Bank of America : EarningsPresentation Q2 2024

Bank of America

2Q24 Financial Results

July 16, 2024

2Q24 Financial Results

	2Q24		1Q24		Inc / (Dec)		1Q24		Inc / (Dec)		2Q23		Inc / (Dec)
($B, except per share data)				Adj.1
Total revenue, net of interest expense	$25.4		$25.8	($0.4)	(2) %	$25.8	($0.4)	(2) %	$25.2	$0.2	1 %
Provision for credit losses	1.5		1.3	0.2	14		1.3	0.2	14		1.1	0.4	34
Net charge-offs	1.5		1.5		-	2		1.5		-	2		0.9	0.7	76
Reserve build (release)2	-		(0.2)	0.2	(86)		(0.2)	0.2	(86)		0.3	(0.3)	(110)
Noninterest expense	16.3		17.2	(0.9)	(5)		16.5	(0.2)	(1)		16.0	0.3	2
Pretax income	7.6		7.3	0.3	4		8.0	(0.4)	(5)		8.0	(0.5)	(6)
Pretax, pre-provision income3	9.1		8.6	0.5	6		9.3	(0.2)	(2)		9.2	(0.1)	(1)
Income tax expense	0.7		0.6	0.1	13		0.8	(0.1)	(12)		0.6		-	6
Net income	$6.9		$6.7	$0.2	3		$7.2	($0.3)	(4)		$7.4	($0.5)	(7)
Diluted earnings per share	$0.83		$0.76	$0.07	9		$0.83		$-	-	$0.88	($0.05)	(6)
Average diluted common shares (in millions)	7,961		8,031	(71)	(1)		8,031	(71)	(1)		8,081	(120)	(1)
Return Metrics and Efficiency Ratio
Return on average assets	0.85	%	0.83	%				0.89	%				0.94	%
Return on average common shareholders' equity	10.0		9.4					10.2					11.2
Return on average tangible common shareholders' equity3	13.6		12.7					13.8					15.5
Efficiency ratio	64		67					64					64

Note: Amounts may not total due to rounding.

• Amounts in this column (other than total revenue, net of interest expense, provision for credit losses, and average diluted common shares) are adjusted for the FDIC special assessment accrual. Adjusted amounts

represent non-GAAP financial measures. For a reconciliation to the most directly comparable GAAP financial measures, see note A on slide 32. For important presentation information, see slide 36.
2 For more information on reserve build (release), see note B on slide 32.	2
3 Represent non-GAAP financial measures. For more information on pretax, pre-provision income and a reconciliation to the most directly comparable GAAP financial measure, see note C on slide 33. For important

presentation information about these measures, see slide 36.

Continued Organic Growth in 2Q24

Consumer Banking

Added ~278,000 net new checking accounts; 22 consecutive quarters of growth

Added ~1MM credit card accounts1

Record consumer investment assets of $476B,2 up 23% YoY; 3.9MM accounts, up 6%

13 consecutive quarters of Small Business loan growth

Global Wealth & Investment Management

Added ~6,100 net new relationships across Merrill and Private Bank

Opened ~30,000 new bank accounts; over 60% of clients have banking relationship

Record client balances of over $4T, up 10% YoY

Grew loan balances 3% YoY to $225B

$5.7T total deposits, loans, and investment balances

$58B total net wealth spectrum flows since 2Q233

Global Banking

Global Markets

#3 investment banking fee ranking; grew 1H24 market share 42 bps YoY4

Grew 1H24 investment banking fees 32% YoY to $3.1B

Grew Middle Market loan balances 4% YoY5

Grew average deposits 6% from 2Q23

9 consecutive quarters of YoY sales and trading revenue growth

Highest 2Q sales and trading revenue in over a decade

Record average loan balances of $135B, up 5% YoY; 15 consecutive quarters of growth

Zero trading loss days in 1H24

Note: Balance sheet metrics are end of period unless otherwise noted.

• Includes credit cards across Consumer Banking, Small Business, and Global Wealth & Investment Management (GWIM).

• Consumer investment assets include client brokerage assets, deposit sweep balances, Bank of America N.A. brokered certificates of deposit (CDs), and assets under management (AUM) in Consumer Banking.
  3 Includes net client flows across Merrill, Private Bank, and Consumer Investments.

4 Source: Dealogic as of June 30, 2024.

3

• Includes loans to Global Commercial Banking clients, excluding commercial real estate and specialized industries.

Average Deposits and Rate Paid Trends

Total Corporation ($B)

Consumer Banking ($B)

$2,250

$1,500

$750

$0

$2,012 $1,963 $1,926 $1,894 $1,875 $1,876 $1,905 $1,907 $1,910

2Q22

3Q22

4Q22

1Q23

2Q23

3Q23

4Q23

1Q24

2Q24

1.00%$1,250

$1,000

$750

0.50%

$500

$250

0.00%$0

$1,078	$1,069	$1,047	$1,026	$1,006
		$980	$959	$952	$949

2Q22

3Q22

4Q22

1Q23

2Q23

3Q23

4Q23

1Q24

2Q24

0.50%

0.25%

0.00%

Interest-bearing		Noninterest-bearing		QoQ Δ in total rate paid (RHS)		Other deposits		Core operating deposits		QoQ Δ in total rate paid (RHS)

GWIM ($B)

$400

2.00%

$364

$339

$318 $314

$295 $292 $292 $297 $288

$200

1.00%

$0

0.00%

2Q22

3Q22

4Q22

1Q23

2Q23

3Q23

4Q23

1Q24

2Q24

Bank deposits1

Sweep deposits

QoQ Δ in total rate paid (RHS)

Note: Total Corporation also includes Global Markets and All Other.

• Includes Preferred Deposits, other non-sweep Merrill bank deposits, and Private Bank deposits.

Global Banking ($B)

$600							1.50%
$509					$528	$526	$525
$495	$503	$493	$498	$504
$400							1.00%

$200

0.50%

$0

0.00%

2Q22

3Q22

4Q22

1Q23

2Q23

3Q23

4Q23

1Q24

2Q24

Interest-bearing

Noninterest-bearing

QoQ Δ in total rate paid (RHS)

4

Credit Card Update

30+ Days Past Due ($MM)1

Delinquency rate

$3,000

2.43%

2.09%

$2,000

$1,000

$0
4Q19	2Q24

Payment Rates Remain Elevated while Utilization Rates are Lower Compared to 4Q191,2

1.5X

1.3X	1.2X
1.0X
	0.9X
0.8X
4Q19	2Q24
Utilization rate	Payment rate

90+ Days Past Due ($MM)1

Delinquency rate

$1,500

1.26%

1.07%

$1,000

$500

$0
4Q19	2Q24

Growth in Deposit and Investment Balances of Credit Card Clients3

40%

+25%

20%

0%

(20%)
4Q19	2Q24

• Includes consumer credit card portfolios in Consumer Banking and GWIM.

• Utilization rate is calculated as ending loan balances divided by open or active credit line commitments. Payment rate is calculated as in-month payment volume divided by previous month ending loan balances.

Quarterly payment rate is the average of monthly payment rates.

• Represent average Bank of America deposit and investment account balances of consumer credit card clients in Consumer Banking and GWIM.

5

2Q24 Highlights

(Comparisons to 2Q23, unless otherwise noted)

• Net income of $6.9B; diluted earnings per share of $0.83; ROE1 10.0%, ROTCE1,2 13.6%
• Revenue, net of interest expense, of $25.4B increased $0.2B, or 1%, reflecting higher asset management and investment banking fees, as well as sales and trading revenue, and lower net interest income (NII)
• • NII of $13.7B ($13.9B FTE)1,2 decreased $0.5B, or 3%, as higher deposit costs more than offset higher asset yields and modest loan growth
• Provision for credit losses of $1.5B vs. $1.1B in 2Q23 and $1.3B in 1Q24
• • Net charge-offs (NCOs)3 of $1.5B increased compared to 2Q23, driven by credit card and commercial real estate office, and were relatively flat compared to 1Q24
  • Net reserve release of $25MM vs. net reserve build of $256MM in 2Q23 and net reserve release of $179MM in 1Q24
• Noninterest expense of $16.3B increased $0.3B, or 2%, driven by investments in people and revenue-related compensation
• Balance sheet remained strong
• • Average deposits of $1.91T increased $35B, or 2%, vs. 2Q23
  • Average loans and leases of $1.05T increased modestly vs. 2Q23
  • Average Global Liquidity Sources4 of $909B
  • Common Equity Tier 1 capital of $198B increased $1B from 1Q24
  • • Returned $5.4B to shareholders
    • • Paid $1.9B in common dividends; announced an 8% increase in quarterly common dividend, effective 3Q245
      • Repurchased $3.5B of common stock, including repurchases to offset shares awarded under equity-based compensation plans
  • Common Equity Tier 1 ratio of 11.9% increased 6 bps from 1Q24; 122 bps above new regulatory minimum, effective October 1, 2024

• ROE stands for return on average common shareholders' equity. ROTCE stands for return on average tangible common shareholders' equity. FTE stands for fully taxable-equivalent basis.
  2 Represent non-GAAP financial measures. For important presentation information about these measures, see slide 36. 3 Exclude loans measured at fair value.
  4 See note D on slide 33 for definition of Global Liquidity Sources.

5 Subject to approval from the Bank of America Corporation (the Corporation) Board of Directors.

6

Balance Sheet, Liquidity, and Capital

(EOP1 basis unless noted)

Balance Sheet Metrics	2Q24		1Q24		2Q23
Assets ($B)
Total assets	$3,258		$3,274		$3,123
Total loans and leases	1,057		1,049		1,051
Cash and cash equivalents	321		313		374
Total debt securities	878		910		756
Funding & Liquidity ($B)
Total deposits	$1,910		$1,946		$1,877
Long-term debt	290		296		286
Global Liquidity Sources (average)2	909		909		867
Equity ($B)
Common shareholders' equity	$267		$265		$255
Common equity ratio	8.2	%	8.1	%	8.2	%
Tangible common shareholders' equity3	$197		$195		$185
Tangible common equity ratio3	6.2	%	6.1	%	6.1	%
Per Share Data
Book value per common share	$34.39		$33.71		$32.05
Tangible book value per common share3	25.37		24.79		23.23
Common shares outstanding (in billions)	7.77		7.87		7.95

Basel 3 Capital ($B)4	2Q24		1Q24		2Q23
Common equity tier 1 capital	$198		$197		$190
Standardized approach
Risk-weighted assets (RWA)	$1,662		$1,658		$1,639
CET1 ratio	11.9	%	11.9	%	11.6	%
Advanced approaches
Risk-weighted assets	$1,469		$1,463		$1,436
CET1 ratio	13.5	%	13.4	%	13.2	%
Supplementary leverage
Supplementary Leverage Ratio	6.0	%	6.0	%	6.0	%

• CET1 ratio of 11.9% increased 6 bps from 1Q244
• • CET1 capital of $198B increased $1B
  • Standardized RWA of $1,662B increased $4B
• Book value per share of $34.39 improved 7% from 2Q23; tangible book value per share of $25.37 improved 9% from 2Q233
• Average Global Liquidity Sources of $909B were flat compared to 1Q242

• EOP stands for end of period.

• See note D on slide 33 for definition of Global Liquidity Sources.

• Represent non-GAAP financial measures. For important presentation information, see slide 36.

• Regulatory capital ratios at June 30, 2024, are preliminary. The Corporation reports regulatory capital ratios under both the Standardized and Advanced approaches. Capital adequacy is evaluated against the lower of

the Standardized or Advanced approaches compared to their respective regulatory capital ratio requirements. The Corporation's binding ratio was the Total capital ratio under the Standardized approach for June 30,	7
2024, and March 31, 2024, and the CET1 ratio under the Standardized approach for June 30, 2023.

Average Loan and Lease Trends

Total Loans and Leases ($B)

$1,100

$1,047 $1,046 $1,051 $1,048 $1,051 YoY

+0.5%

$1,000

$900

$800

2Q23 3Q23 4Q23 1Q24 2Q24

Loans and Leases in Business Segments ($B)

$1,250		$1,037	$1,037	$1,041	$1,039	$1,043	YoY
		+1%
$1,000
	129	131	134	134	135	+5%
$750		383	376	375	374	373	(3%)
$500		219	219	219	219	223	+2%
$250		307	311	313	313	312	+2%
$0
	2Q23	3Q23	4Q23	1Q24	2Q24

Consumer Banking GWIM Global Banking Global Markets

Note: Amounts may not total due to rounding.

• Includes residential mortgage and home equity.

• Includes direct / indirect and other consumer and commercial lease financing.

Total Loans and Leases by Portfolio ($B)

$750

$593 $589 $592 $591 $596

$500

$454

$457

$459

$456

$456

$250

$0

2Q23		3Q23	4Q23	1Q24	2Q24
		Consumer		Commercial

Total Loans and Leases by Product ($B)

$1,250			$1,047	$1,046	$1,051	$1,048	$1,051
$1,000			74	74	73	72	71
			94	98	100	100	99
$750			119	118	118	118	119
		126	124	125	125	123
$500			255	255	255	253	253
$250			379	378	379	380	386
$0
		2Q23	3Q23	4Q23	1Q24	2Q24
				U.S. commercial			Home lending1
				Non-U.S. commercial			Other2
				Consumer credit card			Commercial real estate

8

Net Interest Income

Net Interest Income (FTE, $B)1

$15.0				$14.3	$14.5		$14.1		$14.2	$13.9
$10.0
								$14.2		$14.4		$13.9				$14.0		$13.7
$5.0
$0.0
				2Q23		3Q23		4Q23			1Q24		2Q24
								Net interest income (GAAP)			FTE adjustment
Net Interest Yield (FTE)1
3.00%			2.65%	2.64%		2.47%	2.50%
												2.41%
2.00%			2.06%	2.11%
						1.97%	1.99%	1.93%
1.00%
				2Q23		3Q23		4Q23			1Q24		2Q24
		Reported net interest yield			Net interest yield excl. GM

• Net interest income of $13.7B ($13.9B FTE)1
• • Decreased $0.5B YoY, as higher deposit costs more than offset higher asset yields, higher NII related to Global Markets (GM) activity, and modest loan growth
  • Decreased $0.3B from 1Q24, driven primarily by higher deposit costs
  • NII related to GM activity increased approximately $0.5B YoY and $0.1B from 1Q24
• Net interest yield of 1.93% decreased 13 bps YoY and 6 bps from 1Q24
• • Excluding GM, net interest yield of 2.41%1

Net Interest Income excl. GM (FTE, $B)1

$15.0

$14.3

$14.5

$14.1

$14.2

$13.9

$10.0

$14.0 $13.9 $13.5 $13.5 $13.1

$5.0

$0.0

2Q23 3Q23 4Q23 1Q24 2Q24

NII excl. GM

GM NII

Note: Amounts may not total due to rounding. FTE stands for fully taxable-equivalent basis.

• Represent non-GAAP financial measures. Net interest yield adjusted to exclude Global Markets NII of $0.8B, $0.7B, $0.6B, $0.7B, and $0.3B and average earning assets of $706.4B, $692.9B, $667.1B, $656.0B, and $657.9B for 2Q24, 1Q24, 4Q23, 3Q23, and 2Q23, respectively. The Corporation believes the presentation of NII and 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 36.

9

Net Interest Income Outlook1,2

			~($50MM)-	~$14.5B
	~$125MM	~($225MM)	$200MM
~$200MM	~$100MM

~$300MM

$13.9B				• 25 bp interest		• Low-single
	• Held-to-			rate cuts in		digit loan
			September,		and deposit
	maturity			November,		growth
	(HTM)			and December		• Slowing
	securities			2024
				deposit
	• Mortgage
					rotation
	loans
	• Auto loans
2Q24	Fixed-rate	BSBY cessation	Day	Impact of	Global Markets	Other balance	4Q24
	asset repricing	impact 3	count	interest rate	NII	sheet growth /
				cuts		mix

Note: Amounts may not total due to use of ranges for select drivers presented.

• FTE basis. Represents a non-GAAP financial measure. For important presentation information, see slide 36. A reconciliation to the most directly comparable GAAP measure for the 4Q24 period is not included as it cannot be prepared without unreasonable effort.

• For cautionary information in connection with these forward-looking statements, see note E on slide 33, and slide 35.

3 The 4Q23 pretax noninterest income charge of $1.6B related to the Bloomberg Short-Term Bank Yield Index (BSBY) cessation is expected to be recognized back into interest income beginning with the November 15, 2024 BSBY	10
cessation and through subsequent periods, largely through 2026.