Bank of America

1Q24 Financial Results

April 16, 2024

1Q24 Financial Results

1Q24

1Q24

1Q23

Inc / (Dec)

Inc / (Dec)

($B, except per share data)

Adjusted1

Adjusted1

Total Revenue, net of interest expense

$25.8

$25.8

$26.3

($0.4)

(2) %

($0.4)

(2) %

Provision for credit losses

1.3

1.3

0.9

0.4

42

0.4

42

Net charge-offs

1.5

1.5

0.8

0.7

86

0.7

86

Reserve build (release)2

(0.2)

(0.2)

0.1

(0.3)

N/M

(0.3)

N/M

Noninterest expense

17.2

16.5

16.2

1.0

6

0.3

2

Pretax income

7.3

8.0

9.1

(1.8)

(20)

(1.1)

(12)

Pretax, pre-provision income3

8.6

9.3

10.0

(1.4)

(14)

(0.7)

(7)

Income tax

0.6

0.8

0.9

(0.3)

(37)

(0.2)

(19)

Net income

$6.7

$7.2

$8.2

($1.5)

(18)

($1.0)

(12)

Diluted earnings per share

$0.76

$0.83

$0.94

($0.18)

(19)

($0.11)

(12)

Average diluted common shares (in millions)

8,031

8,031

8,182

(151)

(2)

(151)

(2)

Return Metrics and Efficiency Ratio

Return on average assets

0.83

%

0.89

%

1.07

%

Return on average common shareholders' equity

9.4

10.2

12.5

Return on average tangible common shareholders' equity3

12.7

13.8

17.4

Efficiency ratio

67

64

62

1Q24 results included additional FDIC special assessment accrual of $0.7B in pretax noninterest expense, which reduced earnings by $0.07 per diluted common share

Note: Amounts may not total due to rounding. N/M stands for not meaningful.

  • 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 30. For important presentation information, see slide 34.

2 For more information on reserve build (release), see note B on slide 31.

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 31. For important

presentation information about these measures, see slide 34.

Continued Organic Growth in 1Q24

Consumer Banking

Added ~245,000 net new checking accounts; 21 consecutive quarters of growth

Added over 1MM credit card accounts1

Record 3.9MM consumer investment accounts, with $44B net client flows since 1Q23

Global Wealth & Investment Management

Added over 7,300 net new relationships across Merrill and Private Bank

Opened ~29,000 new bank accounts

Record client balances of nearly $4T, up 13% YoY

$5.6T total deposits, loans, and investments balances $60B total net wealth spectrum flows since 1Q232

Global Banking

Global Markets

#3 investment banking fee ranking; grew market share

8 consecutive quarters of YoY sales and trading

115 bps vs. 1Q233

revenue growth

Grew investment banking fees 35% YoY to $1.6B

Highest 1Q sales and trading revenue in over a decade

Added 25% more Global Commercial Banking new

Record average loan balances of $134B, up 7% YoY

clients YTD vs. 1Q234

Zero trading loss days in 1Q24

Grew average deposits 7% from 1Q23, including 12%

growth in Corporate Bank deposits

  • Includes credit cards across Consumer Banking, Small Business, and Global Wealth & Investment Management.
    2 Includes net client flows across Merrill, Private Bank, and Consumer Investments. 3 Source: Dealogic as of March 31, 2024.
    4 Preliminary as of March 31, 2024.

3

1Q24 Highlights

(Comparisons to 1Q23, unless otherwise noted)

  • Net income of $6.7B; diluted earnings per share (EPS) of $0.76; ROE1 9.4%, ROTCE1,2 12.7%
    • Excluding FDIC special assessment, adj. net income $7.2B; adj. diluted EPS $0.83; adj. ROE 10.2%, adj. ROTCE 13.8%3
  • Revenue, net of interest expense, of $25.8B ($26.0B FTE)1,2 decreased $0.4B, or 2%, including higher investment banking and asset management fees, as well as sales and trading revenue, and lower net interest income (NII)
    • NII of $14.0B ($14.2B FTE)2 decreased $0.4B, or 3%, as higher deposit costs more than offset higher asset yields and modest loan growth
  • Provision for credit losses of $1.3B
    • Net charge-offs (NCOs) of $1.5B4 increased compared to 1Q23 and 4Q23, driven primarily by credit card and commercial real estate office
    • Net charge-off ratio of 58 bps vs. 32 bps in 1Q23 and 45 bps in 4Q234
    • Net reserve release of $0.2B vs. net reserve build of $0.1B in 1Q23 and net reserve release of $0.1B in 4Q23
  • Noninterest expense of $17.2B increased $1.0B, or 6%, vs. 1Q23
    • Excluding FDIC special assessment, adjusted noninterest expense of $16.5B increased $0.3B, or 2%3
  • Balance sheet remained strong
    • Average deposits of $1.91T increased $14B, or 1%, vs. 1Q23
    • Average loans and leases of $1.05T were modestly higher vs. 1Q23
    • Common Equity Tier 1 capital of $197B increased $2B from 4Q23
    • Common Equity Tier 1 ratio of 11.8%; 184 bps above regulatory minimum
    • Average Global Liquidity Sources of $909B5
    • Paid $1.9B in common dividends and repurchased $2.5B of common stock, including repurchases to offset shares awarded under equity-based compensation plans
  • 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 34.
    3 Represent non-GAAP financial measures. For a reconciliation to the most directly comparable GAAP financial measures, see note A on slide 30. 1Q24 adjusted noninterest expense of $16.5B is calculated as reported noninterest expense of $17.2B, less the FDIC special assessment of $0.7B. Reported noninterest expense for 1Q23 was $16.2B. For important presentation information, see slide 34.

4 Excludes loans measured at fair value. Net charge-off ratio is calculated as annualized net charge-offs divided by average outstanding loans and leases during the period.

4

5 See note D on slide 31 for definition of Global Liquidity Sources.

Balance Sheet, Liquidity, and Capital

(EOP1 basis unless noted)

Balance Sheet Metrics

1Q24

4Q23

1Q23

Assets ($B)

Total assets

$3,274

$3,180

$3,195

Total loans and leases

1,049

1,054

1,046

Cash and cash equivalents

313

333

376

Total debt securities

910

871

797

Funding & Liquidity ($B)

Total deposits

$1,946

$1,924

$1,910

Long-term debt

296

302

284

Global Liquidity Sources (average)2

909

897

854

Equity ($B)

Common shareholders' equity

$265

$263

$252

Common equity ratio

8.1

%

8.3

%

7.9

%

Tangible common shareholders' equity3

$195

$193

$182

Tangible common equity ratio3

6.1

%

6.2

%

5.8

%

Per Share Data

Book value per common share

$33.71

$33.34

$31.58

Tangible book value per common share3

24.79

24.46

22.78

Common shares outstanding (in billions)

7.87

7.90

7.97

Basel 3 Capital ($B)4

1Q24

4Q23

1Q23

Common equity tier 1 capital

$197

$195

$184

Standardized approach

Risk-weighted assets (RWA)

$1,660

$1,651

$1,622

CET1 ratio

11.8

%

11.8

%

11.4

%

Advanced approaches

Risk-weighted assets

$1,470

$1,459

$1,427

CET1 ratio

13.4

%

13.4

%

12.9

%

Supplementary leverage

Supplementary Leverage Ratio

6.0

%

6.1

%

6.0

%

  • CET1 ratio of 11.8% increased 4 bps vs. 4Q234
    • CET1 capital of $197B increased $2B from 4Q23, driven by net income, partially offset by capital distributions to shareholders
    • Standardized RWA of $1,660B increased $9B from 4Q23
  • Book value per share of $33.71 improved 7% from 1Q23; tangible book value per share of $24.79 improved 9% from 1Q233
  • Average Global Liquidity Sources of $909B increased $12B, or 1%, from 4Q232
  • EOP stands for end of period.
  • See note D on slide 31 for definition of Global Liquidity Sources.
  • Represent non-GAAP financial measures. For important presentation information, see slide 34.
  • Regulatory capital ratios at March 31, 2024 are preliminary. Bank of America Corporation (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

5

Standardized approach for March 31, 2024 and December 31, 2023, and the CET1 ratio under the Standardized approach for March 31, 2023.

Average Loan and Lease Trends

Total Loans and Leases ($B)

$1,100

$1,041

$1,047

$1,046

$1,051

$1,048

YoY

+1%

$1,000

$900

$800

1Q23 2Q23 3Q23 4Q23 1Q24

Loans and Leases in Business Segments ($B)

$1,250

$1,031

$1,037

$1,037

$1,041

$1,039

YoY

+1%

$1,000

125

129

131

134

134

+7%

$750

381

383

376

375

374

(2%)

$500

221

219

219

219

219

(1%)

$250

304

307

311

313

313

+3%

$0

1Q23

2Q23

3Q23

4Q23

1Q24

Consumer Banking GWIM Global Banking Global Markets

Note: Amounts may not total due to rounding.

Total Loans and Leases by Portfolio ($B)

$750

$588

$593

$589

$592

$591

$500

$453

$454

$457

$459

$456

$250

$0

1Q23

2Q23

3Q23

4Q23

1Q24

Consumer

Commercial

Total Loans and Leases in All Other ($B)

$15

$10

$10

$9

$9

$9

YoY

$10

(12%)

2

2

2

2

2

$5

8

8

8

8

7

$0

1Q23

2Q23

3Q23

4Q23

1Q24

Residential mortgage

Home equity

6

Average Deposit Trends

Bank of America Ranked #1 in U.S. Retail Deposit Market Share1

Total Corporation ($B)

Consumer Banking ($B)

$2,250

$1,894

$1,875

$1,876

$1,905

$1,907

QoQ

vs. 4Q19

$1,250

$1,026

$1,006

0%

+35%

$1,000

$980

$959

$952

QoQ

vs. 4Q19

(1%)

+32%

543

521

$1,500

$1,410

630

597

565

(4%)

+27%

$720

$750

525

517

498

482

473

(2%)

+38%

409

$500

343

$750

1,264

1,278

1,311

1,362

1,387

+2%

+38%

1,002

$250

501

490

377

482

478

480

0%

+27%

$0

$0

4Q19

1Q23

2Q23

3Q23

4Q23

1Q24

4Q19

1Q23

2Q23

3Q23

4Q23

1Q24

Interest-bearing

Noninterest-bearing

Other deposits

Core operating deposits2

GWIM ($B)

Global Banking ($B)

$400

$300

$200

$100

$0

$314

$295

$292

$292

$297

QoQ

vs. 4Q19

$600

$256

+2%

+16%

90

76

69

65

65

0%

(27%)

$400

88

224

219

223

228

233

+2%

+39%

$200

167

$0

$504

$528

$526

QoQ

vs. 4Q19

$493

$498

0%

+39%

$379

208

189

177

164

(7%)

(3%)

236

169

257

289

315

351

362

+3%

+73%

209

4Q19

1Q23

2Q23

3Q23

4Q23

1Q24

4Q19

1Q23

2Q23

3Q23

4Q23

1Q24

Bank deposits3

Sweep deposits

Interest-bearing

Noninterest-bearing

Note: Amounts may not total due to rounding. Total Corporation also includes Global Markets and All Other.

  • Estimated U.S. retail deposits based on June 30, 2023 FDIC deposit data.
  • Core operating deposits include Consumer and Small Business checking products and exclude consumer investments, which are included in other deposits.
    3 Includes Preferred Deposits, other non-sweep Merrill bank deposits, and Private Bank deposits.

7

Managing Excess Deposits

Deposits in Excess of Loans (EOP, $B)

Cash and Securities Portfolios ($B)1

$2.5T

$1,331

$1,205$1,223

348

333 313

$1,085B

$897B

$634

308

277 323

$451B

162

256

675

595 587

$0.5T

216

4Q21

4Q19

4Q21

1Q24

4Q19

1Q24

Deposits Loans

Deposits in excess of loans

HTM securities

AFS & other securities

Cash & cash equivalents

Cash & Securities Yield vs. Deposit Rate Paid

  • Deposits in excess of loans grew from $0.5T in 4Q19 and peaked at $1.1T in 4Q21; remained elevated at $0.9T in 1Q24

4.00%

3.60%

3.00%

1.93%

2.00%

1.00%

0.00%

4Q21

4Q19

1Q24

Cash & securities yield 3

Total deposit rate paid

  • Excess deposits stored in cash and investment securities
    • 52% cash and AFS and 48% HTM in 1Q24
    • Cash levels of $313B remained well above pre-pandemic ($162B in 4Q19)
  • AFS securities mostly hedged with floating rate swaps; duration less than 0.5 years and marked through AOCI1 and regulatory capital
  • HTM securities book has declined $96B since peaking at $683B in 3Q21; down $38B vs. 1Q23 and $8B vs. 4Q23
    • MBS1 of $458B down $8B, and U.S. Treasuries and other securities of $129B flat vs. 4Q23
    • Valuation2 declined $11B from 4Q23, driven primarily by higher mortgage interest rates
  • Blended cash and securities yield continued to improve in 1Q24 and is 168 bps above deposit rate paid

Note: Amounts may not total due to rounding.

  • HTM stands for held-to-maturity. AFS stands for available-for-sale. AOCI stands for accumulated other comprehensive income. MBS stands for mortgage-backed securities.
    2 HTM valuation represents pretax net unrealized gains (losses) on total held-to-maturity debt securities.
    3 Yields based on average balances. Yield on cash represents yield on interest-bearing deposits with the Federal Reserve, non-U.S. central banks, and other banks.

8

Net Interest Income

Net Interest Income (FTE, $B)1

$15.0 $14.6 $14.3 $14.5 $14.1 $14.2

$10.0

$14.4

$14.2

$14.4

$13.9

$14.0

$5.0

$0.0

1Q23

2Q23

3Q23

4Q23

1Q24

Net interest income (GAAP)

FTE adjustment

  • Net interest income of $14.0B ($14.2B FTE)1 decreased $0.4B YoY, as higher deposit costs more than offset higher asset yields, higher NII related to Global Markets (GM) activity, and modest loan growth
    • Increased $0.1B from 4Q23, driven primarily by higher asset yields and NII related to GM activity, partially offset by higher deposit costs and one fewer day of interest accrual
    • NII related to GM activity increased approximately $0.6B YoY and $0.1B from 4Q23
  • Net interest yield of 1.99% decreased 21 bps YoY and increased 2 bps from 4Q23
    • Excluding GM, net interest yield of 2.50%1
  • As of March 31, 2024, a +100 bps parallel shift above the interest rate yield curve was estimated to benefit NII by $3.0B over the next 12 months; a -100bps parallel shift was estimated to decrease NII by $2.9B2

Net Interest Yield (FTE)1

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

4.00%

$15.0

3.00%

2.85%

2.65%

2.64%

$10.0

2.47%

2.50%

2.00%

2.20%

2.06%

2.11%

1.97%

1.99%

$5.0

1.00%

$0.0

1Q23

2Q23

3Q23

4Q23

1Q24

Reported net interest yield

Net interest yield excl. GM

$14.6 $14.3 $14.5 $14.1 $14.2

$14.5 $14.0 $13.9 $13.5 $13.5

1Q23 2Q23 3Q23 4Q23 1Q24

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 $0.7B, $0.6B, $0.7B, $0.3B, and $0.1B and average earning assets of $692.9B, $667.1B, $656.0B, $657.9B, and

$627.9B for 1Q24, 4Q23, 3Q23, 2Q23, and 1Q23, 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 34.

9

2 NII asset sensitivity represents banking book positions. See note E on slide 31 for information on asset sensitivity assumptions.

Expense and Efficiency

Total Noninterest Expense ($B)

$20.0

$10.0

$0.0

$16.2

$16.0

$15.8

$17.7

$17.2

2.1

0.7

6.3

6.6

6.3

6.1

6.3

$15.61

$16.51

9.9

9.4

9.6

9.5

10.2

1Q23

2Q23

3Q23

4Q23

1Q24

Compensation and benefits

Other

FDIC special assessment

Efficiency Ratio

70%

65%

60%

55%

66%

64%

64%

62%

63%

1Q23

2Q23

3Q23

4Q231

1Q241

  • 1Q24 and 4Q23 noninterest expense of $17.2B and $17.7B included accruals of $0.7B and $2.1B for the estimated amount of the FDIC special assessment for uninsured deposits of certain failed banks
  • Excluding the FDIC special assessment, 1Q24 adjusted noninterest expense of $16.5B increased $0.3B, or 2%,1 vs. 1Q23, driven primarily by investments in people, including revenue-related incentives
    • 1Q24 adjusted noninterest expense increased $0.9B, or 6%, vs. adjusted 4Q23,1 driven by seasonally elevated payroll taxes, revenue- related expenses, and other annual awards and merit

Note: Amounts may not total due to rounding.

  • Represent non-GAAP financial measures. 1Q24 adjusted noninterest expense of $16.5B is calculated as reported noninterest expense of $17.2B less the FDIC special assessment accrual of $0.7B. 4Q23 adjusted

noninterest expense of $15.6B is calculated as reported noninterest expense of $17.7B, less the FDIC special assessment accrual of $2.1B. 1Q24 efficiency ratio adjusted to exclude the FDIC special assessment accrual, which increased the reported efficiency ratio of 67% by 271 bps. 4Q23 efficiency ratio adjusted to exclude the net pretax charge of $1.6B recorded in noninterest income related to the future cessation of

the Bloomberg Short-term Bank Yield Index, as well as the $2.1B pretax noninterest expense for the FDIC special assessment accrual, resulting in a combined increase of 1,430 bps in the reported efficiency ratio of 10 81%. For more information and a reconciliation to the most directly comparable GAAP financial measures, see note A on slide 30. For important presentation information about this measure, see slide 34.

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Bank of America Corporation published this content on 16 April 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 16 April 2024 10:46:01 UTC.