit(C) – $2.0 billion positive tax adjustment related to revaluation of UK deferred tax assets • Revenue, net of interest expense, decreased 4% to $21.5 billion – Net interest income (NII)(D) declined 6% to $10.2 billion, driven primarily by lower interest rates – Noninterest income down 2% to $11.2 billion, driven by lower sales and trading revenue and the absence of a $704 million gain in the year- ago quarter, partially offset by higher Consumer and Wealth Management revenues • Provision for credit losses decreased $6.7 billion to a benefit of $1.6 billion, reflecting a reserve release of $2.2 billion amid an improved macroeconomic outlook(C) • Noninterest expense rose $1.6 billion, or 12%, to $15.0 billion, including higher compensation and benefits costs, a $500 million contribution to the Bank of America Foundation to support ESG initiatives, and $300 million associated with processing transactional card claims related to state unemployment benefits • Average loan and lease balances in business segments declined 11% YoY to $889 billion but increased $1.8 billion QoQ; excluding Paycheck Protection Program, loan balances grew $5.1 billion QoQ • Deposits rose $231 billion, or 14%, to $1.9 trillion • Average Global Liquidity Sources rose $267 billion, or 34%, to a record $1.1 trillion, reflecting strong deposit balance growth(E) • Common equity tier 1 (CET1) ratio strong at 11.5% (Standardized)(A) • Returned $5.8 billion to shareholders through common dividends and share repurchases • Net income of $908 million • Sales and trading revenue of $3.6 billion, including net debit valuation adjustment (DVA) losses of $34 million, with FICC revenue of $1.9 billion and Equities revenue of $1.6 billion • Excluding net DVA, sales and trading revenue down 19% to $3.6 billion; FICC down 38% to $2.0 billion;(F) Equities up 33% to $1.6 billion(F) • Accelerated Client Activity – Average assets increased $134 billion to $798 billion, driven by higher client balances in equities and loan growth From Chairman and CEO Brian Moynihan "We delivered solid earnings and returned more capital to shareholders during the quarter as we moved to a more open economy. Our team continued to do a great job serving clients, as shown by the increased levels of client activity across all of our businesses. "More than 85% of our buildings and offices are open, and we're welcoming our teammates back. This means more face-to-face meetings; helping to increase sales of Consumer products and drive strong household growth in Wealth Management, and increased prospect calling in Commercial Banking. "Consumer spending has significantly surpassed pre- pandemic levels, deposit growth is strong, and loan levels have begun to grow." • Net income of $991 million • Record client balances of $3.7 trillion, up $725 billion, or 25%, driven by higher market valuations and positive client flows; including Consumer Investments, total client balances of $4.1 trillion, up 26% • Deposits up 16% to $333 billion • Pretax margin of 26% • Accelerated Client Activity – Record quarterly loan balance growth of $8.3 billion, ending balances up 8% to $198 billion – Merrill Lynch Wealth Management added ~6,000 net new households; Private Bank added ~475 net new relationships • Net income of $2.4 billion • Total investment banking fees (excl. self-led) of $2.1 billion remained near record levels – No. 3 in investment banking fees3 • Deposits up 3% to $507 billion • Accelerated Client Activity – Total Commercial Committed Exposure increased $24 billion QoQ to $1.1 trillion – Raised $500 billion in capital on behalf of clients YTD4
2 Bank of America Financial Highlights(G) Three Months Ended ($ in billions, except per share data) 6/30/2021 3/31/2021 6/30/2020 Total revenue, net of interest expense $21.5 $22.8 $22.3 Provision for credit losses (1.6) (1.9) 5.1 Noninterest expense 15.0 15.5 13.4 Pretax income 8.0 9.2 3.8 Pretax, pre-provision income1(G) 6.4 7.3 8.9 Income tax expense (1.2) 1.1 0.3 Net Income 9.2 8.1 3.5 Diluted earnings per share $1.03 $0.86 $0.37 1 Pretax, pre-provision income represents a non-GAAP financial measure. For more information, see page 18. From Chief Financial Officer Paul Donofrio: "Despite the continued challenge of low interest rates, the diversity and leadership positions of our eight lines of business enabled us to benefit from a faster economic recovery this quarter. We believe our continued focus on client selection and responsible growth has positioned us well. Total loan balances grew for the first time since the first quarter of 2020 even as we recorded the lowest credit loss rates in 25 years. "At the same time, our balance sheet remains a source of strength, as supported by our performance in the most recent stress tests, which showed significant excess capital. We returned nearly $6 billion this quarter in common dividends and share repurchases and we expect to return a higher amount in the coming quarters, while we continue to deliver for our clients and the communities that we are so fortunate to serve." CET-1 Ratio Well Capitalized 11.4% 11.8% 11.5% Q2-20 Q1-21 Q2-21 Avg. Global Liquidity Sources ($B) Strong Liquidity $796 $1,003 $1,063 Q2-20 Q1-21 Q2-21 Net Charge-off Ratio Low Loss Rates 0.45% 0.37% 0.27% Q2-20 Q1-21 Q2-21 Strength of Responsible Growth (A) (E) Regulatory minimum 9.5%
3 Consumer Banking1,2 Financial Results1 Three months ended ($ in millions) 6/30/2021 3/31/2021 6/30/2020 Total revenue2 $8,186 $8,069 $7,852 Provision for credit losses (697) (617) 3,024 Noninterest expense 4,859 5,131 4,735 Pretax income 4,024 3,555 93 Income tax expense 986 871 23 Net income $3,038 $2,684 $70 Business Highlights1,3(B) Three months ended ($ in billions) 6/30/2021 3/31/2021 6/30/2020 Average deposits $979.1 $924.1 $810.7 Average loans and leases 281.8 290.9 321.6 Consumer investment assets (EOP) 345.8 324.5 246.1 Active mobile banking users (MM) 31.8 31.5 30.3 Number of financial centers 4,296 4,324 4,298 Efficiency ratio 59 % 64 % 60 % Return on average allocated capital 32 28 1 Total Consumer Credit Card3 Average credit card outstanding balances $73.4 $74.2 $86.2 Total credit/debit spend 200.3 172.5 143.3 Risk-adjusted margin 9.8 % 9.3 % 8.5 % 1 Comparisons are to the year-ago quarter unless noted. 2 Revenue, net of interest expense. 3 The Consumer credit card portfolio includes Consumer Banking and GWIM. • Net income increased to $3.0 billion, reflecting higher revenue and lower credit costs • Revenue of $8.2 billion increased 4%, driven by increased card income and higher deposit balances • Provision for credit losses improved $3.7 billion to a benefit of $697 million, reflecting an improved macroeconomic outlook – Net charge-off ratio improved to 0.89%, compared to 1.05% • Noninterest expense increased 3% to $4.9 billion, as lower COVID-19 costs were more than offset by investments for business growth Business Highlights1,3(B) • Average deposits grew $168 billion, or 21%, to $979 billion; average loans declined $40 billion, or 12%, to $282 billion, driven by lower first mortgage and card balances • Consumer investment assets grew $100 billion, or 40%, to $346 billion, driven by market performance and strong client flows – $21 billion of client flows since Q2-20 – 3.2 million client accounts, up 9% • Combined credit/debit card spend up $57 billion, or 40%; credit card up 46% and debit card up 36% • 7.5 million Consumer clients enrolled in Preferred Rewards, up 14%, with 99% annualized retention rate Digital Usage Continued to Grow1 • 40.5 million active digital banking users, up 3% • 1.4 million digital sales, up 26% • 2.6 billion digital logins • 14.3 million active Zelle® users, now including small businesses, sent and received 189 million transfers worth $56.5 billion, up 62% and 76% YoY, respectively • Clients booked a record ~871,000 digital appointments with an associate Continued Business Leadership • No. 1 in customer satisfaction for U.S. Online(A) Banking among National Banks by J.D. Power(B) • No. 1 in customer satisfaction for U.S. Mobile Banking Apps among National Banks by J.D. Power(B) • No. 1 in customer satisfaction for U.S. Retail Banking Advice by J.D. Power (2021) • No. 1 Consumer Deposit Market Share (Estimated retail consumer deposits based on June 30, 2020 FDIC deposit data) • No. 1 Online Banking and Mobile Banking Functionality (Keynova Q2-21 Online Banker Scorecard, Keynova Q1-21 Mobile Banker Scorecard, Javelin 2021 Online and Mobile Banking Scorecards) • No. 1 in Prime Auto Credit Distribution of New Originations Among Peers (Experian AutoCount; Franchised Dealers; largest percentage of 680+ Vantage 3.0 loan originations among key competitors as of April 2021) • Best Mortgage Lender for First Time Homebuyers (Nerdwallet, 2021) • Merrill Edge Self-Directed - No. 1 for Overall Client Experience, ESG Investing, Client Dashboard and Banking (StockBrokers.com, January 2021) (A) Tied in the national segment of the J.D. Power 2021 U.S. Online Banking Satisfaction Study (B) J.D. Power’s 2021 U.S. Banking Mobile App Satisfaction, U.S. Online Banking Satisfaction studies measure overall satisfaction with banking digital channels based on four factors: navigation; speed; visual appeal; and information/content. The studies are based on responses from 9,926 retail bank customers nationwide and were fielded in March-April 2021. For J.D. Power award information, visit jdpower.com/awards.
4 Global Wealth and Investment Management1,2 Financial Results1 Three months ended ($ in millions) 6/30/2021 3/31/2021 6/30/2020 Total revenue2 $5,065 $4,971 $4,425 Provision for credit losses (62) (65) 136 Noninterest expense 3,814 3,868 3,464 Pretax income 1,313 1,168 825 Income tax expense 322 286 202 Net income $991 $882 $623 Business Highlights1(B) Three months ended ($ in billions) 6/30/2021 3/31/2021 6/30/2020 Average deposits $333.5 $326.4 $287.1 Average loans and leases 194.0 188.5 182.2 Total client balances (EOP) 3,652.8 3,480.3 2,927.8 AUM flows 11.7 18.2 3.6 Pretax margin 26 % 23 % 19 % Return on average allocated capital 24 22 17 1 Comparisons are to the year-ago quarter unless noted. 2 Revenue, net of interest expense. Continued Business Leadership • Most advisors (286) on Barron’s 2021 Top 1,200 Financial Advisors list for the 12th consecutive year • Most advisors (1,319) on Forbes’ Best-In-State Wealth Advisors list (2021) • No. 1 in Forbes’ Top Next Generation Advisors (2020) • No. 1 in Financial Times Top 401K Retirement Plan Advisors (2020) • No. 1 in Barron’s Top 100 Women Advisors (2021) • No. 1 in personal trust assets under management (industry Q1-21 FDIC call reports) • Recognized as best Private Bank for Customer Service (North America) and Best Private Bank for Philanthropy Services (globally) by Professional Wealth Management (2020) Digital Investment Recognition • Recognized by Celent with the 2021 Wealth Manager Award for emerging technology • Received Aite Group's 2021 Digital Wealth Management Impact Innovation Award for digital engagement • Awarded by Professional Wealth Management, a Financial Times publication, in the 2021 Wealth Tech Awards for best use of technology (North America) and best use of technology for client acquisition (North America) • Recognized by WealthManagement.com in the 2020 industry awards for best technology for digital advice & collaboration and best social media leadership • Net income increased $368 million, or 59%, to $991 million, reflecting record asset management fees and lower credit costs • Record revenue of $5.1 billion, up 14%, driven by a $656 million increase in asset management fees • Noninterest expense increased 10% to $3.8 billion, primarily driven by higher revenue-related incentives Business Highlights1(B) • Total client balances up $725 billion, or 25%, to a record of $3.7 trillion, driven by higher market valuations and positive client flows – Average deposits increased $46 billion, or 16%, to $333 billion; average loans and leases grew $12 billion, or 6%, to $194 billion, driven by securities- based lending and custom lending – Strong AUM flows of $12 billion in Q2-21 Merrill Lynch Wealth Management Highlights1 • Strong Client Growth and Advisor Engagement – Record client balances of $3.1 trillion, up 25% – Record AUM balances of $1.2 trillion, up 29% – Added ~6,000 net new households in Q2-21 • Digital Usage Continued to Grow – 79% of Merrill Lynch households actively using an online or mobile platform; 39% Merrill Lynch mobile app usage, up from 32% – Continued growth of advisor/client digital communications; 348,000 households exchanged ~1.5 million messages through Secure Messaging – 279,000 forms signed digitally in Q2-21, 53% of eligible transactions – Number of checks deposited through automated channels: 51% of all eligible checks deposited in Q2-21, up from 45% • Strong Client Engagement – Record client balances of $580 billion, up 21% YoY – Record AUM balances of $340 billion, up 22% YoY – Added ~475 net new relationships in Q2-21 – Conducted ~8,200 client WebEx sessions in Q2-21 Bank of America Private Bank Highlights1 • Digital Usage Continued to Grow – Record 81% of clients digitally active across the enterprise, up from 78% in Q2-20 – 73% of checks deposited through automated channels, up from 69% – Logins up 6%; once clients are digitally engaged they are using features more frequently: – Erica sessions up 115% – Zelle transactions up 61% – Digital wallet transactions up 84%
5 Global Banking1,2 Financial Results1 Three months ended ($ in millions) 6/30/2021 3/31/2021 6/30/2020 Total revenue2,3 $5,089 $4,633 $5,091 Provision for credit losses (831) (1,126) 1,873 Noninterest expense 2,599 2,781 2,222 Pretax income 3,321 2,978 996 Income tax expense 897 804 269 Net income $2,424 $2,174 $727 Business Highlights1,2(B) Three months ended ($ in billions) 6/30/2021 3/31/2021 6/30/2020 Average deposits $506.6 $487.0 $493.9 Average loans and leases 325.1 330.1 423.6 Total Corp. IB fees (excl. self- led)2 2.1 2.2 2.2 Global Banking IB fees2 1.2 1.2 1.2 Business Lending revenue 1.9 1.6 1.9 Global Transaction Services revenue 1.7 1.6 1.8 Efficiency ratio 51 % 60 % 44 % Return on average allocated capital 23 21 7 1 Comparisons are to the year-ago quarter unless noted. 2 Global Banking and Global Markets share in certain deal economics from investment banking, loan origination activities, and sales and trading activities. 3 Revenue, net of interest expense. • Net income increased $1.7 billion to $2.4 billion, driven primarily by lower provision for credit losses • Revenue of $5.1 billion was relatively flat as higher leasing-related revenue and treasury fees were offset by lower NII • Provision for credit losses improved $2.7 billion to a benefit of $831 million, reflecting an improved macroeconomic outlook • Noninterest expense increased $377 million, or 17%, to $2.6 billion, reflecting higher operating costs Business Highlights1,2(B) • Average deposits increased $13 billion, or 3%, to $507 billion, reflecting client liquidity and valued relationships • Average loans and leases declined $99 billion, or 23%, to $325 billion, driven by continued paydowns • Total corporation investment banking fees of $2.1 billion (excl. self-led), remained near record levels Continued Business Leadership • Outstanding Financial Innovator 2021 — Global (Global Finance, 2021) • North America’s Best Bank for Small to Medium-sized Enterprises (Euromoney, 2020) • Best Global Bank for Cash Management and Payments & Collections (Global Finance Treasury & Cash Management Awards, 2021) • Best Mobile Cash Management Software (Global Finance Treasury & Cash Management Awards, 2021) • North America and Latin America’s Best Bank for Transaction Services (Euromoney, 2020) • 2020 Quality, Share and Excellence Awards for U.S. Large Corporate Banking and Cash Management (Greenwich, 2021) • Relationships with 74% of the Global Fortune 500; 95% of the U.S. Fortune 1,000 (2020) Digital Usage Continued to Grow1 • 75% digitally active clients across commercial, corporate, and business banking clients (CashPro & BA360 platforms) (as of May 2021) • CashPro App Active Users increased 57% and sign- ins increased 39% (rolling 12 months), surpassing 1 million sign-ins in the past year • CashPro App Payment Approvals value was $248 billion, with volumes increasing 54% (rolling 12 months) • Number of checks deposited via CashPro App increased 88% and dollar volume increased 89% (rolling 12 months) • ~22 million incoming receivables were digitally matched in last 12 months using Intelligent Receivables, which uses AI to match payments and accounts receivables (as of May 2021) • Digital Wallet Enrollment adoption for commercial cards grew by 5% YoY (as of May 2021) • Global Digital disbursements up 30% YTD YoY (as of May 2021), 85% of volume sent via Zelle (as of May 2021)
6 Global Markets1,2,6 Financial Results1 Three months ended ($ in millions) 6/30/2021 3/31/2021 6/30/2020 Total revenue2,3 $4,720 $6,198 $5,350 Net DVA4 (34) (2) (261) Total revenue (excl. net DVA)2,3,4 $4,754 $6,200 $5,611 Provision for credit losses 22 (5) 105 Noninterest expense 3,471 3,427 2,684 Pretax income 1,227 2,776 2,561 Income tax expense 319 722 666 Net income $908 $2,054 $1,895 Net income (excl. net DVA)4 $934 $2,056 $2,093 Business Highlights1,2(B) Three months ended ($ in billions) 6/30/2021 3/31/2021 6/30/2020 Average total assets $797.6 $723.3 $663.1 Average trading-related assets 566.8 501.8 467.0 Average loans and leases 87.8 77.4 74.1 Sales and trading revenue2 3.6 5.1 4.2 Sales and trading revenue (excl. net DVA)2(F) 3.6 5.1 4.4 Global Markets IB fees2 1.0 1.0 0.9 Efficiency ratio 74 % 55 % 50 % Return on average allocated capital 10 22 21 1 Comparisons are to the year-ago quarter unless noted. 2 Global Banking and Global Markets share in certain deal economics from investment banking, loan origination activities, and sales and trading activities. 3 Revenue, net of interest expense. 4 Revenue and net income, excluding net DVA, are non-GAAP financial measures. See endnote F on page 10 for more information. 5 VaR model uses a historical simulation approach based on three years of historical data and an expected shortfall methodology equivalent to a 99% confidence level. Average VaR was $77MM, $74MM and $81MM for Q2-21, Q1-21 and Q2-20, respectively. 6 The explanations for current period-over-period changes for Global Markets are the same for amounts including and excluding net DVA. • Net income decreased $987 million to $908 million – Excluding net DVA, net income decreased 55% to $934 million4 • Revenue of $4.7 billion decreased 12%, driven by lower sales and trading results from a strong year- ago period – Excluding net DVA, revenue decreased 15%4 • Noninterest expense increased $787 million, or 29%, to $3.5 billion, driven by higher costs associated with processing state unemployment benefit claims and activity-related expenses in sales and trading • Average VaR of $77 million5 Business Highlights1,2,6(B) • Reported sales and trading revenue of $3.6 billion – FICC revenue of $1.9 billion – Equities revenue of $1.6 billion • Excluding net DVA, sales and trading revenue decreased 19% to $3.6 billion(F) – FICC revenue decreased 38% to $2.0 billion, as the prior year benefited from a robust trading environment for macro products and strengthening markets for credit products after their pandemic related sell-off, whereas markets in Q2-21 were more benign and weak for agency mortgages – Equities revenue increased 33% to $1.6 billion, driven by a stronger trading performance and increased client activity in derivatives and Asia Continued Business Leadership • CMBS Bank of the Year (GlobalCapital US Securitization Awards, 2020) • Equity Derivatives House of the Year (GlobalCapital, 2020) • No. 2 Global Research Firm (Institutional Investor, 2020) • No. 2 Global Fixed Income Research Team (Institutional Investor, 2020) • No. 1 Municipal Bonds Underwriter (Refinitiv, 2021) Additional Highlights • 650+ research analysts covering 3,300+ companies, 1,200+ corporate bond issuers across 55+ economies and 24 industries
7 All Other1 Financial Results1 Three months ended ($ in millions) 6/30/2021 3/31/2021 6/30/2020 Total revenue2 $(1,484) $(939) $(264) Provision for credit losses (53) (47) (21) Noninterest expense 302 308 305 Pretax loss (1,733) (1,200) (548) Income tax expense (benefit) (3,596) (1,456) (766) Net income $1,863 $256 $218 1 Comparisons are to the year-ago quarter unless noted. 2 Revenue, net of interest expense. Note: All Other primarily consists of asset and liability management (ALM) activities, liquidating businesses and certain expenses not otherwise allocated to a business segment. ALM activities encompass interest rate and foreign currency risk management activities for which substantially all of the results are allocated to our business segments. • Net income increased $1.6 billion to $1.9 billion, driven by a $2.0 billion positive tax adjustment related to the revaluation of UK deferred tax assets, triggered by a change in UK tax law • Revenue decreased $1.2 billion, driven primarily by lower other income and market making and similar activities.The year-ago quarter included a $704 million gain on sales of certain mortgage loans • Q2-21 total corporate effective tax rate (ETR) was a benefit of ~15%; excluding the UK tax revaluation, the ETR for the quarter would have been approximately 11%; further adjusting for Environmental, Social and Governance (ESG) tax credits, the ETR would have been 25%
8 Credit Quality Highlights1 Three months ended ($ in millions) 6/30/2021 3/31/2021 6/30/2020 Provision for credit losses ($1,621) ($1,860) $5,117 Net charge-offs 595 823 1,146 Net charge-off ratio2 0.27 % 0.37 % 0.45 % At period-end Nonperforming loans and leases $4,907 $5,162 $4,393 Nonperforming loans and leases ratio 0.54 % 0.58 % 0.44 % Allowance for loan and lease losses $14,095 $16,168 $19,389 Allowance for loan and lease losses ratio3 1.55 % 1.80 % 1.96 % 1 Comparisons are to the year-ago quarter unless noted. 2 Net charge-off ratio is calculated as annualized net charge-offs divided by average outstanding loans and leases during the period. 3 Allowance for loan and lease losses ratio is calculated as allowance for loan and lease losses divided by loans and leases outstanding at the end of the period. Note: Ratios do not include loans accounted for under the fair value option. Charge-offs • Total net charge-offs decreased $228 million, or 28%, from the prior quarter to $595 million – Consumer net charge-offs decreased $180 million to $513 million – Commercial net charge-offs decreased $48 million to $82 million • Net charge-off ratio decreased 10 basis points from the prior quarter to 0.27% Provision for credit losses • Provision for credit losses was a benefit of $1.6 billion, reflecting an improved macroeconomic outlook – Consumer reserve release of $1.2 billion – Commercial reserve release of $1.0 billion Allowance for credit losses • Allowance for credit losses, including unfunded commitments, decreased 12% from the prior quarter to $15.8 billion – Allowance for loan and lease losses decreased $2.1 billion, or 13%, from the prior quarter to $14.1 billion, representing 1.55% of total loans and leases • Nonperforming loans decreased $255 million from the prior quarter to $4.9 billion, primarily driven by Commercial • Commercial reservable criticized utilized exposure decreased $5.4 billion from the prior quarter to $28.9 billion, driven by improvements across a broad range of industries See page 10 for endnotes.
9 Balance Sheet, Liquidity and Capital Highlights ($ in billions except per share data, end of period, unless otherwise noted)(A)(B)(E) Three months ended 6/30/2021 3/31/2021 6/30/2020 Ending Balance Sheet Total assets $3,029.9 $2,970.0 $2,741.7 Total loans and leases 918.9 903.1 998.9 Total loans and leases in business segments (excluding All Other) 900.6 883.2 973.8 Total deposits 1,909.1 1,884.9 1,718.7 Average Balance Sheet Average total assets $3,015.1 $2,879.2 $2,704.2 Average loans and leases 907.9 907.7 1,031.4 Average deposits 1,888.8 1,805.7 1,658.2 Funding and Liquidity Long-term debt $274.6 $251.2 $261.6 Global Liquidity Sources, average(E) 1,063 1,003 796 Equity Common shareholders’ equity $253.7 $249.7 $242.2 Common equity ratio 8.4 % 8.4 % 8.8 % Tangible common shareholders’ equity1 $183.4 $179.5 $172.4 Tangible common equity ratio1 6.2 % 6.2 % 6.5 % Per Share Data Common shares outstanding (in billions) 8.49 8.59 8.66 Book value per common share $29.89 $29.07 $27.96 Tangible book value per common share1 21.61 20.90 19.90 Regulatory Capital(A) CET1 capital $178.8 $177.8 $171.0 Standardized approach Risk-weighted assets $1,553 $1,508 $1,475 CET1 ratio 11.5 % 11.8 % 11.6 % Advanced approaches Risk-weighted assets $1,380 $1,365 $1,504 CET1 ratio 13.0 % 13.0 % 11.4 % Supplementary leverage Supplementary leverage ratio (SLR) 5.9 % 7.0 % 7.1 % 1 Represents a non-GAAP financial measure. For reconciliation, see page 18.
10 A Regulatory capital ratios at June 30, 2021 are preliminary. The Corporation reports regulatory capital ratios under both the Standardized and Advanced approaches. The approach that yields the lower ratio is used to assess capital adequacy, which for Common equity tier 1 (CET1) is the Standardized approach for June 30, 2021 and March 31, 2021 and the Advanced approaches for June 30, 2020. Supplementary leverage exposure at March 31, 2021 and June 30, 2020 excludes U.S. Treasury securities and deposits at Federal Reserve Banks. B We present certain key financial and nonfinancial performance indicators (KPIs) that management uses when assessing consolidated and/or segment results. We believe this information is useful because it provides management and investors with information about underlying operational performance and trends. KPIs are presented in Balance Sheet, Liquidity and Capital Highlights and on the Segment pages for each segment. C Reserve Build (or Release) is calculated by subtracting net charge-offs for the period from the provision for credit losses recognized in that period. The period-end allowance, or reserve, for credit losses reflects the beginning of the period allowance adjusted for net charge-offs recorded in that period plus the provision for credit losses recognized in that period. D We measure net interest income on an FTE basis, which is a non-GAAP financial measure. FTE basis is a performance measure used in operating the business that management believes provides investors a more accurate picture of the interest margin for comparative purposes. We believe that this presentation allows for comparison of amounts from both taxable and tax-exempt sources and is consistent with industry practice. Net interest income on an FTE basis was $10.3 billion, $10.3 billion and $11.0 billion for the three months ended June 30, 2021, March 31, 2021 and June 30, 2020, respectively. The FTE adjustment was $110 million, $111 million and $128 million for the three months ended June 30, 2021, March 31, 2021 and June 30, 2020, respectively. E Global Liquidity Sources (GLS) include cash and high-quality, liquid, unencumbered securities, inclusive of U.S. government securities, U.S. agency securities, U.S. agency MBS, and a select group of non-U.S. government and supranational securities, and other investment-grade securities, and are readily available to meet funding requirements as they arise. It does not include Federal Reserve Discount Window or Federal Home Loan Bank borrowing capacity. Transfers of liquidity among legal entities may be subject to certain regulatory and other restrictions. F The following table includes Global Markets sales and trading revenue, excluding net DVA, which is a non-GAAP financial measure. For the three months ended June 30, 2021, March 31, 2021 and June 30, 2020, net DVA losses were $(34) million, $(2) million and $(261) million, FICC net DVA losses were $(28) million, $(9) million and $(245) million, and Equities net DVA gains (losses) were $(6) million, $7 million and $(16) million, respectively. G Pretax, pre-provision income (PTPI) at the consolidated level is a non-GAAP financial measure calculated by adjusting consolidated pretax income to add back provision for credit losses. Management believes that PTPI is a useful financial measure as it enables an assessment of the Company’s ability to generate earnings to cover credit losses through a credit cycle and provides an additional basis for comparing the Company's results of operations between periods by isolating the impact of provision for credit losses, which can vary significantly between periods. For Reconciliations to GAAP financial measures, see page 18. Endnotes Three months ended (Dollars in millions) 6/30/2021 3/31/2021 6/30/2020 Sales and trading revenue: Fixed-income, currencies and commodities $ 1,937 $ 3,242 $ 2,941 Equities 1,624 1,836 1,210 Total sales and trading revenue $ 3,561 $ 5,078 $ 4,151 Sales and trading revenue, excluding net debit valuation adjustment: Fixed-income, currencies and commodities $ 1,965 $ 3,251 $ 3,186 Equities 1,630 1,829 1,226 Total sales and trading revenue, excluding net debit valuation adjustment $ 3,595 $ 5,080 $ 4,412
11 Contact Information and Investor Conference Call Invitation Investor Call Information Note: Chief Executive Officer Brian Moynihan and Chief Financial Officer Paul Donofrio will discuss second- quarter 2021 financial results in a conference call at 9:00 a.m. ET today. The presentation and supporting materials can be accessed on the Bank of America Investor Relations website at https://investor.bankofamerica.com. For a listen-only connection to the conference call, dial 1.877.200.4456 (U.S.) or 1.785.424.1732 (international). The conference ID is 79795. Please dial in 10 minutes prior to the start of the call. Investors can access replays of the conference call by visiting the Investor Relations website or by calling 1.800.934.4850 (U.S.) or 1.402.220.1178 (international) from July 14 through 11:59 p.m. ET on July 24. Investors May Contact: Lee McEntire, Bank of America Phone: 1.980.388.6780 [email protected] Jonathan G. Blum, Bank of America (Fixed Income) Phone: 1.212.449.3112 [email protected] Bank of America Bank of America is one of the world’s leading financial institutions, serving individual consumers, small and middle-market businesses and large corporations with a full range of banking, investing, asset management and other financial and risk management products and services. The company provides unmatched convenience in the United States, serving approximately 66 million consumer and small business clients with approximately 4,300 retail financial centers, approximately 17,000 ATMs, and award-winning digital banking with approximately 41 million active users, including approximately 32 million mobile users. Bank of America is a global leader in wealth management, corporate and investment banking and trading across a broad range of asset classes, serving corporations, governments, institutions and individuals around the world. Bank of America offers industry-leading support to approximately 3 million small business households through a suite of innovative, easy-to-use online products and services. The company serves clients through operations across the United States, its territories and approximately 35 countries. Bank of America Corporation stock (NYSE: BAC) is listed on the New York Stock Exchange. Forward-Looking Statements Bank of America Corporation (the “Company”) and its management may make certain statements that constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These statements can be identified by the fact that they do not relate strictly to historical or current facts. Forward-looking statements often use words such as “anticipates,” “targets,” “expects,” “hopes,” “estimates,” “intends,” “plans,” “goals,” “believes,” “continue” and other similar expressions or future or conditional verbs such as “will,” “may,” “might,” “should,” “would” and “could.” Forward-looking statements represent the Company’s current expectations, plans or forecasts of its future results, revenues, provision for credit losses, expenses, efficiency ratio, capital measures, strategy, and future business and economic conditions more generally, and other future matters. These statements are not guarantees of future results or performance and involve certain known and unknown risks, uncertainties and assumptions that are difficult to predict and are often beyond the Company’s control. Actual outcomes and results may differ materially from those expressed in, or implied by, any of these forward-looking statements. Reporters May Contact: Jerry Dubrowski, Bank of America Phone: 1.646.855.1195 (office) or 1.508.843.5626 (mobile) [email protected] Christopher Feeney, Bank of America Phone: 1.980.386.6794 (office) [email protected]
12 You should not place undue reliance on any forward-looking statement and should consider the following uncertainties and risks, as well as the risks and uncertainties more fully discussed under Item 1A. Risk Factors of the Company’s 2020 Annual Report on Form 10-K and in any of the Company’s subsequent Securities and Exchange Commission filings: the Company’s potential judgments, damages, penalties, fines and reputational damage resulting from pending or future litigation and regulatory investigations, proceedings and enforcement actions, including as a result of our participation in and execution of government programs related to the Coronavirus Disease 2019 (COVID-19) pandemic; the possibility that the Company's future liabilities may be in excess of its recorded liability and estimated range of possible loss for litigation, and regulatory and government actions; the possibility that the Company could face increased claims from one or more parties involved in mortgage securitizations; the Company’s ability to resolve representations and warranties repurchase and related claims; the risks related to the discontinuation of the London Interbank Offered Rate and other reference rates, including increased expenses and litigation and the effectiveness of hedging strategies; uncertainties about the financial stability and growth rates of non-U.S. jurisdictions, the risk that those jurisdictions may face difficulties servicing their sovereign debt, and related stresses on financial markets, currencies and trade, and the Company’s exposures to such risks, including direct, indirect and operational; the impact of U.S. and global interest rates, inflation, currency exchange rates, economic conditions, trade policies and tensions, including tariffs, and potential geopolitical instability; the impact of the interest rate environment on the Company’s business, financial condition and results of operations; the possibility that future credit losses may be higher than currently expected due to changes in economic assumptions, customer behavior, adverse developments with respect to U.S. or global economic conditions and other uncertainties; the Company’s concentration of credit risk; the Company's ability to achieve its expense targets and expectations regarding revenue, net interest income, provision for credit losses, net charge-offs, effective tax rate, loan growth or other projections; adverse changes to the Company’s credit ratings from the major credit rating agencies; an inability to access capital markets or maintain deposits or borrowing costs; estimates of the fair value and other accounting values, subject to impairment assessments, of certain of the Company’s assets and liabilities; the estimated or actual impact of changes in accounting standards or assumptions in applying those standards; uncertainty regarding the content, timing and impact of regulatory capital and liquidity requirements; the impact of adverse changes to total loss-absorbing capacity requirements, stress capital buffer requirements and/or global systemically important bank surcharges; the potential impact of actions of the Board of Governors of the Federal Reserve System on the Company’s capital plans; the effect of changes in or interpretations of income tax laws and regulations; the impact of implementation and compliance with U.S. and international laws, regulations and regulatory interpretations, including, but not limited to, recovery and resolution planning requirements, Federal Deposit Insurance Corporation assessments, the Volcker Rule, fiduciary standards, derivatives regulations and the Coronavirus Aid, Relief, and Economic Security Act and any similar or related rules and regulations; a failure or disruption in or breach of the Company’s operational or security systems or infrastructure, or those of third parties, including as a result of cyber-attacks or campaigns; the impact on the Company’s business, financial condition and results of operations from the United Kingdom's exit from the European Union; the impact of climate change; the impact of any future federal government shutdown and uncertainty regarding the federal government’s debt limit or changes in fiscal, monetary or regulatory policy; the emergence of widespread health emergencies or pandemics, including the magnitude and duration of the COVID-19 pandemic and its impact on the U.S. and/or global, financial market conditions and our business, results of operations, financial condition and prospects; the impact of natural disasters, extreme weather events, military conflict, terrorism or other geopolitical events; and other matters. Forward-looking statements speak only as of the date they are made, and the Company undertakes no obligation to update any forward-looking statement to reflect the impact of circumstances or events that arise after the date the forward-looking statement was made. “Bank of America” and “BofA Securities” are the marketing names used by the Global Banking and Global Markets divisions of Bank of America Corporation. Lending, other commercial banking activities, and trading in certain financial instruments are performed globally by banking affiliates of Bank of America Corporation, including Bank of America, N.A., Member FDIC. Trading in securities and financial instruments, and strategic advisory, and other investment banking activities, are performed globally by investment banking affiliates of Bank of America Corporation (“Investment Banking Affiliates”) or other affiliates, including, in the United States, BofA Securities, Inc., Merrill Lynch Professional Clearing Corp. and Merrill Lynch, Pierce, Fenner & Smith Incorporated, each of which are registered broker-dealers and Members of SIPC, and, in other jurisdictions, by locally registered entities. BofA Securities, Inc. and Merrill Lynch Professional Clearing Corp. are registered as futures commission merchants with the CFTC and are members of the NFA. Investment products offered by Investment Banking Affiliates: Are Not FDIC Insured · May Lose Value · Are Not Bank Guaranteed. Bank of America Corporation’s broker-dealers are not banks and are separate legal entities from their bank affiliates. The obligations of the broker-dealers are not obligations of their bank affiliates (unless explicitly stated otherwise), and these bank affiliates are not responsible for securities sold, offered, or recommended by the broker-dealers. The foregoing also applies to other non-bank affiliates. For more Bank of America news, including dividend announcements and other important information, visit the Bank of America newsroom at https://newsroom.bankofamerica.com. www.bankofamerica.com
Current-period information is preliminary and based on company data available at the time of the presentation. 13 Bank of America Corporation and Subsidiaries Selected Financial Data (In millions, except per share data) Six Months Ended June 30 Second Quarter 2021 First Quarter 2021 Second Quarter 2020Summary Income Statement 2021 2020 Net interest income $ 20,430 $ 22,978 $ 10,233 $ 10,197 $ 10,848 Noninterest income 23,857 22,115 11,233 12,624 11,478 Total revenue, net of interest expense 44,287 45,093 21,466 22,821 22,326 Provision for credit losses (3,481) 9,878 (1,621) (1,860) 5,117 Noninterest expense 30,560 26,885 15,045 15,515 13,410 Income before income taxes 17,208 8,330 8,042 9,166 3,799 Income tax expense (66) 787 (1,182) 1,116 266 Net income $ 17,274 $ 7,543 $ 9,224 $ 8,050 $ 3,533 Preferred stock dividends 750 718 260 490 249 Net income applicable to common shareholders $ 16,524 $ 6,825 $ 8,964 $ 7,560 $ 3,284 Average common shares issued and outstanding 8,660.4 8,777.6 8,620.8 8,700.1 8,739.9 Average diluted common shares issued and outstanding 8,776.2 8,813.3 8,735.5 8,755.6 8,768.1 Summary Average Balance Sheet Total debt securities $ 842,566 $ 470,638 $ 895,902 $ 788,638 $ 476,060 Total loans and leases 907,812 1,010,835 907,900 907,723 1,031,387 Total earning assets 2,530,563 2,239,406 2,578,668 2,481,925 2,358,782 Total assets 2,947,542 2,599,557 3,015,113 2,879,221 2,704,186 Total deposits 1,847,520 1,548,766 1,888,834 1,805,747 1,658,197 Common shareholders’ equity 250,302 241,983 250,948 249,648 242,889 Total shareholders’ equity 274,341 265,425 274,632 274,047 266,316 Performance Ratios Return on average assets 1.18 % 0.58 % 1.23 % 1.13 % 0.53 % Return on average common shareholders’ equity 13.31 5.67 14.33 12.28 5.44 Return on average tangible common shareholders’ equity (1) 18.51 7.97 19.90 17.08 7.63 Per Common Share Information Earnings $ 1.91 $ 0.78 $ 1.04 $ 0.87 $ 0.38 Diluted earnings 1.90 0.77 1.03 0.86 0.37 Dividends paid 0.36 0.36 0.18 0.18 0.18 Book value 29.89 27.96 29.89 29.07 27.96 Tangible book value (1) 21.61 19.90 21.61 20.90 19.90 Summary Period-End Balance Sheet June 30 2021 March 31 2021 June 30 2020 Total debt securities $ 940,314 $ 856,912 $ 471,861 Total loans and leases 918,928 903,088 998,944 Total earning assets 2,608,408 2,548,811 2,391,043 Total assets 3,029,894 2,969,992 2,741,688 Total deposits 1,909,142 1,884,938 1,718,666 Common shareholders’ equity 253,678 249,681 242,210 Total shareholders’ equity 277,119 274,000 265,637 Common shares issued and outstanding 8,487.2 8,589.7 8,664.1 Six Months Ended June 30 Second Quarter 2021 First Quarter 2021 Second Quarter 2020Credit Quality 2021 2020 Total net charge-offs $ 1,418 $ 2,268 $ 595 $ 823 $ 1,146 Net charge-offs as a percentage of average loans and leases outstanding (2) 0.32 % 0.46 % 0.27 % 0.37 % 0.45 % Provision for credit losses $ (3,481) $ 9,878 $ (1,621) $ (1,860) $ 5,117 June 30 2021 March 31 2021 June 30 2020 Total nonperforming loans, leases and foreclosed properties (3) $ 5,031 $ 5,299 $ 4,611 Nonperforming loans, leases and foreclosed properties as a percentage of total loans, leases and foreclosed properties (3) 0.55 % 0.59 % 0.47 % Allowance for loan and lease losses $ 14,095 $ 16,168 $ 19,389 Allowance for loan and lease losses as a percentage of total loans and leases outstanding (2) 1.55 % 1.80 % 1.96 % For footnotes, see page 14.
Current-period information is preliminary and based on company data available at the time of the presentation. 14 Bank of America Corporation and Subsidiaries Selected Financial Data (continued) (Dollars in millions) Capital Management June 30 2021 March 31 2021 June 30 2020 Regulatory capital metrics (4): Common equity tier 1 capital $ 178,818 $ 177,789 $ 171,020 Common equity tier 1 capital ratio - Standardized approach 11.5 % 11.8 % 11.6 % Common equity tier 1 capital ratio - Advanced approaches 13.0 13.0 11.4 Tier 1 leverage ratio 6.9 7.2 7.4 Supplementary leverage ratio 5.9 7.0 7.1 Tangible equity ratio (5) 7.0 7.0 7.3 Tangible common equity ratio (5) 6.2 6.2 6.5 (1) Return on average tangible common shareholders’ equity and tangible book value per share of common stock are non-GAAP financial measures. We believe the use of ratios that utilize tangible equity provides additional useful information because they present measures of those assets that can generate income. Tangible book value per share provides additional useful information about the level of tangible assets in relation to outstanding shares of common stock. See Reconciliations to GAAP Financial Measures on page 18. (2) Ratios do not include loans accounted for under the fair value option. Charge-off ratios are annualized for the quarterly presentation. (3) Balances do not include past due consumer credit card loans, consumer loans secured by real estate where repayments are insured by the Federal Housing Administration and individually insured long-term stand-by agreements (fully insured home loans), and in general, other consumer and commercial loans not secured by real estate, and nonperforming loans held for sale or accounted for under the fair value option. (4) Regulatory capital ratios at June 30, 2021 are preliminary. Bank of America Corporation reports regulatory capital ratios under both the Standardized and Advanced approaches. The approach that yields the lower ratio is used to assess capital adequacy, which for Common equity tier 1 (CET1) is the Standardized approach for June 30, 2021 and March 31, 2021 and the Advanced approaches for June 30, 2020. Supplementary leverage exposure at March 31, 2021 and June 30, 2020 excluded U.S. Treasury securities and deposits at Federal Reserve Banks. (5) Tangible equity ratio equals period-end tangible shareholders’ equity divided by period-end tangible assets. Tangible common equity ratio equals period-end tangible common shareholders’ equity divided by period-end tangible assets. Tangible shareholders’ equity and tangible assets are non-GAAP financial measures. We believe the use of ratios that utilize tangible equity provides additional useful information because they present measures of those assets that can generate income. See Reconciliations to GAAP Financial Measures on page 18.
Current-period information is preliminary and based on company data available at the time of the presentation. 15 Bank of America Corporation and Subsidiaries Quarterly Results by Business Segment and All Other (Dollars in millions) Second Quarter 2021 Consumer Banking GWIM Global Banking Global Markets All Other Total revenue, net of interest expense $ 8,186 $ 5,065 $ 5,089 $ 4,720 $ (1,484) Provision for credit losses (697) (62) (831) 22 (53) Noninterest expense 4,859 3,814 2,599 3,471 302 Net income 3,038 991 2,424 908 1,863 Return on average allocated capital (1) 32 % 24 % 23 % 10 % n/m Balance Sheet Average Total loans and leases $ 281,767 $ 193,988 $ 325,110 $ 87,826 $ 19,209 Total deposits 979,072 333,487 506,618 55,584 14,073 Allocated capital (1) 38,500 16,500 42,500 38,000 n/m Quarter end Total loans and leases $ 282,900 $ 198,361 $ 323,256 $ 96,105 $ 18,306 Total deposits 987,655 330,624 520,026 57,297 13,540 First Quarter 2021 Consumer Banking GWIM Global Banking Global Markets All Other Total revenue, net of interest expense $ 8,069 $ 4,971 $ 4,633 $ 6,198 $ (939) Provision for credit losses (617) (65) (1,126) (5) (47) Noninterest expense 5,131 3,868 2,781 3,427 308 Net income 2,684 882 2,174 2,054 256 Return on average allocated capital (1) 28 % 22 % 21 % 22 % n/m Balance Sheet Average Total loans and leases $ 290,891 $ 188,495 $ 330,107 $ 77,415 $ 20,815 Total deposits 924,137 326,370 487,034 53,852 14,354 Allocated capital (1) 38,500 16,500 42,500 38,000 n/m Quarter end Total loans and leases $ 282,935 $ 190,060 $ 325,996 $ 84,247 $ 19,850 Total deposits 971,709 333,254 506,012 61,450 12,513 Second Quarter 2020 Consumer Banking GWIM Global Banking Global Markets All Other Total revenue, net of interest expense $ 7,852 $ 4,425 $ 5,091 $ 5,350 $ (264) Provision for credit losses 3,024 136 1,873 105 (21) Noninterest expense 4,735 3,464 2,222 2,684 305 Net income 70 623 727 1,895 218 Return on average allocated capital (1) 1 % 17 % 7 % 21 % n/m Balance Sheet Average Total loans and leases $ 321,558 $ 182,150 $ 423,625 $ 74,131 $ 29,923 Total deposits 810,700 287,109 493,918 45,083 21,387 Allocated capital (1) 38,500 15,000 42,500 36,000 n/m Quarter end Total loans and leases $ 325,105 $ 184,293 $ 390,108 $ 74,342 $ 25,096 Total deposits 854,017 291,740 500,918 52,842 19,149 (1) Return on average allocated capital is calculated as net income, adjusted for cost of funds and earnings credits and certain expenses related to intangibles, divided by average allocated capital. Other companies may define or calculate these measures differently. n/m = not meaningful Certain prior-period amounts have been reclassified among the segments to conform to current-period presentation. The Company reports the results of operations of its four business segments and All Other on a fully taxable-equivalent (FTE) basis.
Current-period information is preliminary and based on company data available at the time of the presentation. 16 Bank of America Corporation and Subsidiaries Year-to-Date Results by Business Segment and All Other (Dollars in millions) Six Months Ended June 30, 2021 Consumer Banking GWIM Global Banking Global Markets All Other Total revenue, net of interest expense $ 16,255 $ 10,036 $ 9,722 $ 10,918 $ (2,423) Provision for credit losses (1,314) (127) (1,957) 17 (100) Noninterest expense 9,990 7,682 5,380 6,898 610 Net income 5,722 1,873 4,598 2,962 2,119 Return on average allocated capital (1) 30 % 23 % 22 % 16 % n/m Balance Sheet Average Total loans and leases $ 286,304 $ 191,257 $ 327,595 $ 82,649 $ 20,007 Total deposits 951,757 329,948 496,880 54,723 14,212 Allocated capital (1) 38,500 16,500 42,500 38,000 n/m Period end Total loans and leases $ 282,900 $ 198,361 $ 323,256 $ 96,105 $ 18,306 Total deposits 987,655 330,624 520,026 57,297 13,540 Six Months Ended June 30, 2020 Consumer Banking GWIM Global Banking Global Markets All Other Total revenue, net of interest expense $ 16,980 $ 9,361 $ 9,691 $ 10,575 $ (1,242) Provision for credit losses 5,282 325 3,966 212 93 Noninterest expense 9,230 7,064 4,540 5,498 553 Net income (loss) 1,863 1,489 865 3,600 (274) Return on average allocated capital (1) 10 % 20 % 4 % 20 % n/m Balance Sheet Average Total loans and leases $ 319,252 $ 180,395 $ 405,054 $ 72,896 $ 33,238 Total deposits 773,685 275,260 438,145 39,203 22,473 Allocated capital (1) 38,500 15,000 42,500 36,000 n/m Period end Total loans and leases $ 325,105 $ 184,293 $ 390,108 $ 74,342 $ 25,096 Total deposits 854,017 291,740 500,918 52,842 19,149 (1) Return on average allocated capital is calculated as net income, adjusted for cost of funds and earnings credits and certain expenses related to intangibles, divided by average allocated capital. Other companies may define or calculate these measures differently. n/m = not meaningful Certain prior-period amounts have been reclassified among the segments to conform to current-period presentation.
Current-period information is preliminary and based on company data available at the time of the presentation. 17 Bank of America Corporation and Subsidiaries Supplemental Financial Data (Dollars in millions) Six Months Ended June 30 Second Quarter 2021 First Quarter 2021 Second Quarter 2020FTE basis data (1) 2021 2020 Net interest income $ 20,651 $ 23,250 $ 10,343 $ 10,308 $ 10,976 Total revenue, net of interest expense 44,508 45,365 21,576 22,932 22,454 Net interest yield 1.64 % 2.09 % 1.61 % 1.68 % 1.87 % Efficiency ratio 68.66 59.26 69.73 67.65 59.72 Other Data June 30 2021 March 31 2021 June 30 2020 Number of financial centers - U.S. 4,296 4,324 4,298 Number of branded ATMs - U.S. 16,795 16,905 16,862 Headcount 211,608 212,201 212,796 (1) FTE basis is a non-GAAP financial measure. FTE basis is a performance measure used by management in operating the business that management believes provides investors with a more accurate picture of the interest margin for comparative purposes. The Corporation believes that this presentation allows for comparison of amounts from both taxable and tax-exempt sources and is consistent with industry practices. Net interest income includes FTE adjustments of $221 million and $272 million for the six months ended June 30, 2021 and 2020, respectively; $110 million and $111 million for the second and first quarters of 2021, respectively, and $128 million for the second quarter of 2020. Certain prior-period amounts have been reclassified to conform to current-period presentation.
Current-period information is preliminary and based on company data available at the time of the presentation. 18 The Corporation evaluates its business based on the following ratios that utilize tangible equity, a non-GAAP financial measure. Tangible equity represents an adjusted shareholders’ equity or common shareholders’ equity amount which has been reduced by goodwill and intangible assets (excluding mortgage servicing rights), net of related deferred tax liabilities. Return on average tangible common shareholders’ equity measures the Corporation’s net income applicable to common shareholders as a percentage of adjusted average common shareholders’ equity. The tangible common equity ratio represents adjusted ending common shareholders’ equity divided by total assets less goodwill and intangible assets (excluding mortgage servicing rights), net of related deferred tax liabilities. Return on average tangible shareholders’ equity measures the Corporation’s net income as a percentage of adjusted average total shareholders’ equity. The tangible equity ratio represents adjusted ending shareholders’ equity divided by total assets less goodwill and intangible assets (excluding mortgage servicing rights), net of related deferred tax liabilities. Tangible book value per common share represents adjusted ending common shareholders’ equity divided by ending common shares outstanding. These measures are used to evaluate the Corporation’s use of equity. In addition, profitability, relationship and investment models all use return on average tangible shareholders’ equity as key measures to support our overall growth goals. See the tables below for reconciliations of these non-GAAP financial measures to the most closely related financial measures defined by GAAP for the six months ended June 30, 2021 and 2020, and the three months ended June 30, 2021, March 31, 2021 and June 30, 2020. The Corporation believes the use of these non-GAAP financial measures provides additional clarity in understanding its results of operations and trends. Other companies may define or calculate supplemental financial data differently. Bank of America Corporation and Subsidiaries Reconciliations to GAAP Financial Measures (Dollars in millions, except per share information) Six Months Ended June 30 Second Quarter 2021 First Quarter 2021 Second Quarter 2020 2021 2020 Reconciliation of income before income taxes to pretax, pre-provision income Income before income taxes $ 17,208 $ 8,330 $ 8,042 $ 9,166 $ 3,799 Provision for credit losses (3,481) 9,878 (1,621) (1,860) 5,117 Pretax, pre-provision income $ 13,727 $ 18,208 $ 6,421 $ 7,306 $ 8,916 Reconciliation of average shareholders’ equity to average tangible shareholders’ equity and average tangible common shareholders’ equity Shareholders’ equity $ 274,341 $ 265,425 $ 274,632 $ 274,047 $ 266,316 Goodwill (68,987) (68,951) (69,023) (68,951) (68,951) Intangible assets (excluding mortgage servicing rights) (2,179) (1,648) (2,212) (2,146) (1,640) Related deferred tax liabilities 917 759 915 920 790 Tangible shareholders’ equity $ 204,092 $ 195,585 $ 204,312 $ 203,870 $ 196,515 Preferred stock (24,039) (23,442) (23,684) (24,399) (23,427) Tangible common shareholders’ equity $ 180,053 $ 172,143 $ 180,628 $ 179,471 $ 173,088 Reconciliation of period-end shareholders’ equity to period-end tangible shareholders’ equity and period-end tangible common shareholders’ equity Shareholders’ equity $ 277,119 $ 265,637 $ 277,119 $ 274,000 $ 265,637 Goodwill (69,023) (68,951) (69,023) (68,951) (68,951) Intangible assets (excluding mortgage servicing rights) (2,192) (1,630) (2,192) (2,134) (1,630) Related deferred tax liabilities 915 789 915 915 789 Tangible shareholders’ equity $ 206,819 $ 195,845 $ 206,819 $ 203,830 $ 195,845 Preferred stock (23,441) (23,427) (23,441) (24,319) (23,427) Tangible common shareholders’ equity $ 183,378 $ 172,418 $ 183,378 $ 179,511 $ 172,418 Reconciliation of period-end assets to period-end tangible assets Assets $ 3,029,894 $ 2,741,688 $ 3,029,894 $ 2,969,992 $ 2,741,688 Goodwill (69,023) (68,951) (69,023) (68,951) (68,951) Intangible assets (excluding mortgage servicing rights) (2,192) (1,630) (2,192) (2,134) (1,630) Related deferred tax liabilities 915 789 915 915 789 Tangible assets $ 2,959,594 $ 2,671,896 $ 2,959,594 $ 2,899,822 $ 2,671,896 Book value per share of common stock Common shareholders’ equity $ 253,678 $ 242,210 $ 253,678 $ 249,681 $ 242,210 Ending common shares issued and outstanding 8,487.2 8,664.1 8,487.2 8,589.7 8,664.1 Book value per share of common stock $ 29.89 $ 27.96 $ 29.89 $ 29.07 $ 27.96 Tangible book value per share of common stock Tangible common shareholders’ equity $ 183,378 $ 172,418 $ 183,378 $ 179,511 $ 172,418 Ending common shares issued and outstanding 8,487.2 8,664.1 8,487.2 8,589.7 8,664.1 Tangible book value per share of common stock $ 21.61 $ 19.90 $ 21.61 $ 20.90 $ 19.90 Certain prior-period amounts have been reclassified to conform to current-period presentation.
Bank of America 2Q21 Financial Results July 14, 2021
2Q21 Highlights • Diluted earnings per share of $1.03, net income of $9.2B included the following significant items: – $1.6B provision for credit losses benefit – $2.0B positive tax adjustment related to revaluation of UK deferred tax assets • Noninterest expense of $15.0B declined $0.5B, or 3%, from 1Q21, including: – $0.5B charitable contribution to Bank of America Foundation – $0.3B associated with processing transactional card claims related to state unemployment benefits • Revenue of $21.5B decreased 6% vs. 1Q21 – Net interest income was flat, as long-end rates declined – Noninterest income declined, driven by lower sales and trading revenue, partially offset by higher Consumer and Wealth Management revenues • Balance sheet is strong with CET1 ratio of 11.5%; average global liquidity sources increased to $1.1T – $25B ongoing share repurchase program initiated in April 2021 – Repurchased $4.2B in 2Q21, including repurchases to offset shares awarded under equity-based compensation plans; paid $1.5B in common dividends – Announced expectation for 17% increase in quarterly dividend to begin in 3Q21 • Vaccination progress aided faster reopening of U.S. economy – Year-to-date, Bank of America consumers spent at a 22% higher rate than 1H19 – Deposits grew $190B vs. 2Q20; up $24B from 1Q21 – Consumer and Commercial Loans in aggregate grew $16B from 1Q21 • Asset quality continued to improve from 1Q21 – Lower net charge-offs – Lower consumer delinquencies – Lower nonperforming loans – Lower reservable criticized commercial loans 2
10% 5% 9% 20% 25% 31% 2Q21 1H21 up 22% vs. 1H19 Jan-20 Feb-20 Mar-20 Apr-20 May-20 Jun-20 Jul-20 Aug-20 Sep-20 Oct-20 Nov-20 Dec-20 Jan-21 Feb-21 Mar-21 Apr-21 May-21 Jun-21 (30%) (20%) (10%) 0% 10% 20% 30% 40% Payment Spend Year-over-Year % Change U.S. Economic Recovery Continues 1 Estimates from BofA Global Research. 2 Includes consumer and small business credit card portfolios in Consumer Banking and GWIM. 3 Total payments include total credit card, debit card, ACH, wires, bill pay, person-to-person, cash and checks. 6.1% 2.8% 4.5% 6.0% 7.0% 7.0% Apr- 20 Jul- 20 Oct- 20 Jan- 21 Apr- 21 Jul- 21 Credit and Debit Spend by Category2GDP Trends (5.0%) (31.4%) 33.4% 4.3% 6.4% 10.0% 1Q 20 2Q 20 3Q 20 4Q 20 1Q 21 2Q 21F 3 2021 U.S. Real GDP Forecast1U.S. Real GDP Spending ($) vs 2020 vs. 2019 +28% +34% +33% +20% +28% +16% +223% (13%) +34% +15% +75% +8% +57% +57% 1 22% Credit Spend YTD2 Debit Spend YTD Total Payments YTD3 Total Payments Monthly3 Retail Services Food Travel & Entertainment Gas Other
Ju n- 19 Se p- 19 D ec -1 9 M ar -2 0 Ju n- 20 Se p- 20 D ec -2 0 M ar -2 1 Ju n- 21 $0 $500 $1,000 $1,500 $2,000 $2,500 • Credit card delinquencies remain below pre- pandemic levels as deferrals expired and balances declined • As of the end of 2Q21, most early-stage delinquency categories are at or near historical lows • 2Q21 30+ and 90+ days past due ratios of 1.29% and 0.71% remain well below the pre-pandemic 4Q19 level of 2.09% and 1.07%, respectively Credit Card Days Past Due Trend Credit Card 30+ Days Past Due ($MM) 5-29 Days ($MM) Ju n- 19 Se p- 19 D ec -1 9 M ar -2 0 Ju n- 20 Se p- 20 D ec -2 0 M ar -2 1 Ju n- 21 $0 $500 $1,000 $1,500 $2,000 $2,500 30-59 Days ($MM) 60-89 Days ($MM) Ju n- 19 Se p- 19 D ec -1 9 M ar -2 0 Ju n- 20 Se p- 20 D ec -2 0 M ar -2 1 Ju n- 21 $0 $100 $200 $300 $400 $500 $600 $700 Ju n- 19 Se p- 19 D ec -1 9 M ar -2 0 Ju n- 20 Se p- 20 D ec -2 0 M ar -2 1 Ju n- 21 $0 $100 $200 $300 $400 $500 Ju n- 19 Se p- 19 D ec -1 9 M ar -2 0 Ju n- 20 Se p- 20 D ec -2 0 M ar -2 1 Ju n- 21 $0 $200 $400 $600 $800 $1,000 $1,200 90+ Days ($MM) 4
Daily Loans and Leases Balance Trends 1 Excludes balances related to the Paycheck Protection Program (PPP) of $15.7B, $21.1B, $22.7B, $24.7B, and $24.4B recorded in Commercial for 2Q21, 1Q21, 4Q20, 3Q20 and 2Q20, respectively. Ending Commercial loans and leases were $500.8B, $490.9B, $499.1B, $515.4B, and $547.4B for 2Q21, 1Q21, 4Q20, 3Q20 and 2Q20, respectively. 2 Only includes Residential Mortgages recorded in Consumer and GWIM. Total Loans and Leases by Product ex. PPP ($B)1 Credit Card ($B) Residential Mortgage ($B)2 Total Loans and Leases ex. PPP ($B)1 5 Commercial Consumer
$999 $955 $928 $903 $919 2Q20 3Q20 4Q20 1Q21 2Q21 $0 $250 $500 $750 $1,000 $1,250 Total Loans and Leases ($B) $974 $932 $907 $883 $901 325 312 300 283 283 184 187 189 190 198 390 357 340 326 323 74 75 78 84 96 Consumer Banking GWIM Global Banking Global Markets 2Q20 3Q20 4Q20 1Q21 2Q21 $0 $250 $500 $750 $1,000 $1,250 $25 $23 $21 $20 $18 21 19 17 16 15 5 4 4 4 4 Residential mortgage Home equity 2Q20 3Q20 4Q20 1Q21 2Q21 $0 $10 $20 $30 0% +4% (1%) +14% Ending Loans and Leases1 QoQ +2% QoQ +2% QoQ (8%) Note: Amounts may not total due to rounding. 1 Includes balances related to PPP of $15.7B recorded in Consumer $9.9B, GWIM $0.6B and Global Banking $5.1B for 2Q21, balances of $21.1B recorded in Consumer $11.9B, GWIM $0.8B and Global Banking $8.4B for 1Q21, balances of $22.7B recorded in Consumer $13.4B, GWIM $0.7B and Global Banking $8.6B for 4Q20, balances of $24.7B recorded in Consumer $14.6B, GWIM $0.8B and Global Banking $9.4B for 3Q20, and balances of $24.4B recorded in Consumer $14.3B, GWIM $0.8B and Global Banking $9.4B for 2Q20. Total Loans and Leases in All Other ($B) Loans and Leases in Business Segments ($B) Total Loans and Leases by Portfolio ($B) $452 $440 $429 $412 $418 $547 $515 $499 $491 $501 Consumer loans Commercial loans 2Q20 3Q20 4Q20 1Q21 2Q21 $0 $250 $500 $750 6 PPP loans $24.4 $24.7 $22.7 $21.1 $15.7
Note: Amounts may not total due to rounding. N/M stands for not meaningful. 1 For more information on reserve build (release), see note A on slide 28. 2 Represent non-GAAP financial measures. For more information on pretax, pre-provision income and a reconciliation to GAAP, see note B on slide 28. For important presentation information about these measures, see slide 31. Summary Income Statement ($B, except per share data) 2Q21 1Q21 Inc / (Dec) 2Q20 Inc / (Dec) Total Revenue, net of interest expense $21.5 $22.8 ($1.4) (6) % $22.3 ($0.9) (4) % Provision (benefit) for credit losses (1.6) (1.9) 0.2 (13) 5.1 (6.7) (132) Net charge-offs 0.6 0.8 (0.2) (28) 1.1 (0.6) (48) Reserve build (release)1 (2.2) (2.7) 0.5 (17) 4.0 (6.2) N/M Noninterest Expense 15.0 15.5 (0.5) (3) 13.4 1.6 12 Pretax Income 8.0 9.2 (1.1) (12) 3.8 4.2 112 Pretax, pre-provision income2 6.4 7.3 (0.9) (12) 8.9 (2.5) (28) Income tax expense (1.2) 1.1 (2.3) N/M 0.3 (1.4) N/M Net income $9.2 $8.1 $1.2 15 $3.5 $5.7 N/M Diluted earnings per share $1.03 $0.86 $0.17 20 $0.37 $0.66 N/M Average diluted common shares (in millions) 8,735 8,756 (20) — 8,768 (33) — Return Metrics and Efficiency Ratio Return on average assets 1.23 % 1.13 % 0.53 % Return on average common shareholders' equity 14.3 12.3 5.4 Return on average tangible common shareholders' equity2 19.9 17.1 7.6 Efficiency ratio 70 68 60 2Q21 Financial Results 7
Balance Sheet Metrics 2Q21 1Q21 2Q20 Basel 3 Capital ($B)4 2Q21 1Q21 2Q20 Assets ($B) Common equity tier 1 capital (CET1) $179 $178 $171 Total assets $3,030 $2,970 $2,742 Standardized approach Total loans and leases 919 903 999 Risk-weighted assets $1,553 $1,508 $1,475 Total loans and leases in business segments1 901 883 974 CET1 ratio 11.5 % 11.8 % 11.6 % Total debt securities 940 857 472 Advanced approaches Risk-weighted assets $1,380 $1,365 $1,504 Funding & Liquidity ($B) CET1 ratio 13.0 % 13.0 % 11.4 % Total deposits $1,909 $1,885 $1,719 Supplementary leverage (SLR) Long-term debt 275 251 262 SLR as reported5 5.9 % 7.0 % 7.1 % Global Liquidity Sources (average)2 1,063 1,003 796 SLR (without temporary exclusions) 6.1 6.3 Equity ($B) Common shareholders' equity $254 $250 $242 Common equity ratio 8.4 % 8.4 % 8.8 % Tangible common shareholders' equity3 $181 $179 $173 Tangible common equity ratio3 6.2 % 6.2 % 6.5 % Per Share Data Book value per common share $29.89 $29.07 $27.96 Tangible book value per common share3 $21.61 $20.90 $19.90 Common shares outstanding (in billions) 8.49 8.59 8.66 1 Excludes loans and leases in All Other. 2 See note C on slide 28 for definition of Global Liquidity Sources. 3 Represent non-GAAP financial measures. For important presentation information, see slide 31. 4 Regulatory capital ratios at June 30, 2021 are preliminary. The Corporation reports regulatory capital ratios under both the Standardized and Advanced approaches. The approach that yields the lower ratio is used to assess capital adequacy, which for Common equity tier 1 (CET1) is the Standardized approach for June 30, 2021 and March 31, 2021 and the Advanced approaches for June 30, 2020. 5 Supplementary leverage exposure at March 31, 2021 and June 30, 2020 excludes U.S. Treasury securities and deposits at Federal Reserve Banks. Balance Sheet, Liquidity and Capital (EOP basis unless noted) 8 • CET1 ratio increased 14 bps vs. 2Q204 – 2Q21 CET1 ratio (Standardized) of 11.5% – 2Q21 CET1 ratio (Advanced) of 13.0% – CET1 capital of $179B rose $1.0B from 1Q21 – Standardized RWA of $1,553B increased $45B from 1Q21 • Book value per share improved 7% from 2Q20, to $29.89 • $1.1T in average Global Liquidity Sources,2 up $267B, or 34%, from 2Q20
$1,001 $950 $913 $887 $889 322 319 305 291 282 182 186 187 188 194 424 373 346 330 325 74 72 74 77 88 Consumer Banking GWIM Global Banking Global Markets 2Q20 3Q20 4Q20 1Q21 2Q21 $0 $250 $500 $750 $1,000 $1,250 $30 $24 $22 $21 $19 25 20 18 17 15 5 4 4 4 4 Residential mortgage Home equity 2Q20 3Q20 4Q20 1Q21 2Q21 $0 $10 $20 $30 $40 $1,031 $974 $935 $908 $908 2Q20 3Q20 4Q20 1Q21 2Q21 $0 $250 $500 $750 $1,000 $1,250 (12%) +6% (23%) +18% Average Loans and Leases1 YoY (12%) YoY (11%) YoY (36%) Note: Amounts may not total due to rounding. 1 Includes balances related to PPP of $19.8B recorded in Consumer $11.4B, GWIM $0.7B and Global Banking $7.7B for 2Q21, balances of $23.1B recorded in Consumer $13.9B, GWIM $0.7B and Global Banking $8.5B for 1Q21, balances of $24.5B recorded in Consumer $14.5B, GWIM $0.8B and Global Banking $9.2B for 4Q20, balances of $24.7B recorded in Consumer $14.5B, GWIM $0.8B and Global Banking $9.4B for 3Q20, and balances of $16.0B recorded in Consumer $9.2B, GWIM $0.5B and Global Banking $6.2B for 2Q20. Total Loans and Leases in All Other ($B) Loans and Leases in Business Segments ($B) Total Loans and Leases by Portfolio ($B) Total Loans and Leases ($B) $456 $446 $432 $418 $413 $575 $528 $502 $489 $494 Consumer loans Commercial loans 2Q20 3Q20 4Q20 1Q21 2Q21 $0 $250 $500 $750 9 PPP loans $16.0 $24.7 $24.5 $23.1 $19.8
Consumer Banking ($B) GWIM ($B) Global Banking ($B) Total Corporation ($B) Average Deposits Bank of America Ranked #1 in U.S. Deposit Market Share1 Note: Amounts may not total due to rounding. Total Corporation also includes Global Markets and All Other. 1 Based on June 30, 2020 FDIC deposit data. $287 $292 $306 $326 $333 270 273 285 304 309 17 19 20 23 24 Interest-bearing Noninterest-bearing 2Q20 3Q20 4Q20 1Q21 2Q21 $0 $100 $200 $300 $400 $1,658 $1,695 $1,737 $1,806 $1,889 1,116 1,083 1,091 1,130 1,160 542 612 646 675 729 Interest-bearing Noninterest-bearing 2Q20 3Q20 4Q20 1Q21 2Q21 $0 $500 $1,000 $1,500 $2,000 $494 $471 $478 $487 $507 242 190 170 165 163 252 281 309 322 344 Interest-bearing Noninterest-bearing 2Q20 3Q20 4Q20 1Q21 2Q21 $0 $200 $400 $600 +14% +44% +4% +34% YoY +14% YoY +16% YoY +21% (33%) +37% +18% +23% YoY +3% 10 $811 $861 $885 $924 $979 362 378 389 405 425 199 207 213 224 231 250 276 283 295 323 Money market, Savings, CD/IRA Interest checking Noninterest-bearing 2Q20 3Q20 4Q20 1Q21 2Q21 $0 $200 $400 $600 $800 $1,000 $1,200
Net Interest Income (FTE, $B)1 • Net interest income of $10.2B ($10.3B FTE1) – Increased $36MM from 1Q21, driven by higher investment securities balances due to the deployment of excess cash and one additional accrual day, partially offset by lower PPP fees, the absence of 1Q legacy litigation settlement proceeds, and higher premium amortization • Net interest yield of 1.61% decreased 7 bps from 1Q211 – Excluding Global Markets, net interest yield of 1.83% • Interest rate sensitivity as of June 30, 20212 – +100 bps parallel shift in the interest rate yield curve is estimated to benefit net interest income by $8.0B over the next 12 months Net Interest Income Net Interest Yield (FTE)1 Notes: FTE stands for fully taxable-equivalent basis. GM stands for Global Markets. 1 Represent non-GAAP financial measures. Net interest yield adjusted to exclude Global Markets NII of $1.0B, $1.0B, $1.1B, $1.1B and $1.3B and average earning assets of $531.0B, $495.3B, $472.4B, $476.2B and $478.6B for 2Q21, 1Q21, 4Q20, 3Q20 and 2Q20, respectively. The Company believes the presentation of net interest yield excluding Global Markets provides investors with transparency of NII and net interest yield in core banking activities. For important presentation information, see slide 31. 2 NII asset sensitivity represents banking book positions. 1.87% 1.72% 1.71% 1.68% 1.61% 2.06% 1.92% 1.90% 1.90% 1.83% Reported net interest yield Net interest yield excl. GM 2Q20 3Q20 4Q20 1Q21 2Q21 1.00% 1.50% 2.00% 2.50% $11.0 $10.2 $10.4 $10.3 $10.3 $10.8 $10.1 $10.3 $10.2 $10.2 Net interest income (GAAP) FTE Adjustment 2Q20 3Q20 4Q20 1Q21 2Q21 $0.0 $5.0 $10.0 $15.0 11
60% 59% 57% 58% 57% 57% 57% 59% 59% 60% 71% 69% 68% 70% 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 50% 60% 70% 80% $13.8 $13.2 $13.0 $13.1 $13.2 $13.3 $15.2 $13.2 $13.5 $13.4 $14.4 $13.9 $15.5 $15.0 8.5 7.9 7.7 7.7 8.2 8.0 7.8 8.0 8.3 8.0 8.2 8.2 9.7 8.7 5.4 5.3 5.3 5.3 5.0 5.3 5.3 5.3 5.1 5.4 6.2 5.7 5.8 6.4 2.1 Compensation and benefits Other JV impairment charge 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 $0.0 $10.0 $20.0 • Noninterest expense of $15.0B declined $0.5B from 1Q21, driven by the absence of seasonally elevated payroll taxes, ~$300MM for the acceleration of expenses due to incentive compensation award changes, and a $240MM impairment charge for real estate rationalization, which were incurred in 1Q21, as well as lower incentive compensation and severance costs during 2Q21, partially offset by a $500MM contribution to the Bank of America Foundation, and ~$300MM associated with processing transactional card claims related to unemployment benefits • 2Q21 expenses increased $1.6B from 2Q20, and reflect higher compensation and benefits, a $500MM contribution to the Bank of America Foundation, and ~$300MM associated with processing transactional card claims related to unemployment benefits Total Noninterest Expense ($B) Efficiency Ratio Expense and Efficiency 1 Note: Amounts may not total due to rounding. 1 3Q19 efficiency ratio is adjusted to exclude the 3Q19 impairment charge of $2.1B related to the termination of the merchant services joint venture, which represents a non-GAAP financial measure. Reported 3Q19 efficiency ratio was 67%. See note D on slide 28 for reconciliations. 12
• Total net charge-offs of $595MM1 decreased $228MM from 1Q21 – Consumer net charge-offs of $513MM decreased $180MM, driven by Card, as charge-off volume from expired deferrals decreased – Commercial net charge-offs of $82MM decreased $48MM • Net charge-off ratio of 27 bps decreased 10 bps from 1Q21 • Provision benefit of $1.6B included a $2.2B net reserve release, reflecting an improved macroeconomic outlook – Consumer reserve release of $1.2B, primarily driven by Card – Commercial reserve release of $1.0B • Allowance for loan and lease losses of $14.1B represented 1.55% of total loans and leases1 – Total allowance of $15.8B includes $1.7B for unfunded commitments • Nonperforming loans (NPLs) decreased $0.3B from 1Q21, driven by Commercial – 51% of Consumer NPLs are contractually current • Commercial reservable criticized utilized exposure of $28.9B decreased $5.4B from 1Q21, driven by broad- based declines across industries Asset Quality 1 Excludes loans measured at fair value. Provision for Credit Losses ($MM) Net Charge-offs ($MM)1 $5,117 $1,389 $53 ($1,860) ($1,621) 2Q20 3Q20 4Q20 1Q21 2Q21 ($3,000) $0 $3,000 $6,000 $1,146 $972 $881 $823 $595 0.45% 0.40% 0.38% 0.37% 0.27% Net charge-offs Net charge-off ratio 2Q20 3Q20 4Q20 1Q21 2Q21 $0 $250 $500 $750 $1,000 $1,250 0.00% 0.25% 0.50% 0.75% 1.00% 13
Commercial Net Charge-offs ($MM) Consumer Net Charge-offs ($MM) Asset Quality – Consumer and Commercial Portfolios 1 Excludes loans measured at fair value. 2 Fully-insured loans are FHA-insured loans and other loans individually insured under long-term standby agreements. $412 $408 $399 $130 $82 0.29% 0.31% 0.32% 0.11% 0.07% C&I Small business and other Commercial NCO ratio 2Q20 3Q20 4Q20 1Q21 2Q21 $0 $100 $200 $300 $400 $500 0.00% 0.10% 0.20% 0.30% 0.40% 0.50% $734 $564 $482 $693 $513 0.65% 0.50% 0.44% 0.67% 0.50% Credit card Other Consumer NCO ratio 2Q20 3Q20 4Q20 1Q21 2Q21 $0 $250 $500 $750 $1,000 0.00% 0.50% 1.00% 1.50% Commercial Metrics ($MM) 2Q21 1Q21 2Q20 Provision ($914) ($1,104) $2,503 Reservable criticized utilized exposure 28,878 34,283 25,950 Nonperforming loans and leases 1,863 2,071 2,202 % of loans and leases1 0.38 % 0.43 % 0.41 % Allowance for loans and leases $6,663 $7,533 $8,434 % of loans and leases1 1.35 % 1.55 % 1.57 % Consumer Metrics ($MM) 2Q21 1Q21 2Q20 Provision ($707) ($756) $2,614 Nonperforming loans and leases 3,044 3,091 2,191 % of loans and leases1 0.73 % 0.75 % 0.49 % Consumer 30+ days performing past due $3,233 $3,863 $3,927 Fully-insured2 997 1,030 1,153 Non fully-insured 2,236 2,833 2,774 Consumer 90+ days performing past due 1,235 1,508 1,663 Allowance for loans and leases 7,432 8,635 10,955 % of loans and leases1 1.78 % 2.10 % 2.43 % # times annualized NCOs 3.61 x 3.07 x 3.71 x 14
• Net income of $3.0B increased significantly from 2Q20, as a result of improved revenue and lower credit costs • Revenue of $8.2B increased 4% from 2Q20, driven by increased card income and higher deposit balances • Provision expense improved $3.7B, driven by a reserve release, reflecting an improved macroeconomic outlook • Noninterest expense of $4.9B increased 3% from 2Q20, but decreased 5% from 1Q21 • Average deposits of $979B grew $168B, or 21%, from 2Q20 – 56% of deposits in checking accounts; 93% primary accounts5 – Average cost of deposits2 of 1.18% • Average loans and leases of $282B decreased $40B, or 12%, from 2Q20 – Ending loans and leases, excluding PPP, grew $2B vs. 1Q216 • Combined credit / debit card spend4 increased 40% from 2Q20 – Credit up 46%; debit up 36% • Consumer investment assets3 of $346B grew $100B, or 40%, from 2Q20, driven by market performance and inflows from new and existing clients – $21B of client flows since 2Q20 – 3.2MM client accounts, up 9% YoY • 7.5MM Consumer clients enrolled in Preferred Rewards, up ~1MM, or 14%, from 2Q20 – 99% annualized retention rate Consumer Banking 1 Represents a non-GAAP financial measure. For more information and a reconciliation to GAAP, see note B on slide 28. For important presentation information, see slide 31. 2 Cost of deposits calculated as annualized noninterest expense as a percentage of total average deposits within the Deposits sub-segment. 3 Consumer investment assets include client brokerage assets, deposit sweep balances and assets under management (AUM) in Consumer Banking. 4 Includes consumer credit card portfolios in Consumer Banking and GWIM. 5 Represents the percentage of consumer checking accounts that are estimated to be the customer’s primary account based on multiple relationship factors (e.g., linked to their direct deposit). 6 Represents a non-GAAP financial measure. Ending loans and leases were $282.9B, and $282.9B, and PPP balances were $9.9B, and $11.9B for 2Q21 and 1Q21. For important presentation information, see slide 31. Inc / (Dec) Summary Income Statement ($MM) 2Q21 1Q21 2Q20 Total revenue, net of interest expense $8,186 $117 $334 Provision (benefit) for credit losses (697) (80) (3,721) Net charge-offs 625 (185) (218) Reserve build (release) (1,322) 105 (3,503) Noninterest expense 4,859 (272) 124 Pretax income 4,024 469 3,931 Pretax, pre-provision income1 3,327 389 210 Income tax expense 986 115 963 Net income $3,038 $354 $2,968 Key Indicators ($B) 2Q21 1Q21 2Q20 Average deposits $979.1 $924.1 $810.7 Rate paid on deposits 0.02 % 0.03 % 0.07 % Cost of deposits2 1.18 1.42 1.43 Average loans and leases $281.8 $290.9 $321.6 Net charge-off ratio 0.89 % 1.13 % 1.05 % Consumer investment assets3 $345.8 $324.5 $246.1 Active mobile banking users (MM) 31.8 31.5 30.3 % Consumer sales through digital channels 44 % 49 % 47 % Number of financial centers 4,296 4,324 4,298 Combined credit /debit purchase volumes4 $200.3 $172.5 $143.3 Total consumer credit card risk-adjusted margin4 9.76 % 9.29 % 8.49 % Return on average allocated capital 32 28 1 Allocated capital $38.5 $38.5 $38.5 Efficiency ratio 59 % 64 % 60 % 15
Total Expense ($B) and Efficiency Business Leadership1 • #1 in customer satisfaction for U.S. Online(A) Banking among National Banks by J.D. Power(B) • #1 in customer satisfaction for U.S. Mobile Banking Apps among National Banks by J.D. Power(B) • #1 in customer satisfaction for U.S. Retail Banking Advice by J.D. Power(C) • #1 Consumer Deposit Market Share(D) • #1 Online Banking and Mobile Banking Functionality(E) • #1 in Prime Auto Credit Distribution of New Originations Among Peers(F) • Best Mortgage Lender for First Time Home Buyers(G) • Merrill Edge Self-Directed - #1 for Overall Client Experience, ESG Investing, Client Dashboard and Banking(H) Total Revenue ($B) Average Deposits ($B) Consumer Investment Assets ($B)3Average Loans and Leases ($B)2 Consumer Banking Trends Note: Amounts may not total due to rounding. 1 See slide 29 for business leadership sources. 2 Average loans and leases include PPP balances of $11.4B in 2Q21, $13.9B in 1Q21, $14.5B in 4Q20, $14.5B in 3Q20, and $9.2B in 2Q20. 3 End of period. Consumer investment assets include client brokerage assets, deposit sweep balances and AUM in Consumer Banking. $7.9 $8.0 $8.2 $8.1 $8.2 6.0 5.9 6.0 5.9 6.0 1.9 2.1 2.3 2.1 2.2 Net interest income Noninterest income 2Q20 3Q20 4Q20 1Q21 2Q21 $0.0 $2.5 $5.0 $7.5 $10.0 $4.7 $4.8 $4.8 $5.1 $4.9 60% 60% 58% 64% 59% Noninterest expense Efficiency ratio 2Q20 3Q20 4Q20 1Q21 2Q21 $0.0 $2.0 $4.0 $6.0 40% 50% 60% 70% 80% $811 $861 $885 $924 $979 446 480 492 515 550 364 381 393 409 429 Checking Other 2Q20 3Q20 4Q20 1Q21 2Q21 $0 $200 $400 $600 $800 $1,000 $1,200 $322 $319 $305 $291 $282 127 128 121 114 110 84 79 76 72 71 50 48 47 47 47 31 30 28 26 25 29 34 33 32 30 Residential mortgage Consumer credit card Vehicle lending Home equity Small business / other 2Q20 3Q20 4Q20 1Q21 2Q21 $0 $50 $100 $150 $200 $250 $300 $350 $246 $267 $306 $324 $346 Consumer Investment Assets 2Q20 3Q20 4Q20 1Q21 2Q21 $0 $100 $200 $300 $400 16
Record 40.5MM Digital Users, up 1.2MM Year-over-Year Note: Amounts may not total due to rounding. 1 Digital active users represents mobile and/or online 90-day active users. 2 Household adoption represents households with consumer bank login activities in a 90-day period. 3 Digital channel usage represents the total number of desktop and mobile banking sessions. 4 Digital appointments represent the number of client-scheduled appointments made via online, smartphone or tablet. 5 Includes Bank of America person-to-person payments sent and received through e-mail or mobile identification. Zelle users represent 90-day active users. Digital SalesDigital Banking Users and Households1,2 Digital Channel Usage3,4 Total Erica Users and Interactions (MM) Deposit Transactions by ChannelPerson-to-Person Payments (Zelle)5 1,822 1,961 2,346 2,567 460 583 665 871 Digital Channel Usage (MM) Digital Appointments (000s) 2Q18 2Q19 2Q20 2Q21 500 1,000 1,500 2,000 2,500 3,000 200 400 600 800 1,000 941 912 1,089 1,368 29% 29% 47% 44% Digital Unit Sales ('000s) Digital as a % of Total Sales 2Q18 2Q19 2Q20 2Q21 250 500 750 1,000 1,250 1,500 20% 30% 40% 50% 60% 70% 1.7 7.6 14.4 21.2 3.5 16.4 37.2 94.2 Erica Users Erica Interactions 2Q18 2Q19 2Q20 2Q21 0.0 5.0 10.0 15.0 20.0 25.0 0.0 25.0 50.0 75.0 100.0 125.0 150.0 35 69 117 189 $10 $18 $32 $57 Transacations (MM) Volume ($B) 2Q18 2Q19 2Q20 2Q21 0 50 100 150 200 $0 $20 $40 $60 $80 76% 78% 85% 85% 24% 22% 15% 15% Digital / ATM Financial Center 2Q18 2Q19 2Q20 2Q21 0% 25% 50% 75% 100% 35.7 37.3 39.3 40.5 61% 65% 68% 70% Digital Active Users (MM) Digital Household Adoption % 2Q18 2Q19 2Q20 2Q21 20.0 25.0 30.0 35.0 40.0 45.0 50% 60% 70% 80% 90% 100% 5.5 8.0 11.3 14.3 users (MM) 17
• Net income of $1.0B increased 59% from 2Q20 – Pretax margin of 26% in 2Q21 • Record revenue of $5.1B increased 14% compared to 2Q20, driven by record asset management fees • Noninterest expense of $3.8B increased 10% vs. 2Q20, mainly driven by higher revenue-related incentives • Record client balances of $3.7T increased 25% from 2Q20, driven by higher market valuations and positive client flows – Strong AUM flows of $12B in 2Q21 – Record quarterly loan balance growth of $8.3B • Average deposits of $333B increased $46B, or 16%, from 2Q20 • Average loans and leases of $194B increased $12B, or 6%, from 2Q20, driven by securities-based lending and custom lending – 45th consecutive quarter of average loan and lease balance growth • ~6,000 net new households in Merrill Lynch and ~475 net new relationships in Private Bank in 2Q21 • 79% of Merrill Lynch households actively using online or mobile platforms; record 81% of Private Bank clients digitally active across the enterprise – In 2Q21, a record 51% of eligible checks were deposited through automated channels by Merrill Lynch clients and 73% by Private Bank clients, up from 45% and 69%, respectively, in 2Q20 Global Wealth & Investment Management 1 Represents a non-GAAP financial measure. For more information and a reconciliation to GAAP, see note B on slide 28. For important presentation information, see slide 31. Inc / (Dec) Summary Income Statement ($MM) 2Q21 1Q21 2Q20 Total revenue, net of interest expense $5,065 $94 $640 Provision (benefit) for credit losses (62) 3 (198) Net charge-offs — (13) (9) Reserve build (release) (62) 16 (189) Noninterest expense 3,814 (54) 350 Pretax income 1,313 145 488 Pretax, pre-provision income1 1,251 148 290 Income tax expense 322 36 120 Net income $991 $109 $368 Key Indicators ($B) 2Q21 1Q21 2Q20 Average deposits $333.5 $326.4 $287.1 Rate paid on deposits 0.03 % 0.03 % 0.06 % Average loans and leases $194.0 $188.5 $182.2 Net charge-off ratio 0.00 % 0.03 % 0.02 % AUM flows $11.7 $18.2 $3.6 Pretax margin 26 % 23 % 19 % Return on average allocated capital 24 22 17 Allocated capital $16.5 $16.5 $15.0 18
Average Deposits ($B) Global Wealth & Investment Management Trends Business Leadership1 • #1 in Barron’s Top 1,200 ranked Financial Advisors and Top 100 Women Advisors (2021) • #1 in Forbes’ Top Next Generation Advisors (2020) and Best-in-State Wealth Advisors (2021) • Best Private Bank for Customer Service (North America)(I) • #1 in Financial Times Top 401K Retirement Plan Advisors (2020) • #1 in personal trust assets under management(J) • Digital Wealth Impact Innovation Award for Digital Engagement(K) • Wealth Tech Award – Best Use of Technology (North America) and Best Use of Technology for client acquisition (North America)(L) • Best Private Bank for Philanthropy Services (globally)(I) • Wealth Manager award for emerging technology(M) Note: Amounts may not total due to rounding. 1 See slide 29 for business leadership sources. 2 Average loans and leases include PPP balances of $0.7B in 2Q21, $0.7B in 1Q21, $0.8B in 4Q20, $0.8B in 3Q20, and $0.5B in 2Q20. 3 End of period. Loans and leases include margin receivables which are classified in customer and other receivables on the Consolidated Balance Sheet. 4 Managed deposits in investment accounts of $47B, $49B, $52B, $50B and $53B for 2Q21, 1Q21, 4Q20, 3Q20 and 2Q20, respectively, are included in both AUM and Deposits. Total client balances only include these balances once. Average Loans and Leases ($B)2 Total Revenue ($B) Client Balances ($B)3,4 $4.4 $4.5 $4.7 $5.0 $5.1 1.4 1.2 1.3 1.3 1.4 2.5 2.7 2.8 3.0 3.1 0.6 0.6 0.6 0.7 0.6 Net interest income Asset management fees Brokerage / Other 2Q20 3Q20 4Q20 1Q21 2Q21 $0.0 $2.0 $4.0 $6.0 1,220 1,286 1,408 1,467 1,549 1,282 1,345 1,480 1,535 1,619 292 296 322 333 331 187 190 191 193 201 2,928 3,067 3,350 3,480 3,653 AUM Brokerage / Other Deposits Loans and leases 2Q20 3Q20 4Q20 1Q21 2Q21 $0 $1,000 $2,000 $3,000 $4,000 $182 $186 $187 $188 $194 92 93 92 91 92 39 41 43 45 47 49 49 50 50 52 Consumer real estate Securities-based lending Custom lending Credit card / Other 2Q20 3Q20 4Q20 1Q21 2Q21 $0 $50 $100 $150 $200 $287 $292 $306 $326 $333 2Q20 3Q20 4Q20 1Q21 2Q21 $0 $50 $100 $150 $200 $250 $300 $350 19
Merrill Lynch Private Bank • 79% of households using digital across the enterprise, up from 77% in 2Q20 • Record 81% of clients digitally active across the enterprise, up from 78% in 2Q20 • Record 73% of households enrolled in eDelivery, up from 67% in 2Q20 • 2.8MM total logins across enterprise online and mobile platforms in 2Q21, up 6% YoY • National launch of fully digital Client Onboarding Experience (COBE) • New enhanced PB online experience deployed to all clients; delivers intuitive account views, improved navigation, simple access to holdings and activity • Erica-based AI capabilities integrated into new financial advisor workstation (97% adoption rate) • New My Financial Picture enables clients to link external accounts in PB online and mobile; provides advisory team visibility for holistic management • Expanded proactive client insights leveraging enterprise activity (3.2MM insights YTD) • Cash transfers across PB and BofA accounts now available in BofA online and mobile applications • ~1.5MM client advisor secure messages, up 23% YoY • 63K client advisor secure messages YTD vs. 55K for all of 2020 • 116K Webex meetings hosted by advisors in 2Q21, up 18% YoY • Erica interactions up 115%; record Zelle transactions, up 61% YoY • 279K forms signed digitally in 2Q; 349K secure texts exchanged, up 6% YoY • Launched Digital Champions Program nationally to drive awareness and engagement with digital capabilities internally and among clients Advisor-Led Client Interactions Powered by Digital Digital Adoption 20 Platform Modernization Advisor Client Engagement / Collaboration
• Net income of $2.4B increased $1.7B from 2Q20, driven primarily by lower provision for credit losses • Revenue of $5.1B was relatively flat vs. 2Q20, as higher leasing-related revenue and treasury fees were offset by lower NII • Total Corporation investment banking fees of $2.1B (excl. self-led) decreased $37MM, or 2%, from 2Q20 – Third best quarter for firm-wide fees post-merger, after 1Q21 and 2Q20 • Provision benefit of $0.8B reflects the current quarter reserve release, compared to a reserve build in the year-ago quarter, due to an improved macroeconomic outlook • Noninterest expense of $2.6B increased 17% from 2Q20, reflecting higher operating costs • Average deposits of $507B increased $13B, or 3%, from 2Q20, reflecting client liquidity and valued relationships • Average loans and leases of $325B decreased 23% from 2Q20, driven by continued paydowns Global Banking 1 Global Banking and Global Markets share in certain deal economics from investment banking, loan origination activities and sales and trading activities. 2 Represents a non-GAAP financial measure. For more information and a reconciliation to GAAP, see note B on slide 28. For important presentation information about this measure, see slide 31. Inc / (Dec) Summary Income Statement ($MM) 2Q21 1Q21 2Q20 Total revenue, net of interest expense1 $5,089 $456 ($2) Provision (benefit) for credit losses (831) 295 (2,704) Net charge-offs 3 (33) (327) Reserve build (release) (834) 328 (2,377) Noninterest expense 2,599 (182) 377 Pretax income 3,321 343 2,325 Pretax, pre-provision income2 2,490 638 (379) Income tax expense 897 93 628 Net income $2,424 $250 $1,697 Selected Revenue Items ($MM) 2Q21 1Q21 2Q20 Total Corporation IB fees (excl. self-led)1 $2,122 $2,246 $2,159 Global Banking IB fees1 1,173 1,172 1,181 Business Lending revenue 1,912 1,607 1,863 Global Transaction Services revenue 1,720 1,645 1,811 Key Indicators ($B) 2Q21 1Q21 2Q20 Average deposits $506.6 $487.0 $493.9 Average loans and leases 325.1 330.1 423.6 Net charge-off ratio 0.00 % 0.05 % 0.32 % Return on average allocated capital 23 21 7 Allocated capital $42.5 $42.5 $42.5 Efficiency ratio 51 % 60 % 44 % 21
Global Banking Trends Note: Amounts may not total due to rounding. 1 See slide 29 for business leadership sources. 2 Average loans and leases include PPP balances of $7.7B in 2Q21, $8.5B in 1Q21, $9.2B in 4Q20, $9.4B in 3Q20 and $6.2B in 2Q20. 3 Global Banking and Global Markets share in certain deal economics from investment banking, loan origination activities, and sales and trading activities. 4 Self-led deals of $97MM, $42MM, $44MM, $32MM and $45MM for 2Q21, 1Q21, 4Q20, 3Q20 and 2Q20, respectively are embedded within Debt, Equity, and Advisory. Total Corporation IB fees excludes self-led deals. 5 Advisory includes fees on debt and equity advisory and mergers and acquisitions. Average Deposits ($B)Business Leadership1 • Outstanding Financial Innovator 2021 - Global(N) • North America’s Best Bank for Small to Medium- sized Enterprises(O) • Best Global Bank for Cash Management and Payments & Collections(P) • Best Mobile Cash Management Software(P) • North America and Latin America’s Best Bank for Transaction Services(O) • 2020 Quality, Share and Excellence Awards for U.S. Large Corporate Banking and Cash Management(Q) • Relationships with 74% of the Global Fortune 500; 95% of the U.S. Fortune 1,000 (2020) Average Loans and Leases ($B)2 Total Revenue ($B)3 Total Corporation IB Fees ($MM)4 $5.1 $4.5 $4.8 $4.6 $5.1 2.4 2.0 2.0 2.0 2.0 1.2 1.0 1.1 1.2 1.2 0.7 0.8 0.9 0.8 0.9 0.8 0.7 0.8 0.6 1.0 Net interest income IB fees Service charges All other income 2Q20 3Q20 4Q20 1Q21 2Q21 $0.0 $2.0 $4.0 $6.0 1,058 740 718 988 1,110 740 664 641 900 702 406 397 549 400 407 $2,159 $1,769 $1,864 $2,246 $2,122 Debt Equity Advisory 2Q20 3Q20 4Q20 1Q21 2Q21 $0 $500 $1,000 $1,500 $2,000 $2,500 200 176 165 160 157 202 174 159 148 148 15 14 13 13 13 $424 $373 $346 $330 $325 Commercial Corporate Business Banking 2Q20 3Q20 4Q20 1Q21 2Q21 $0 $100 $200 $300 $400 $500 5 $494 $471 $478 $487 $507 Noninterest-bearing Interest bearing 2Q20 3Q20 4Q20 1Q21 2Q21 $0 $100 $200 $300 $400 $500 $600 51% 60% 65% 66% 68% 49% 40% 35% 34% 32% 22
Global Banking Digital Update 75% Digitally Active Clients across commercial, corporate, and business banking clients (CashPro® & BA360 platforms) 2% YoY1 Active Digital Clients 39% Sign-ins on the CashPro® App Rolling 12 months2 $248B Payment Approvals on the CashPro® App 54% in volume, rolling 12 months2 30% Global Digital Disbursements YTD YoY1 YTD 85%1of volume sent via Zelle® 5% Digital Wallet Enrollment for Commercial Cards YoY (North America)1 88% Checks Deposited on the CashPro® App Rolling 12 months2 ~22MM Intelligent Receivables Incoming receivables digitally matched in last 12 months1 Customer Engagement Online Mobile Connect API Volume 1 As of May 31, 2021. 2 As of June 30, 2021. Creating an innovative digital experience for our clients 23
Global Markets1 • Net income of $0.9B decreased $1.0B from 2Q20 – Excluding net DVA, net income of $0.9B decreased 55%3 • Revenue of $4.7B decreased 12% from 2Q20; excluding net DVA, revenue decreased 15%3 driven by lower sales and trading • Reported sales and trading revenue of $3.6B – FICC revenue of $1.9B – Equities revenue of $1.6B • Excluding net DVA, sales and trading revenue of $3.6B decreased 19% from 2Q203 – FICC revenue of $2.0B decreased 38%, as the prior year benefited from a robust trading environment for macro products and strengthening markets for credit products after their pandemic related sell-off, whereas markets were more benign in 2Q21 and weak for agency mortgages3 – Equities revenue of $1.6B increased 33%, driven by a stronger trading performance and increased client activity in derivatives and Asia3 • Noninterest expense of $3.5B increased 29% vs. 2Q20, driven by higher costs associated with processing state unemployment benefit claims and activity-related expenses in sales and trading • Average VaR of $77MM in 2Q215 1 The explanation for current period-over-period changes for Global Markets are the same for amounts including and excluding net DVA. 2 Global Banking and Global Markets share in certain deal economics from investment banking, loan origination activities, and sales and trading activities. 3 Represents a non-GAAP financial measure. Reported FICC sales and trading revenue was $1.9B, $3.2B and $2.9B for 2Q21, 1Q21 and 2Q20, respectively. Reported Equities sales and trading revenue was $1.6B, $1.8B and $1.2B for 2Q21, 1Q21 and 2Q20, respectively. See note E on slide 28 and slide 31 for important presentation information. 4 Represents a non-GAAP financial measure. For more information and a reconciliation to GAAP, see note B on slide 28. For important presentation information, see slide 31. 5 See note F on slide 28 for the definition of VaR. Inc / (Dec) Summary Income Statement ($MM) 2Q21 1Q21 2Q20 Total revenue, net of interest expense2 $4,720 ($1,478) ($630) Net DVA (34) (32) 227 Total revenue (excl. net DVA)2,3 4,754 (1,446) (857) Provision (benefit) for credit losses 22 27 (83) Net charge-offs — (3) — Reserve build (release) 22 30 (83) Noninterest expense 3,471 44 787 Pretax income 1,227 (1,549) (1,334) Pretax, pre-provision income4 1,249 (1,522) (1,417) Income tax expense 319 (403) (347) Net income $908 ($1,146) ($987) Net income (excl. net DVA)3 $934 ($1,122) ($1,159) Selected Revenue Items ($MM)2 2Q21 1Q21 2Q20 Sales and trading revenue $3,561 $5,078 $4,151 Sales and trading revenue (excl. net DVA)3 3,595 5,080 4,412 FICC (excl. net DVA)3 1,965 3,251 3,186 Equities (excl. net DVA)3 1,630 1,829 1,226 Global Markets IB fees 959 981 939 Key Indicators ($B) 2Q21 1Q21 2Q20 Average total assets $797.6 $723.3 $663.1 Average trading-related assets 566.8 501.8 467.0 Average 99% VaR ($MM)5 77 74 81 Average loans and leases 87.8 77.4 74.1 Return on average allocated capital 10 % 22 % 21 % Allocated capital $38.0 $38.0 $36.0 Efficiency ratio 74 % 55 % 50 % 24
Global Markets Trends and Revenue Mix Note: Amounts may not total due to rounding. 1 See slide 29 for business leadership sources. 2 Represents a non-GAAP financial measure. Reported sales and trading revenue was $8.6B, $8.8B, $6.7B and $7.6B for 2021 YTD, 2020 YTD, 2019 YTD and 2018 YTD, respectively. Reported FICC sales and trading revenue was $5.2B, $5.9B, $4.4B and $4.8B for 2021 YTD, 2020 YTD, 2019 YTD and 2018 YTD, respectively. Reported Equities sales and trading revenue was $3.5B, $2.9B, $2.3B and $2.8B for 2021 YTD, 2020 YTD, 2019 YTD and 2018 YTD, respectively. See note E on slide 28 and slide 31 for important presentation information. 3 Macro includes currencies, interest rates and commodities products. 4 See note F on slide 28 for definition of VaR. 2021 YTD Global Markets Revenue Mix (excl. net DVA)2 Business Leadership1 • CMBS Bank of the Year(R) • Equity Derivatives House of the Year(S) • #2 Global Research Firm(T) • #2 Global Fixed Income Research Team(T) • #1 Municipal Bonds Underwriter(U) 2021 YTD Total FICC S&T Revenue Mix (excl. net DVA)2 Total Sales and Trading Revenue (excl. net DVA) ($B)2 Average Trading-Related Assets ($B) and VaR ($MM)4 $7.7 $6.8 $8.7 $8.7 4.9 4.5 5.9 5.2 2.8 2.3 2.9 3.5 FICC Equities 2018 YTD 2019 YTD 2020 YTD 2021 YTD $0.0 $2.5 $5.0 $7.5 $10.0 $468 $485 $485 $534 $35 $36 $65 $76 Avg. trading-related assets Avg. VaR 2018 YTD 2019 YTD 2020 YTD 2021 YTD $0 $200 $400 $600 $0 $25 $50 $75 $100 65% 35% U.S. / Canada International 50% 50% Credit / Other Macro3 25
All Other1 • Net income of $1.9B increased $1.6B from 1Q21, driven by a $2.0B positive income tax adjustment related to the revaluation of U.K. deferred tax assets, triggered by a change in U.K. tax law3 • Revenue decreased QoQ, primarily due to higher Environmental, Social and Governance (ESG) investment activity and the absence of mark-to- market gains that benefited 1Q21 • Total Corporate effective tax rate (ETR) for the quarter was a benefit of 15%; excluding the U.K. tax revaluation, the ETR for the quarter would have been approximately 11%; further adjusting for ESG tax credits, the ETR would have been 25% 1 All Other primarily consists of asset and liability management (ALM) activities, liquidating businesses and certain expenses not otherwise allocated to a business segment. ALM activities encompass interest rate and foreign currency risk management activities for which substantially all of the results are allocated to our business segments. 2 Represents a non-GAAP financial measure. For more information and a reconciliation to GAAP, see note B on slide 28. For important presentation information, see slide 31. 3 Absent the $2.0B income tax adjustment, the reported 2Q21 net income (loss) would have been ($176MM) and a decline of $432MM from 1Q21. For important presentation information, see slide 31. Inc/(Dec) Summary Income Statement ($MM) 2Q21 1Q21 2Q20 Total revenue, net of interest expense ($1,484) ($545) ($1,220) Provision (benefit) for credit losses (53) (6) (32) Net charge-offs (33) 6 3 Reserve build (release) (20) (12) (35) Noninterest expense 302 (6) (3) Pretax income (1,733) (533) (1,185) Pretax, pre-provision income2 (1,786) (539) (1,217) Income tax (benefit) (3,596) (2,140) (2,830) Net income $1,863 $1,607 $1,645 26
Appendix
A Reserve Build (or Release) is calculated by subtracting net charge-offs for the period from the provision for credit losses recognized in that period. The period-end allowance, or reserve, for credit losses reflects the beginning of the period allowance adjusted for net charge-offs recorded in that period plus the provision for credit losses recognized in that period. B Pretax, pre-provision income (PTPI) at the consolidated level is a non-GAAP financial measure calculated by adjusting consolidated pretax income to add back provision for credit losses. Similarly, PTPI at the segment level is a non-GAAP financial measure calculated by adjusting the segments’ pretax income to add back provision for credit losses. Management believes that PTPI (both at the consolidated and segment level) is a useful financial measure as it enables an assessment of the Company’s ability to generate earnings to cover credit losses through a credit cycle as well as provides an additional basis for comparing the Company's results of operations between periods by isolating the impact of provision for credit losses, which can vary significantly between periods. See reconciliation below. Notes C Global Liquidity Sources (GLS) include cash and high-quality, liquid, unencumbered securities, inclusive of U.S. government securities, U.S. agency securities, U.S. agency MBS, and a select group of non-U.S. government and supranational securities, and other investment-grade securities, and are readily available to meet funding requirements as they arise. It does not include Federal Reserve Discount Window or Federal Home Loan Bank borrowing capacity. Transfers of liquidity among legal entities may be subject to certain regulatory and other restrictions. D The non-cash impairment charge related to the notice of termination of the merchant services joint venture reduced 3Q19 net income by $1.7B, which included an increase in noninterest expense a reduction in pretax income of $2.1B and a reduction in income tax expense of $373MM. The impairment charge negatively impacted the Company’s 3Q19 efficiency ratio by 909 bps. E Revenue for all periods included net debit valuation adjustments (DVA) on derivatives, as well as amortization of own credit portion of purchase discount and realized DVA on structured liabilities. Net DVA gains (losses) were ($34MM), ($2MM) and ($261MM) for 2Q21, 1Q21 and 2Q20, respectively, and ($36MM), $39MM, ($121MM) and ($115MM) for 2021 YTD, 2020 YTD, 2019 YTD and 2018 YTD, respectively. Net DVA gains (losses) included in FICC revenue were ($28MM), ($9MM) and ($245MM) for 2Q21, 1Q21 and 2Q20, respectively, and ($37MM), $29MM, ($109MM) and ($106MM) for 2021 YTD, 2020 YTD, 2019 YTD and 2018 YTD, respectively. Net DVA gains (losses) included in Equities revenue were ($6MM), $7MM and ($16MM) for 2Q21, 1Q21 and 2Q20, respectively, and $1MM, $10MM, ($12MM) and ($9MM) for 2021 YTD, 2020 YTD, 2019 YTD and 2018 YTD, respectively. F VaR model uses historical simulation approach based on three years of historical data and an expected shortfall methodology equivalent to a 99% confidence level. Using a 95% confidence level, average VaR was $32MM, $26MM and $21MM for 2Q21, 1Q21 and 2Q20, respectively, and $29MM, $24MM, $20MM and $19MM for 2021 YTD, 2020 YTD, 2019 YTD and 2018 YTD, respectively. $ Millions 2Q21 1Q21 2Q20 Pretax Income (GAAP) Provision for Credit Losses (GAAP) Pretax, Pre-provision Income Pretax Income (GAAP) Provision for Credit Losses (GAAP) Pretax, Pre-provision Income Pretax Income (GAAP) Provision for Credit Losses (GAAP) Pretax, Pre-provision Income Consumer Banking $ 4,024 $ (697) $ 3,327 $ 3,555 $ (617) $ 2,938 $ 93 $ 3,024 $ 3,117 Global Wealth & Investment Management 1,313 (62) 1,251 1,168 (65) 1,103 825 136 961 Global Banking 3,321 (831) 2,490 2,978 (1,126) 1,852 996 1,873 2,869 Global Markets 1,227 22 1,249 2,776 (5) 2,771 2,561 105 2,666 All Other (1,733) (53) (1,786) (1,200) (47) (1,247) (548) (21) (569) Total Corporation $ 8,042 $ (1,621) $ 6,421 $ 9,166 $ (1,860) $ 7,306 $ 3,799 $ 5,117 $ 8,916 28
Sources (A) Tied in the national segment of the J.D. Power 2021 U.S. Online Banking Satisfaction Study. (B) J.D. Power’s 2021 U.S. Banking Mobile App Satisfaction, U.S. Online Banking Satisfaction studies measure overall satisfaction with banking digital channels based on four factors: navigation; speed; visual appeal; and information/content. The studies are based on responses from 9,926 retail bank customers nationwide and were fielded in March-April 2021. For J.D. Power award information, visit jdpower.com/awards. (C) J.D. Power 2021 U.S. Retail Banking Advice Satisfaction Study. (D) Estimated retail consumer deposits based on June 30, 2020 FDIC deposit data. (E) Keynova 2Q21 Online Banker Scorecard; Keynova 1Q21 Mobile Banker Scorecard; Javelin 2021 Online and Mobile Banking Scorecards. (F) Experian AutoCount; Franchised Dealers; Largest percentage of 680+ Vantage 3.0 loan originations among key competitors as of April 2021. (G) Nerdwallet, 2021. (H) StockBrokers.com, January 2021. (I) Professional Wealth Management, a Financial Times publication, 2020. (J) Industry 1Q21 FDIC call reports. (K) AITE Group, 2021. (L) Professional Wealth Management, a Financial Times publication, 2021. (M) Celent, 2021. (N) Global Finance, 2021. (O) Euromoney, 2020. (P) Global Finance Treasury & Cash Management Awards, 2021. (Q) Greenwich, 2021. (R) GlobalCapital US Securitization Awards, 2020. (S) GlobalCapital, 2020. (T) Institutional Investor, 2020. (U) Refinitiv, 2021. 29
Forward-Looking Statements Bank of America Corporation (the “Company”) and its management may make certain statements that constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These statements can be identified by the fact that they do not relate strictly to historical or current facts. Forward-looking statements often use words such as “anticipates,” “targets,” “expects,” “hopes,” “estimates,” “intends,” “plans,” “goals,” “believes,” “continue” and other similar expressions or future or conditional verbs such as “will,” “may,” “might,” “should,” “would” and “could.” Forward-looking statements represent the Company’s current expectations, plans or forecasts of its future results, revenues, provision for credit losses, expenses, efficiency ratio, capital measures, strategy, and future business and economic conditions more generally, and other future matters. These statements are not guarantees of future results or performance and involve certain known and unknown risks, uncertainties and assumptions that are difficult to predict and are often beyond the Company’s control. Actual outcomes and results may differ materially from those expressed in, or implied by, any of these forward-looking statements. You should not place undue reliance on any forward-looking statement and should consider the following uncertainties and risks, as well as the risks and uncertainties more fully discussed under Item 1A. Risk Factors of the Company’s 2020 Annual Report on Form 10-K and in any of the Company’s subsequent Securities and Exchange Commission filings: the Company’s potential judgments, damages, penalties, fines and reputational damage resulting from pending or future litigation and regulatory investigations, proceedings and enforcement actions, including as a result of our participation in and execution of government programs related to the Coronavirus Disease 2019 (COVID-19) pandemic; the possibility that the Company's future liabilities may be in excess of its recorded liability and estimated range of possible loss for litigation, and regulatory and government actions; the possibility that the Company could face increased claims from one or more parties involved in mortgage securitizations; the Company’s ability to resolve representations and warranties repurchase and related claims; the risks related to the discontinuation of the London Interbank Offered Rate and other reference rates, including increased expenses and litigation and the effectiveness of hedging strategies; uncertainties about the financial stability and growth rates of non-U.S. jurisdictions, the risk that those jurisdictions may face difficulties servicing their sovereign debt, and related stresses on financial markets, currencies and trade, and the Company’s exposures to such risks, including direct, indirect and operational; the impact of U.S. and global interest rates, inflation, currency exchange rates, economic conditions, trade policies and tensions, including tariffs, and potential geopolitical instability; the impact of the interest rate environment on the Company’s business, financial condition and results of operations; the possibility that future credit losses may be higher than currently expected due to changes in economic assumptions, customer behavior, adverse developments with respect to U.S. or global economic conditions and other uncertainties; the Company’s concentration of credit risk; the Company's ability to achieve its expense targets and expectations regarding revenue, net interest income, provision for credit losses, net charge-offs, effective tax rate, loan growth or other projections; adverse changes to the Company’s credit ratings from the major credit rating agencies; an inability to access capital markets or maintain deposits or borrowing costs; estimates of the fair value and other accounting values, subject to impairment assessments, of certain of the Company’s assets and liabilities; the estimated or actual impact of changes in accounting standards or assumptions in applying those standards; uncertainty regarding the content, timing and impact of regulatory capital and liquidity requirements; the impact of adverse changes to total loss-absorbing capacity requirements, stress capital buffer requirements and/or global systemically important bank surcharges; the potential impact of actions of the Board of Governors of the Federal Reserve System on the Company’s capital plans; the effect of changes in or interpretations of income tax laws and regulations; the impact of implementation and compliance with U.S. and international laws, regulations and regulatory interpretations, including, but not limited to, recovery and resolution planning requirements, Federal Deposit Insurance Corporation assessments, the Volcker Rule, fiduciary standards, derivatives regulations and the Coronavirus Aid, Relief, and Economic Security Act and any similar or related rules and regulations; a failure or disruption in or breach of the Company’s operational or security systems or infrastructure, or those of third parties, including as a result of cyber-attacks or campaigns; the impact on the Company’s business, financial condition and results of operations from the United Kingdom's exit from the European Union; the impact of climate change; the impact of any future federal government shutdown and uncertainty regarding the federal government’s debt limit or changes in fiscal, monetary or regulatory policy; the emergence of widespread health emergencies or pandemics, including the magnitude and duration of the COVID-19 pandemic and its impact on the U.S. and/or global, financial market conditions and our business, results of operations, financial condition and prospects; the impact of natural disasters, extreme weather events, military conflict, terrorism or other geopolitical events; and other matters. Forward-looking statements speak only as of the date they are made, and the Company undertakes no obligation to update any forward-looking statement to reflect the impact of circumstances or events that arise after the date the forward-looking statement was made. 30
• The information contained herein is preliminary and based on Company data available at the time of the earnings presentation. It speaks only as of the particular date or dates included in the accompanying slides. Bank of America does not undertake an obligation to, and disclaims any duty to, update any of the information provided. • The Company may present certain metrics and ratios, including year-over-year comparisons of revenue, noninterest expense and pretax income, excluding certain items (e.g., DVA) that are in non-GAAP financial measures. The Company believes the use of these non-GAAP financial measures provides additional clarity in understanding its results of operations and trends. For more information about the non-GAAP financial measures contained herein, please see the presentation of the most directly comparable financial measures calculated in accordance with GAAP and accompanying reconciliations in the earnings press release for the quarter ended June 30, 2021, and other earnings-related information available through the Bank of America Investor Relations website at: https://investor.bankofamerica.com/quarterly-earnings. • The Corporation presents certain key financial and nonfinancial performance indicators that management uses when assessing consolidated and/or segment results. The Corporation believes this information is useful because it provides management with information about underlying operational performance and trends. KPIs are presented in 2Q21 Financial Results on slide 7 and on the Summary Income Statement for each segment. • The Company views net interest income and related ratios and analyses on a fully taxable-equivalent (FTE) basis, which when presented on a consolidated basis are non-GAAP financial measures. The Company believes managing the business with net interest income on an FTE basis provides investors with a more accurate picture of the interest margin for comparative purposes. The Company believes that the presentation allows for comparison of amounts from both taxable and tax-exempt sources and is consistent with industry practices. The FTE adjustment was $110MM, $111MM, $113MM, $114MM and $128MM for 2Q21, 1Q21, 4Q20, 3Q20 and 2Q20, respectively. • The Company allocates capital to its business segments using a methodology that considers the effect of regulatory capital requirements in addition to internal risk-based capital models. The Company's internal risk-based capital models use a risk-adjusted methodology incorporating each segment's credit, market, interest rate, business and operational risk components. Allocated capital is reviewed periodically and refinements are made based on multiple considerations that include, but are not limited to, risk-weighted assets measured under Basel 3 Standardized and Advanced approaches, business segment exposures and risk profile, and strategic plans. As a result of this process, in the first quarter of 2021, the Company adjusted the amount of capital being allocated to its business segments. Important Presentation Information 31
Supplemental Information
Second Quarter 2021
Current-period information is preliminary and based on company data available at the time of the earnings presentation. It speaks only as of the particular date or dates included in the accompanying pages. Bank of America Corporation (the Corporation) does not undertake an obligation to, and disclaims any duty to, update any of the information provided. Any forward-looking statements in this information are subject to the forward-looking language contained in the Corporation’s reports filed with the SEC pursuant to the Securities Exchange Act of 1934, which are available at the SEC’s website (www.sec.gov) or at the Corporation’s website (www.bankofamerica.com). The Corporation’s future financial performance is subject to risks and uncertainties as described in its SEC filings.
| Bank of America Corporation and Subsidiaries | |||||
| Table of Contents | Page | ||||
| Consumer Banking | |||||
| Global Wealth & Investment Management | |||||
| Global Banking | |||||
| Global Markets | |||||
| All Other | |||||
Key Performance Indicators | |||||
| The Corporation presents certain key financial and nonfinancial performance indicators that management uses when assessing consolidated and/or segment results. The Corporation believes this information is useful because it provides management with information about underlying operational performance and trends. Key performance indicators are presented in Consolidated Financial Highlights on page 2 and on the Key Indicators pages for each segment. | |||||
Business Segment Operations | |||||
The Corporation reports the results of operations of its four business segments and All Other on a fully taxable-equivalent (FTE) basis. Additionally, the results for the total Corporation as presented on pages 11 - 13 are reported on an FTE basis. | |||||
| Bank of America Corporation and Subsidiaries | ||||||||||||||||||||||||||||||||||||||||||||
| Consolidated Financial Highlights | ||||||||||||||||||||||||||||||||||||||||||||
| (In millions, except per share information) | ||||||||||||||||||||||||||||||||||||||||||||
| Six Months Ended June 30 | Second Quarter 2021 | First Quarter 2021 | Fourth Quarter 2020 | Third Quarter 2020 | Second Quarter 2020 | |||||||||||||||||||||||||||||||||||||||
| 2021 | 2020 | |||||||||||||||||||||||||||||||||||||||||||
| Income statement | ||||||||||||||||||||||||||||||||||||||||||||
| Net interest income | $ | 20,430 | $ | 22,978 | $ | 10,233 | $ | 10,197 | $ | 10,253 | $ | 10,129 | $ | 10,848 | ||||||||||||||||||||||||||||||
| Noninterest income | 23,857 | 22,115 | 11,233 | 12,624 | 9,846 | 10,207 | 11,478 | |||||||||||||||||||||||||||||||||||||
| Total revenue, net of interest expense | 44,287 | 45,093 | 21,466 | 22,821 | 20,099 | 20,336 | 22,326 | |||||||||||||||||||||||||||||||||||||
| Provision for credit losses | (3,481) | 9,878 | (1,621) | (1,860) | 53 | 1,389 | 5,117 | |||||||||||||||||||||||||||||||||||||
| Noninterest expense | 30,560 | 26,885 | 15,045 | 15,515 | 13,927 | 14,401 | 13,410 | |||||||||||||||||||||||||||||||||||||
| Income before income taxes | 17,208 | 8,330 | 8,042 | 9,166 | 6,119 | 4,546 | 3,799 | |||||||||||||||||||||||||||||||||||||
Pretax, pre-provision income (1) | 13,727 | 18,208 | 6,421 | 7,306 | 6,172 | 5,935 | 8,916 | |||||||||||||||||||||||||||||||||||||
| Income tax expense | (66) | 787 | (1,182) | 1,116 | 649 | (335) | 266 | |||||||||||||||||||||||||||||||||||||
| Net income | 17,274 | 7,543 | 9,224 | 8,050 | 5,470 | 4,881 | 3,533 | |||||||||||||||||||||||||||||||||||||
| Preferred stock dividends | 750 | 718 | 260 | 490 | 262 | 441 | 249 | |||||||||||||||||||||||||||||||||||||
| Net income applicable to common shareholders | 16,524 | 6,825 | 8,964 | 7,560 | 5,208 | 4,440 | 3,284 | |||||||||||||||||||||||||||||||||||||
| Diluted earnings per common share | 1.90 | 0.77 | 1.03 | 0.86 | 0.59 | 0.51 | 0.37 | |||||||||||||||||||||||||||||||||||||
| Average diluted common shares issued and outstanding | 8,776.2 | 8,813.3 | 8,735.5 | 8,755.6 | 8,785.0 | 8,777.5 | 8,768.1 | |||||||||||||||||||||||||||||||||||||
| Dividends paid per common share | $ | 0.36 | $ | 0.36 | $ | 0.18 | $ | 0.18 | $ | 0.18 | $ | 0.18 | $ | 0.18 | ||||||||||||||||||||||||||||||
| Performance ratios | ||||||||||||||||||||||||||||||||||||||||||||
| Return on average assets | 1.18 | % | 0.58 | % | 1.23 | % | 1.13 | % | 0.78 | % | 0.71 | % | 0.53 | % | ||||||||||||||||||||||||||||||
| Return on average common shareholders’ equity | 13.31 | 5.67 | 14.33 | 12.28 | 8.39 | 7.24 | 5.44 | |||||||||||||||||||||||||||||||||||||
| Return on average shareholders’ equity | 12.70 | 5.71 | 13.47 | 11.91 | 8.03 | 7.26 | 5.34 | |||||||||||||||||||||||||||||||||||||
Return on average tangible common shareholders’ equity (2) | 18.51 | 7.97 | 19.90 | 17.08 | 11.73 | 10.16 | 7.63 | |||||||||||||||||||||||||||||||||||||
Return on average tangible shareholders’ equity (2) | 17.07 | 7.76 | 18.11 | 16.01 | 10.84 | 9.84 | 7.23 | |||||||||||||||||||||||||||||||||||||
| Efficiency ratio | 69.00 | 59.62 | 70.09 | 67.98 | 69.29 | 70.81 | 60.06 | |||||||||||||||||||||||||||||||||||||
| At period end | ||||||||||||||||||||||||||||||||||||||||||||
| Book value per share of common stock | $ | 29.89 | $ | 27.96 | $ | 29.89 | $ | 29.07 | $ | 28.72 | $ | 28.33 | $ | 27.96 | ||||||||||||||||||||||||||||||
Tangible book value per share of common stock (2) | 21.61 | 19.90 | 21.61 | 20.90 | 20.60 | 20.23 | 19.90 | |||||||||||||||||||||||||||||||||||||
| Market capitalization | 349,925 | 205,772 | 349,925 | 332,337 | 262,206 | 208,656 | 205,772 | |||||||||||||||||||||||||||||||||||||
| Number of financial centers - U.S. | 4,296 | 4,298 | 4,296 | 4,324 | 4,312 | 4,309 | 4,298 | |||||||||||||||||||||||||||||||||||||
| Number of branded ATMs - U.S. | 16,795 | 16,862 | 16,795 | 16,905 | 16,904 | 16,962 | 16,862 | |||||||||||||||||||||||||||||||||||||
| Headcount | 211,608 | 212,796 | 211,608 | 212,201 | 212,505 | 211,225 | 212,796 | |||||||||||||||||||||||||||||||||||||
(1) Pretax, pre-provision income (PTPI) is a non-GAAP financial measure calculated by adjusting pretax income to add back provision for credit losses. Management believes that PTPI is a useful financial measure because it enables an assessment of the Corporation's ability to generate earnings to cover credit losses through a credit cycle.
(2) Tangible equity ratios and tangible book value per share of common stock are non-GAAP financial measures. We believe the use of ratios that utilize tangible equity provides additional useful information because they present measures of those assets that can generate income. Tangible book value per share provides additional useful information about the level of tangible assets in relation to outstanding shares of common stock. (See Exhibit A: Non-GAAP Reconciliations - Reconciliations to GAAP Financial Measures on page 33.)
Certain prior-period amounts have been reclassified to conform to current-period presentation.
| Current-period information is preliminary and based on company data available at the time of the presentation. | 2 | ||||
| Bank of America Corporation and Subsidiaries | |||||||||||||||||||||||||||||||||||||||||||||||
| Consolidated Statement of Income | |||||||||||||||||||||||||||||||||||||||||||||||
| (In millions, except per share information) | |||||||||||||||||||||||||||||||||||||||||||||||
| Six Months Ended June 30 | Second Quarter 2021 | First Quarter 2021 | Fourth Quarter 2020 | Third Quarter 2020 | Second Quarter 2020 | ||||||||||||||||||||||||||||||||||||||||||
| 2021 | 2020 | ||||||||||||||||||||||||||||||||||||||||||||||
| Net interest income | |||||||||||||||||||||||||||||||||||||||||||||||
| Interest income | $ | 22,782 | $ | 28,638 | $ | 11,387 | $ | 11,395 | $ | 11,461 | $ | 11,486 | $ | 12,540 | |||||||||||||||||||||||||||||||||
| Interest expense | 2,352 | 5,660 | 1,154 | 1,198 | 1,208 | 1,357 | 1,692 | ||||||||||||||||||||||||||||||||||||||||
| Net interest income | 20,430 | 22,978 | 10,233 | 10,197 | 10,253 | 10,129 | 10,848 | ||||||||||||||||||||||||||||||||||||||||
| Noninterest income | |||||||||||||||||||||||||||||||||||||||||||||||
| Fees and commissions | 19,241 | 16,713 | 9,705 | 9,536 | 9,061 | 8,777 | 8,392 | ||||||||||||||||||||||||||||||||||||||||
| Market making and similar activities | 5,355 | 5,294 | 1,826 | 3,529 | 1,372 | 1,689 | 2,487 | ||||||||||||||||||||||||||||||||||||||||
| Other income (loss) | (739) | 108 | (298) | (441) | (587) | (259) | 599 | ||||||||||||||||||||||||||||||||||||||||
| Total noninterest income | 23,857 | 22,115 | 11,233 | 12,624 | 9,846 | 10,207 | 11,478 | ||||||||||||||||||||||||||||||||||||||||
| Total revenue, net of interest expense | 44,287 | 45,093 | 21,466 | 22,821 | 20,099 | 20,336 | 22,326 | ||||||||||||||||||||||||||||||||||||||||
| Provision for credit losses | (3,481) | 9,878 | (1,621) | (1,860) | 53 | 1,389 | 5,117 | ||||||||||||||||||||||||||||||||||||||||
| Noninterest expense | |||||||||||||||||||||||||||||||||||||||||||||||
| Compensation and benefits | 18,389 | 16,335 | 8,653 | 9,736 | 8,190 | 8,200 | 7,994 | ||||||||||||||||||||||||||||||||||||||||
| Occupancy and equipment | 3,589 | 3,504 | 1,759 | 1,830 | 1,839 | 1,798 | 1,802 | ||||||||||||||||||||||||||||||||||||||||
| Information processing and communications | 2,873 | 2,474 | 1,448 | 1,425 | 1,415 | 1,333 | 1,265 | ||||||||||||||||||||||||||||||||||||||||
| Product delivery and transaction related | 1,953 | 1,588 | 976 | 977 | 915 | 930 | 811 | ||||||||||||||||||||||||||||||||||||||||
| Marketing | 1,181 | 930 | 810 | 371 | 463 | 308 | 492 | ||||||||||||||||||||||||||||||||||||||||
| Professional fees | 829 | 756 | 426 | 403 | 488 | 450 | 381 | ||||||||||||||||||||||||||||||||||||||||
| Other general operating | 1,746 | 1,298 | 973 | 773 | 617 | 1,382 | 665 | ||||||||||||||||||||||||||||||||||||||||
| Total noninterest expense | 30,560 | 26,885 | 15,045 | 15,515 | 13,927 | 14,401 | 13,410 | ||||||||||||||||||||||||||||||||||||||||
| Income before income taxes | 17,208 | 8,330 | 8,042 | 9,166 | 6,119 | 4,546 | 3,799 | ||||||||||||||||||||||||||||||||||||||||
| Income tax expense | (66) | 787 | (1,182) | 1,116 | 649 | (335) | 266 | ||||||||||||||||||||||||||||||||||||||||
| Net income | $ | 17,274 | $ | 7,543 | $ | 9,224 | $ | 8,050 | $ | 5,470 | $ | 4,881 | $ | 3,533 | |||||||||||||||||||||||||||||||||
| Preferred stock dividends | 750 | 718 | 260 | 490 | 262 | 441 | 249 | ||||||||||||||||||||||||||||||||||||||||
| Net income applicable to common shareholders | $ | 16,524 | $ | 6,825 | $ | 8,964 | $ | 7,560 | $ | 5,208 | $ | 4,440 | $ | 3,284 | |||||||||||||||||||||||||||||||||
| Per common share information | |||||||||||||||||||||||||||||||||||||||||||||||
| Earnings | $ | 1.91 | $ | 0.78 | $ | 1.04 | $ | 0.87 | $ | 0.60 | $ | 0.51 | $ | 0.38 | |||||||||||||||||||||||||||||||||
| Diluted earnings | 1.90 | 0.77 | 1.03 | 0.86 | 0.59 | 0.51 | 0.37 | ||||||||||||||||||||||||||||||||||||||||
| Average common shares issued and outstanding | 8,660.4 | 8,777.6 | 8,620.8 | 8,700.1 | 8,724.9 | 8,732.9 | 8,739.9 | ||||||||||||||||||||||||||||||||||||||||
| Average diluted common shares issued and outstanding | 8,776.2 | 8,813.3 | 8,735.5 | 8,755.6 | 8,785.0 | 8,777.5 | 8,768.1 | ||||||||||||||||||||||||||||||||||||||||
| Consolidated Statement of Comprehensive Income | ||||||||||||||||||||||||||||||||||||||||||||
| (Dollars in millions) | ||||||||||||||||||||||||||||||||||||||||||||
| Six Months Ended June 30 | Second Quarter 2021 | First Quarter 2021 | Fourth Quarter 2020 | Third Quarter 2020 | Second Quarter 2020 | |||||||||||||||||||||||||||||||||||||||
| 2021 | 2020 | |||||||||||||||||||||||||||||||||||||||||||
| Net income | $ | 17,274 | $ | 7,543 | $ | 9,224 | $ | 8,050 | $ | 5,470 | $ | 4,881 | $ | 3,533 | ||||||||||||||||||||||||||||||
| Other comprehensive income (loss), net-of-tax: | ||||||||||||||||||||||||||||||||||||||||||||
| Net change in debt securities | (1,090) | 4,693 | (250) | (840) | 5 | 101 | (102) | |||||||||||||||||||||||||||||||||||||
| Net change in debit valuation adjustments | 265 | 53 | 149 | 116 | (493) | (58) | (1,293) | |||||||||||||||||||||||||||||||||||||
| Net change in derivatives | (699) | 732 | 415 | (1,114) | 18 | 76 | 315 | |||||||||||||||||||||||||||||||||||||
| Employee benefit plan adjustments | 120 | 100 | 69 | 51 | (242) | 44 | 57 | |||||||||||||||||||||||||||||||||||||
| Net change in foreign currency translation adjustments | (3) | (107) | 26 | (29) | 34 | 21 | (19) | |||||||||||||||||||||||||||||||||||||
| Other comprehensive income (loss) | (1,407) | 5,471 | 409 | (1,816) | (678) | 184 | (1,042) | |||||||||||||||||||||||||||||||||||||
| Comprehensive income | $ | 15,867 | $ | 13,014 | $ | 9,633 | $ | 6,234 | $ | 4,792 | $ | 5,065 | $ | 2,491 | ||||||||||||||||||||||||||||||
Certain prior-period amounts have been reclassified to conform to current-period presentation.
| Current-period information is preliminary and based on company data available at the time of the presentation. | 3 | ||||
| Bank of America Corporation and Subsidiaries | ||||||||||||||||||||||||||||||||||||||||||||
| Net Interest Income and Noninterest Income | ||||||||||||||||||||||||||||||||||||||||||||
| (Dollars in millions) | ||||||||||||||||||||||||||||||||||||||||||||
| Six Months Ended June 30 | Second Quarter 2021 | First Quarter 2021 | Fourth Quarter 2020 | Third Quarter 2020 | Second Quarter 2020 | |||||||||||||||||||||||||||||||||||||||
| 2021 | 2020 | |||||||||||||||||||||||||||||||||||||||||||
| Net interest income | ||||||||||||||||||||||||||||||||||||||||||||
| Interest income | ||||||||||||||||||||||||||||||||||||||||||||
| Loans and leases | $ | 14,357 | $ | 18,532 | $ | 7,123 | $ | 7,234 | $ | 7,603 | $ | 7,894 | $ | 8,569 | ||||||||||||||||||||||||||||||
| Debt securities | 5,550 | 5,283 | 2,820 | 2,730 | 2,377 | 2,130 | 2,440 | |||||||||||||||||||||||||||||||||||||
Federal funds sold and securities borrowed or purchased under agreements to resell | (49) | 845 | (42) | (7) | 3 | 55 | 26 | |||||||||||||||||||||||||||||||||||||
| Trading account assets | 1,826 | 2,255 | 954 | 872 | 925 | 948 | 1,008 | |||||||||||||||||||||||||||||||||||||
| Other interest income | 1,098 | 1,723 | 532 | 566 | 553 | 459 | 497 | |||||||||||||||||||||||||||||||||||||
| Total interest income | 22,782 | 28,638 | 11,387 | 11,395 | 11,461 | 11,486 | 12,540 | |||||||||||||||||||||||||||||||||||||
| Interest expense | ||||||||||||||||||||||||||||||||||||||||||||
| Deposits | 261 | 1,557 | 128 | 133 | 159 | 227 | 373 | |||||||||||||||||||||||||||||||||||||
| Short-term borrowings | (164) | 1,048 | (85) | (79) | (37) | (24) | (72) | |||||||||||||||||||||||||||||||||||||
| Trading account liabilities | 539 | 552 | 293 | 246 | 210 | 212 | 223 | |||||||||||||||||||||||||||||||||||||
| Long-term debt | 1,716 | 2,503 | 818 | 898 | 876 | 942 | 1,168 | |||||||||||||||||||||||||||||||||||||
| Total interest expense | 2,352 | 5,660 | 1,154 | 1,198 | 1,208 | 1,357 | 1,692 | |||||||||||||||||||||||||||||||||||||
| Net interest income | $ | 20,430 | $ | 22,978 | $ | 10,233 | $ | 10,197 | $ | 10,253 | $ | 10,129 | $ | 10,848 | ||||||||||||||||||||||||||||||
| Noninterest income | ||||||||||||||||||||||||||||||||||||||||||||
| Fees and commissions | ||||||||||||||||||||||||||||||||||||||||||||
| Card income | ||||||||||||||||||||||||||||||||||||||||||||
Interchange fees (1) | $ | 2,277 | $ | 1,622 | $ | 1,210 | $ | 1,067 | $ | 1,160 | $ | 1,172 | $ | 830 | ||||||||||||||||||||||||||||||
| Other card income | 744 | 899 | 376 | 368 | 407 | 396 | 419 | |||||||||||||||||||||||||||||||||||||
| Total card income | 3,021 | 2,521 | 1,586 | 1,435 | 1,567 | 1,568 | 1,249 | |||||||||||||||||||||||||||||||||||||
| Service charges | ||||||||||||||||||||||||||||||||||||||||||||
| Deposit-related fees | 3,052 | 2,926 | 1,557 | 1,495 | 1,550 | 1,515 | 1,299 | |||||||||||||||||||||||||||||||||||||
| Lending-related fees | 614 | 539 | 317 | 297 | 309 | 302 | 263 | |||||||||||||||||||||||||||||||||||||
| Total service charges | 3,666 | 3,465 | 1,874 | 1,792 | 1,859 | 1,817 | 1,562 | |||||||||||||||||||||||||||||||||||||
| Investment and brokerage services | ||||||||||||||||||||||||||||||||||||||||||||
| Asset management fees | 6,158 | 5,165 | 3,156 | 3,002 | 2,803 | 2,740 | 2,483 | |||||||||||||||||||||||||||||||||||||
| Brokerage fees | 2,028 | 2,015 | 967 | 1,061 | 968 | 883 | 939 | |||||||||||||||||||||||||||||||||||||
Total investment and brokerage services | 8,186 | 7,180 | 4,123 | 4,063 | 3,771 | 3,623 | 3,422 | |||||||||||||||||||||||||||||||||||||
| Investment banking fees | ||||||||||||||||||||||||||||||||||||||||||||
| Underwriting income | 2,860 | 2,371 | 1,314 | 1,546 | 1,088 | 1,239 | 1,523 | |||||||||||||||||||||||||||||||||||||
| Syndication fees | 701 | 501 | 401 | 300 | 227 | 133 | 230 | |||||||||||||||||||||||||||||||||||||
| Financial advisory services | 807 | 675 | 407 | 400 | 549 | 397 | 406 | |||||||||||||||||||||||||||||||||||||
| Total investment banking fees | 4,368 | 3,547 | 2,122 | 2,246 | 1,864 | 1,769 | 2,159 | |||||||||||||||||||||||||||||||||||||
| Total fees and commissions | 19,241 | 16,713 | 9,705 | 9,536 | 9,061 | 8,777 | 8,392 | |||||||||||||||||||||||||||||||||||||
| Market making and similar activities | 5,355 | 5,294 | 1,826 | 3,529 | 1,372 | 1,689 | 2,487 | |||||||||||||||||||||||||||||||||||||
| Other income (loss) | (739) | 108 | (298) | (441) | (587) | (259) | 599 | |||||||||||||||||||||||||||||||||||||
| Total noninterest income | $ | 23,857 | $ | 22,115 | $ | 11,233 | $ | 12,624 | $ | 9,846 | $ | 10,207 | $ | 11,478 | ||||||||||||||||||||||||||||||
(1)Gross interchange fees and merchant income were $5.4 billion and $4.3 billion and are presented net of $3.1 billion and $2.7 billion of expenses for rewards and partner payments as well as certain other card costs for the six months ended June 30, 2021 and 2020. Gross interchange fees and merchant income were $2.9 billion, $2.5 billion, $2.5 billion, $2.4 billion and $2.0 billion and are presented net of $1.7 billion, $1.4 billion, $1.5 billion, $1.4 billion and $1.2 billion of expenses for rewards and partner payments as well as certain other card costs for the second and first quarters of 2021 and the fourth, third and second quarters of 2020, respectively.
Certain prior-period amounts have been reclassified to conform to current-period presentation.
| Current-period information is preliminary and based on company data available at the time of the presentation. | 4 | ||||
| Bank of America Corporation and Subsidiaries | ||||||||||||||||||||
| Consolidated Balance Sheet | ||||||||||||||||||||
| (Dollars in millions) | ||||||||||||||||||||
| June 30 2021 | March 31 2021 | June 30 2020 | ||||||||||||||||||
| Assets | ||||||||||||||||||||
| Cash and due from banks | $ | 30,327 | $ | 33,560 | $ | 33,915 | ||||||||||||||
| Interest-bearing deposits with the Federal Reserve, non-U.S. central banks and other banks | 229,703 | 292,541 | 255,431 | |||||||||||||||||
| Cash and cash equivalents | 260,030 | 326,101 | 289,346 | |||||||||||||||||
| Time deposits placed and other short-term investments | 7,356 | 7,859 | 6,071 | |||||||||||||||||
| Federal funds sold and securities borrowed or purchased under agreements to resell | 268,594 | 259,147 | 451,179 | |||||||||||||||||
| Trading account assets | 291,733 | 276,881 | 226,465 | |||||||||||||||||
| Derivative assets | 41,498 | 45,898 | 45,184 | |||||||||||||||||
| Debt securities: | ||||||||||||||||||||
| Carried at fair value | 288,913 | 280,912 | 202,912 | |||||||||||||||||
| Held-to-maturity, at cost | 651,401 | 576,000 | 268,949 | |||||||||||||||||
| Total debt securities | 940,314 | 856,912 | 471,861 | |||||||||||||||||
| Loans and leases | 918,928 | 903,088 | 998,944 | |||||||||||||||||
| Allowance for loan and lease losses | (14,095) | (16,168) | (19,389) | |||||||||||||||||
| Loans and leases, net of allowance | 904,833 | 886,920 | 979,555 | |||||||||||||||||
| Premises and equipment, net | 10,747 | 10,803 | 10,790 | |||||||||||||||||
| Goodwill | 69,023 | 68,951 | 68,951 | |||||||||||||||||
| Loans held-for-sale | 8,277 | 7,895 | 7,381 | |||||||||||||||||
| Customer and other receivables | 67,967 | 66,404 | 55,392 | |||||||||||||||||
| Other assets | 159,522 | 156,221 | 129,513 | |||||||||||||||||
| Total assets | $ | 3,029,894 | $ | 2,969,992 | $ | 2,741,688 | ||||||||||||||
| Liabilities | ||||||||||||||||||||
| Deposits in U.S. offices: | ||||||||||||||||||||
| Noninterest-bearing | $ | 719,481 | $ | 703,822 | $ | 580,667 | ||||||||||||||
| Interest-bearing | 1,076,355 | 1,079,551 | 1,048,012 | |||||||||||||||||
| Deposits in non-U.S. offices: | ||||||||||||||||||||
| Noninterest-bearing | 25,190 | 22,423 | 15,082 | |||||||||||||||||
| Interest-bearing | 88,116 | 79,142 | 74,905 | |||||||||||||||||
| Total deposits | 1,909,142 | 1,884,938 | 1,718,666 | |||||||||||||||||
| Federal funds purchased and securities loaned or sold under agreements to repurchase | 213,787 | 199,443 | 179,024 | |||||||||||||||||
| Trading account liabilities | 110,084 | 102,788 | 80,912 | |||||||||||||||||
| Derivative liabilities | 38,916 | 42,325 | 42,511 | |||||||||||||||||
| Short-term borrowings | 21,635 | 21,724 | 17,998 | |||||||||||||||||
| Accrued expenses and other liabilities | 184,607 | 193,563 | 175,302 | |||||||||||||||||
| Long-term debt | 274,604 | 251,211 | 261,638 | |||||||||||||||||
| Total liabilities | 2,752,775 | 2,695,992 | 2,476,051 | |||||||||||||||||
| Shareholders’ equity | ||||||||||||||||||||
Preferred stock, $0.01 par value; authorized – 100,000,000 shares; issued and outstanding – 3,887,686, 3,923,686 and 3,887,440 shares | 23,441 | 24,319 | 23,427 | |||||||||||||||||
Common stock and additional paid-in capital, $0.01 par value; authorized – 12,800,000,000 shares; issued and outstanding – 8,487,151,465, 8,589,731,470 and 8,664,081,625 shares | 79,242 | 83,071 | 85,794 | |||||||||||||||||
| Retained earnings | 177,499 | 170,082 | 157,578 | |||||||||||||||||
| Accumulated other comprehensive income (loss) | (3,063) | (3,472) | (1,162) | |||||||||||||||||
| Total shareholders’ equity | 277,119 | 274,000 | 265,637 | |||||||||||||||||
| Total liabilities and shareholders’ equity | $ | 3,029,894 | $ | 2,969,992 | $ | 2,741,688 | ||||||||||||||
| Assets of consolidated variable interest entities included in total assets above (isolated to settle the liabilities of the variable interest entities) | ||||||||||||||||||||
| Trading account assets | $ | 4,418 | $ | 4,530 | $ | 4,390 | ||||||||||||||
| Loans and leases | 16,970 | 19,346 | 25,532 | |||||||||||||||||
| Allowance for loan and lease losses | (1,047) | (1,261) | (1,869) | |||||||||||||||||
| Loans and leases, net of allowance | 15,923 | 18,085 | 23,663 | |||||||||||||||||
| All other assets | 1,134 | 1,387 | 563 | |||||||||||||||||
| Total assets of consolidated variable interest entities | $ | 21,475 | $ | 24,002 | $ | 28,616 | ||||||||||||||
| Liabilities of consolidated variable interest entities included in total liabilities above | ||||||||||||||||||||
| Short-term borrowings | $ | 324 | $ | 338 | $ | 739 | ||||||||||||||
| Long-term debt | 5,137 | 5,286 | 6,861 | |||||||||||||||||
| All other liabilities | 15 | 11 | 22 | |||||||||||||||||
| Total liabilities of consolidated variable interest entities | $ | 5,476 | $ | 5,635 | $ | 7,622 | ||||||||||||||
Certain prior-period amounts have been reclassified to conform to current-period presentation.
| Current-period information is preliminary and based on company data available at the time of the presentation. | 5 | ||||
| Bank of America Corporation and Subsidiaries | |||||||||||||||||
| Capital Management | |||||||||||||||||
| (Dollars in millions) | |||||||||||||||||
| June 30 2021 | March 31 2021 | June 30 2020 | |||||||||||||||
Risk-based capital metrics (1): | |||||||||||||||||
| Standardized Approach | |||||||||||||||||
| Common equity tier 1 capital | $ | 178,818 | $ | 177,789 | $ | 171,020 | |||||||||||
| Tier 1 capital | 202,245 | 201,224 | 194,441 | ||||||||||||||
| Total capital | 234,484 | 236,000 | 233,764 | ||||||||||||||
| Risk-weighted assets | 1,552,869 | 1,508,057 | 1,475,133 | ||||||||||||||
| Common equity tier 1 capital ratio | 11.5 | % | 11.8 | % | 11.6 | % | |||||||||||
| Tier 1 capital ratio | 13.0 | 13.3 | 13.2 | ||||||||||||||
| Total capital ratio | 15.1 | 15.6 | 15.8 | ||||||||||||||
| Advanced Approaches | |||||||||||||||||
| Common equity tier 1 capital | $ | 178,818 | $ | 177,789 | $ | 171,020 | |||||||||||
| Tier 1 capital | 202,245 | 201,224 | 194,441 | ||||||||||||||
| Total capital | 227,740 | 227,693 | 223,225 | ||||||||||||||
| Risk-weighted assets | 1,380,382 | 1,365,368 | 1,503,565 | ||||||||||||||
| Common equity tier 1 capital ratio | 13.0 | % | 13.0 | % | 11.4 | % | |||||||||||
| Tier 1 capital ratio | 14.7 | 14.7 | 12.9 | ||||||||||||||
| Total capital ratio | 16.5 | 16.7 | 14.8 | ||||||||||||||
Leverage-based metrics (1): | |||||||||||||||||
| Adjusted average assets | $ | 2,938,476 | $ | 2,805,021 | $ | 2,632,225 | |||||||||||
| Tier 1 leverage ratio | 6.9 | % | 7.2 | % | 7.4 | % | |||||||||||
| Supplementary leverage exposure | $ | 3,443,870 | $ | 2,868,314 | $ | 2,756,799 | |||||||||||
| Supplementary leverage ratio | 5.9 | % | 7.0 | % | 7.1 | % | |||||||||||
Tangible equity ratio (2) | 7.0 | 7.0 | 7.3 | ||||||||||||||
Tangible common equity ratio (2) | 6.2 | 6.2 | 6.5 | ||||||||||||||
(1)Regulatory capital ratios at June 30, 2021 are preliminary. We report regulatory capital ratios under both the Standardized and Advanced approaches. The approach that yields the lower ratio is used to assess capital adequacy. Supplementary leverage exposure at March 31, 2021 and June 30, 2020 excludes U.S. Treasury securities and deposits at Federal Reserve Banks.
(2)Tangible equity ratio equals period-end tangible shareholders’ equity divided by period-end tangible assets. Tangible common equity ratio equals period-end tangible common shareholders’ equity divided by period-end tangible assets. Tangible shareholders’ equity and tangible assets are non-GAAP financial measures. We believe the use of ratios that utilize tangible equity provides additional useful information because they present measures of those assets that can generate income. (See Exhibit A: Non-GAAP Reconciliations - Reconciliation to GAAP Financial Measures on page 33.)
Certain prior-period amounts have been reclassified to conform to current-period presentation.
| Current-period information is preliminary and based on company data available at the time of the presentation. | 6 | ||||
| Bank of America Corporation and Subsidiaries | |||||||||||||||||
| Capital Composition under Basel 3 | |||||||||||||||||
| (Dollars in millions) | |||||||||||||||||
| June 30 2021 | March 31 2021 | June 30 2020 | |||||||||||||||
| Total common shareholders' equity | $ | 253,678 | $ | 249,681 | $ | 242,210 | |||||||||||
CECL transitional amount (1) | 2,994 | 3,544 | 4,302 | ||||||||||||||
| Goodwill, net of related deferred tax liabilities | (68,638) | (68,565) | (68,570) | ||||||||||||||
| Deferred tax assets arising from net operating loss and tax credit carryforwards | (7,641) | (5,904) | (5,263) | ||||||||||||||
| Intangibles, other than mortgage servicing rights, net of related deferred tax liabilities | (1,662) | (1,604) | (1,221) | ||||||||||||||
| Defined benefit pension plan net assets | (1,196) | (1,181) | (1,025) | ||||||||||||||
| Cumulative unrealized net (gain) loss related to changes in fair value of financial liabilities attributable to own creditworthiness, net-of-tax | 1,499 | 1,625 | 1,108 | ||||||||||||||
| Other | (216) | 193 | (521) | ||||||||||||||
| Common equity tier 1 capital | 178,818 | 177,789 | 171,020 | ||||||||||||||
| Qualifying preferred stock, net of issuance cost | 23,440 | 23,440 | 23,426 | ||||||||||||||
| Other | (13) | (5) | (5) | ||||||||||||||
| Tier 1 capital | 202,245 | 201,224 | 194,441 | ||||||||||||||
| Tier 2 capital instruments | 20,669 | 21,137 | 23,424 | ||||||||||||||
| Qualifying allowance for credit losses | 11,993 | 13,642 | 15,917 | ||||||||||||||
| Other | (423) | (3) | (18) | ||||||||||||||
| Total capital under the Standardized approach | 234,484 | 236,000 | 233,764 | ||||||||||||||
Adjustment in qualifying allowance for credit losses under the Advanced approaches (2) | (6,744) | (8,307) | (10,539) | ||||||||||||||
| Total capital under the Advanced approaches | $ | 227,740 | $ | 227,693 | $ | 223,225 | |||||||||||
(1)Includes the impact of the Corporation's adoption of the current expected credit losses (CECL) accounting standard on January 1, 2020 and 25 percent of the increase in reserves since the initial adoption.
(2)Includes the impact of transition provisions related to the CECL accounting standard.
Certain prior-period amounts have been reclassified to conform to current-period presentation.
| Current-period information is preliminary and based on company data available at the time of the presentation. | 7 | ||||
| Bank of America Corporation and Subsidiaries | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Quarterly Average Balances and Interest Rates – Fully Taxable-equivalent Basis | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| (Dollars in millions) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Second Quarter 2021 | First Quarter 2021 | Second Quarter 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Average Balance | Interest Income/ Expense (1) | Yield/ Rate | Average Balance | Interest Income/ Expense (1) | Yield/ Rate | Average Balance | Interest Income/ Expense (1) | Yield/ Rate | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Earning assets | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest-bearing deposits with the Federal Reserve, non-U.S. central banks and other banks | $ | 247,673 | $ | 27 | 0.04 | % | $ | 278,098 | $ | 29 | 0.04 | % | $ | 314,661 | $ | 33 | 0.04 | % | ||||||||||||||||||||||||||||||||||||||||||||
| Time deposits placed and other short-term investments | 8,079 | — | 0.02 | 8,742 | 4 | 0.18 | 8,644 | 5 | 0.25 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Federal funds sold and securities borrowed or purchased under agreements to resell | 270,443 | (42) | (0.06) | 249,985 | (7) | (0.01) | 312,404 | 26 | 0.03 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Trading account assets | 152,307 | 967 | 2.55 | 145,089 | 885 | 2.47 | 143,370 | 1,021 | 2.86 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Debt securities | 895,902 | 2,834 | 1.27 | 788,638 | 2,745 | 1.41 | 476,060 | 2,462 | 2.10 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans and leases (2) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Residential mortgage | 214,096 | 1,498 | 2.80 | 219,005 | 1,529 | 2.80 | 241,486 | 1,880 | 3.11 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Home equity | 31,621 | 267 | 3.39 | 33,634 | 281 | 3.38 | 39,308 | 308 | 3.15 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Credit card | 73,399 | 1,876 | 10.25 | 74,165 | 1,947 | 10.65 | 86,191 | 2,140 | 9.99 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Direct/Indirect and other consumer | 94,321 | 561 | 2.38 | 91,430 | 559 | 2.48 | 88,962 | 623 | 2.81 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total consumer | 413,437 | 4,202 | 4.07 | 418,234 | 4,316 | 4.17 | 455,947 | 4,951 | 4.36 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| U.S. commercial | 322,633 | 2,049 | 2.55 | 322,010 | 2,051 | 2.58 | 374,965 | 2,526 | 2.71 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Non-U.S. commercial | 96,343 | 429 | 1.78 | 90,904 | 409 | 1.83 | 116,040 | 578 | 2.00 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Commercial real estate | 59,276 | 371 | 2.51 | 59,736 | 365 | 2.48 | 65,515 | 430 | 2.64 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Commercial lease financing | 16,211 | 108 | 2.67 | 16,839 | 132 | 3.15 | 18,920 | 128 | 2.71 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total commercial | 494,463 | 2,957 | 2.40 | 489,489 | 2,957 | 2.45 | 575,440 | 3,662 | 2.56 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total loans and leases | 907,900 | 7,159 | 3.16 | 907,723 | 7,273 | 3.24 | 1,031,387 | 8,613 | 3.35 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Other earning assets | 96,364 | 552 | 2.30 | 103,650 | 577 | 2.26 | 72,256 | 508 | 2.82 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total earning assets | 2,578,668 | 11,497 | 1.79 | 2,481,925 | 11,506 | 1.87 | 2,358,782 | 12,668 | 2.16 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Cash and due from banks | 31,675 | 33,925 | 31,256 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other assets, less allowance for loan and lease losses | 404,770 | 363,371 | 314,148 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total assets | $ | 3,015,113 | $ | 2,879,221 | $ | 2,704,186 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Interest-bearing liabilities | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| U.S. interest-bearing deposits | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Savings | $ | 72,798 | $ | 1 | 0.01 | % | $ | 67,588 | $ | 2 | 0.01 | % | $ | 56,931 | $ | 2 | 0.01 | % | ||||||||||||||||||||||||||||||||||||||||||||
| Demand and money market deposit accounts | 915,420 | 78 | 0.03 | 889,793 | 77 | 0.04 | 850,274 | 152 | 0.07 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Consumer CDs and IRAs | 36,181 | 16 | 0.17 | 38,207 | 26 | 0.28 | 50,882 | 123 | 0.97 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Negotiable CDs, public funds and other deposits | 53,537 | 23 | 0.17 | 52,780 | 23 | 0.18 | 81,532 | 56 | 0.29 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total U.S. interest-bearing deposits | 1,077,936 | 118 | 0.04 | 1,048,368 | 128 | 0.05 | 1,039,619 | 333 | 0.13 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Non-U.S. interest-bearing deposits | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Banks located in non-U.S. countries | 1,191 | — | — | 1,030 | — | 0.12 | 1,807 | — | 0.04 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Governments and official institutions | 204 | — | — | 199 | — | — | 183 | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Time, savings and other | 80,747 | 10 | 0.05 | 80,737 | 5 | 0.02 | 74,158 | 40 | 0.21 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total non-U.S. interest-bearing deposits | 82,142 | 10 | 0.05 | 81,966 | 5 | 0.02 | 76,148 | 40 | 0.21 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total interest-bearing deposits | 1,160,078 | 128 | 0.04 | 1,130,334 | 133 | 0.05 | 1,115,767 | 373 | 0.13 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Federal funds purchased, securities loaned or sold under agreements to repurchase, short-term borrowings and other interest-bearing liabilities | 320,314 | (85) | (0.11) | 293,236 | (79) | (0.11) | 295,465 | (72) | (0.10) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Trading account liabilities | 58,823 | 293 | 2.01 | 42,923 | 246 | 2.32 | 40,717 | 223 | 2.20 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Long-term debt | 232,034 | 818 | 1.42 | 220,836 | 898 | 1.65 | 221,167 | 1,168 | 2.12 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total interest-bearing liabilities | 1,771,249 | 1,154 | 0.26 | 1,687,329 | 1,198 | 0.29 | 1,673,116 | 1,692 | 0.41 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Noninterest-bearing sources | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Noninterest-bearing deposits | 728,756 | 675,413 | 542,430 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other liabilities (3) | 240,476 | 242,432 | 222,324 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Shareholders’ equity | 274,632 | 274,047 | 266,316 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total liabilities and shareholders’ equity | $ | 3,015,113 | $ | 2,879,221 | $ | 2,704,186 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net interest spread | 1.53 | % | 1.58 | % | 1.75 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Impact of noninterest-bearing sources | 0.08 | 0.10 | 0.12 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net interest income/yield on earning assets (4) | $ | 10,343 | 1.61 | % | $ | 10,308 | 1.68 | % | $ | 10,976 | 1.87 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||
(1)Includes the impact of interest rate risk management contracts.
(2)Nonperforming loans are included in the respective average loan balances. Income on these nonperforming loans is generally recognized on a cost recovery basis.
(3)Includes $30.5 billion, $31.3 billion and $35.5 billion of structured notes and liabilities for the second and first quarters of 2021 and the second quarter of 2020, respectively.
(4)Net interest income includes FTE adjustments of $110 million, $111 million and $128 million for the second and first quarters of 2021 and the second quarter of 2020, respectively.
Certain prior-period amounts have been reclassified to conform to current-period presentation.
| Current-period information is preliminary and based on company data available at the time of the presentation. | 8 | ||||
| Bank of America Corporation and Subsidiaries | |||||||||||||||||||||||
| Debt Securities | |||||||||||||||||||||||
| (Dollars in millions) | |||||||||||||||||||||||
| June 30, 2021 | |||||||||||||||||||||||
| Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | ||||||||||||||||||||
| Available-for-sale debt securities | |||||||||||||||||||||||
| Mortgage-backed securities: | |||||||||||||||||||||||
| Agency | $ | 56,258 | $ | 1,696 | $ | (65) | $ | 57,889 | |||||||||||||||
| Agency-collateralized mortgage obligations | 4,111 | 123 | (8) | 4,226 | |||||||||||||||||||
| Commercial | 18,062 | 882 | (25) | 18,919 | |||||||||||||||||||
| Non-agency residential | 829 | 33 | (10) | 852 | |||||||||||||||||||
| Total mortgage-backed securities | 79,260 | 2,734 | (108) | 81,886 | |||||||||||||||||||
| U.S. Treasury and agency securities | 158,691 | 1,906 | (264) | 160,333 | |||||||||||||||||||
| Non-U.S. securities | 17,165 | 4 | (2) | 17,167 | |||||||||||||||||||
| Other taxable securities, substantially all asset-backed securities | 2,873 | 46 | 2 | 2,921 | |||||||||||||||||||
| Total taxable securities | 257,989 | 4,690 | (372) | 262,307 | |||||||||||||||||||
| Tax-exempt securities | 15,529 | 347 | (2) | 15,874 | |||||||||||||||||||
| Total available-for-sale debt securities | 273,518 | 5,037 | (374) | 278,181 | |||||||||||||||||||
Other debt securities carried at fair value (1) | 10,713 | 113 | (94) | 10,732 | |||||||||||||||||||
| Total debt securities carried at fair value | 284,231 | 5,150 | (468) | 288,913 | |||||||||||||||||||
| Held-to-maturity debt securities, substantially all U.S. agency mortgage-backed securities | 651,434 | 6,613 | (8,022) | 650,025 | |||||||||||||||||||
| Total debt securities | $ | 935,665 | $ | 11,763 | $ | (8,490) | $ | 938,938 | |||||||||||||||
| March 31, 2021 | |||||||||||||||||||||||
| Available-for-sale debt securities | |||||||||||||||||||||||
| Mortgage-backed securities: | |||||||||||||||||||||||
| Agency | $ | 52,395 | $ | 2,169 | $ | (30) | $ | 54,534 | |||||||||||||||
| Agency-collateralized mortgage obligations | 4,618 | 132 | (17) | 4,733 | |||||||||||||||||||
| Commercial | 16,013 | 840 | (53) | 16,800 | |||||||||||||||||||
| Non-agency residential | 871 | 30 | (43) | 858 | |||||||||||||||||||
| Total mortgage-backed securities | 73,897 | 3,171 | (143) | 76,925 | |||||||||||||||||||
| U.S. Treasury and agency securities | 158,352 | 2,161 | (492) | 160,021 | |||||||||||||||||||
| Non-U.S. securities | 14,767 | 7 | (6) | 14,768 | |||||||||||||||||||
| Other taxable securities, substantially all asset-backed securities | 2,519 | 43 | (4) | 2,558 | |||||||||||||||||||
| Total taxable securities | 249,535 | 5,382 | (645) | 254,272 | |||||||||||||||||||
| Tax-exempt securities | 16,023 | 328 | (10) | 16,341 | |||||||||||||||||||
| Total available-for-sale debt securities | 265,558 | 5,710 | (655) | 270,613 | |||||||||||||||||||
Other debt securities carried at fair value (1) | 10,322 | 143 | (166) | 10,299 | |||||||||||||||||||
| Total debt securities carried at fair value | 275,880 | 5,853 | (821) | 280,912 | |||||||||||||||||||
| Held-to-maturity debt securities, substantially all U.S. agency mortgage-backed securities | 576,031 | 6,895 | (13,668) | 569,258 | |||||||||||||||||||
| Total debt securities | $ | 851,911 | $ | 12,748 | $ | (14,489) | $ | 850,170 | |||||||||||||||
(1) Primarily includes non-U.S. securities used to satisfy certain international regulatory requirements.
Certain prior-period amounts have been reclassified to conform to current-period presentation.
| Current-period information is preliminary and based on company data available at the time of the presentation. | 9 | ||||
| Bank of America Corporation and Subsidiaries | |||||||||||||||||||||||||||||||||||||||||
| Supplemental Financial Data | |||||||||||||||||||||||||||||||||||||||||
| (Dollars in millions) | |||||||||||||||||||||||||||||||||||||||||
| Six Months Ended June 30 | Second Quarter 2021 | First Quarter 2021 | Fourth Quarter 2020 | Third Quarter 2020 | Second Quarter 2020 | ||||||||||||||||||||||||||||||||||||
| 2021 | 2020 | ||||||||||||||||||||||||||||||||||||||||
FTE basis data (1) | |||||||||||||||||||||||||||||||||||||||||
| Net interest income | $ | 20,651 | $ | 23,250 | $ | 10,343 | $ | 10,308 | $ | 10,366 | $ | 10,243 | $ | 10,976 | |||||||||||||||||||||||||||
| Total revenue, net of interest expense | 44,508 | 45,365 | 21,576 | 22,932 | 20,212 | 20,450 | 22,454 | ||||||||||||||||||||||||||||||||||
| Net interest yield | 1.64 | % | 2.09 | % | 1.61 | % | 1.68 | % | 1.71 | % | 1.72 | % | 1.87 | % | |||||||||||||||||||||||||||
| Efficiency ratio | 68.66 | 59.26 | 69.73 | 67.65 | 68.90 | 70.42 | 59.72 | ||||||||||||||||||||||||||||||||||
(1)FTE basis is a non-GAAP financial measure. FTE basis is a performance measure used by management in operating the business that management believes provides investors with a more accurate picture of the interest margin for comparative purposes. The Corporation believes that this presentation allows for comparison of amounts from both taxable and tax-exempt sources and is consistent with industry practices. Net interest income includes FTE adjustments of $221 million and $272 million for the six months ended June 30, 2021 and 2020, $110 million and $111 million for the second and first quarters of 2021, and $113 million, $114 million and $128 million for the fourth, third and second quarters of 2020, respectively.
Certain prior-period amounts have been reclassified to conform to current-period presentation.
| Current-period information is preliminary and based on company data available at the time of the presentation. | 10 | ||||
| Bank of America Corporation and Subsidiaries | |||||||||||||||||||||||||||||||||||||||||
| Quarterly Results by Business Segment and All Other | |||||||||||||||||||||||||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||||||||||||||||||||
| Second Quarter 2021 | |||||||||||||||||||||||||||||||||||||||||
| Total Corporation | Consumer Banking | GWIM | Global Banking | Global Markets | All Other | ||||||||||||||||||||||||||||||||||||
| Net interest income | $ | 10,343 | $ | 5,973 | $ | 1,354 | $ | 1,984 | $ | 991 | $ | 41 | |||||||||||||||||||||||||||||
| Noninterest income | |||||||||||||||||||||||||||||||||||||||||
| Fees and commissions: | |||||||||||||||||||||||||||||||||||||||||
| Card income | 1,586 | 1,312 | 21 | 180 | 74 | (1) | |||||||||||||||||||||||||||||||||||
| Service charges | 1,874 | 851 | 18 | 900 | 103 | 2 | |||||||||||||||||||||||||||||||||||
| Investment and brokerage services | 4,123 | 78 | 3,537 | 40 | 473 | (5) | |||||||||||||||||||||||||||||||||||
| Investment banking fees | 2,122 | — | 88 | 1,173 | 959 | (98) | |||||||||||||||||||||||||||||||||||
| Total fees and commissions | 9,705 | 2,241 | 3,664 | 2,293 | 1,609 | (102) | |||||||||||||||||||||||||||||||||||
| Market making and similar activities | 1,826 | — | 11 | 28 | 1,964 | (177) | |||||||||||||||||||||||||||||||||||
Other income (loss) | (298) | (28) | 36 | 784 | 156 | (1,246) | |||||||||||||||||||||||||||||||||||
| Total noninterest income (loss) | 11,233 | 2,213 | 3,711 | 3,105 | 3,729 | (1,525) | |||||||||||||||||||||||||||||||||||
| Total revenue, net of interest expense | 21,576 | 8,186 | 5,065 | 5,089 | 4,720 | (1,484) | |||||||||||||||||||||||||||||||||||
| Provision for credit losses | (1,621) | (697) | (62) | (831) | 22 | (53) | |||||||||||||||||||||||||||||||||||
| Noninterest expense | 15,045 | 4,859 | 3,814 | 2,599 | 3,471 | 302 | |||||||||||||||||||||||||||||||||||
| Income (loss) before income taxes | 8,152 | 4,024 | 1,313 | 3,321 | 1,227 | (1,733) | |||||||||||||||||||||||||||||||||||
| Income tax expense (benefit) | (1,072) | 986 | 322 | 897 | 319 | (3,596) | |||||||||||||||||||||||||||||||||||
| Net income | $ | 9,224 | $ | 3,038 | $ | 991 | $ | 2,424 | $ | 908 | $ | 1,863 | |||||||||||||||||||||||||||||
| Average | |||||||||||||||||||||||||||||||||||||||||
| Total loans and leases | $ | 907,900 | $ | 281,767 | $ | 193,988 | $ | 325,110 | $ | 87,826 | $ | 19,209 | |||||||||||||||||||||||||||||
Total assets (1) | 3,015,113 | 1,054,516 | 380,315 | 595,498 | 797,558 | 187,226 | |||||||||||||||||||||||||||||||||||
| Total deposits | 1,888,834 | 979,072 | 333,487 | 506,618 | 55,584 | 14,073 | |||||||||||||||||||||||||||||||||||
| Quarter end | |||||||||||||||||||||||||||||||||||||||||
| Total loans and leases | $ | 918,928 | $ | 282,900 | $ | 198,361 | $ | 323,256 | $ | 96,105 | $ | 18,306 | |||||||||||||||||||||||||||||
Total assets (1) | 3,029,894 | 1,063,650 | 378,220 | 607,969 | 773,714 | 206,341 | |||||||||||||||||||||||||||||||||||
| Total deposits | 1,909,142 | 987,655 | 330,624 | 520,026 | 57,297 | 13,540 | |||||||||||||||||||||||||||||||||||
| First Quarter 2021 | |||||||||||||||||||||||||||||||||||||||||
| Total Corporation | Consumer Banking | GWIM | Global Banking | Global Markets | All Other | ||||||||||||||||||||||||||||||||||||
| Net interest income | $ | 10,308 | $ | 5,920 | $ | 1,331 | $ | 1,980 | $ | 990 | $ | 87 | |||||||||||||||||||||||||||||
| Noninterest income | |||||||||||||||||||||||||||||||||||||||||
| Fees and commissions: | |||||||||||||||||||||||||||||||||||||||||
| Card income | 1,435 | 1,189 | 19 | 150 | 76 | 1 | |||||||||||||||||||||||||||||||||||
| Service charges | 1,792 | 831 | 18 | 847 | 94 | 2 | |||||||||||||||||||||||||||||||||||
| Investment and brokerage services | 4,063 | 77 | 3,391 | 41 | 560 | (6) | |||||||||||||||||||||||||||||||||||
| Investment banking fees | 2,246 | — | 135 | 1,172 | 981 | (42) | |||||||||||||||||||||||||||||||||||
| Total fees and commissions | 9,536 | 2,097 | 3,563 | 2,210 | 1,711 | (45) | |||||||||||||||||||||||||||||||||||
| Market making and similar activities | 3,529 | — | 11 | 31 | 3,470 | 17 | |||||||||||||||||||||||||||||||||||
| Other income (loss) | (441) | 52 | 66 | 412 | 27 | (998) | |||||||||||||||||||||||||||||||||||
| Total noninterest income (loss) | 12,624 | 2,149 | 3,640 | 2,653 | 5,208 | (1,026) | |||||||||||||||||||||||||||||||||||
| Total revenue, net of interest expense | 22,932 | 8,069 | 4,971 | 4,633 | 6,198 | (939) | |||||||||||||||||||||||||||||||||||
| Provision for credit losses | (1,860) | (617) | (65) | (1,126) | (5) | (47) | |||||||||||||||||||||||||||||||||||
| Noninterest expense | 15,515 | 5,131 | 3,868 | 2,781 | 3,427 | 308 | |||||||||||||||||||||||||||||||||||
| Income (loss) before income taxes | 9,277 | 3,555 | 1,168 | 2,978 | 2,776 | (1,200) | |||||||||||||||||||||||||||||||||||
| Income tax expense (benefit) | 1,227 | 871 | 286 | 804 | 722 | (1,456) | |||||||||||||||||||||||||||||||||||
| Net income | $ | 8,050 | $ | 2,684 | $ | 882 | $ | 2,174 | $ | 2,054 | $ | 256 | |||||||||||||||||||||||||||||
| Average | |||||||||||||||||||||||||||||||||||||||||
| Total loans and leases | $ | 907,723 | $ | 290,891 | $ | 188,495 | $ | 330,107 | $ | 77,415 | $ | 20,815 | |||||||||||||||||||||||||||||
Total assets (1) | 2,879,221 | 999,769 | 372,594 | 576,145 | 723,264 | 207,449 | |||||||||||||||||||||||||||||||||||
| Total deposits | 1,805,747 | 924,137 | 326,370 | 487,034 | 53,852 | 14,354 | |||||||||||||||||||||||||||||||||||
| Quarter end | |||||||||||||||||||||||||||||||||||||||||
| Total loans and leases | $ | 903,088 | $ | 282,935 | $ | 190,060 | $ | 325,996 | $ | 84,247 | $ | 19,850 | |||||||||||||||||||||||||||||
Total assets (1) | 2,969,992 | 1,047,413 | 378,655 | 594,235 | 745,681 | 204,008 | |||||||||||||||||||||||||||||||||||
| Total deposits | 1,884,938 | 971,709 | 333,254 | 506,012 | 61,450 | 12,513 | |||||||||||||||||||||||||||||||||||
(1)Total assets include asset allocations to match liabilities (i.e., deposits).
Certain prior-period amounts have been reclassified among the segments to conform to current-period presentation.
| Current-period information is preliminary and based on company data available at the time of the presentation. | 11 | ||||
| Bank of America Corporation and Subsidiaries | |||||||||||||||||||||||||||||||||||||||||
| Quarterly Results by Business Segment and All Other (continued) | |||||||||||||||||||||||||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||||||||||||||||||||
| Second Quarter 2020 | |||||||||||||||||||||||||||||||||||||||||
| Total Corporation | Consumer Banking | GWIM | Global Banking | Global Markets | All Other | ||||||||||||||||||||||||||||||||||||
| Net interest income | $ | 10,976 | $ | 5,991 | $ | 1,378 | $ | 2,363 | $ | 1,297 | $ | (53) | |||||||||||||||||||||||||||||
| Noninterest income | |||||||||||||||||||||||||||||||||||||||||
| Fees and commissions: | |||||||||||||||||||||||||||||||||||||||||
| Card income | 1,249 | 1,053 | 18 | 68 | 111 | (1) | |||||||||||||||||||||||||||||||||||
| Service charges | 1,562 | 706 | 14 | 738 | 95 | 9 | |||||||||||||||||||||||||||||||||||
| Investment and brokerage services | 3,422 | 66 | 2,854 | 23 | 480 | (1) | |||||||||||||||||||||||||||||||||||
| Investment banking fees | 2,159 | — | 84 | 1,181 | 939 | (45) | |||||||||||||||||||||||||||||||||||
| Total fees and commissions | 8,392 | 1,825 | 2,970 | 2,010 | 1,625 | (38) | |||||||||||||||||||||||||||||||||||
| Market making and similar activities | 2,487 | 1 | 18 | (15) | 2,360 | 123 | |||||||||||||||||||||||||||||||||||
| Other income (loss) | 599 | 35 | 59 | 733 | 68 | (296) | |||||||||||||||||||||||||||||||||||
| Total noninterest income (loss) | 11,478 | 1,861 | 3,047 | 2,728 | 4,053 | (211) | |||||||||||||||||||||||||||||||||||
| Total revenue, net of interest expense | 22,454 | 7,852 | 4,425 | 5,091 | 5,350 | (264) | |||||||||||||||||||||||||||||||||||
| Provision for credit losses | 5,117 | 3,024 | 136 | 1,873 | 105 | (21) | |||||||||||||||||||||||||||||||||||
| Noninterest expense | 13,410 | 4,735 | 3,464 | 2,222 | 2,684 | 305 | |||||||||||||||||||||||||||||||||||
| Income (loss) before income taxes | 3,927 | 93 | 825 | 996 | 2,561 | (548) | |||||||||||||||||||||||||||||||||||
| Income tax expense (benefit) | 394 | 23 | 202 | 269 | 666 | (766) | |||||||||||||||||||||||||||||||||||
| Net income | $ | 3,533 | $ | 70 | $ | 623 | $ | 727 | $ | 1,895 | $ | 218 | |||||||||||||||||||||||||||||
| Average | |||||||||||||||||||||||||||||||||||||||||
| Total loans and leases | $ | 1,031,387 | $ | 321,558 | $ | 182,150 | $ | 423,625 | $ | 74,131 | $ | 29,923 | |||||||||||||||||||||||||||||
Total assets (1) | 2,704,186 | 885,568 | 327,594 | 578,106 | 663,072 | 249,846 | |||||||||||||||||||||||||||||||||||
| Total deposits | 1,658,197 | 810,700 | 287,109 | 493,918 | 45,083 | 21,387 | |||||||||||||||||||||||||||||||||||
| Quarter end | |||||||||||||||||||||||||||||||||||||||||
| Total loans and leases | $ | 998,944 | $ | 325,105 | $ | 184,293 | $ | 390,108 | $ | 74,342 | $ | 25,096 | |||||||||||||||||||||||||||||
Total assets (1) | 2,741,688 | 929,193 | 334,190 | 586,078 | 652,068 | 240,159 | |||||||||||||||||||||||||||||||||||
| Total deposits | 1,718,666 | 854,017 | 291,740 | 500,918 | 52,842 | 19,149 | |||||||||||||||||||||||||||||||||||
(1)Total assets include asset allocations to match liabilities (i.e., deposits).
Certain prior-period amounts have been reclassified among the segments to conform to current-period presentation.
| Current-period information is preliminary and based on company data available at the time of the presentation. | 12 | ||||
| Bank of America Corporation and Subsidiaries | |||||||||||||||||||||||||||||||||||||||||
| Year-to-Date Results by Business Segment and All Other | |||||||||||||||||||||||||||||||||||||||||
| (Dollars in millions) | |||||||||||||||||||||||||||||||||||||||||
| Six Months Ended June 30, 2021 | |||||||||||||||||||||||||||||||||||||||||
| Total Corporation | Consumer Banking | GWIM | Global Banking | Global Markets | All Other | ||||||||||||||||||||||||||||||||||||
| Net interest income | $ | 20,651 | $ | 11,893 | $ | 2,685 | $ | 3,964 | $ | 1,981 | $ | 128 | |||||||||||||||||||||||||||||
| Noninterest income | |||||||||||||||||||||||||||||||||||||||||
| Fees and commissions: | |||||||||||||||||||||||||||||||||||||||||
| Card income | 3,021 | 2,501 | 40 | 330 | 150 | — | |||||||||||||||||||||||||||||||||||
| Service charges | 3,666 | 1,682 | 36 | 1,747 | 197 | 4 | |||||||||||||||||||||||||||||||||||
| Investment and brokerage services | 8,186 | 155 | 6,928 | 81 | 1,033 | (11) | |||||||||||||||||||||||||||||||||||
| Investment banking fees | 4,368 | — | 223 | 2,345 | 1,940 | (140) | |||||||||||||||||||||||||||||||||||
| Total fees and commissions | 19,241 | 4,338 | 7,227 | 4,503 | 3,320 | (147) | |||||||||||||||||||||||||||||||||||
| Market making and similar activities | 5,355 | — | 22 | 59 | 5,434 | (160) | |||||||||||||||||||||||||||||||||||
| Other income (loss) | (739) | 24 | 102 | 1,196 | 183 | (2,244) | |||||||||||||||||||||||||||||||||||
| Total noninterest income (loss) | 23,857 | 4,362 | 7,351 | 5,758 | 8,937 | (2,551) | |||||||||||||||||||||||||||||||||||
| Total revenue, net of interest expense | 44,508 | 16,255 | 10,036 | 9,722 | 10,918 | (2,423) | |||||||||||||||||||||||||||||||||||
| Provision for credit losses | (3,481) | (1,314) | (127) | (1,957) | 17 | (100) | |||||||||||||||||||||||||||||||||||
| Noninterest expense | 30,560 | 9,990 | 7,682 | 5,380 | 6,898 | 610 | |||||||||||||||||||||||||||||||||||
| Income (loss) before income taxes | 17,429 | 7,579 | 2,481 | 6,299 | 4,003 | (2,933) | |||||||||||||||||||||||||||||||||||
| Income tax expense (benefit) | 155 | 1,857 | 608 | 1,701 | 1,041 | (5,052) | |||||||||||||||||||||||||||||||||||
| Net income | $ | 17,274 | $ | 5,722 | $ | 1,873 | $ | 4,598 | $ | 2,962 | $ | 2,119 | |||||||||||||||||||||||||||||
| Average | |||||||||||||||||||||||||||||||||||||||||
| Total loans and leases | $ | 907,812 | $ | 286,304 | $ | 191,257 | $ | 327,595 | $ | 82,649 | $ | 20,007 | |||||||||||||||||||||||||||||
Total assets (1) | 2,947,542 | 1,027,294 | 376,476 | 585,875 | 760,616 | 197,281 | |||||||||||||||||||||||||||||||||||
| Total deposits | 1,847,520 | 951,757 | 329,948 | 496,880 | 54,723 | 14,212 | |||||||||||||||||||||||||||||||||||
| Period end | |||||||||||||||||||||||||||||||||||||||||
| Total loans and leases | $ | 918,928 | $ | 282,900 | $ | 198,361 | $ | 323,256 | $ | 96,105 | $ | 18,306 | |||||||||||||||||||||||||||||
Total assets (1) | 3,029,894 | 1,063,650 | 378,220 | 607,969 | 773,714 | 206,341 | |||||||||||||||||||||||||||||||||||
| Total deposits | 1,909,142 | 987,655 | 330,624 | 520,026 | 57,297 | 13,540 | |||||||||||||||||||||||||||||||||||
| Six Months Ended June 30, 2020 | |||||||||||||||||||||||||||||||||||||||||
| Total Corporation | Consumer Banking | GWIM | Global Banking | Global Markets | All Other | ||||||||||||||||||||||||||||||||||||
| Net interest income | $ | 23,250 | $ | 12,853 | $ | 2,949 | $ | 4,975 | $ | 2,449 | $ | 24 | |||||||||||||||||||||||||||||
| Noninterest income | |||||||||||||||||||||||||||||||||||||||||
| Fees and commissions: | |||||||||||||||||||||||||||||||||||||||||
| Card income | 2,521 | 2,163 | 35 | 191 | 132 | — | |||||||||||||||||||||||||||||||||||
| Service charges | 3,465 | 1,701 | 32 | 1,533 | 182 | 17 | |||||||||||||||||||||||||||||||||||
| Investment and brokerage services | 7,180 | 137 | 5,976 | 31 | 1,048 | (12) | |||||||||||||||||||||||||||||||||||
| Investment banking fees | 3,547 | — | 199 | 1,942 | 1,542 | (136) | |||||||||||||||||||||||||||||||||||
| Total fees and commissions | 16,713 | 4,001 | 6,242 | 3,697 | 2,904 | (131) | |||||||||||||||||||||||||||||||||||
| Market making and similar activities | 5,294 | 2 | 39 | 72 | 5,334 | (153) | |||||||||||||||||||||||||||||||||||
| Other income (loss) | 108 | 124 | 131 | 947 | (112) | (982) | |||||||||||||||||||||||||||||||||||
| Total noninterest income (loss) | 22,115 | 4,127 | 6,412 | 4,716 | 8,126 | (1,266) | |||||||||||||||||||||||||||||||||||
| Total revenue, net of interest expense | 45,365 | 16,980 | 9,361 | 9,691 | 10,575 | (1,242) | |||||||||||||||||||||||||||||||||||
| Provision for credit losses | 9,878 | 5,282 | 325 | 3,966 | 212 | 93 | |||||||||||||||||||||||||||||||||||
| Noninterest expense | 26,885 | 9,230 | 7,064 | 4,540 | 5,498 | 553 | |||||||||||||||||||||||||||||||||||
| Income (loss) before income taxes | 8,602 | 2,468 | 1,972 | 1,185 | 4,865 | (1,888) | |||||||||||||||||||||||||||||||||||
| Income tax expense (benefit) | 1,059 | 605 | 483 | 320 | 1,265 | (1,614) | |||||||||||||||||||||||||||||||||||
| Net income (loss) | $ | 7,543 | $ | 1,863 | $ | 1,489 | $ | 865 | $ | 3,600 | $ | (274) | |||||||||||||||||||||||||||||
| Average | |||||||||||||||||||||||||||||||||||||||||
| Total loans and leases | $ | 1,010,835 | $ | 319,252 | $ | 180,395 | $ | 405,054 | $ | 72,896 | $ | 33,238 | |||||||||||||||||||||||||||||
Total assets (1) | 2,599,557 | 848,422 | 315,383 | 522,016 | 688,062 | 225,674 | |||||||||||||||||||||||||||||||||||
| Total deposits | 1,548,766 | 773,685 | 275,260 | 438,145 | 39,203 | 22,473 | |||||||||||||||||||||||||||||||||||
| Period end | |||||||||||||||||||||||||||||||||||||||||
| Total loans and leases | $ | 998,944 | $ | 325,105 | $ | 184,293 | $ | 390,108 | $ | 74,342 | $ | 25,096 | |||||||||||||||||||||||||||||
Total assets (1) | 2,741,688 | 929,193 | 334,190 | 586,078 | 652,068 | 240,159 | |||||||||||||||||||||||||||||||||||
| Total deposits | 1,718,666 | 854,017 | 291,740 | 500,918 | 52,842 | 19,149 | |||||||||||||||||||||||||||||||||||
(1)Total assets include asset allocations to match liabilities (i.e., deposits).
Certain prior-period amounts have been reclassified among the segments to conform to current-period presentation.
| Current-period information is preliminary and based on company data available at the time of the presentation. | 13 | ||||
| Bank of America Corporation and Subsidiaries | |||||||||||||||||||||||||||||||||||||||||||||||
| Consumer Banking Segment Results | |||||||||||||||||||||||||||||||||||||||||||||||
| (Dollars in millions) | |||||||||||||||||||||||||||||||||||||||||||||||
| Six Months Ended June 30 | Second Quarter 2021 | First Quarter 2021 | Fourth Quarter 2020 | Third Quarter 2020 | Second Quarter 2020 | ||||||||||||||||||||||||||||||||||||||||||
| 2021 | 2020 | ||||||||||||||||||||||||||||||||||||||||||||||
| Net interest income | $ | 11,893 | $ | 12,853 | $ | 5,973 | $ | 5,920 | $ | 5,955 | $ | 5,890 | $ | 5,991 | |||||||||||||||||||||||||||||||||
| Noninterest income: | |||||||||||||||||||||||||||||||||||||||||||||||
| Card income | 2,501 | 2,163 | 1,312 | 1,189 | 1,289 | 1,220 | 1,053 | ||||||||||||||||||||||||||||||||||||||||
| Service charges | 1,682 | 1,701 | 851 | 831 | 879 | 837 | 706 | ||||||||||||||||||||||||||||||||||||||||
| All other income | 179 | 263 | 50 | 129 | 119 | 92 | 102 | ||||||||||||||||||||||||||||||||||||||||
| Total noninterest income | 4,362 | 4,127 | 2,213 | 2,149 | 2,287 | 2,149 | 1,861 | ||||||||||||||||||||||||||||||||||||||||
| Total revenue, net of interest expense | 16,255 | 16,980 | 8,186 | 8,069 | 8,242 | 8,039 | 7,852 | ||||||||||||||||||||||||||||||||||||||||
| Provision for credit losses | (1,314) | 5,282 | (697) | (617) | 4 | 479 | 3,024 | ||||||||||||||||||||||||||||||||||||||||
| Noninterest expense | 9,990 | 9,230 | 4,859 | 5,131 | 4,809 | 4,842 | 4,735 | ||||||||||||||||||||||||||||||||||||||||
| Income before income taxes | 7,579 | 2,468 | 4,024 | 3,555 | 3,429 | 2,718 | 93 | ||||||||||||||||||||||||||||||||||||||||
| Income tax expense | 1,857 | 605 | 986 | 871 | 840 | 666 | 23 | ||||||||||||||||||||||||||||||||||||||||
| Net income | $ | 5,722 | $ | 1,863 | $ | 3,038 | $ | 2,684 | $ | 2,589 | $ | 2,052 | $ | 70 | |||||||||||||||||||||||||||||||||
| Net interest yield | 2.44 | % | 3.19 | % | 2.37 | % | 2.51 | % | 2.58 | % | 2.61 | % | 2.85 | % | |||||||||||||||||||||||||||||||||
Return on average allocated capital (1) | 30 | 10 | 32 | 28 | 27 | 21 | 1 | ||||||||||||||||||||||||||||||||||||||||
| Efficiency ratio | 61.46 | 54.36 | 59.36 | 63.59 | 58.34 | 60.24 | 60.31 | ||||||||||||||||||||||||||||||||||||||||
| Balance Sheet | |||||||||||||||||||||||||||||||||||||||||||||||
| Average | |||||||||||||||||||||||||||||||||||||||||||||||
| Total loans and leases | $ | 286,304 | $ | 319,252 | $ | 281,767 | $ | 290,891 | $ | 305,146 | $ | 318,751 | $ | 321,558 | |||||||||||||||||||||||||||||||||
Total earning assets (2) | 984,891 | 809,436 | 1,012,364 | 957,112 | 918,086 | 896,867 | 845,236 | ||||||||||||||||||||||||||||||||||||||||
Total assets (2) | 1,027,294 | 848,422 | 1,054,516 | 999,769 | 960,376 | 936,112 | 885,568 | ||||||||||||||||||||||||||||||||||||||||
| Total deposits | 951,757 | 773,685 | 979,072 | 924,137 | 885,210 | 860,999 | 810,700 | ||||||||||||||||||||||||||||||||||||||||
Allocated capital (1) | 38,500 | 38,500 | 38,500 | 38,500 | 38,500 | 38,500 | 38,500 | ||||||||||||||||||||||||||||||||||||||||
| Period end | |||||||||||||||||||||||||||||||||||||||||||||||
| Total loans and leases | $ | 282,900 | $ | 325,105 | $ | 282,900 | $ | 282,935 | $ | 299,934 | $ | 312,447 | $ | 325,105 | |||||||||||||||||||||||||||||||||
Total earning assets (2) | 1,022,092 | 890,244 | 1,022,092 | 1,004,896 | 945,343 | 906,994 | 890,244 | ||||||||||||||||||||||||||||||||||||||||
Total assets (2) | 1,063,650 | 929,193 | 1,063,650 | 1,047,413 | 988,580 | 947,513 | 929,193 | ||||||||||||||||||||||||||||||||||||||||
| Total deposits | 987,655 | 854,017 | 987,655 | 971,709 | 912,652 | 872,022 | 854,017 | ||||||||||||||||||||||||||||||||||||||||
(1) Return on average allocated capital is calculated as net income, adjusted for cost of funds and earnings credits and certain expenses related to intangibles, divided by average allocated capital. Other companies may define or calculate these measures differently.
(2) Total earning assets and total assets include asset allocations to match liabilities (i.e., deposits) and allocated shareholders’ equity.
Certain prior-period amounts have been reclassified among the segments to conform to current-period presentation.
| Current-period information is preliminary and based on company data available at the time of the presentation. | 14 | ||||
| Bank of America Corporation and Subsidiaries | |||||||||||||||||||||||||||||||||||||||||||||||
| Consumer Banking Key Indicators | |||||||||||||||||||||||||||||||||||||||||||||||
| (Dollars in millions) | |||||||||||||||||||||||||||||||||||||||||||||||
| Six Months Ended June 30 | Second Quarter 2021 | First Quarter 2021 | Fourth Quarter 2020 | Third Quarter 2020 | Second Quarter 2020 | ||||||||||||||||||||||||||||||||||||||||||
| 2021 | 2020 | ||||||||||||||||||||||||||||||||||||||||||||||
| Average deposit balances | |||||||||||||||||||||||||||||||||||||||||||||||
| Checking | $ | 532,815 | $ | 420,562 | $ | 550,009 | $ | 515,430 | $ | 492,332 | $ | 479,963 | $ | 446,445 | |||||||||||||||||||||||||||||||||
| Savings | 68,418 | 52,482 | 70,945 | 65,863 | 62,070 | 59,817 | 55,607 | ||||||||||||||||||||||||||||||||||||||||
| MMS | 312,203 | 255,361 | 320,594 | 303,719 | 289,682 | 277,896 | 263,703 | ||||||||||||||||||||||||||||||||||||||||
| CDs and IRAs | 34,603 | 42,499 | 33,728 | 35,488 | 37,674 | 40,163 | 42,256 | ||||||||||||||||||||||||||||||||||||||||
| Other | 3,718 | 2,781 | 3,796 | 3,637 | 3,452 | 3,160 | 2,689 | ||||||||||||||||||||||||||||||||||||||||
| Total average deposit balances | $ | 951,757 | $ | 773,685 | $ | 979,072 | $ | 924,137 | $ | 885,210 | $ | 860,999 | $ | 810,700 | |||||||||||||||||||||||||||||||||
| Deposit spreads (excludes noninterest costs) | |||||||||||||||||||||||||||||||||||||||||||||||
| Checking | 1.98 | % | 2.18 | % | 1.97 | % | 1.99 | % | 2.02 | % | 2.07 | % | 2.14 | % | |||||||||||||||||||||||||||||||||
| Savings | 2.27 | 2.42 | 2.26 | 2.28 | 2.31 | 2.35 | 2.39 | ||||||||||||||||||||||||||||||||||||||||
| MMS | 1.31 | 1.92 | 1.29 | 1.32 | 1.52 | 1.59 | 1.68 | ||||||||||||||||||||||||||||||||||||||||
| CDs and IRAs | 0.45 | 1.11 | 0.41 | 0.48 | 0.58 | 0.72 | 0.93 | ||||||||||||||||||||||||||||||||||||||||
| Other | 0.29 | 1.58 | 0.27 | 0.31 | 0.34 | 0.60 | 1.28 | ||||||||||||||||||||||||||||||||||||||||
| Total deposit spreads | 1.72 | 2.05 | 1.71 | 1.73 | 1.81 | 1.87 | 1.94 | ||||||||||||||||||||||||||||||||||||||||
| Consumer investment assets | $ | 345,809 | $ | 246,146 | $ | 345,809 | $ | 324,479 | $ | 306,104 | $ | 266,733 | $ | 246,146 | |||||||||||||||||||||||||||||||||
Active digital banking users (units in thousands) (1) | 40,512 | 39,294 | 40,512 | 40,286 | 39,315 | 39,267 | 39,294 | ||||||||||||||||||||||||||||||||||||||||
| Active mobile banking users (units in thousands) | 31,796 | 30,307 | 31,796 | 31,487 | 30,783 | 30,601 | 30,307 | ||||||||||||||||||||||||||||||||||||||||
| Financial centers | 4,296 | 4,298 | 4,296 | 4,324 | 4,312 | 4,309 | 4,298 | ||||||||||||||||||||||||||||||||||||||||
| ATMs | 16,795 | 16,862 | 16,795 | 16,905 | 16,904 | 16,962 | 16,862 | ||||||||||||||||||||||||||||||||||||||||
Total credit card (2) | |||||||||||||||||||||||||||||||||||||||||||||||
| Loans | |||||||||||||||||||||||||||||||||||||||||||||||
| Average credit card outstandings | $ | 73,780 | $ | 90,331 | $ | 73,399 | $ | 74,165 | $ | 78,210 | $ | 81,309 | $ | 86,191 | |||||||||||||||||||||||||||||||||
| Ending credit card outstandings | 75,599 | 84,244 | 75,599 | 72,786 | 78,708 | 79,834 | 84,244 | ||||||||||||||||||||||||||||||||||||||||
| Credit quality | |||||||||||||||||||||||||||||||||||||||||||||||
| Net charge-offs | $ | 1,122 | $ | 1,435 | $ | 488 | $ | 634 | $ | 405 | $ | 509 | $ | 665 | |||||||||||||||||||||||||||||||||
| 3.07 | % | 3.19 | % | 2.67 | % | 3.47 | % | 2.06 | % | 2.49 | % | 3.10 | % | ||||||||||||||||||||||||||||||||||
| 30+ delinquency | $ | 976 | $ | 1,420 | $ | 976 | $ | 1,317 | $ | 1,689 | $ | 1,270 | $ | 1,420 | |||||||||||||||||||||||||||||||||
| 1.29 | % | 1.69 | % | 1.29 | % | 1.81 | % | 2.15 | % | 1.59 | % | 1.69 | % | ||||||||||||||||||||||||||||||||||
| 90+ delinquency | $ | 533 | $ | 782 | $ | 533 | $ | 755 | $ | 903 | $ | 545 | $ | 782 | |||||||||||||||||||||||||||||||||
| 0.71 | % | 0.93 | % | 0.71 | % | 1.04 | % | 1.15 | % | 0.68 | % | 0.93 | % | ||||||||||||||||||||||||||||||||||
Other total credit card indicators (2) | |||||||||||||||||||||||||||||||||||||||||||||||
| Gross interest yield | 10.31 | % | 10.23 | % | 10.10 | % | 10.52 | % | 10.49 | % | 10.16 | % | 9.95 | % | |||||||||||||||||||||||||||||||||
| Risk-adjusted margin | 9.53 | 8.20 | 9.76 | 9.29 | 10.84 | 9.66 | 8.49 | ||||||||||||||||||||||||||||||||||||||||
| New accounts (in thousands) | 1,605 | 1,504 | 931 | 674 | 514 | 487 | 449 | ||||||||||||||||||||||||||||||||||||||||
| Purchase volumes | $ | 142,975 | $ | 118,073 | $ | 78,384 | $ | 64,591 | $ | 69,466 | $ | 64,060 | $ | 53,694 | |||||||||||||||||||||||||||||||||
| Debit card data | |||||||||||||||||||||||||||||||||||||||||||||||
| Purchase volumes | $ | 229,812 | $ | 178,219 | $ | 121,905 | $ | 107,907 | $ | 104,280 | $ | 102,004 | $ | 89,631 | |||||||||||||||||||||||||||||||||
Loan production (3) | |||||||||||||||||||||||||||||||||||||||||||||||
| Consumer Banking: | |||||||||||||||||||||||||||||||||||||||||||||||
| First mortgage | $ | 20,684 | $ | 27,930 | $ | 11,502 | $ | 9,182 | $ | 7,969 | $ | 7,298 | $ | 15,049 | |||||||||||||||||||||||||||||||||
| Home equity | 1,317 | 5,817 | 907 | 410 | 375 | 738 | 3,176 | ||||||||||||||||||||||||||||||||||||||||
Total (4): | |||||||||||||||||||||||||||||||||||||||||||||||
| First mortgage | $ | 35,499 | $ | 42,062 | $ | 20,266 | $ | 15,233 | $ | 13,664 | $ | 13,360 | $ | 23,124 | |||||||||||||||||||||||||||||||||
| Home equity | 1,669 | 6,707 | 1,166 | 503 | 469 | 984 | 3,683 | ||||||||||||||||||||||||||||||||||||||||
(1) Digital active users represents mobile and/or online 90 day active users.
(2) In addition to the credit card portfolio in Consumer Banking, the remaining credit card portfolio is in GWIM.
(3) Loan production amounts represent the unpaid principal balance of loans and, in the case of home equity, the principal amount of the total line of credit.
(4) In addition to loan production in Consumer Banking, there is also first mortgage and home equity loan production in GWIM.
Certain prior-period amounts have been reclassified among the segments to conform to current-period presentation.
| Current-period information is preliminary and based on company data available at the time of the presentation. | 15 | ||||
| Bank of America Corporation and Subsidiaries | |||||||||||||||||||||||||||||||||||||||||||||||
| Consumer Banking Quarterly Results | |||||||||||||||||||||||||||||||||||||||||||||||
| (Dollars in millions) | |||||||||||||||||||||||||||||||||||||||||||||||
| Second Quarter 2021 | First Quarter 2021 | ||||||||||||||||||||||||||||||||||||||||||||||
| Total Consumer Banking | Deposits | Consumer Lending | Total Consumer Banking | Deposits | Consumer Lending | ||||||||||||||||||||||||||||||||||||||||||
| Net interest income | $ | 5,973 | $ | 3,480 | $ | 2,493 | $ | 5,920 | $ | 3,278 | $ | 2,642 | |||||||||||||||||||||||||||||||||||
| Noninterest income: | |||||||||||||||||||||||||||||||||||||||||||||||
| Card income | 1,312 | (7) | 1,319 | 1,189 | (5) | 1,194 | |||||||||||||||||||||||||||||||||||||||||
| Service charges | 851 | 851 | — | 831 | 830 | 1 | |||||||||||||||||||||||||||||||||||||||||
| All other income | 50 | 21 | 29 | 129 | 73 | 56 | |||||||||||||||||||||||||||||||||||||||||
| Total noninterest income | 2,213 | 865 | 1,348 | 2,149 | 898 | 1,251 | |||||||||||||||||||||||||||||||||||||||||
| Total revenue, net of interest expense | 8,186 | 4,345 | 3,841 | 8,069 | 4,176 | 3,893 | |||||||||||||||||||||||||||||||||||||||||
| Provision for credit losses | (697) | 47 | (744) | (617) | 74 | (691) | |||||||||||||||||||||||||||||||||||||||||
| Noninterest expense | 4,859 | 2,856 | 2,003 | 5,131 | 3,209 | 1,922 | |||||||||||||||||||||||||||||||||||||||||
| Income before income taxes | 4,024 | 1,442 | 2,582 | 3,555 | 893 | 2,662 | |||||||||||||||||||||||||||||||||||||||||
| Income tax expense | 986 | 353 | 633 | 871 | 219 | 652 | |||||||||||||||||||||||||||||||||||||||||
| Net income | $ | 3,038 | $ | 1,089 | $ | 1,949 | $ | 2,684 | $ | 674 | $ | 2,010 | |||||||||||||||||||||||||||||||||||
| Net interest yield | 2.37 | % | 1.44 | % | 3.60 | % | 2.51 | % | 1.46 | % | 3.74 | % | |||||||||||||||||||||||||||||||||||
Return on average allocated capital (1) | 32 | 36 | 30 | 28 | 23 | 31 | |||||||||||||||||||||||||||||||||||||||||
| Efficiency ratio | 59.36 | 65.73 | 52.16 | 63.59 | 76.87 | 49.34 | |||||||||||||||||||||||||||||||||||||||||
| Balance Sheet | |||||||||||||||||||||||||||||||||||||||||||||||
| Average | |||||||||||||||||||||||||||||||||||||||||||||||
| Total loans and leases | $ | 281,767 | $ | 4,447 | $ | 277,320 | $ | 290,891 | $ | 4,607 | $ | 286,284 | |||||||||||||||||||||||||||||||||||
Total earning assets (2) | 1,012,364 | 968,491 | 277,742 | 957,112 | 912,135 | 286,720 | |||||||||||||||||||||||||||||||||||||||||
Total assets (2) | 1,054,516 | 1,005,237 | 283,148 | 999,769 | 950,803 | 290,709 | |||||||||||||||||||||||||||||||||||||||||
| Total deposits | 979,072 | 972,016 | 7,056 | 924,137 | 917,319 | 6,818 | |||||||||||||||||||||||||||||||||||||||||
Allocated capital (1) | 38,500 | 12,000 | 26,500 | 38,500 | 12,000 | 26,500 | |||||||||||||||||||||||||||||||||||||||||
| Period end | |||||||||||||||||||||||||||||||||||||||||||||||
| Total loans and leases | $ | 282,900 | $ | 4,410 | $ | 278,490 | $ | 282,935 | $ | 4,490 | $ | 278,445 | |||||||||||||||||||||||||||||||||||
Total earning assets (2) | 1,022,092 | 978,402 | 278,850 | 1,004,896 | 960,132 | 278,984 | |||||||||||||||||||||||||||||||||||||||||
Total assets (2) | 1,063,650 | 1,013,887 | 284,923 | 1,047,413 | 997,601 | 284,032 | |||||||||||||||||||||||||||||||||||||||||
| Total deposits | 987,655 | 980,486 | 7,169 | 971,709 | 964,406 | 7,303 | |||||||||||||||||||||||||||||||||||||||||
| Second Quarter 2020 | |||||||||||||||||||||||||||||||||||||||||||||||
| Total Consumer Banking | Deposits | Consumer Lending | |||||||||||||||||||||||||||||||||||||||||||||
| Net interest income | $ | 5,991 | $ | 3,299 | $ | 2,692 | |||||||||||||||||||||||||||||||||||||||||
| Noninterest income: | |||||||||||||||||||||||||||||||||||||||||||||||
| Card income | 1,053 | (4) | 1,057 | ||||||||||||||||||||||||||||||||||||||||||||
| Service charges | 706 | 706 | — | ||||||||||||||||||||||||||||||||||||||||||||
| All other income | 102 | 62 | 40 | ||||||||||||||||||||||||||||||||||||||||||||
| Total noninterest income | 1,861 | 764 | 1,097 | ||||||||||||||||||||||||||||||||||||||||||||
| Total revenue, net of interest expense | 7,852 | 4,063 | 3,789 | ||||||||||||||||||||||||||||||||||||||||||||
| Provision for credit losses | 3,024 | 154 | 2,870 | ||||||||||||||||||||||||||||||||||||||||||||
| Noninterest expense | 4,735 | 2,869 | 1,866 | ||||||||||||||||||||||||||||||||||||||||||||
| Income (loss) before income taxes | 93 | 1,040 | (947) | ||||||||||||||||||||||||||||||||||||||||||||
| Income tax expense (benefit) | 23 | 255 | (232) | ||||||||||||||||||||||||||||||||||||||||||||
| Net income (loss) | $ | 70 | $ | 785 | $ | (715) | |||||||||||||||||||||||||||||||||||||||||
| Net interest yield | 2.85 | % | 1.66 | % | 3.42 | % | |||||||||||||||||||||||||||||||||||||||||
Return on average allocated capital (1) | 1 | 26 | (11) | ||||||||||||||||||||||||||||||||||||||||||||
| Efficiency ratio | 60.31 | 70.62 | 49.25 | ||||||||||||||||||||||||||||||||||||||||||||
| Balance Sheet | |||||||||||||||||||||||||||||||||||||||||||||||
| Average | |||||||||||||||||||||||||||||||||||||||||||||||
| Total loans and leases | $ | 321,558 | $ | 5,314 | $ | 316,244 | |||||||||||||||||||||||||||||||||||||||||
Total earning assets (2) | 845,236 | 801,391 | 316,622 | ||||||||||||||||||||||||||||||||||||||||||||
Total assets (2) | 885,568 | 837,367 | 320,978 | ||||||||||||||||||||||||||||||||||||||||||||
| Total deposits | 810,700 | 804,418 | 6,282 | ||||||||||||||||||||||||||||||||||||||||||||
Allocated capital (1) | 38,500 | 12,000 | 26,500 | ||||||||||||||||||||||||||||||||||||||||||||
| Period end | |||||||||||||||||||||||||||||||||||||||||||||||
| Total loans and leases | $ | 325,105 | $ | 5,146 | $ | 319,959 | |||||||||||||||||||||||||||||||||||||||||
Total earning assets (2) | 890,244 | 843,132 | 320,461 | ||||||||||||||||||||||||||||||||||||||||||||
Total assets (2) | 929,193 | 879,641 | 322,900 | ||||||||||||||||||||||||||||||||||||||||||||
| Total deposits | 854,017 | 846,622 | 7,395 | ||||||||||||||||||||||||||||||||||||||||||||
(1) Return on average allocated capital is calculated as net income, adjusted for cost of funds and earnings credits and certain expenses related to intangibles, divided by average allocated capital. Other companies may define or calculate these measures differently.
(2) For presentation purposes, in segments or businesses where the total of liabilities and equity exceeds assets, the Corporation allocates assets from All Other to match the segments’ and businesses’ liabilities and allocated shareholders’ equity. As a result, total earning assets and total assets of the businesses may not equal total Consumer Banking.
Certain prior-period amounts have been reclassified among the segments to conform to current-period presentation.
| Current-period information is preliminary and based on company data available at the time of the presentation. | 16 | ||||
| Bank of America Corporation and Subsidiaries | |||||||||||||||||||||||||||||||||||||||||||||||
| Consumer Banking Year-to-Date Results | |||||||||||||||||||||||||||||||||||||||||||||||
| (Dollars in millions) | |||||||||||||||||||||||||||||||||||||||||||||||
| Six Months Ended June 30 | |||||||||||||||||||||||||||||||||||||||||||||||
| 2021 | 2020 | ||||||||||||||||||||||||||||||||||||||||||||||
| Total Consumer Banking | Deposits | Consumer Lending | Total Consumer Banking | Deposits | Consumer Lending | ||||||||||||||||||||||||||||||||||||||||||
| Net interest income | $ | 11,893 | $ | 6,758 | $ | 5,135 | $ | 12,853 | $ | 7,247 | $ | 5,606 | |||||||||||||||||||||||||||||||||||
| Noninterest income: | |||||||||||||||||||||||||||||||||||||||||||||||
| Card income | 2,501 | (12) | 2,513 | 2,163 | (12) | 2,175 | |||||||||||||||||||||||||||||||||||||||||
| Service charges | 1,682 | 1,681 | 1 | 1,701 | 1,700 | 1 | |||||||||||||||||||||||||||||||||||||||||
| All other income | 179 | 94 | 85 | 263 | 159 | 104 | |||||||||||||||||||||||||||||||||||||||||
| Total noninterest income | 4,362 | 1,763 | 2,599 | 4,127 | 1,847 | 2,280 | |||||||||||||||||||||||||||||||||||||||||
| Total revenue, net of interest expense | 16,255 | 8,521 | 7,734 | 16,980 | 9,094 | 7,886 | |||||||||||||||||||||||||||||||||||||||||
| Provision for credit losses | (1,314) | 121 | (1,435) | 5,282 | 269 | 5,013 | |||||||||||||||||||||||||||||||||||||||||
| Noninterest expense | 9,990 | 6,065 | 3,925 | 9,230 | 5,593 | 3,637 | |||||||||||||||||||||||||||||||||||||||||
| Income (loss) before income taxes | 7,579 | 2,335 | 5,244 | 2,468 | 3,232 | (764) | |||||||||||||||||||||||||||||||||||||||||
| Income tax expense (benefit) | 1,857 | 572 | 1,285 | 605 | 792 | (187) | |||||||||||||||||||||||||||||||||||||||||
| Net income (loss) | $ | 5,722 | $ | 1,763 | $ | 3,959 | $ | 1,863 | $ | 2,440 | $ | (577) | |||||||||||||||||||||||||||||||||||
| Net interest yield | 2.44 | % | 1.45 | % | 3.67 | % | 3.19 | % | 1.90 | % | 3.59 | % | |||||||||||||||||||||||||||||||||||
Return on average allocated capital (1) | 30 | 30 | 30 | 10 | 41 | (4) | |||||||||||||||||||||||||||||||||||||||||
| Efficiency ratio | 61.46 | 71.19 | 50.74 | 54.36 | 61.50 | 46.12 | |||||||||||||||||||||||||||||||||||||||||
| Balance Sheet | |||||||||||||||||||||||||||||||||||||||||||||||
| Average | |||||||||||||||||||||||||||||||||||||||||||||||
| Total loans and leases | $ | 286,304 | $ | 4,527 | $ | 281,777 | $ | 319,252 | $ | 5,374 | $ | 313,878 | |||||||||||||||||||||||||||||||||||
Total earning assets (2) | 984,891 | 940,469 | 282,206 | 809,436 | 766,660 | 314,375 | |||||||||||||||||||||||||||||||||||||||||
Total assets (2) | 1,027,294 | 978,170 | 286,908 | 848,422 | 800,742 | 319,279 | |||||||||||||||||||||||||||||||||||||||||
| Total deposits | 951,757 | 944,819 | 6,938 | 773,685 | 767,848 | 5,837 | |||||||||||||||||||||||||||||||||||||||||
Allocated capital (1) | 38,500 | 12,000 | 26,500 | 38,500 | 12,000 | 26,500 | |||||||||||||||||||||||||||||||||||||||||
| Period end | |||||||||||||||||||||||||||||||||||||||||||||||
| Total loans and leases | $ | 282,900 | $ | 4,410 | $ | 278,490 | $ | 325,105 | $ | 5,146 | $ | 319,959 | |||||||||||||||||||||||||||||||||||
Total earning assets (2) | 1,022,092 | 978,402 | 278,850 | 890,244 | 843,132 | 320,461 | |||||||||||||||||||||||||||||||||||||||||
Total assets (2) | 1,063,650 | 1,013,887 | 284,923 | 929,193 | 879,641 | 322,900 | |||||||||||||||||||||||||||||||||||||||||
| Total deposits | 987,655 | 980,486 | 7,169 | 854,017 | 846,622 | 7,395 | |||||||||||||||||||||||||||||||||||||||||
For footnotes, see page 16.
Certain prior-period amounts have been reclassified among the segments to conform to current-period presentation.
| Current-period information is preliminary and based on company data available at the time of the presentation. | 17 | ||||
| Bank of America Corporation and Subsidiaries | ||||||||||||||||||||||||||||||||||||||||||||
| Global Wealth & Investment Management Segment Results | ||||||||||||||||||||||||||||||||||||||||||||
| (Dollars in millions) | ||||||||||||||||||||||||||||||||||||||||||||
| Six Months Ended June 30 | Second Quarter 2021 | First Quarter 2021 | Fourth Quarter 2020 | Third Quarter 2020 | Second Quarter 2020 | |||||||||||||||||||||||||||||||||||||||
| 2021 | 2020 | |||||||||||||||||||||||||||||||||||||||||||
| Net interest income | $ | 2,685 | $ | 2,949 | $ | 1,354 | $ | 1,331 | $ | 1,282 | $ | 1,237 | $ | 1,378 | ||||||||||||||||||||||||||||||
| Noninterest income: | ||||||||||||||||||||||||||||||||||||||||||||
| Investment and brokerage services | 6,928 | 5,976 | 3,537 | 3,391 | 3,189 | 3,105 | 2,854 | |||||||||||||||||||||||||||||||||||||
| All other income | 423 | 436 | 174 | 249 | 206 | 204 | 193 | |||||||||||||||||||||||||||||||||||||
| Total noninterest income | 7,351 | 6,412 | 3,711 | 3,640 | 3,395 | 3,309 | 3,047 | |||||||||||||||||||||||||||||||||||||
| Total revenue, net of interest expense | 10,036 | 9,361 | 5,065 | 4,971 | 4,677 | 4,546 | 4,425 | |||||||||||||||||||||||||||||||||||||
| Provision for credit losses | (127) | 325 | (62) | (65) | 8 | 24 | 136 | |||||||||||||||||||||||||||||||||||||
| Noninterest expense | 7,682 | 7,064 | 3,814 | 3,868 | 3,564 | 3,533 | 3,464 | |||||||||||||||||||||||||||||||||||||
| Income before income taxes | 2,481 | 1,972 | 1,313 | 1,168 | 1,105 | 989 | 825 | |||||||||||||||||||||||||||||||||||||
| Income tax expense | 608 | 483 | 322 | 286 | 271 | 242 | 202 | |||||||||||||||||||||||||||||||||||||
| Net income | $ | 1,873 | $ | 1,489 | $ | 991 | $ | 882 | $ | 834 | $ | 747 | $ | 623 | ||||||||||||||||||||||||||||||
| Net interest yield | 1.49 | % | 1.96 | % | 1.48 | % | 1.50 | % | 1.52 | % | 1.53 | % | 1.76 | % | ||||||||||||||||||||||||||||||
Return on average allocated capital (1) | 23 | 20 | 24 | 22 | 22 | 20 | 17 | |||||||||||||||||||||||||||||||||||||
| Efficiency ratio | 76.54 | 75.46 | 75.29 | 77.81 | 76.19 | 77.70 | 78.26 | |||||||||||||||||||||||||||||||||||||
| Balance Sheet | ||||||||||||||||||||||||||||||||||||||||||||
| Average | ||||||||||||||||||||||||||||||||||||||||||||
| Total loans and leases | $ | 191,257 | $ | 180,395 | $ | 193,988 | $ | 188,495 | $ | 187,167 | $ | 185,587 | $ | 182,150 | ||||||||||||||||||||||||||||||
Total earning assets (2) | 363,960 | 303,089 | 367,778 | 360,099 | 336,165 | 321,410 | 315,258 | |||||||||||||||||||||||||||||||||||||
Total assets (2) | 376,476 | 315,383 | 380,315 | 372,594 | 348,693 | 333,794 | 327,594 | |||||||||||||||||||||||||||||||||||||
| Total deposits | 329,948 | 275,260 | 333,487 | 326,370 | 305,870 | 291,845 | 287,109 | |||||||||||||||||||||||||||||||||||||
Allocated capital (1) | 16,500 | 15,000 | 16,500 | 16,500 | 15,000 | 15,000 | 15,000 | |||||||||||||||||||||||||||||||||||||
| Period end | ||||||||||||||||||||||||||||||||||||||||||||
| Total loans and leases | $ | 198,361 | $ | 184,293 | $ | 198,361 | $ | 190,060 | $ | 188,562 | $ | 187,211 | $ | 184,293 | ||||||||||||||||||||||||||||||
Total earning assets (2) | 365,496 | 321,846 | 365,496 | 365,854 | 356,873 | 324,889 | 321,846 | |||||||||||||||||||||||||||||||||||||
Total assets (2) | 378,220 | 334,190 | 378,220 | 378,655 | 369,736 | 337,576 | 334,190 | |||||||||||||||||||||||||||||||||||||
| Total deposits | 330,624 | 291,740 | 330,624 | 333,254 | 322,157 | 295,893 | 291,740 | |||||||||||||||||||||||||||||||||||||
(1)Return on average allocated capital is calculated as net income, adjusted for cost of funds and earnings credits and certain expenses related to intangibles, divided by average allocated capital. Other companies may define or calculate these measures differently.
(2)Total earning assets and total assets include asset allocations to match liabilities (i.e., deposits) and allocated shareholders’ equity.
Certain prior-period amounts have been reclassified among the segments to conform to current-period presentation.
| Current-period information is preliminary and based on company data available at the time of the presentation. | 18 | ||||
| Bank of America Corporation and Subsidiaries | ||||||||||||||||||||||||||||||||||||||||||||
| Global Wealth & Investment Management Key Indicators | ||||||||||||||||||||||||||||||||||||||||||||
| (Dollars in millions) | ||||||||||||||||||||||||||||||||||||||||||||
| Six Months Ended June 30 | Second Quarter 2021 | First Quarter 2021 | Fourth Quarter 2020 | Third Quarter 2020 | Second Quarter 2020 | |||||||||||||||||||||||||||||||||||||||
| 2021 | 2020 | |||||||||||||||||||||||||||||||||||||||||||
| Revenue by Business | ||||||||||||||||||||||||||||||||||||||||||||
| Merrill Lynch Global Wealth Management | $ | 8,445 | $ | 7,698 | $ | 4,260 | $ | 4,185 | $ | 3,846 | $ | 3,748 | $ | 3,625 | ||||||||||||||||||||||||||||||
| Bank of America Private Bank | 1,591 | 1,663 | 805 | 786 | 831 | 798 | 800 | |||||||||||||||||||||||||||||||||||||
| Total revenue, net of interest expense | $ | 10,036 | $ | 9,361 | $ | 5,065 | $ | 4,971 | $ | 4,677 | $ | 4,546 | $ | 4,425 | ||||||||||||||||||||||||||||||
| Client Balances by Business, at period end | ||||||||||||||||||||||||||||||||||||||||||||
| Merrill Lynch Global Wealth Management | $ | 3,073,252 | $ | 2,449,305 | $ | 3,073,252 | $ | 2,922,770 | $ | 2,808,340 | $ | 2,570,252 | $ | 2,449,305 | ||||||||||||||||||||||||||||||
| Bank of America Private Bank | 579,562 | 478,521 | 579,562 | 557,569 | 541,464 | 496,369 | 478,521 | |||||||||||||||||||||||||||||||||||||
| Total client balances | $ | 3,652,814 | $ | 2,927,826 | $ | 3,652,814 | $ | 3,480,339 | $ | 3,349,804 | $ | 3,066,621 | $ | 2,927,826 | ||||||||||||||||||||||||||||||
| Client Balances by Type, at period end | ||||||||||||||||||||||||||||||||||||||||||||
Assets under management (1) | $ | 1,549,069 | $ | 1,219,748 | $ | 1,549,069 | $ | 1,467,487 | $ | 1,408,465 | $ | 1,286,145 | $ | 1,219,748 | ||||||||||||||||||||||||||||||
| Brokerage and other assets | 1,619,246 | 1,282,044 | 1,619,246 | 1,535,424 | 1,479,614 | 1,344,538 | 1,282,044 | |||||||||||||||||||||||||||||||||||||
| Deposits | 330,624 | 291,740 | 330,624 | 333,254 | 322,157 | 295,893 | 291,740 | |||||||||||||||||||||||||||||||||||||
Loans and leases (2) | 201,154 | 187,004 | 201,154 | 192,725 | 191,124 | 189,952 | 187,004 | |||||||||||||||||||||||||||||||||||||
| Less: Managed deposits in assets under management | (47,279) | (52,710) | (47,279) | (48,551) | (51,556) | (49,907) | (52,710) | |||||||||||||||||||||||||||||||||||||
| Total client balances | $ | 3,652,814 | $ | 2,927,826 | $ | 3,652,814 | $ | 3,480,339 | $ | 3,349,804 | $ | 3,066,621 | $ | 2,927,826 | ||||||||||||||||||||||||||||||
| Assets Under Management Rollforward | ||||||||||||||||||||||||||||||||||||||||||||
| Assets under management, beginning balance | $ | 1,408,465 | $ | 1,275,555 | $ | 1,467,487 | $ | 1,408,465 | $ | 1,286,145 | $ | 1,219,748 | $ | 1,092,482 | ||||||||||||||||||||||||||||||
| Net client flows | 29,922 | 10,608 | 11,714 | 18,208 | 7,603 | 1,385 | 3,573 | |||||||||||||||||||||||||||||||||||||
| Market valuation/other | 110,682 | (66,415) | 69,868 | 40,814 | 114,717 | 65,012 | 123,693 | |||||||||||||||||||||||||||||||||||||
| Total assets under management, ending balance | $ | 1,549,069 | $ | 1,219,748 | $ | 1,549,069 | $ | 1,467,487 | $ | 1,408,465 | $ | 1,286,145 | $ | 1,219,748 | ||||||||||||||||||||||||||||||
| Advisors, at period end | ||||||||||||||||||||||||||||||||||||||||||||
Total wealth advisors (3) | 19,385 | 20,622 | 19,385 | 19,808 | 20,103 | 20,487 | 20,622 | |||||||||||||||||||||||||||||||||||||
(1)Defined as managed assets under advisory and/or discretion of GWIM.
(2)Includes margin receivables which are classified in customer and other receivables on the Consolidated Balance Sheet.
(3)Includes advisors across all wealth management businesses in GWIM and Consumer Banking.
Certain prior-period amounts have been reclassified among the segments to conform to current-period presentation.
| Current-period information is preliminary and based on company data available at the time of the presentation. | 19 | ||||
| Bank of America Corporation and Subsidiaries | ||||||||||||||||||||||||||||||||||||||||||||
| Global Banking Segment Results | ||||||||||||||||||||||||||||||||||||||||||||
| (Dollars in millions) | ||||||||||||||||||||||||||||||||||||||||||||
| Six Months Ended June 30 | Second Quarter 2021 | First Quarter 2021 | Fourth Quarter 2020 | Third Quarter 2020 | Second Quarter 2020 | |||||||||||||||||||||||||||||||||||||||
| 2021 | 2020 | |||||||||||||||||||||||||||||||||||||||||||
| Net interest income | $ | 3,964 | $ | 4,975 | $ | 1,984 | $ | 1,980 | $ | 2,010 | $ | 2,028 | $ | 2,363 | ||||||||||||||||||||||||||||||
| Noninterest income: | ||||||||||||||||||||||||||||||||||||||||||||
| Service charges | 1,747 | 1,533 | 900 | 847 | 859 | 846 | 738 | |||||||||||||||||||||||||||||||||||||
| Investment banking fees | 2,345 | 1,942 | 1,173 | 1,172 | 1,098 | 970 | 1,181 | |||||||||||||||||||||||||||||||||||||
| All other income | 1,666 | 1,241 | 1,032 | 634 | 812 | 673 | 809 | |||||||||||||||||||||||||||||||||||||
| Total noninterest income | 5,758 | 4,716 | 3,105 | 2,653 | 2,769 | 2,489 | 2,728 | |||||||||||||||||||||||||||||||||||||
| Total revenue, net of interest expense | 9,722 | 9,691 | 5,089 | 4,633 | 4,779 | 4,517 | 5,091 | |||||||||||||||||||||||||||||||||||||
| Provision for credit losses | (1,957) | 3,966 | (831) | (1,126) | 48 | 883 | 1,873 | |||||||||||||||||||||||||||||||||||||
| Noninterest expense | 5,380 | 4,540 | 2,599 | 2,781 | 2,432 | 2,364 | 2,222 | |||||||||||||||||||||||||||||||||||||
| Income before income taxes | 6,299 | 1,185 | 3,321 | 2,978 | 2,299 | 1,270 | 996 | |||||||||||||||||||||||||||||||||||||
| Income tax expense | 1,701 | 320 | 897 | 804 | 621 | 343 | 269 | |||||||||||||||||||||||||||||||||||||
| Net income | $ | 4,598 | $ | 865 | $ | 2,424 | $ | 2,174 | $ | 1,678 | $ | 927 | $ | 727 | ||||||||||||||||||||||||||||||
| Net interest yield | 1.52 | % | 2.15 | % | 1.49 | % | 1.56 | % | 1.57 | % | 1.61 | % | 1.82 | % | ||||||||||||||||||||||||||||||
Return on average allocated capital (1) | 22 | 4 | 23 | 21 | 16 | 9 | 7 | |||||||||||||||||||||||||||||||||||||
| Efficiency ratio | 55.34 | 46.86 | 51.07 | 60.03 | 50.88 | 52.34 | 43.65 | |||||||||||||||||||||||||||||||||||||
| Balance Sheet | ||||||||||||||||||||||||||||||||||||||||||||
| Average | ||||||||||||||||||||||||||||||||||||||||||||
| Total loans and leases | $ | 327,595 | $ | 405,054 | $ | 325,110 | $ | 330,107 | $ | 346,323 | $ | 373,118 | $ | 423,625 | ||||||||||||||||||||||||||||||
Total earning assets (2) | 525,332 | 465,491 | 534,680 | 515,880 | 509,759 | 501,572 | 521,930 | |||||||||||||||||||||||||||||||||||||
Total assets (2) | 585,875 | 522,016 | 595,498 | 576,145 | 566,845 | 557,889 | 578,106 | |||||||||||||||||||||||||||||||||||||
| Total deposits | 496,880 | 438,145 | 506,618 | 487,034 | 478,269 | 471,288 | 493,918 | |||||||||||||||||||||||||||||||||||||
Allocated capital (1) | 42,500 | 42,500 | 42,500 | 42,500 | 42,500 | 42,500 | 42,500 | |||||||||||||||||||||||||||||||||||||
| Period end | ||||||||||||||||||||||||||||||||||||||||||||
| Total loans and leases | $ | 323,256 | $ | 390,108 | $ | 323,256 | $ | 325,996 | $ | 339,649 | $ | 356,919 | $ | 390,108 | ||||||||||||||||||||||||||||||
Total earning assets (2) | 547,278 | 531,649 | 547,278 | 533,852 | 522,650 | 496,825 | 531,649 | |||||||||||||||||||||||||||||||||||||
Total assets (2) | 607,969 | 586,078 | 607,969 | 594,235 | 580,561 | 553,776 | 586,078 | |||||||||||||||||||||||||||||||||||||
| Total deposits | 520,026 | 500,918 | 520,026 | 506,012 | 493,748 | 465,399 | 500,918 | |||||||||||||||||||||||||||||||||||||
(1)Return on average allocated capital is calculated as net income, adjusted for cost of funds and earnings credits and certain expenses related to intangibles, divided by average allocated capital. Other companies may define or calculate these measures differently.
(2)Total earning assets and total assets include asset allocations to match liabilities (i.e., deposits) and allocated shareholders’ equity.
Certain prior-period amounts have been reclassified among the segments to conform to current-period presentation.
| Current-period information is preliminary and based on company data available at the time of the presentation. | 20 | ||||
| Bank of America Corporation and Subsidiaries | ||||||||||||||||||||||||||||||||||||||||||||
| Global Banking Key Indicators | ||||||||||||||||||||||||||||||||||||||||||||
| (Dollars in millions) | ||||||||||||||||||||||||||||||||||||||||||||
| Six Months Ended June 30 | Second Quarter 2021 | First Quarter 2021 | Fourth Quarter 2020 | Third Quarter 2020 | Second Quarter 2020 | |||||||||||||||||||||||||||||||||||||||
| 2021 | 2020 | |||||||||||||||||||||||||||||||||||||||||||
Investment Banking fees (1) | ||||||||||||||||||||||||||||||||||||||||||||
Advisory (2) | $ | 733 | $ | 592 | $ | 376 | $ | 357 | $ | 510 | $ | 356 | $ | 345 | ||||||||||||||||||||||||||||||
| Debt issuance | 905 | 927 | 482 | 423 | 308 | 320 | 503 | |||||||||||||||||||||||||||||||||||||
| Equity issuance | 707 | 423 | 315 | 392 | 280 | 294 | 333 | |||||||||||||||||||||||||||||||||||||
Total Investment Banking fees (3) | $ | 2,345 | $ | 1,942 | $ | 1,173 | $ | 1,172 | $ | 1,098 | $ | 970 | $ | 1,181 | ||||||||||||||||||||||||||||||
Business Lending | ||||||||||||||||||||||||||||||||||||||||||||
| Corporate | $ | 1,643 | $ | 1,867 | $ | 989 | $ | 654 | $ | 894 | $ | 791 | $ | 916 | ||||||||||||||||||||||||||||||
| Commercial | 1,765 | 1,862 | 867 | 898 | 928 | 953 | 881 | |||||||||||||||||||||||||||||||||||||
| Business Banking | 111 | 148 | 56 | 55 | 54 | 59 | 66 | |||||||||||||||||||||||||||||||||||||
| Total Business Lending revenue | $ | 3,519 | $ | 3,877 | $ | 1,912 | $ | 1,607 | $ | 1,876 | $ | 1,803 | $ | 1,863 | ||||||||||||||||||||||||||||||
Global Transaction Services | ||||||||||||||||||||||||||||||||||||||||||||
| Corporate | $ | 1,424 | $ | 1,656 | $ | 734 | $ | 690 | $ | 672 | $ | 658 | $ | 785 | ||||||||||||||||||||||||||||||
| Commercial | 1,515 | 1,687 | 771 | 744 | 737 | 745 | 809 | |||||||||||||||||||||||||||||||||||||
| Business Banking | 426 | 473 | 215 | 211 | 211 | 209 | 217 | |||||||||||||||||||||||||||||||||||||
| Total Global Transaction Services revenue | $ | 3,365 | $ | 3,816 | $ | 1,720 | $ | 1,645 | $ | 1,620 | $ | 1,612 | $ | 1,811 | ||||||||||||||||||||||||||||||
| Average deposit balances | ||||||||||||||||||||||||||||||||||||||||||||
| Interest-bearing | $ | 163,785 | $ | 224,630 | $ | 162,947 | $ | 164,633 | $ | 169,637 | $ | 190,417 | $ | 242,408 | ||||||||||||||||||||||||||||||
| Noninterest-bearing | 333,095 | 213,515 | 343,671 | 322,401 | 308,632 | 280,871 | 251,510 | |||||||||||||||||||||||||||||||||||||
| Total average deposits | $ | 496,880 | $ | 438,145 | $ | 506,618 | $ | 487,034 | $ | 478,269 | $ | 471,288 | $ | 493,918 | ||||||||||||||||||||||||||||||
| Loan spread | 1.59 | % | 1.38 | % | 1.57 | % | 1.60 | % | 1.58 | % | 1.52 | % | 1.37 | % | ||||||||||||||||||||||||||||||
| Provision for credit losses | $ | (1,957) | $ | 3,966 | $ | (831) | $ | (1,126) | $ | 48 | $ | 883 | $ | 1,873 | ||||||||||||||||||||||||||||||
Credit quality (4, 5) | ||||||||||||||||||||||||||||||||||||||||||||
| Reservable criticized utilized exposure | $ | 25,158 | $ | 22,900 | $ | 25,158 | $ | 29,954 | $ | 34,001 | $ | 30,803 | $ | 22,900 | ||||||||||||||||||||||||||||||
| 7.33 | % | 5.62 | % | 7.33 | % | 8.66 | % | 9.45 | % | 8.18 | % | 5.62 | % | |||||||||||||||||||||||||||||||
| Nonperforming loans, leases and foreclosed properties | $ | 1,651 | $ | 2,035 | $ | 1,651 | $ | 1,812 | $ | 1,979 | $ | 1,935 | $ | 2,035 | ||||||||||||||||||||||||||||||
| 0.52 | % | 0.53 | % | 0.52 | % | 0.56 | % | 0.59 | % | 0.55 | % | 0.53 | % | |||||||||||||||||||||||||||||||
| Average loans and leases by product | ||||||||||||||||||||||||||||||||||||||||||||
| U.S. commercial | $ | 190,661 | $ | 236,808 | $ | 188,716 | $ | 192,628 | $ | 200,670 | $ | 218,063 | $ | 252,649 | ||||||||||||||||||||||||||||||
| Non-U.S. commercial | 70,620 | 94,634 | 70,666 | 70,573 | 76,634 | 83,950 | 96,742 | |||||||||||||||||||||||||||||||||||||
| Commercial real estate | 49,410 | 53,974 | 49,139 | 49,685 | 51,254 | 52,607 | 54,938 | |||||||||||||||||||||||||||||||||||||
| Commercial lease financing | 16,902 | 19,637 | 16,588 | 17,221 | 17,765 | 18,498 | 19,293 | |||||||||||||||||||||||||||||||||||||
| Other | 2 | 1 | 1 | — | — | — | 3 | |||||||||||||||||||||||||||||||||||||
| Total average loans and leases | $ | 327,595 | $ | 405,054 | $ | 325,110 | $ | 330,107 | $ | 346,323 | $ | 373,118 | $ | 423,625 | ||||||||||||||||||||||||||||||
Total Corporation Investment Banking fees | ||||||||||||||||||||||||||||||||||||||||||||
Advisory (2) | $ | 807 | $ | 675 | $ | 407 | $ | 400 | $ | 549 | $ | 397 | $ | 406 | ||||||||||||||||||||||||||||||
| Debt issuance | 2,098 | 1,985 | 1,110 | 988 | 718 | 740 | 1,058 | |||||||||||||||||||||||||||||||||||||
| Equity issuance | 1,602 | 1,023 | 702 | 900 | 641 | 664 | 740 | |||||||||||||||||||||||||||||||||||||
Total investment banking fees including self-led deals | 4,507 | 3,683 | 2,219 | 2,288 | 1,908 | 1,801 | 2,204 | |||||||||||||||||||||||||||||||||||||
| Self-led deals | (139) | (136) | (97) | (42) | (44) | (32) | (45) | |||||||||||||||||||||||||||||||||||||
| Total Investment Banking fees | $ | 4,368 | $ | 3,547 | $ | 2,122 | $ | 2,246 | $ | 1,864 | $ | 1,769 | $ | 2,159 | ||||||||||||||||||||||||||||||
(1)Investment banking fees represent total investment banking fees for Global Banking inclusive of self-led deals and fees included within Business Lending.
(2)Advisory includes fees on debt and equity advisory and mergers and acquisitions.
(3)Investment banking fees represent only the fee component in Global Banking and do not include certain other items shared with the Investment Banking Group under internal revenue sharing agreements.
(4)Criticized exposure corresponds to the Special Mention, Substandard and Doubtful asset categories defined by regulatory authorities. The reservable criticized exposure is on an end-of-period basis and is also shown as a percentage of total commercial reservable utilized exposure, including loans and leases, standby letters of credit, financial guarantees, commercial letters of credit and bankers’ acceptances.
(5)Nonperforming loans, leases and foreclosed properties are on an end-of-period basis. The nonperforming ratio is nonperforming assets divided by loans, leases and foreclosed properties.
Certain prior-period amounts have been reclassified among the segments to conform to current-period presentation.
| Current-period information is preliminary and based on company data available at the time of the presentation. | 21 | ||||
| Bank of America Corporation and Subsidiaries | ||||||||||||||||||||||||||||||||||||||||||||
| Global Markets Segment Results | ||||||||||||||||||||||||||||||||||||||||||||
| (Dollars in millions) | ||||||||||||||||||||||||||||||||||||||||||||
| Six Months Ended June 30 | Second Quarter 2021 | First Quarter 2021 | Fourth Quarter 2020 | Third Quarter 2020 | Second Quarter 2020 | |||||||||||||||||||||||||||||||||||||||
| 2021 | 2020 | |||||||||||||||||||||||||||||||||||||||||||
| Net interest income | $ | 1,981 | $ | 2,449 | $ | 991 | $ | 990 | $ | 1,088 | $ | 1,108 | $ | 1,297 | ||||||||||||||||||||||||||||||
| Noninterest income: | ||||||||||||||||||||||||||||||||||||||||||||
| Investment and brokerage services | 1,033 | 1,048 | 473 | 560 | 487 | 439 | 480 | |||||||||||||||||||||||||||||||||||||
| Investment banking fees | 1,940 | 1,542 | 959 | 981 | 712 | 738 | 939 | |||||||||||||||||||||||||||||||||||||
| Market making and similar activities | 5,434 | 5,334 | 1,964 | 3,470 | 1,413 | 1,725 | 2,360 | |||||||||||||||||||||||||||||||||||||
| All other income | 530 | 202 | 333 | 197 | 207 | 273 | 274 | |||||||||||||||||||||||||||||||||||||
| Total noninterest income | 8,937 | 8,126 | 3,729 | 5,208 | 2,819 | 3,175 | 4,053 | |||||||||||||||||||||||||||||||||||||
Total revenue, net of interest expense (1) | 10,918 | 10,575 | 4,720 | 6,198 | 3,907 | 4,283 | 5,350 | |||||||||||||||||||||||||||||||||||||
| Provision for credit losses | 17 | 212 | 22 | (5) | 18 | 21 | 105 | |||||||||||||||||||||||||||||||||||||
| Noninterest expense | 6,898 | 5,498 | 3,471 | 3,427 | 2,821 | 3,103 | 2,684 | |||||||||||||||||||||||||||||||||||||
| Income before income taxes | 4,003 | 4,865 | 1,227 | 2,776 | 1,068 | 1,159 | 2,561 | |||||||||||||||||||||||||||||||||||||
| Income tax expense | 1,041 | 1,265 | 319 | 722 | 278 | 301 | 666 | |||||||||||||||||||||||||||||||||||||
| Net income | $ | 2,962 | $ | 3,600 | $ | 908 | $ | 2,054 | $ | 790 | $ | 858 | $ | 1,895 | ||||||||||||||||||||||||||||||
Return on average allocated capital (2) | 16 | % | 20 | % | 10 | % | 22 | % | 9 | % | 9 | % | 21 | % | ||||||||||||||||||||||||||||||
| Efficiency ratio | 63.19 | 51.99 | 73.55 | 55.30 | 72.20 | 72.44 | 50.17 | |||||||||||||||||||||||||||||||||||||
| Balance Sheet | ||||||||||||||||||||||||||||||||||||||||||||
| Average | ||||||||||||||||||||||||||||||||||||||||||||
| Total trading-related assets | $ | 534,496 | $ | 485,054 | $ | 566,842 | $ | 501,789 | $ | 476,607 | $ | 485,314 | $ | 466,990 | ||||||||||||||||||||||||||||||
| Total loans and leases | 82,649 | 72,896 | 87,826 | 77,415 | 74,133 | 72,319 | 74,131 | |||||||||||||||||||||||||||||||||||||
| Total earning assets | 513,261 | 490,132 | 531,000 | 495,324 | 472,410 | 476,182 | 478,648 | |||||||||||||||||||||||||||||||||||||
| Total assets | 760,616 | 688,062 | 797,558 | 723,264 | 683,146 | 680,983 | 663,072 | |||||||||||||||||||||||||||||||||||||
| Total deposits | 54,723 | 39,203 | 55,584 | 53,852 | 54,539 | 56,475 | 45,083 | |||||||||||||||||||||||||||||||||||||
Allocated capital (2) | 38,000 | 36,000 | 38,000 | 38,000 | 36,000 | 36,000 | 36,000 | |||||||||||||||||||||||||||||||||||||
| Period end | ||||||||||||||||||||||||||||||||||||||||||||
| Total trading-related assets | $ | 542,614 | $ | 468,309 | $ | 542,614 | $ | 524,188 | $ | 421,698 | $ | 477,552 | $ | 468,309 | ||||||||||||||||||||||||||||||
| Total loans and leases | 96,105 | 74,342 | 96,105 | 84,247 | 78,415 | 75,475 | 74,342 | |||||||||||||||||||||||||||||||||||||
| Total earning assets | 527,983 | 462,184 | 527,983 | 496,103 | 447,350 | 461,855 | 462,184 | |||||||||||||||||||||||||||||||||||||
| Total assets | 773,714 | 652,068 | 773,714 | 745,681 | 616,609 | 676,242 | 652,068 | |||||||||||||||||||||||||||||||||||||
| Total deposits | 57,297 | 52,842 | 57,297 | 61,450 | 53,925 | 56,727 | 52,842 | |||||||||||||||||||||||||||||||||||||
| Trading-related assets (average) | ||||||||||||||||||||||||||||||||||||||||||||
| Trading account securities | $ | 285,081 | $ | 236,704 | $ | 304,760 | $ | 265,181 | $ | 248,785 | $ | 251,735 | $ | 216,157 | ||||||||||||||||||||||||||||||
| Reverse repurchases | 108,201 | 110,291 | 116,424 | 99,886 | 97,932 | 100,395 | 104,883 | |||||||||||||||||||||||||||||||||||||
| Securities borrowed | 95,231 | 89,860 | 101,144 | 89,253 | 82,331 | 86,508 | 96,448 | |||||||||||||||||||||||||||||||||||||
| Derivative assets | 45,983 | 48,199 | 44,514 | 47,469 | 47,559 | 46,676 | 49,502 | |||||||||||||||||||||||||||||||||||||
| Total trading-related assets | $ | 534,496 | $ | 485,054 | $ | 566,842 | $ | 501,789 | $ | 476,607 | $ | 485,314 | $ | 466,990 | ||||||||||||||||||||||||||||||
(1)Substantially all of Global Markets total revenue is sales and trading revenue and investment banking fees, with a small portion related to certain revenue sharing agreements with other business segments. For additional sales and trading revenue information, see page 23.
(2)Return on average allocated capital is calculated as net income, adjusted for cost of funds and earnings credits and certain expenses related to intangibles, divided by average allocated capital. Other companies may define or calculate these measures differently.
Certain prior-period amounts have been reclassified among the segments to conform to current-period presentation.
| Current-period information is preliminary and based on company data available at the time of the presentation. | 22 | ||||
| Bank of America Corporation and Subsidiaries | ||||||||||||||||||||||||||||||||||||||||||||
| Global Markets Key Indicators | ||||||||||||||||||||||||||||||||||||||||||||
| (Dollars in millions) | ||||||||||||||||||||||||||||||||||||||||||||
| Six Months Ended June 30 | Second Quarter 2021 | First Quarter 2021 | Fourth Quarter 2020 | Third Quarter 2020 | Second Quarter 2020 | |||||||||||||||||||||||||||||||||||||||
| 2021 | 2020 | |||||||||||||||||||||||||||||||||||||||||||
Sales and trading revenue (1) | ||||||||||||||||||||||||||||||||||||||||||||
| Fixed-income, currencies and commodities | $ | 5,179 | $ | 5,886 | $ | 1,937 | $ | 3,242 | $ | 1,690 | $ | 2,019 | $ | 2,941 | ||||||||||||||||||||||||||||||
| Equities | 3,460 | 2,900 | 1,624 | 1,836 | 1,317 | 1,205 | 1,210 | |||||||||||||||||||||||||||||||||||||
| Total sales and trading revenue | $ | 8,639 | $ | 8,786 | $ | 3,561 | $ | 5,078 | $ | 3,007 | $ | 3,224 | $ | 4,151 | ||||||||||||||||||||||||||||||
Sales and trading revenue, excluding net debit valuation adjustment (2)(3) | ||||||||||||||||||||||||||||||||||||||||||||
| Fixed-income, currencies and commodities | $ | 5,216 | $ | 5,857 | $ | 1,965 | $ | 3,251 | $ | 1,742 | $ | 2,126 | $ | 3,186 | ||||||||||||||||||||||||||||||
| Equities | 3,459 | 2,890 | 1,630 | 1,829 | 1,321 | 1,214 | 1,226 | |||||||||||||||||||||||||||||||||||||
Total sales and trading revenue, excluding net debit valuation adjustment | $ | 8,675 | $ | 8,747 | $ | 3,595 | $ | 5,080 | $ | 3,063 | $ | 3,340 | $ | 4,412 | ||||||||||||||||||||||||||||||
Sales and trading revenue breakdown | ||||||||||||||||||||||||||||||||||||||||||||
| Net interest income | $ | 1,813 | $ | 2,182 | $ | 914 | $ | 899 | $ | 999 | $ | 960 | $ | 1,158 | ||||||||||||||||||||||||||||||
| Commissions | 1,010 | 1,027 | 462 | 548 | 476 | 429 | 470 | |||||||||||||||||||||||||||||||||||||
| Trading | 5,433 | 5,333 | 1,963 | 3,470 | 1,412 | 1,725 | 2,360 | |||||||||||||||||||||||||||||||||||||
| Other | 383 | 244 | 222 | 161 | 120 | 110 | 163 | |||||||||||||||||||||||||||||||||||||
| Total sales and trading revenue | $ | 8,639 | $ | 8,786 | $ | 3,561 | $ | 5,078 | $ | 3,007 | $ | 3,224 | $ | 4,151 | ||||||||||||||||||||||||||||||
(1) Includes Global Banking sales and trading revenue of $274 million and $294 million for the six months ended June 30, 2021 and 2020, and $170 million and $104 million for the second and first quarters of 2021, and $101 million, $85 million and $65 million for the fourth, third and second quarters of 2020, respectively.
(2) For this presentation, sales and trading revenue excludes net debit valuation adjustment (DVA) gains (losses) which include net DVA on derivatives, as well as amortization of own credit portion of purchase discount and realized DVA on structured liabilities. Sales and trading revenue excluding net DVA gains (losses) represents a non-GAAP financial measure. We believe the use of this non-GAAP financial measure provides additional useful information to assess the underlying performance of these businesses and to allow better comparison of period-to-period operating performance.
(3)Net DVA gains (losses) were $(36) million and $39 million for the six months ended June 30, 2021 and 2020 and $(34) million, $(2) million, $(56) million, $(116) million and $(261) million for the second and first quarters of 2021 and the fourth, third and second quarters of 2020, respectively. FICC net DVA gains (losses) were $(37) million and $29 million for the six months ended June 30, 2021 and 2020, and $(28) million, $(9) million, $(52) million, $(107) million and $(245) million for the second and first quarters of 2021 and the fourth, third and second quarters of 2020, respectively. Equities net DVA gains (losses) were $1 million and $10 million for the six months ended June 30, 2021 and 2020, and $(6) million, $7 million. $(4) million, $(9) million and $(16) million for the second and first quarters of 2021 and the fourth, third and second quarters of 2020, respectively.
Certain prior-period amounts have been reclassified among the segments to conform to current-period presentation.
| Current-period information is preliminary and based on company data available at the time of the presentation. | 23 | ||||
| Bank of America Corporation and Subsidiaries | ||||||||||||||||||||||||||||||||||||||||||||
All Other Results (1) | ||||||||||||||||||||||||||||||||||||||||||||
| (Dollars in millions) | ||||||||||||||||||||||||||||||||||||||||||||
| Six Months Ended June 30 | Second Quarter 2021 | First Quarter 2021 | Fourth Quarter 2020 | Third Quarter 2020 | Second Quarter 2020 | |||||||||||||||||||||||||||||||||||||||
| 2021 | 2020 | |||||||||||||||||||||||||||||||||||||||||||
| Net interest income | $ | 128 | $ | 24 | $ | 41 | $ | 87 | $ | 31 | $ | (20) | $ | (53) | ||||||||||||||||||||||||||||||
| Noninterest income (loss) | (2,551) | (1,266) | (1,525) | (1,026) | (1,424) | (915) | (211) | |||||||||||||||||||||||||||||||||||||
| Total revenue, net of interest expense | (2,423) | (1,242) | (1,484) | (939) | (1,393) | (935) | (264) | |||||||||||||||||||||||||||||||||||||
| Provision for credit losses | (100) | 93 | (53) | (47) | (25) | (18) | (21) | |||||||||||||||||||||||||||||||||||||
| Noninterest expense | 610 | 553 | 302 | 308 | 301 | 559 | 305 | |||||||||||||||||||||||||||||||||||||
| Loss before income taxes | (2,933) | (1,888) | (1,733) | (1,200) | (1,669) | (1,476) | (548) | |||||||||||||||||||||||||||||||||||||
| Income tax expense (benefit) | (5,052) | (1,614) | (3,596) | (1,456) | (1,248) | (1,773) | (766) | |||||||||||||||||||||||||||||||||||||
| Net income (loss) | $ | 2,119 | $ | (274) | $ | 1,863 | $ | 256 | $ | (421) | $ | 297 | $ | 218 | ||||||||||||||||||||||||||||||
| Balance Sheet | ||||||||||||||||||||||||||||||||||||||||||||
| Average | ||||||||||||||||||||||||||||||||||||||||||||
| Total loans and leases | $ | 20,007 | $ | 33,238 | $ | 19,209 | $ | 20,815 | $ | 22,029 | $ | 24,243 | $ | 29,923 | ||||||||||||||||||||||||||||||
Total assets (2) | 197,281 | 225,674 | 187,226 | 207,449 | 232,814 | 230,906 | 249,846 | |||||||||||||||||||||||||||||||||||||
| Total deposits | 14,212 | 22,473 | 14,073 | 14,354 | 13,251 | 14,881 | 21,387 | |||||||||||||||||||||||||||||||||||||
| Period end | ||||||||||||||||||||||||||||||||||||||||||||
| Total loans and leases | $ | 18,306 | $ | 25,096 | $ | 18,306 | $ | 19,850 | $ | 21,301 | $ | 23,120 | $ | 25,096 | ||||||||||||||||||||||||||||||
Total assets (3) | 206,341 | 240,159 | 206,341 | 204,008 | 264,141 | 223,345 | 240,159 | |||||||||||||||||||||||||||||||||||||
| Total deposits | 13,540 | 19,149 | 13,540 | 12,513 | 12,998 | 12,839 | 19,149 | |||||||||||||||||||||||||||||||||||||
(1)All Other primarily consists of asset and liability management (ALM) activities, liquidating businesses and certain expenses not otherwise allocated to a business segment. ALM activities encompass interest rate and foreign currency risk management activities for which substantially all of the results are allocated to our business segments.
(2)Includes elimination of segments’ excess asset allocations to match liabilities (i.e., deposits) and allocated shareholders’ equity of $1.0 trillion and $656.5 billion for the six months ended June 30, 2021 and 2020, $1.1 trillion and $1.0 trillion for the second and first quarters of 2021, and $908.7 billion, $828.3 billion and $740.7 billion for the fourth, third and second quarters of 2020, respectively.
(3)Includes elimination of segments’ excess asset allocations to match liabilities (i.e., deposits) and allocated shareholders’ equity of $1.1 trillion, $1.1 trillion, $977.7 billion, $857.8 billion and $829.1 billion at June 30, 2021, March 31, 2021, December 31, 2020, September 30, 2020 and June 30, 2020, respectively.
Certain prior-period amounts have been reclassified among the segments to conform to current-period presentation.
| Current-period information is preliminary and based on company data available at the time of the presentation. | 24 | ||||
| Bank of America Corporation and Subsidiaries | |||||||||||||||||
| Outstanding Loans and Leases | |||||||||||||||||
| (Dollars in millions) | |||||||||||||||||
| June 30 2021 | March 31 2021 | June 30 2020 | |||||||||||||||
| Consumer | |||||||||||||||||
| Residential mortgage | $ | 214,324 | $ | 214,779 | $ | 239,500 | |||||||||||
| Home equity | 30,469 | 32,078 | 38,396 | ||||||||||||||
| Credit card | 75,599 | 72,786 | 84,244 | ||||||||||||||
Direct/Indirect consumer (1) | 96,903 | 91,737 | 88,628 | ||||||||||||||
Other consumer (2) | 172 | 132 | 120 | ||||||||||||||
| Total consumer loans excluding loans accounted for under the fair value option | 417,467 | 411,512 | 450,888 | ||||||||||||||
Consumer loans accounted for under the fair value option (3) | 654 | 693 | 684 | ||||||||||||||
| Total consumer | 418,121 | 412,205 | 451,572 | ||||||||||||||
| Commercial | |||||||||||||||||
| U.S. commercial | 291,322 | 283,229 | 313,938 | ||||||||||||||
| Non-U.S. commercial | 98,150 | 91,335 | 103,684 | ||||||||||||||
Commercial real estate (4) | 59,606 | 58,764 | 64,095 | ||||||||||||||
| Commercial lease financing | 15,768 | 16,359 | 18,200 | ||||||||||||||
| 464,846 | 449,687 | 499,917 | |||||||||||||||
U.S. small business commercial (5) | 29,867 | 34,886 | 38,963 | ||||||||||||||
| Total commercial loans excluding loans accounted for under the fair value option | 494,713 | 484,573 | 538,880 | ||||||||||||||
Commercial loans accounted for under the fair value option (3) | 6,094 | 6,310 | 8,492 | ||||||||||||||
| Total commercial | 500,807 | 490,883 | 547,372 | ||||||||||||||
| Total loans and leases | $ | 918,928 | $ | 903,088 | $ | 998,944 | |||||||||||
(1)Includes primarily auto and specialty lending loans and leases of $46.4 billion, $45.4 billion and $48.4 billion, U.S. securities-based lending loans of $46.4 billion, $42.4 billion and $36.6 billion and non-U.S. consumer loans of $3.0 billion, $3.1 billion and $2.8 billion at June 30, 2021, March 31, 2021 and June 30, 2020, respectively.
(2)Substantially all of other consumer is consumer overdrafts.
(3)Consumer loans accounted for under the fair value option includes residential mortgage loans of $257 million, $275 million and $330 million and home equity loans of $397 million, $418 million and $354 million at June 30, 2021, March 31, 2021 and June 30, 2020, respectively. Commercial loans accounted for under the fair value option include U.S. commercial loans of $4.2 billion, $4.2 billion and $5.1 billion and non-U.S. commercial loans of $1.9 billion, $2.1 billion and $3.4 billion at June 30, 2021, March 31, 2021 and June 30, 2020, respectively.
(4)Includes U.S. commercial real estate loans of $55.8 billion, $55.8 billion and $60.6 billion and non-U.S. commercial real estate loans of $3.8 billion, $3.0 billion and $3.5 billion at June 30, 2021, March 31, 2021 and June 30, 2020, respectively.
(5)Includes card-related products and Paycheck Protection Program (PPP) loans.
Certain prior-period amounts have been reclassified to conform to current-period presentation.
| Current-period information is preliminary and based on company data available at the time of the presentation. | 25 | ||||
| Bank of America Corporation and Subsidiaries | ||||||||||||||||||||||||||||||||||||||
| Quarterly Average Loans and Leases by Business Segment and All Other | ||||||||||||||||||||||||||||||||||||||
| (Dollars in millions) | ||||||||||||||||||||||||||||||||||||||
| Second Quarter 2021 | ||||||||||||||||||||||||||||||||||||||
| Total Corporation | Consumer Banking | GWIM | Global Banking | Global Markets | All Other | |||||||||||||||||||||||||||||||||
| Consumer | ||||||||||||||||||||||||||||||||||||||
| Residential mortgage | $ | 214,096 | $ | 109,652 | $ | 89,129 | $ | 1 | $ | — | $ | 15,314 | ||||||||||||||||||||||||||
| Home equity | 31,621 | 24,839 | 2,670 | — | 275 | 3,837 | ||||||||||||||||||||||||||||||||
| Credit card | 73,399 | 70,900 | 2,499 | — | — | — | ||||||||||||||||||||||||||||||||
| Direct/Indirect and other consumer | 94,321 | 46,233 | 48,085 | — | — | 3 | ||||||||||||||||||||||||||||||||
| Total consumer | 413,437 | 251,624 | 142,383 | 1 | 275 | 19,154 | ||||||||||||||||||||||||||||||||
| Commercial | ||||||||||||||||||||||||||||||||||||||
| U.S. commercial | 322,633 | 30,131 | 46,253 | 188,716 | 57,188 | 345 | ||||||||||||||||||||||||||||||||
| Non-U.S. commercial | 96,343 | — | 1,078 | 70,666 | 24,490 | 109 | ||||||||||||||||||||||||||||||||
| Commercial real estate | 59,276 | 12 | 4,274 | 49,139 | 5,847 | 4 | ||||||||||||||||||||||||||||||||
| Commercial lease financing | 16,211 | — | — | 16,588 | 26 | (403) | ||||||||||||||||||||||||||||||||
| Total commercial | 494,463 | 30,143 | 51,605 | 325,109 | 87,551 | 55 | ||||||||||||||||||||||||||||||||
| Total loans and leases | $ | 907,900 | $ | 281,767 | $ | 193,988 | $ | 325,110 | $ | 87,826 | $ | 19,209 | ||||||||||||||||||||||||||
| First Quarter 2021 | ||||||||||||||||||||||||||||||||||||||
| Total Corporation | Consumer Banking | GWIM | Global Banking | Global Markets | All Other | |||||||||||||||||||||||||||||||||
| Consumer | ||||||||||||||||||||||||||||||||||||||
| Residential mortgage | $ | 219,005 | $ | 113,729 | $ | 88,532 | $ | — | $ | — | $ | 16,744 | ||||||||||||||||||||||||||
| Home equity | 33,634 | 26,490 | 2,812 | — | 284 | 4,048 | ||||||||||||||||||||||||||||||||
| Credit card | 74,165 | 71,805 | 2,360 | — | — | — | ||||||||||||||||||||||||||||||||
| Direct/Indirect and other consumer | 91,430 | 46,320 | 45,107 | — | — | 3 | ||||||||||||||||||||||||||||||||
| Total consumer | 418,234 | 258,344 | 138,811 | — | 284 | 20,795 | ||||||||||||||||||||||||||||||||
| Commercial | ||||||||||||||||||||||||||||||||||||||
| U.S. commercial | 322,010 | 32,535 | 44,436 | 192,628 | 52,016 | 395 | ||||||||||||||||||||||||||||||||
| Non-U.S. commercial | 90,904 | — | 932 | 70,573 | 19,369 | 30 | ||||||||||||||||||||||||||||||||
| Commercial real estate | 59,736 | 12 | 4,316 | 49,685 | 5,717 | 6 | ||||||||||||||||||||||||||||||||
| Commercial lease financing | 16,839 | — | — | 17,221 | 29 | (411) | ||||||||||||||||||||||||||||||||
| Total commercial | 489,489 | 32,547 | 49,684 | 330,107 | 77,131 | 20 | ||||||||||||||||||||||||||||||||
| Total loans and leases | $ | 907,723 | $ | 290,891 | $ | 188,495 | $ | 330,107 | $ | 77,415 | $ | 20,815 | ||||||||||||||||||||||||||
| Second Quarter 2020 | ||||||||||||||||||||||||||||||||||||||
| Total Corporation | Consumer Banking | GWIM | Global Banking | Global Markets | All Other | |||||||||||||||||||||||||||||||||
| Consumer | ||||||||||||||||||||||||||||||||||||||
| Residential mortgage | $ | 241,486 | $ | 127,380 | $ | 88,718 | $ | 3 | $ | — | $ | 25,385 | ||||||||||||||||||||||||||
| Home equity | 39,308 | 31,220 | 3,160 | — | 304 | 4,624 | ||||||||||||||||||||||||||||||||
| Credit card | 86,191 | 83,890 | 2,301 | — | — | — | ||||||||||||||||||||||||||||||||
| Direct/Indirect and other consumer | 88,962 | 49,390 | 39,569 | — | — | 3 | ||||||||||||||||||||||||||||||||
| Total consumer | 455,947 | 291,880 | 133,748 | 3 | 304 | 30,012 | ||||||||||||||||||||||||||||||||
| Commercial | ||||||||||||||||||||||||||||||||||||||
| U.S. commercial | 374,965 | 29,662 | 43,244 | 252,649 | 49,184 | 226 | ||||||||||||||||||||||||||||||||
| Non-U.S. commercial | 116,040 | — | 675 | 96,742 | 18,520 | 103 | ||||||||||||||||||||||||||||||||
| Commercial real estate | 65,515 | 16 | 4,482 | 54,938 | 6,069 | 10 | ||||||||||||||||||||||||||||||||
| Commercial lease financing | 18,920 | — | 1 | 19,293 | 54 | (428) | ||||||||||||||||||||||||||||||||
| Total commercial | 575,440 | 29,678 | 48,402 | 423,622 | 73,827 | (89) | ||||||||||||||||||||||||||||||||
| Total loans and leases | $ | 1,031,387 | $ | 321,558 | $ | 182,150 | $ | 423,625 | $ | 74,131 | $ | 29,923 | ||||||||||||||||||||||||||
Certain prior-period amounts have been reclassified among the segments to conform to current-period presentation.
| Current-period information is preliminary and based on company data available at the time of the presentation. | 26 | ||||
| Bank of America Corporation and Subsidiaries | |||||||||||||||||||||||||||||||||||
Commercial Credit Exposure by Industry (1, 2, 3, 4, 6) | |||||||||||||||||||||||||||||||||||
| (Dollars in millions) | |||||||||||||||||||||||||||||||||||
| Commercial Utilized | Total Commercial Committed | ||||||||||||||||||||||||||||||||||
| June 30 2021 | March 31 2021 | June 30 2020 | June 30 2021 | March 31 2021 | June 30 2020 | ||||||||||||||||||||||||||||||
| Asset managers and funds | $ | 78,769 | $ | 68,195 | $ | 63,675 | $ | 120,332 | $ | 105,459 | $ | 99,566 | |||||||||||||||||||||||
Real estate (5) | 66,707 | 66,159 | 73,887 | 92,609 | 89,891 | 95,492 | |||||||||||||||||||||||||||||
| Capital goods | 38,906 | 37,030 | 47,600 | 84,180 | 78,134 | 85,571 | |||||||||||||||||||||||||||||
| Finance companies | 52,314 | 49,483 | 40,661 | 78,342 | 76,246 | 63,767 | |||||||||||||||||||||||||||||
| Healthcare equipment and services | 32,112 | 31,750 | 39,453 | 62,851 | 56,118 | 63,421 | |||||||||||||||||||||||||||||
| Materials | 23,641 | 23,474 | 28,768 | 50,630 | 50,704 | 52,411 | |||||||||||||||||||||||||||||
| Government and public education | 38,295 | 39,093 | 43,787 | 50,561 | 51,381 | 55,972 | |||||||||||||||||||||||||||||
| Retailing | 23,388 | 23,857 | 28,479 | 48,318 | 47,562 | 48,403 | |||||||||||||||||||||||||||||
| Consumer services | 28,438 | 29,877 | 34,238 | 48,055 | 47,471 | 48,272 | |||||||||||||||||||||||||||||
| Food, beverage and tobacco | 22,569 | 22,597 | 24,529 | 46,276 | 44,651 | 45,909 | |||||||||||||||||||||||||||||
| Commercial services and supplies | 20,027 | 21,139 | 24,635 | 39,836 | 37,768 | 38,091 | |||||||||||||||||||||||||||||
| Individuals and trusts | 28,785 | 28,326 | 25,940 | 38,329 | 37,989 | 36,270 | |||||||||||||||||||||||||||||
| Transportation | 21,842 | 21,745 | 26,011 | 32,210 | 32,032 | 35,111 | |||||||||||||||||||||||||||||
| Energy | 13,223 | 13,596 | 16,948 | 31,830 | 32,416 | 37,377 | |||||||||||||||||||||||||||||
| Utilities | 13,044 | 11,681 | 13,310 | 31,777 | 29,481 | 29,978 | |||||||||||||||||||||||||||||
| Media | 12,318 | 12,358 | 14,117 | 29,342 | 25,262 | 25,939 | |||||||||||||||||||||||||||||
| Technology hardware and equipment | 9,446 | 9,248 | 9,760 | 25,208 | 24,434 | 21,899 | |||||||||||||||||||||||||||||
| Software and services | 8,213 | 10,536 | 10,741 | 21,991 | 25,674 | 19,843 | |||||||||||||||||||||||||||||
| Global commercial banks | 20,143 | 21,019 | 24,946 | 21,818 | 23,048 | 27,202 | |||||||||||||||||||||||||||||
| Consumer durables and apparel | 8,587 | 8,507 | 10,931 | 19,731 | 19,484 | 21,061 | |||||||||||||||||||||||||||||
| Telecommunication services | 8,983 | 8,752 | 7,939 | 18,456 | 24,422 | 13,581 | |||||||||||||||||||||||||||||
| Automobiles and components | 9,340 | 11,694 | 12,336 | 17,091 | 20,213 | 18,477 | |||||||||||||||||||||||||||||
| Pharmaceuticals and biotechnology | 4,934 | 4,216 | 6,395 | 16,099 | 16,932 | 17,029 | |||||||||||||||||||||||||||||
| Vehicle dealers | 10,821 | 13,487 | 15,369 | 14,852 | 16,877 | 19,798 | |||||||||||||||||||||||||||||
| Insurance | 5,123 | 6,052 | 6,644 | 13,791 | 14,567 | 14,022 | |||||||||||||||||||||||||||||
| Food and staples retailing | 5,354 | 5,499 | 6,383 | 10,716 | 10,570 | 10,613 | |||||||||||||||||||||||||||||
| Religious and social organizations | 4,042 | 4,473 | 5,321 | 5,828 | 6,347 | 7,132 | |||||||||||||||||||||||||||||
| Financial markets infrastructure (clearinghouses) | 3,666 | 4,271 | 4,852 | 5,779 | 7,275 | 7,330 | |||||||||||||||||||||||||||||
| Total commercial credit exposure by industry | $ | 613,030 | $ | 608,114 | $ | 667,655 | $ | 1,076,838 | $ | 1,052,408 | $ | 1,059,537 | |||||||||||||||||||||||
(1)Includes loans and leases, standby letters of credit and financial guarantees, derivative assets, assets held-for-sale, commercial letters of credit, bankers’ acceptances, securitized assets, foreclosed properties and other collateral acquired. Derivative assets are carried at fair value, reflect the effects of legally enforceable master netting agreements and have been reduced by cash collateral of $32.3 billion, $35.3 billion and $42.2 billion at June 30, 2021, March 31, 2021 and June 30, 2020, respectively. Not reflected in utilized and committed exposure is additional non-cash derivative collateral held of $37.1 billion, $39.4 billion and $32.2 billion, which consists primarily of other marketable securities, at June 30, 2021, March 31, 2021 and June 30, 2020, respectively.
(2)Total utilized and total committed exposure includes loans of $6.1 billion, $6.3 billion and $8.5 billion and issued letters of credit with a notional amount of $80 million, $79 million and $152 million accounted for under the fair value option at June 30, 2021, March 31, 2021 and June 30, 2020, respectively. In addition, total committed exposure includes unfunded loan commitments accounted for under the fair value option with a notional amount of $5.2 billion, $4.5 billion and $2.7 billion at June 30, 2021, March 31, 2021 and June 30, 2020, respectively.
(3)Includes U.S. small business commercial exposure.
(4)Includes the notional amount of unfunded legally binding lending commitments net of amounts distributed (e.g., syndicated or participated) to other financial institutions.
(5)Industries are viewed from a variety of perspectives to best isolate the perceived risks. For purposes of this table, the real estate industry is defined based on the primary business activity of the borrowers or the counterparties using operating cash flows and primary source of repayment as key factors.
(6)Includes $15.7 billion, $21.1 billion and $25.1 billion of PPP loan exposure across impacted industries at June 30, 2021, March 31, 2021 and June 30, 2020, respectively.
Certain prior-period amounts have been reclassified to conform to current-period presentation.
| Current-period information is preliminary and based on company data available at the time of the presentation. | 27 | ||||
| Bank of America Corporation and Subsidiaries | |||||||||||||||||||||||||||||
| Nonperforming Loans, Leases and Foreclosed Properties | |||||||||||||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||||||||
| June 30 2021 | March 31 2021 | December 31 2020 | September 30 2020 | June 30 2020 | |||||||||||||||||||||||||
| Residential mortgage | $ | 2,343 | $ | 2,366 | $ | 2,005 | $ | 1,675 | $ | 1,552 | |||||||||||||||||||
| Home equity | 651 | 669 | 649 | 640 | 594 | ||||||||||||||||||||||||
| Direct/Indirect consumer | 50 | 56 | 71 | 42 | 45 | ||||||||||||||||||||||||
| Total consumer | 3,044 | 3,091 | 2,725 | 2,357 | 2,191 | ||||||||||||||||||||||||
| U.S. commercial | 1,060 | 1,228 | 1,243 | 1,351 | 1,247 | ||||||||||||||||||||||||
| Non-U.S. commercial | 275 | 342 | 418 | 338 | 387 | ||||||||||||||||||||||||
| Commercial real estate | 404 | 354 | 404 | 414 | 474 | ||||||||||||||||||||||||
| Commercial lease financing | 81 | 80 | 87 | 14 | 17 | ||||||||||||||||||||||||
| 1,820 | 2,004 | 2,152 | 2,117 | 2,125 | |||||||||||||||||||||||||
| U.S. small business commercial | 43 | 67 | 75 | 76 | 77 | ||||||||||||||||||||||||
| Total commercial | 1,863 | 2,071 | 2,227 | 2,193 | 2,202 | ||||||||||||||||||||||||
| Total nonperforming loans and leases | 4,907 | 5,162 | 4,952 | 4,550 | 4,393 | ||||||||||||||||||||||||
Foreclosed properties (1) | 124 | 137 | 164 | 180 | 218 | ||||||||||||||||||||||||
Total nonperforming loans, leases and foreclosed properties (2, 3) | $ | 5,031 | $ | 5,299 | $ | 5,116 | $ | 4,730 | $ | 4,611 | |||||||||||||||||||
| Fully-insured home loans past due 30 days or more and still accruing | $ | 997 | $ | 1,030 | $ | 1,090 | $ | 1,213 | $ | 1,153 | |||||||||||||||||||
| Consumer credit card past due 30 days or more and still accruing | 976 | 1,317 | 1,689 | 1,270 | 1,420 | ||||||||||||||||||||||||
| Other loans past due 30 days or more and still accruing | 2,699 | 3,506 | 3,398 | 3,322 | 2,980 | ||||||||||||||||||||||||
Total loans past due 30 days or more and still accruing (4, 5) | $ | 4,672 | $ | 5,853 | $ | 6,177 | $ | 5,805 | $ | 5,553 | |||||||||||||||||||
| Fully-insured home loans past due 90 days or more and still accruing | $ | 687 | $ | 728 | $ | 762 | $ | 837 | $ | 854 | |||||||||||||||||||
Consumer credit card past due 90 days or more and still accruing | 533 | 755 | 903 | 546 | 782 | ||||||||||||||||||||||||
| Other loans past due 90 days or more and still accruing | 299 | 309 | 417 | 365 | 579 | ||||||||||||||||||||||||
Total loans past due 90 days or more and still accruing (4, 5) | $ | 1,519 | $ | 1,792 | $ | 2,082 | $ | 1,748 | $ | 2,215 | |||||||||||||||||||
Nonperforming loans, leases and foreclosed properties/Total assets (6) | 0.17 | % | 0.18 | % | 0.18 | % | 0.17 | % | 0.17 | % | |||||||||||||||||||
Nonperforming loans, leases and foreclosed properties/Total loans, leases and foreclosed properties (6) | 0.55 | 0.59 | 0.56 | 0.50 | 0.47 | ||||||||||||||||||||||||
Nonperforming loans and leases/Total loans and leases (6) | 0.54 | 0.58 | 0.54 | 0.48 | 0.44 | ||||||||||||||||||||||||
Commercial reservable criticized utilized exposure (7) | $ | 28,878 | $ | 34,283 | $ | 38,666 | $ | 35,710 | $ | 25,950 | |||||||||||||||||||
Commercial reservable criticized utilized exposure/Commercial reservable utilized exposure (7) | 5.45 | % | 6.59 | % | 7.31 | % | 6.55 | % | 4.51 | % | |||||||||||||||||||
Total commercial criticized utilized exposure/Commercial utilized exposure (7) | 5.37 | 6.41 | 7.22 | 6.34 | 4.34 | ||||||||||||||||||||||||
(1)Foreclosed property balances do not include properties insured by certain government-guaranteed loans, principally loans insured by the Federal Housing Administration (FHA), that entered foreclosure of $66 million, $87 million, $119 million, $131 million and $124 million at June 30, 2021, March 31, 2021, December 31, 2020, September 30, 2020 and June 30, 2020, respectively.
(2)Balances do not include past due consumer credit card, consumer loans secured by real estate where repayments are insured by the FHA and individually insured long-term stand-by agreements (fully-insured home loans), and in general, other consumer and commercial loans not secured by real estate.
(3)Balances do not include nonperforming loans held-for-sale of $348 million, $384 million, $359 million, $184 million and $151 million and nonperforming loans accounted for under the fair value option of $13 million, $12 million, $11 million, $9 million and $79 million at June 30, 2021, March 31, 2021, December 31, 2020, September 30, 2020 and June 30, 2020, respectively.
(4)Balances do not include loans held-for-sale past due 30 days or more and still accruing of $159 million, $75 million, $38 million, $93 million and $209 million at June 30, 2021, March 31, 2021, December 31, 2020, September 30, 2020 and June 30, 2020, respectively, and loans held-for-sale past due 90 days or more and still accruing of $70 million, $18 million, $32 million, $41 million and $5 million at June 30, 2021, March 31, 2021, December 31, 2020, September 30, 2020 and June 30, 2020, respectively. At June 30, 2021, March 31, 2021, December 31, 2020, September 30, 2020 and June 30, 2020, there were $74 million, $12 million, $15 million, $119 million and $18 million, respectively, of loans accounted for under the fair value option past due 30 days or more and still accruing interest.
(5)These balances are excluded from total nonperforming loans, leases and foreclosed properties.
(6)Total assets and total loans and leases do not include loans accounted for under the fair value option of $6.7 billion, $7.0 billion, $6.7 billion, $7.2 billion and $9.2 billion at June 30, 2021, March 31, 2021, December 31, 2020, September 30, 2020 and June 30, 2020, respectively.
(7)Criticized exposure corresponds to the Special Mention, Substandard and Doubtful asset categories defined by regulatory authorities. The reservable criticized exposure excludes loans held-for-sale, exposure accounted for under the fair value option and other nonreservable exposure.
Certain prior-period amounts have been reclassified to conform to current-period presentation.
| Current-period information is preliminary and based on company data available at the time of the presentation. | 28 | ||||
| Bank of America Corporation and Subsidiaries | |||||||||||||||||||||||||||||
Nonperforming Loans, Leases and Foreclosed Properties Activity (1) | |||||||||||||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||||||||
| Second Quarter 2021 | First Quarter 2021 | Fourth Quarter 2020 | Third Quarter 2020 | Second Quarter 2020 | |||||||||||||||||||||||||
| Nonperforming Consumer Loans and Leases: | |||||||||||||||||||||||||||||
| Balance, beginning of period | $ | 3,091 | $ | 2,725 | $ | 2,357 | $ | 2,191 | $ | 2,204 | |||||||||||||||||||
| Additions | 431 | 851 | 860 | 587 | 354 | ||||||||||||||||||||||||
| Reductions: | |||||||||||||||||||||||||||||
| Paydowns and payoffs | (160) | (123) | (137) | (113) | (84) | ||||||||||||||||||||||||
| Sales | (1) | (1) | (7) | — | (25) | ||||||||||||||||||||||||
Returns to performing status (2) | (291) | (347) | (325) | (291) | (233) | ||||||||||||||||||||||||
Charge-offs (3) | (25) | (12) | (16) | (13) | (22) | ||||||||||||||||||||||||
| Transfers to foreclosed properties | (1) | (2) | (7) | (4) | (3) | ||||||||||||||||||||||||
| Total net additions (reductions) to nonperforming loans and leases | (47) | 366 | 368 | 166 | (13) | ||||||||||||||||||||||||
| Total nonperforming consumer loans and leases, end of period | 3,044 | 3,091 | 2,725 | 2,357 | 2,191 | ||||||||||||||||||||||||
| Foreclosed properties | 93 | 101 | 123 | 135 | 169 | ||||||||||||||||||||||||
| Nonperforming consumer loans, leases and foreclosed properties, end of period | $ | 3,137 | $ | 3,192 | $ | 2,848 | $ | 2,492 | $ | 2,360 | |||||||||||||||||||
Nonperforming Commercial Loans and Leases (4): | |||||||||||||||||||||||||||||
| Balance, beginning of period | $ | 2,071 | $ | 2,227 | $ | 2,193 | $ | 2,202 | $ | 1,852 | |||||||||||||||||||
| Additions | 503 | 472 | 1,192 | 656 | 889 | ||||||||||||||||||||||||
| Reductions: | |||||||||||||||||||||||||||||
| Paydowns | (264) | (312) | (397) | (216) | (177) | ||||||||||||||||||||||||
| Sales | (77) | (22) | (274) | (50) | (10) | ||||||||||||||||||||||||
Return to performing status (5) | (59) | (28) | (127) | (21) | (8) | ||||||||||||||||||||||||
| Charge-offs | (108) | (78) | (313) | (367) | (344) | ||||||||||||||||||||||||
| Transfers to foreclosed properties | — | — | (2) | — | — | ||||||||||||||||||||||||
| Transfers to loans held-for-sale | (203) | (188) | (45) | (11) | — | ||||||||||||||||||||||||
| Total net additions (reductions) to nonperforming loans and leases | (208) | (156) | 34 | (9) | 350 | ||||||||||||||||||||||||
| Total nonperforming commercial loans and leases, end of period | 1,863 | 2,071 | 2,227 | 2,193 | 2,202 | ||||||||||||||||||||||||
| Foreclosed properties | 31 | 36 | 41 | 45 | 49 | ||||||||||||||||||||||||
| Nonperforming commercial loans, leases and foreclosed properties, end of period | $ | 1,894 | $ | 2,107 | $ | 2,268 | $ | 2,238 | $ | 2,251 | |||||||||||||||||||
(1)For amounts excluded from nonperforming loans, leases and foreclosed properties, see footnotes to Nonperforming Loans, Leases and Foreclosed Properties table on page 28.
(2)Consumer loans and leases may be returned to performing status when all principal and interest is current and full repayment of the remaining contractual principal and interest is expected, or when the loan otherwise becomes well-secured and is in the process of collection. Certain troubled debt restructurings are classified as nonperforming at the time of restructuring and may only be returned to performing status after considering the borrower’s sustained repayment performance for a reasonable period, generally six months.
(3)Our policy is not to classify consumer credit card and non-bankruptcy related consumer loans not secured by real estate as nonperforming; therefore, the charge-offs on these loans have no impact on nonperforming activity and, accordingly, are excluded from this table.
(4)Includes U.S. small business commercial activity. Small business card loans are excluded as they are not classified as nonperforming.
(5)Commercial loans and leases may be returned to performing status when all principal and interest is current and full repayment of the remaining contractual principal and interest is expected, or when the loan otherwise becomes well-secured and is in the process of collection. Troubled debt restructurings are generally classified as performing after a sustained period of demonstrated payment performance.
Certain prior-period amounts have been reclassified to conform to current-period presentation.
| Current-period information is preliminary and based on company data available at the time of the presentation. | 29 | ||||
| Bank of America Corporation and Subsidiaries | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Quarterly Net Charge-offs and Net Charge-off Ratios (1) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| (Dollars in millions) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Second Quarter 2021 | First Quarter 2021 | Fourth Quarter 2020 | Third Quarter 2020 | Second Quarter 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Amount | Percent | Amount | Percent | Amount | Percent | Amount | Percent | Amount | Percent | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Net Charge-offs | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Residential mortgage | $ | (6) | (0.01) | % | $ | (4) | (0.01) | % | $ | (3) | — | % | $ | (6) | (0.01) | % | $ | (20) | (0.03) | % | |||||||||||||||||||||||||||||||||||||||
| Home equity | (24) | (0.31) | (35) | (0.42) | (28) | (0.31) | (20) | (0.21) | (14) | (0.14) | |||||||||||||||||||||||||||||||||||||||||||||||||
| Credit card | 488 | 2.67 | 634 | 3.47 | 405 | 2.06 | 509 | 2.49 | 665 | 3.10 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Direct/Indirect consumer | (9) | (0.04) | 31 | 0.14 | 38 | 0.17 | 18 | 0.08 | 26 | 0.12 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Other consumer | 64 | n/m | 67 | n/m | 70 | n/m | 63 | n/m | 77 | n/m | |||||||||||||||||||||||||||||||||||||||||||||||||
| Total consumer | 513 | 0.50 | 693 | 0.67 | 482 | 0.44 | 564 | 0.50 | 734 | 0.65 | |||||||||||||||||||||||||||||||||||||||||||||||||
| U.S. commercial | (31) | (0.04) | 12 | 0.02 | 182 | 0.25 | 154 | 0.20 | 219 | 0.26 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Non-U.S. commercial | 14 | 0.06 | 26 | 0.12 | 65 | 0.28 | 57 | 0.23 | 32 | 0.12 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Total commercial and industrial | (17) | (0.02) | 38 | 0.04 | 247 | 0.26 | 211 | 0.21 | 251 | 0.22 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Commercial real estate | 17 | 0.11 | 11 | 0.07 | 101 | 0.66 | 106 | 0.66 | 57 | 0.35 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Commercial lease financing | — | — | — | — | (1) | (0.03) | 24 | 0.53 | 31 | 0.66 | |||||||||||||||||||||||||||||||||||||||||||||||||
| — | — | 49 | 0.04 | 347 | 0.30 | 341 | 0.28 | 339 | 0.25 | ||||||||||||||||||||||||||||||||||||||||||||||||||
| U.S. small business commercial | 82 | 0.98 | 81 | 0.89 | 52 | 0.53 | 67 | 0.69 | 73 | 0.96 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Total commercial | 82 | 0.07 | 130 | 0.11 | 399 | 0.32 | 408 | 0.31 | 412 | 0.29 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Total net charge-offs | $ | 595 | 0.27 | $ | 823 | 0.37 | $ | 881 | 0.38 | $ | 972 | 0.40 | $ | 1,146 | 0.45 | ||||||||||||||||||||||||||||||||||||||||||||
| By Business Segment and All Other | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Consumer Banking | $ | 625 | 0.89 | % | $ | 810 | 1.13 | % | $ | 563 | 0.73 | % | $ | 658 | 0.82 | % | $ | 843 | 1.05 | % | |||||||||||||||||||||||||||||||||||||||
| Global Wealth & Investment Management | — | — | 13 | 0.03 | 9 | 0.02 | (6) | (0.01) | 9 | 0.02 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Global Banking | 3 | — | 36 | 0.05 | 314 | 0.37 | 328 | 0.36 | 330 | 0.32 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Global Markets | — | — | 3 | 0.01 | 24 | 0.13 | 17 | 0.10 | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||
| All Other | (33) | (0.70) | (39) | (0.78) | (29) | (0.53) | (25) | (0.40) | (36) | (0.49) | |||||||||||||||||||||||||||||||||||||||||||||||||
| Total net charge-offs | $ | 595 | 0.27 | $ | 823 | 0.37 | $ | 881 | 0.38 | $ | 972 | 0.40 | $ | 1,146 | 0.45 | ||||||||||||||||||||||||||||||||||||||||||||
(1)Net charge-off ratios are calculated as annualized net charge-offs divided by average outstanding loans and leases excluding loans accounted for under the fair value option during the period for each loan and lease category.
n/m = not meaningful
Certain prior-period amounts have been reclassified to conform to current-period presentation.
| Current-period information is preliminary and based on company data available at the time of the presentation. | 30 | ||||
| Bank of America Corporation and Subsidiaries | |||||||||||||||||||||||
Year-to-Date Net Charge-offs and Net Charge-off Ratios (1) | |||||||||||||||||||||||
| (Dollars in millions) | |||||||||||||||||||||||
| Six Months Ended June 30 | |||||||||||||||||||||||
| 2021 | 2020 | ||||||||||||||||||||||
| Amount | Percent | Amount | Percent | ||||||||||||||||||||
| Net Charge-offs | |||||||||||||||||||||||
| Residential mortgage | $ | (10) | (0.01) | % | $ | (21) | (0.02) | % | |||||||||||||||
| Home equity | (59) | (0.37) | (25) | (0.13) | |||||||||||||||||||
| Credit card | 1,122 | 3.07 | 1,435 | 3.19 | |||||||||||||||||||
| Direct/Indirect consumer | 22 | 0.05 | 66 | 0.15 | |||||||||||||||||||
| Other consumer | 131 | n/m | 151 | n/m | |||||||||||||||||||
| Total consumer | 1,206 | 0.59 | 1,606 | 0.70 | |||||||||||||||||||
| U.S. commercial | (19) | (0.01) | 382 | 0.24 | |||||||||||||||||||
| Non-U.S. commercial | 40 | 0.09 | 33 | 0.06 | |||||||||||||||||||
| Total commercial and industrial | 21 | 0.01 | 415 | 0.19 | |||||||||||||||||||
| Commercial real estate | 28 | 0.09 | 63 | 0.20 | |||||||||||||||||||
| Commercial lease financing | — | — | 36 | 0.38 | |||||||||||||||||||
| 49 | 0.02 | 514 | 0.20 | ||||||||||||||||||||
| U.S. small business commercial | 163 | 0.93 | 148 | 1.29 | |||||||||||||||||||
| Total commercial | 212 | 0.09 | 662 | 0.25 | |||||||||||||||||||
| Total net charge-offs | $ | 1,418 | 0.32 | $ | 2,268 | 0.46 | |||||||||||||||||
| By Business Segment and All Other | |||||||||||||||||||||||
| Consumer Banking | $ | 1,435 | 1.01 | % | $ | 1,806 | 1.14 | % | |||||||||||||||
| Global Wealth & Investment Management | 13 | 0.01 | 18 | 0.02 | |||||||||||||||||||
| Global Banking | 39 | 0.02 | 490 | 0.25 | |||||||||||||||||||
| Global Markets | 3 | 0.01 | 7 | 0.02 | |||||||||||||||||||
| All Other | (72) | (0.74) | (53) | (0.33) | |||||||||||||||||||
| Total net charge-offs | $ | 1,418 | 0.32 | $ | 2,268 | 0.46 | |||||||||||||||||
(1)Net charge-off ratios are calculated as net charge-offs divided by average outstanding loans and leases excluding loans accounted for under the fair value option during the period for each loan and lease category.
n/m = not meaningful
Certain prior-period amounts have been reclassified to conform to current-period presentation.
| Current-period information is preliminary and based on company data available at the time of the presentation. | 31 | ||||
| Bank of America Corporation and Subsidiaries | ||||||||||||||||||||||||||||||||||||||
| Allocation of the Allowance for Credit Losses by Product Type | ||||||||||||||||||||||||||||||||||||||
| (Dollars in millions) | ||||||||||||||||||||||||||||||||||||||
| June 30, 2021 | March 31, 2021 | June 30, 2020 | ||||||||||||||||||||||||||||||||||||
| Amount | Percent of Loans and Leases Outstanding (1, 2) | Amount | Percent of Loans and Leases Outstanding (1, 2) | Amount | Percent of Loans and Leases Outstanding (1, 2) | |||||||||||||||||||||||||||||||||
| Allowance for loan and lease losses | ||||||||||||||||||||||||||||||||||||||
| Residential mortgage | $ | 394 | 0.18% | $ | 428 | 0.20% | $ | 439 | 0.18% | |||||||||||||||||||||||||||||
| Home equity | 203 | 0.67 | 261 | 0.81 | 394 | 1.03 | ||||||||||||||||||||||||||||||||
| Credit card | 6,234 | 8.25 | 7,278 | 10.00 | 9,247 | 10.98 | ||||||||||||||||||||||||||||||||
| Direct/Indirect consumer | 555 | 0.57 | 617 | 0.67 | 800 | 0.90 | ||||||||||||||||||||||||||||||||
| Other consumer | 46 | n/m | 51 | n/m | 75 | n/m | ||||||||||||||||||||||||||||||||
| Total consumer | 7,432 | 1.78 | 8,635 | 2.10 | 10,955 | 2.43 | ||||||||||||||||||||||||||||||||
U.S. commercial (3) | 3,529 | 1.10 | 4,131 | 1.30 | 4,788 | 1.36 | ||||||||||||||||||||||||||||||||
| Non-U.S.commercial | 1,091 | 1.11 | 1,154 | 1.26 | 1,321 | 1.27 | ||||||||||||||||||||||||||||||||
| Commercial real estate | 1,956 | 3.28 | 2,148 | 3.66 | 2,235 | 3.49 | ||||||||||||||||||||||||||||||||
| Commercial lease financing | 87 | 0.55 | 100 | 0.61 | 90 | 0.50 | ||||||||||||||||||||||||||||||||
| Total commercial | 6,663 | 1.35 | 7,533 | 1.55 | 8,434 | 1.57 | ||||||||||||||||||||||||||||||||
| Allowance for loan and lease losses | 14,095 | 1.55 | 16,168 | 1.80 | 19,389 | 1.96 | ||||||||||||||||||||||||||||||||
| Reserve for unfunded lending commitments | 1,687 | 1,829 | 1,702 | |||||||||||||||||||||||||||||||||||
| Allowance for credit losses | $ | 15,782 | $ | 17,997 | $ | 21,091 | ||||||||||||||||||||||||||||||||
Asset Quality Indicators | ||||||||||||||||||||||||||||||||||||||
Allowance for loan and lease losses/Total loans and leases (2) | 1.55% | 1.80% | 1.96% | |||||||||||||||||||||||||||||||||||
Allowance for loan and lease losses/Total nonperforming loans and leases (4) | 287 | 313 | 441 | |||||||||||||||||||||||||||||||||||
Ratio of the allowance for loan and lease losses/Annualized net charge-offs | 5.90 | 4.85 | 4.21 | |||||||||||||||||||||||||||||||||||
(1)Ratios are calculated as allowance for loan and lease losses as a percentage of loans and leases outstanding excluding loans accounted for under the fair value option. Consumer loans accounted for under the fair value option include residential mortgage loans of $257 million, $275 million and $330 million and home equity loans of $397 million, $418 million and $354 million at June 30, 2021, March 31, 2021 and June 30, 2020, respectively. Commercial loans accounted for under the fair value option include U.S. commercial loans of $4.2 billion, $4.2 billion and $5.1 billion and non-U.S. commercial loans of $1.9 billion, $2.1 billion and $3.4 billion at June 30, 2021, March 31, 2021 and June 30, 2020, respectively.
(2)Total loans and leases do not include loans accounted for under the fair value option of $6.7 billion, $7.0 billion and $9.2 billion at June 30, 2021, March 31, 2021 and June 30, 2020, respectively.
(3)Includes allowance for loan and lease losses for U.S. small business commercial loans of $1.4 billion, $1.5 billion and $1.4 billion at June 30, 2021, March 31, 2021 and June 30, 2020, respectively.
(4)Allowance for loan and lease losses includes $7.5 billion, $8.7 billion and $10.5 billion allocated to products (primarily the Consumer Lending portfolios within Consumer Banking) that are excluded from nonperforming loans and leases at June 30, 2021, March 31, 2021 and June 30, 2020, respectively. Excluding these amounts, allowance for loan and lease losses as a percentage of total nonperforming loans and leases was 134 percent, 144 percent and 202 percent at June 30, 2021, March 31, 2021 and June 30, 2020, respectively.
n/m = not meaningful
Certain prior-period amounts have been reclassified to conform to current-period presentation.
| Current-period information is preliminary and based on company data available at the time of the presentation. | 32 | ||||
| Exhibit A: Non-GAAP Reconciliations | |||||||||||||||||
| Bank of America Corporation and Subsidiaries | |||||||||||||||||
| Reconciliations to GAAP Financial Measures | |||||||||||||||||
| (Dollars in millions, except per share information) | |||||||||||||||||
The Corporation evaluates its business based on the following ratios that utilize tangible equity, a non-GAAP financial measure. Tangible equity represents an adjusted shareholders’ equity or common shareholders’ equity amount which has been reduced by goodwill and intangible assets (excluding mortgage servicing rights), net of related deferred tax liabilities. Return on average tangible common shareholders’ equity measures the Corporation’s net income applicable to common shareholders as a percentage of adjusted average common shareholders’ equity. The tangible common equity ratio represents adjusted ending common shareholders’ equity divided by total assets less goodwill and intangible assets (excluding mortgage servicing rights), net of related deferred tax liabilities. Return on average tangible shareholders’ equity measures the Corporation’s net income as a percentage of adjusted average total shareholders’ equity. The tangible equity ratio represents adjusted ending shareholders’ equity divided by total assets less goodwill and intangible assets (excluding mortgage servicing rights), net of related deferred tax liabilities. Tangible book value per common share represents adjusted ending common shareholders’ equity divided by ending common shares outstanding. These measures are used to evaluate the Corporation’s use of equity. In addition, profitability, relationship and investment models all use return on average tangible shareholders’ equity as key measures to support our overall growth goals.
See the tables below for reconciliations of these non-GAAP financial measures to the most closely related financial measures defined by GAAP for the six months ended June 30, 2021 and 2020, and the three months ended June 30, 2021, March 31, 2021, December 31, 2020, September 30, 2020 and June 30, 2020. The Corporation believes the use of these non-GAAP financial measures provides additional clarity in understanding its results of operations and trends. Other companies may define or calculate supplemental financial data differently.
| Six Months Ended June 30 | Second Quarter 2021 | First Quarter 2021 | Fourth Quarter 2020 | Third Quarter 2020 | Second Quarter 2020 | ||||||||||||||||||||||||||||||||||||||||||
| 2021 | 2020 | ||||||||||||||||||||||||||||||||||||||||||||||
| Reconciliation of income before income taxes to pretax, pre-provision income | |||||||||||||||||||||||||||||||||||||||||||||||
| Income before income taxes | $ | 17,208 | $ | 8,330 | $ | 8,042 | $ | 9,166 | $ | 6,119 | $ | 4,546 | $ | 3,799 | |||||||||||||||||||||||||||||||||
| Provision for credit losses | (3,481) | 9,878 | (1,621) | (1,860) | 53 | 1,389 | 5,117 | ||||||||||||||||||||||||||||||||||||||||
| Pretax, pre-provision income | $ | 13,727 | $ | 18,208 | $ | 6,421 | $ | 7,306 | $ | 6,172 | $ | 5,935 | $ | 8,916 | |||||||||||||||||||||||||||||||||
| Reconciliation of average shareholders’ equity to average tangible shareholders’ equity and average tangible common shareholders’ equity | |||||||||||||||||||||||||||||||||||||||||||||||
| Shareholders’ equity | $ | 274,341 | $ | 265,425 | $ | 274,632 | $ | 274,047 | $ | 271,020 | $ | 267,323 | $ | 266,316 | |||||||||||||||||||||||||||||||||
| Goodwill | (68,987) | (68,951) | (69,023) | (68,951) | (68,951) | (68,951) | (68,951) | ||||||||||||||||||||||||||||||||||||||||
| Intangible assets (excluding mortgage servicing rights) | (2,179) | (1,648) | (2,212) | (2,146) | (2,173) | (1,976) | (1,640) | ||||||||||||||||||||||||||||||||||||||||
| Related deferred tax liabilities | 917 | 759 | 915 | 920 | 910 | 855 | 790 | ||||||||||||||||||||||||||||||||||||||||
| Tangible shareholders’ equity | $ | 204,092 | $ | 195,585 | $ | 204,312 | $ | 203,870 | $ | 200,806 | $ | 197,251 | $ | 196,515 | |||||||||||||||||||||||||||||||||
| Preferred stock | (24,039) | (23,442) | (23,684) | (24,399) | (24,180) | (23,427) | (23,427) | ||||||||||||||||||||||||||||||||||||||||
| Tangible common shareholders’ equity | $ | 180,053 | $ | 172,143 | $ | 180,628 | $ | 179,471 | $ | 176,626 | $ | 173,824 | $ | 173,088 | |||||||||||||||||||||||||||||||||
| Reconciliation of period-end shareholders’ equity to period-end tangible shareholders’ equity and period-end tangible common shareholders’ equity | |||||||||||||||||||||||||||||||||||||||||||||||
| Shareholders’ equity | $ | 277,119 | $ | 265,637 | $ | 277,119 | $ | 274,000 | $ | 272,924 | $ | 268,850 | $ | 265,637 | |||||||||||||||||||||||||||||||||
| Goodwill | (69,023) | (68,951) | (69,023) | (68,951) | (68,951) | (68,951) | (68,951) | ||||||||||||||||||||||||||||||||||||||||
| Intangible assets (excluding mortgage servicing rights) | (2,192) | (1,630) | (2,192) | (2,134) | (2,151) | (2,185) | (1,630) | ||||||||||||||||||||||||||||||||||||||||
| Related deferred tax liabilities | 915 | 789 | 915 | 915 | 920 | 910 | 789 | ||||||||||||||||||||||||||||||||||||||||
| Tangible shareholders’ equity | $ | 206,819 | $ | 195,845 | $ | 206,819 | $ | 203,830 | $ | 202,742 | $ | 198,624 | $ | 195,845 | |||||||||||||||||||||||||||||||||
| Preferred stock | (23,441) | (23,427) | (23,441) | (24,319) | (24,510) | (23,427) | (23,427) | ||||||||||||||||||||||||||||||||||||||||
Tangible common shareholders’ equity | $ | 183,378 | $ | 172,418 | $ | 183,378 | $ | 179,511 | $ | 178,232 | $ | 175,197 | $ | 172,418 | |||||||||||||||||||||||||||||||||
| Reconciliation of period-end assets to period-end tangible assets | |||||||||||||||||||||||||||||||||||||||||||||||
| Assets | $ | 3,029,894 | $ | 2,741,688 | $ | 3,029,894 | $ | 2,969,992 | $ | 2,819,627 | $ | 2,738,452 | $ | 2,741,688 | |||||||||||||||||||||||||||||||||
| Goodwill | (69,023) | (68,951) | (69,023) | (68,951) | (68,951) | (68,951) | (68,951) | ||||||||||||||||||||||||||||||||||||||||
| Intangible assets (excluding mortgage servicing rights) | (2,192) | (1,630) | (2,192) | (2,134) | (2,151) | (2,185) | (1,630) | ||||||||||||||||||||||||||||||||||||||||
| Related deferred tax liabilities | 915 | 789 | 915 | 915 | 920 | 910 | 789 | ||||||||||||||||||||||||||||||||||||||||
| Tangible assets | $ | 2,959,594 | $ | 2,671,896 | $ | 2,959,594 | $ | 2,899,822 | $ | 2,749,445 | $ | 2,668,226 | $ | 2,671,896 | |||||||||||||||||||||||||||||||||
| Book value per share of common stock | |||||||||||||||||||||||||||||||||||||||||||||||
| Common shareholders’ equity | $ | 253,678 | $ | 242,210 | $ | 253,678 | $ | 249,681 | $ | 248,414 | $ | 245,423 | $ | 242,210 | |||||||||||||||||||||||||||||||||
| Ending common shares issued and outstanding | 8,487.2 | 8,664.1 | 8,487.2 | 8,589.7 | 8,650.8 | 8,661.5 | 8,664.1 | ||||||||||||||||||||||||||||||||||||||||
| Book value per share of common stock | $ | 29.89 | $ | 27.96 | $ | 29.89 | $ | 29.07 | $ | 28.72 | $ | 28.33 | $ | 27.96 | |||||||||||||||||||||||||||||||||
| Tangible book value per share of common stock | |||||||||||||||||||||||||||||||||||||||||||||||
| Tangible common shareholders’ equity | $ | 183,378 | $ | 172,418 | $ | 183,378 | $ | 179,511 | $ | 178,232 | $ | 175,197 | $ | 172,418 | |||||||||||||||||||||||||||||||||
| Ending common shares issued and outstanding | 8,487.2 | 8,664.1 | 8,487.2 | 8,589.7 | 8,650.8 | 8,661.5 | 8,664.1 | ||||||||||||||||||||||||||||||||||||||||
| Tangible book value per share of common stock | $ | 21.61 | $ | 19.90 | $ | 21.61 | $ | 20.90 | $ | 20.60 | $ | 20.23 | $ | 19.90 | |||||||||||||||||||||||||||||||||
Certain prior-period amounts have been reclassified to conform to current-period presentation.
| Current-period information is preliminary and based on company data available at the time of the presentation. | 33 | ||||
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