As filed with the Securities and Exchange Commission on April 16, 2019
 
 
 
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported):
April 16, 2019
BANK OF AMERICA CORPORATION
(Exact name of registrant as specified in its charter)
 
 
 
 
 
 
Delaware
 
1-6523
 
56-0906609
(State or Other Jurisdiction of Incorporation)
 
(Commission File Number)
 
(IRS Employer Identification No.)
100 North Tryon Street
Charlotte, North Carolina 28255
(Address of principal executive offices)
(704) 386-5681
(Registrant’s telephone number, including area code)
Not Applicable
(Former name or former address, if changed since last report)
 
 
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
 
o
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
 
o
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
 
o
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
 
o
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR 230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR 240.12b-2).
o
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
o





ITEM 2.02. RESULTS OF OPERATIONS AND FINANCIAL CONDITION.
On April 16, 2019 , Bank of America Corporation (the "Corporation") announced financial results for the first quarter ended March 31, 2019 , reporting first quarter net income of $7.3 billion , or $0.70 per diluted share. A copy of the press release announcing the Corporation's results for the first quarter ended March 31, 2019 (the "Press Release") is attached hereto as Exhibit 99.1 and is incorporated by reference in this Item 2.02. The Press Release is available on the Corporation's website.
The information provided in Item 2.02 of this report, including Exhibit 99.1, shall be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended.
ITEM 7.01. REGULATION FD DISCLOSURE.
On April 16, 2019 , the Corporation will hold an investor conference call and webcast to discuss financial results for the first quarter ended March 31, 2019 , including the Press Release and other matters relating to the Corporation.
The Corporation has also made available on its website presentation materials containing certain historical and forward-looking information relating to the Corporation (the "Presentation Materials") and materials that contain additional information about the Corporation's financial results for the first quarter ended March 31, 2019 (the "Supplemental Information"). The Presentation Materials and the Supplemental Information are furnished herewith as Exhibit 99.2 and Exhibit 99.3, respectively, and are incorporated by reference in this Item 7.01. All information in Exhibits 99.2 and 99.3 is presented as of the particular date or dates referenced therein, and the Corporation does not undertake any obligation to, and disclaims any duty to, update any of the information provided.
The information provided in Item 7.01 of this report, including Exhibits 99.2 and 99.3, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, nor shall the information or Exhibits 99.2 or 99.3 be deemed incorporated by reference in any filings under the Securities Act of 1933, as amended.

ITEM 9.01. FINANCIAL STATEMENTS AND EXHIBITS.
(d) Exhibits.
Exhibit 99.1 is filed herewith. Exhibits 99.2 and 99.3 are furnished herewith.
 
 
 
 
EXHIBIT NO.
  
DESCRIPTION OF EXHIBIT
 
 
  
 
 
  
 
 
  





SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the Corporation has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
 
 
 
 
BANK OF AMERICA CORPORATION
 
 
By:
 
/s/ Rudolf A. Bless
 
 
Rudolf A. Bless
 
 
Chief Accounting Officer

Dated: April 16, 2019



Bank of America Reports Record Quarterly Earnings of $7.3 Billion, EPS $0.70 17th Consecutive Quarter of Positive Operating Leverage 1Q19 Financial Highlights1 1Q19 Business Segment Highlights1,2 • Net income of $7.3 billion rose 6%, driven by Consumer Banking • Net income rose 25% to $3.2 billion continued strong operating leverage • Loans up 5% to $292 billion • Diluted earnings per share of $0.70 rose 13% • Deposits up 3% to $697 billion • Pretax income of $8.8 billion rose 4% • Consumer Investment Assets up 16% to • Revenue, net of interest expense, remained $211 billion relatively stable at $23.0 billion • Efficiency ratio improved to 45% – Higher net interest income (NII) from • 27.1 million active mobile banking users increased interest rates and loan and deposit • growth, more than offset by lower noninterest Global Wealth & Investment Net income rose 14% to $1.0 billion income(A) Management • Pretax margin increased to 29% • Net interest yield (FTE basis) of 2.51%, up • Total client balances of $2.8 trillion (A) 9 bps • Loans up 3%; deposits up 8% • Provision for credit losses increased $179 • Record net new Merrill Lynch households, million to $1.0 billion up 85% – Net charge-off ratio increased 3 bps to 0.43% Global Banking • Net income rose 2% to $2.0 billion • Noninterest expense declined $618 million, or • Firmwide investment banking fees of 4%, to $13.2 billion; efficiency ratio improved to $1.3 billion (excludes self-led) 57% • Loans increased 5% to $370 billion • Average loan and lease balances in business • Deposits increased 8% to $349 billion segments rose $33 billion, or 4%, to $897 billion • – Consumer loans up 3%; commercial loans up Efficiency ratio improved to 44% 4% Global Markets • Sales and trading revenue of $3.5 billion, • Average deposit balances rose $63 billion, or 5%, including net debit valuation adjustment to $1.4 trillion (DVA) losses of $90 million • Excluding net DVA, sales and trading • Repurchased $6.3 billion in common stock and (B) paid $1.5 billion in common dividends revenue down 13% to $3.6 billion – Equities down 22% to $1.2 billion(B) – Returned 112% of net income available to (B) common shareholders – FICC down 8% to $2.4 billion CEO Commentary: “Our diverse business mix and commitment to responsible growth drove record quarterly earnings. Economic growth and consumer activity in the U.S. continue to be solid, businesses of every size are borrowing and driving the economy, and asset quality is strong. It was a challenging capital markets environment but our team and platform are optimized to serve clients and generate stable revenues across a range of market conditions over time. We reduced expenses by four percent from the first quarter of 2018, contributing to the seventeenth consecutive quarter of positive operating leverage. We are well positioned for continued solid results the right way. And we are building on that. We’ll add 350 financial centers in new and existing markets by 2021. Our network will provide coverage for more than 90 percent of the U.S. population. We continue to share success: We will raise the minimum starting pay in our company to $20 over the next twenty-four months; we’ll help 20,000 low-to-moderate income clients become homeowners; and we extended our Environmental Business Initiative to $300 billion over 10 years to help create a low-carbon sustainable future. We serve by asking the simple question to customers, employees, and communities: ‘What would you like the power to do?’. We listen to them and serve them with a team that is second to none.” — Brian Moynihan, Chairman and Chief Executive Officer Financial Highlights3 Three months ended ($ in billions, except per share data) 3/31/2019 12/31/2018 3/31/2018 Total revenue, net of interest expense $23.0 $22.7 $23.1 Net income $7.3 $7.3 $6.9 Diluted earnings per share $0.70 $0.70 $0.62 Return on average assets 1.26% 1.24% 1.21% Return on average common shareholders’ equity 11.42 11.57 10.85 Return on average tangible common shareholders’ equity4 16.01 16.29 15.26 Efficiency ratio 57 58 60 See page 10 for endnotes. 1 Financial Highlights and Business Segment Highlights compare 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 Results for 1Q19 presented in this release reflect certain financial reporting changes and reclassifications that were effective January 1, 2019, as disclosed in a Current Report on Form 8-K filed on April 1, 2019. Results for 2018 periods presented in this release have been updated to reflect the changes and reclassifications to conform to current period presentation. 4 Represents a non-GAAP financial measure. For additional information, see endnote C on page 10 and reconciliation on page 17. 1


 
CFO Commentary: “The strength of our balance sheet allowed us to return our record earnings and additional excess capital to shareholders. We repurchased $6.3 billion in common stock and paid $1.5 billion in common dividends. Those repurchases contributed to a 13 percent increase in EPS compared with the first quarter of 2018 while book value per share increased eight percent. Our diluted share count now has been reduced by 1.5 billion shares in the past four years.” — Paul M. Donofrio, Chief Financial Officer Consumer Banking Three months ended Financial Results1 ($ in millions) 3/31/2019 12/31/2018 3/31/2018 2 • Net income of $3.2 billion, up $642 million or 25% Total revenue $9,632 $9,963 $8,980 Provision for credit losses 974 915 935 • Revenue increased $652 million, or 7%, to $9.6 billion. NII increased $629 million, or 10%, driven by Noninterest expense 4,359 4,442 4,548 higher interest rates and deposit and loan growth Pretax income 4,299 4,606 3,497 • Provision for credit losses increased $39 million to Income tax expense 1,053 1,173 893 $974 million Net income $3,246 $3,433 $2,604 1 Comparisons are to the year-ago quarter unless noted. – Net charge-offs increased due to credit card 2 portfolio seasoning Revenue, net of interest expense. – Net charge-off ratio was 1.28% compared to 1.27% • Noninterest expense decreased $189 million, or 4%, to $4.4 billion as investments for business growth were more than offset by improved productivity and lower FDIC expense Three months ended Business Highlights1,2 ($ in billions) 3/31/2019 12/31/2018 3/31/2018 • Average deposits grew $23 billion, or 3%; average Average deposits $696.9 $686.8 $674.4 loans grew $13 billion, or 5% Average loans and leases 292.3 289.9 279.6 • Consumer Investment Assets grew $29 billion, or Consumer Investment Assets 210.9 185.9 182.1 16%, to $211 billion, driven by strong client flows (EOP) and market performance Active mobile banking users 27.1 26.4 24.8 (MM) • 15 new financial centers opened in 1Q19 Number of financial centers 4,353 4,341 4,452 • Digital usage continued to grow Efficiency ratio 45% 45% 51% – 27.1 million active mobile banking users, up 9% Return on average allocated 36 37 29 – Digital sales were 27% of all Consumer Banking capital sales Total U.S. Consumer Credit Card2 – 1.5 billion mobile logins in 1Q19 Average credit card $95.0 $95.8 $94.4 – 5.4 million active Zelle® users, up 2.7x since launch outstanding balances in June 2017 Total credit/debit spend 141.2 151.9 137.4 • Efficiency ratio improved to 45% from 51% Risk-adjusted margin 8.0% 8.7% 8.2% 1 Comparisons are to the year-ago quarter unless noted. 2 The U.S. consumer credit card portfolio includes Consumer Banking and GWIM. 2


 
Global Wealth & Investment Management Three months ended Financial Results1 ($ in millions) 3/31/2019 12/31/2018 3/31/2018 2 • Net income of $1.0 billion, up $127 million or 14% Total revenue $4,820 $5,038 $4,856 • Revenue decreased $36 million, or 1%, as higher net Provision for credit losses 5 23 38 interest income was more than offset by lower asset Noninterest expense 3,426 3,560 3,580 management fees driven by lower market valuations Pretax income 1,389 1,455 1,238 as well as a decline in transactional revenue Income tax expense 340 370 316 • Noninterest expense decreased 4%, as investments Net income $1,049 $1,085 $922 for business growth were more than offset by lower 1 Comparisons are to the year-ago quarter unless noted. amortization of intangibles, revenue-related 2 Revenue, net of interest expense. incentives and FDIC expense Three months ended Business Highlights1 ($ in billions) 3/31/2019 12/31/2018 3/31/2018 • Total client balances of $2.8 trillion up 4%, driven by Average deposits $261.8 $247.4 $243.1 net flows and higher end-of-period market valuations Average loans and leases 164.4 163.5 159.1 – Total client balance flows of $17 billion in 1Q19, Total client balances (EOP) 2,837.0 2,620.9 2,725.5 including $13 billion of AUM flows AUM flows 13.5 (6.2) 24.2 • Average loans and leases grew $5 billion, or 3%, Pretax margin 29% 29% 25% driven by custom lending and mortgages Return on average allocated 29 30 26 • Pretax margin improved to 29% capital • Wealth advisors up 1% to 19,5232 1 Comparisons are to the year-ago quarter unless noted. 2 Includes financial advisors in Consumer Banking of 2,773 and 2,538 in 1Q19 and 1Q18. • Strong wealth management household growth continues – Record net new Merrill Lynch households, up 85% – Private Bank net new households, up 39% 3


 
Global Banking Three months ended Financial Results1 ($ in millions) 3/31/2019 12/31/2018 3/31/2018 • Net income of $2.0 billion, up $39 million or 2% Total revenue2,3 $5,155 $5,169 $4,995 • Revenue of $5.2 billion, up $160 million or 3% Provision for credit losses 111 85 16 – Reflects the benefit of higher interest rates as well Noninterest expense 2,266 2,127 2,291 as loan and deposit growth and higher leasing- Pretax income 2,778 2,957 2,688 related revenue, partially offset by loan spread Income tax expense 750 769 699 compression Net income $2,028 $2,188 $1,989 • Provision increased $95 million to $111 million 1 Comparisons are to the year-ago quarter unless noted. primarily due to a single-name utility client charge- 2 Global Banking and Global Markets share in certain deal economics from investment banking, loan origination activities, and sales and trading activities. off in 1Q19 and the absence of 1Q18 energy reserve 3 releases Revenue, net of interest expense. • Noninterest expense decreased 1%, primarily due to lower FDIC expense, partially offset by continued investment in the business Three months ended Business Highlights1,2 ($ in billions) 3/31/2019 12/31/2018 3/31/2018 • Average deposits increased $25 billion, or 8%, to Average deposits $349.0 $359.6 $324.4 $349 billion Average loans and leases 370.1 357.4 351.7 • Average loans and leases grew $18 billion, or 5%, to Total Corp. IB fees (excl. self- 1.3 1.3 1.4 2 $370 billion led) 2 • Total Corporation investment banking fees of $1.3 Global Banking IB fees 0.7 0.8 0.7 billion (excl. self-led) declined 7%, driven by lower Business Lending revenue 2.2 2.2 2.1 debt and equity underwriting fees Global Transaction Services 2.2 2.1 2.0 • Efficiency ratio improved to 44% revenue Efficiency ratio 44% 41% 46% Return on average allocated 20 21 20 capital 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. 4


 
Global Markets Three months ended Financial Results1 ($ in millions) 3/31/2019 12/31/2018 3/31/2018 2,3 • Net income of $1.0 billion, down $364 million or 26% Total revenue $4,181 $3,247 $4,812 Net DVA4 (90) 52 64 • Revenue of $4.2 billion, down $631 million or 13%; excluding net DVA, revenue decreased 10%4 Total revenue $4,271 $3,195 $4,748 (excl. net DVA)2,3,4 – Reflects sales and trading revenue decline of 13% (excl. net DVA) and lower investment banking fees Provision for credit losses (23) 6 (3) Noninterest expense 2,755 2,553 2,923 • Noninterest expense decreased $168 million, or 6%, to $2.8 billion driven by lower revenue-related Pretax income 1,449 688 1,892 expenses Income tax expense 413 178 492 • Average VaR of $37 million remained low5 Net income $1,036 $510 $1,400 Net income (excl. net $1,104 $470 $1,351 DVA)4 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 B 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 $37MM, $36MM and $40MM for 1Q19, 4Q18 and 1Q18, respectively. Three months ended Business Highlights1,2 ($ in billions) 3/31/2019 12/31/2018 3/31/2018 • Reported sales and trading revenue decreased 17% Average total assets $664.1 $655.1 $678.4 to $3.5 billion Average trading-related 474.3 464.0 463.2 assets • Excluding net DVA, sales and trading revenue decreased 13% to $3.6 billion(B) Average loans and leases 70.1 70.6 73.8 2 – FICC revenue of $2.4 billion decreased 8% primarily Sales and trading revenue 3.5 2.6 4.1 due to lower client activity across most businesses Sales and trading revenue 3.6 2.5 4.1 (B),2 – Equities revenue of $1.2 billion decreased 22% (excl. net DVA) from a record year-ago quarter that benefited from Global Markets IB fees2 0.5 0.5 0.6 higher client volumes and a strong performance in Efficiency ratio 66% 79% 61% derivatives on elevated market volatility Return on average allocated 12 6 16 capital 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. 5


 
All Other Three months ended Financial Results1 ($ in millions) 3/31/2019 12/31/2018 3/31/2018 2 • Net loss of $48 million Total revenue $(631) $(585) $(423) Provision for credit losses (54) (124) (152) • Revenue decreased $208 million driven by lower NII Noninterest expense 418 392 500 • Benefit in provision for credit losses declined $98 million to $54 million primarily due to a slower pace Pretax loss (995) (853) (771) of portfolio improvement Income tax expense (benefit) (947) (915) (774) • Noninterest expense declined $82 million, reflecting Net income (loss) $(48) $62 $3 lower non-core mortgage costs, primarily due to 1 Comparisons are to the year-ago quarter unless noted. 2 lower volume, as well as lower FDIC expense Revenue, net of interest expense. Note: All Other consists of asset and liability management (ALM) activities, equity investments, • Income tax for both 1Q19 and 1Q18 included a $0.2 non-core mortgage loans and servicing activities, liquidating businesses and certain expenses billion tax benefit related to stock-based not otherwise allocated to a business segment. ALM activities encompass certain residential mortgages, debt securities, and interest rate and foreign currency risk management activities. compensation Substantially all of the results of ALM activities are allocated to our business segments. Equity investments include our merchant services joint venture, as well as a portfolio of equity, real estate and other alternative investments. 6


 
Credit Quality Three months ended Highlights1 ($ in millions) 3/31/2019 12/31/2018 3/31/2018 • Overall credit quality remained strong across both Provision for credit losses $1,013 $905 $834 the consumer and commercial portfolios Net charge-offs 991 924 911 2 • Net charge-offs increased $80 million to $991 Net charge-off ratio 0.43% 0.39% 0.40% million reflecting an increase in commercial driven by At period-end a single-name utility exposure as well as higher Nonperforming assets $5,145 $5,244 $6,694 losses in the consumer credit card portfolio due to Nonperforming assets ratio3 0.55% 0.56% 0.72% seasoning Allowance for loan and lease $9,577 $9,601 $10,260 – The net charge-off ratio remained low at 0.43% losses • The provision for credit losses increased $179 Allowance for loan and lease 1.02% 1.02% 1.11% million to $1.0 billion losses ratio4 • Nonperforming assets declined $1.5 billion to $5.1 1 Comparisons are to the year-ago quarter unless noted. 2 billion, driven by improvements in consumer Net charge-off ratio is calculated as annualized net charge-offs divided by average outstanding loans and leases during the period. 3 Nonperforming assets ratio is calculated as nonperforming loans, leases and foreclosed • Commercial reservable criticized utilized exposure properties (nonperforming assets) divided by outstanding loans, leases and foreclosed down $1.5 billion, or 12%, to $11.8 billion properties at the end of the period. 4 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. 7


 
Leadership in high-tech, high-touch (Figures are for 1Q19 unless otherwise specified) High-Tech High-Touch No. 1 in mobile banking, online banking and digital sales 4,353 financial centers functionality • 15 new openings in 1Q19 Digital banking has won 30+ digital awards in the last two years • 48 renovations in 1Q19 Online and Mobile certified by J.D. Power as providing “Outstanding Customer Experience” 16,378 ATMs “Best in Class” in Javelin’s 2018 Mobile Banking Scorecard and • 999 new or replaced in 1Q19 Online Banking Scorecard • 100% contactless-enabled No. 1 Overall | No. 1 Ease of Use | No. 1 in Functionality in Dynatrace’s 4Q18 Online Banker Scorecard and 1Q19 Mobile Banker Scorecard Consumer digital banking momentum Expanded financial center presence in 31 new and existing markets in past 12 37.0MM active digital banking users months   27.1MM active mobile banking users 1.5B logins to consumer banking app 27% of all Consumer sales through digital 66MM Consumer and Small Business • 51% of all digital sales came from mobile clients • 20% of total consumer mortgage applications came from digital 19,523 Wealth advisors in Global 58MM sent and received payments via Zelle®, representing $16B, Wealth & Investment Management and up 81% YoY Consumer Banking 523K digital appointments 6.3MM total users have completed 39MM interactions with Erica since launch Global footprint serving middle- market, large corporate and Innovation in Global Banking institutional clients ~487K CashPro® (digital banking platform) users across our commercial, corporate and business banking businesses 55,000 relationships with companies and institutions • Mobile users up 92% YoY; mobile logins up 129% YoY ~35 countries • 80K mobile payment approvals, representing $30B, up 166% YoY 79% of the 2018 Global Fortune 500 and 94% of the U.S. Fortune 1,000 have a relationship with us Volume of Intelligent Receivables (uses AI to match payments and Increased client-facing professionals to receivables) increased 40x YoY and won “New Product further strengthen local market coverage Development” award from Aite Group Domestic volume of Digital Disbursements (business-to-consumer payments solution that leverages the bank’s investment in Zelle) grew 135% YoY Innovation in wealth management Record usage of digital platforms by Merrill Lynch clients • 60% of Merrill Lynch clients actively using an online or mobile platform across Merrill and Bank of America • Record growth of client usage of MyMerrill Mobile app, a 29% increase YoY • MyMerrill Mobile app ranked No. 2 mobile app by J.D. Power Wealth Management Mobile App Satisfaction Study 8


 
Balance Sheet, Liquidity and Capital Highlights ($ in billions except per share data, end of period, unless otherwise noted) Three months ended 3/31/2019 12/31/2018 3/31/2018 Ending Balance Sheet Total assets $2,377.2 $2,354.5 $2,328.5 Total loans and leases 945.6 946.9 934.1 Total loans and leases in business segments (excluding All Other) 900.0 898.8 869.5 Total deposits 1,379.3 1,381.5 1,328.7 Average Balance Sheet Average total assets $2,361.0 $2,334.6 $2,325.9 Average loans and leases 944.0 934.7 931.9 Average deposits 1,359.9 1,345.0 1,297.3 Funding and Liquidity Long-term debt $233.9 $229.4 $232.3 Global Liquidity Sources, average(D) 546 544 522 Equity Common shareholders’ equity $244.7 $243.0 $241.6 Common equity ratio 10.3% 10.3% 10.4% Tangible common shareholders’ equity1 $174.8 $173.1 $171.3 Tangible common equity ratio1 7.6% 7.6% 7.6% Per Share Data Common shares outstanding (in billions) 9.57 9.67 10.18 Book value per common share $25.57 $25.13 $23.74 Tangible book value per common share1 18.26 17.91 16.84 Regulatory Capital(E) CET1 capital $169.2 $167.3 $164.8 Standardized approach Risk-weighted assets $1,455 $1,437 $1,452 CET1 ratio 11.6% 11.6% 11.4% Advanced approaches Risk-weighted assets $1,423 $1,409 $1,458 CET1 ratio 11.9% 11.9% 11.3% Supplementary leverage Supplementary leverage ratio (SLR) 6.8% 6.8% 6.8% 1 Represents a non-GAAP financial measure. For reconciliation, see page 17 of this press release. 9


 
Endnotes A We also 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 practices. Net interest income on an FTE basis was $12.5 billion, $12.7 billion and $11.9 billion for the three months ended March 31, 2019, December 31, 2018 and March 31, 2018, respectively. The FTE adjustment was $153 million, $155 million and $150 million for the three months ended March 31, 2019, December 31, 2018 and March 31, 2018, respectively. B Global Markets revenue and net income, excluding net debit valuation adjustments (DVA), and sales and trading revenue, excluding net DVA, are non- GAAP financial measures. Net DVA gains (losses) were $(90) million, $52 million and $64 million for the three months ended March 31, 2019, December 31, 2018 and March 31, 2018, respectively. FICC net DVA gains (losses) were $(79) million, $45 million and $77 million for the three months ended March 31, 2019, December 31, 2018 and March 31, 2018, respectively. Equities net DVA gains (losses) were $(11) million, $7 million and $(13) million for the three months ended March 31, 2019, December 31, 2018 and March 31, 2018, respectively. C Return on average tangible common shareholders’ equity is a non-GAAP financial measure. See page 17 of this press release for reconciliation to GAAP financial measures. D Global Liquidity Sources (GLS) include cash and high-quality, liquid, unencumbered securities, limited to 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 are readily available to meet funding requirements as they arise. They do 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. E Regulatory capital ratios at March 31, 2019 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, which for CET1 is the Standardized approach at March 31, 2019 and December 31, 2018 and the Advanced approaches at March 31, 2018. 10


 
Contact Information and Investor Conference Call Invitation Note: Chief Executive Officer Brian Moynihan and Chief Financial Officer Paul Donofrio will discuss first- quarter 2019 financial results in a conference call at 8:30 a.m. ET today. The presentation and supporting materials can be accessed on the Bank of America Investor Relations website at http://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 Investor Call can access replays of the conference call by visiting the Investor Relations website or by calling Information 1.800.934.4850 (U.S.) or 1.402.220.1178 (international) from April 16 through April 23. Investors May Contact: Reporters May Contact: Lee McEntire, Bank of America, 1.980.388.6780 Lawrence Grayson, Bank of America, 1.704.995.5825 lawrence.grayson@bankofamerica.com Jonathan Blum, Bank of America (Fixed Income), 1.212.449.3112 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 4,400 retail financial centers, including approximately 1,800 lending centers, 2,200 financial centers with a Consumer Investment Financial Solutions Advisor and 1,500 business centers; approximately 16,400 ATMs; and award- winning digital banking with more than 37 million active users, including over 27 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 owners 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, 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. 11


 
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 2018 Annual Report on Form 10-K and in any of the Company’s subsequent Securities and Exchange Commission filings: the Company’s potential claims, damages, penalties, fines and reputational damage resulting from pending or future litigation, regulatory proceedings and enforcement actions, and the possibility that amounts may be in excess of the Company’s recorded liability and estimated range of possible loss for litigation, regulatory, and representations and warranties exposures; the possibility that the Company could face increased servicing, securities, fraud, indemnity, contribution or other claims from one or more counterparties, including trustees, purchasers of loans, underwriters, issuers, other parties involved in securitizations, monolines or private-label and other investors; the Company’s ability to resolve representations and warranties repurchase and related claims, including claims brought by investors or trustees seeking to avoid the statute of limitations for repurchase 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, 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 ability to achieve its expense targets and expectations regarding net interest income, net charge-offs, 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; estimates of the fair value and other accounting values, subject to impairment assessments, of certain of the Company’s assets and liabilities; uncertainty regarding the content, timing and impact of regulatory capital and liquidity requirements; the impact of adverse changes to total loss-absorbing capacity requirements and/or global systemically important bank surcharges; the success of our reorganization of Merrill Lynch, Pierce, Fenner & Smith Incorporated; the potential impact of actions of the Board of Governors of the Federal Reserve System on the Company’s capital plans; the effect of regulations, other guidance or additional information on the impact from the Tax Cuts and Jobs Act; 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 and derivatives regulations; a failure 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; the impact on the Company’s business, financial condition and results of operations from the planned exit of the United Kingdom from the European Union; the impact of a federal government shutdown and uncertainty regarding the federal government’s debt limit; and other similar 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 Merrill Lynch” is the marketing name for the Global Banking and Global Markets businesses of Bank of America Corporation. Lending, derivatives and other commercial banking activities are performed by banking affiliates of Bank of America Corporation, including Bank of America, N.A., member FDIC. Securities, financial advisory and other investment banking activities are performed by investment banking affiliates of Bank of America Corporation (Investment Banking Affiliates), including Merrill Lynch, Pierce, Fenner & Smith Incorporated, which are registered broker-dealers and members of FINRA and SIPC. 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 12


 
13 Bank of America Corporation and Subsidiaries Selected Financial Data (In millions, except per share data) First Fourth First Quarter Quarter Quarter Summary Income Statement 2019 2018 2018 Net interest income $ 12,375 $ 12,504 $ 11,769 Noninterest income 10,629 10,173 11,301 Total revenue, net of interest expense 23,004 22,677 23,070 Provision for credit losses 1,013 905 834 Noninterest expense 13,224 13,074 13,842 Income before income taxes 8,767 8,698 8,394 Income tax expense 1,456 1,420 1,476 Net income $ 7,311 $ 7,278 $ 6,918 Preferred stock dividends 442 239 428 Net income applicable to common shareholders $ 6,869 $ 7,039 $ 6,490 Average common shares issued and outstanding 9,725.9 9,855.8 10,322.4 Average diluted common shares issued and outstanding 9,787.3 9,996.0 10,472.7 Summary Average Balance Sheet Total debt securities $ 441,680 $ 440,967 $ 433,096 Total loans and leases 944,020 934,721 931,915 Total earning assets 2,011,318 1,986,734 1,979,832 Total assets 2,360,992 2,334,586 2,325,878 Total deposits 1,359,864 1,344,951 1,297,268 Common shareholders’ equity 243,891 241,372 242,713 Total shareholders’ equity 266,217 263,698 265,480 Performance Ratios Return on average assets 1.26% 1.24% 1.21% Return on average common shareholders’ equity 11.42 11.57 10.85 Return on average tangible common shareholders’ equity (1) 16.01 16.29 15.26 Per Common Share Information Earnings $ 0.71 $ 0.71 $ 0.63 Diluted earnings 0.70 0.70 0.62 Dividends paid 0.15 0.15 0.12 Book value 25.57 25.13 23.74 Tangible book value (1) 18.26 17.91 16.84 March 31 December 31 March 31 Summary Period-End Balance Sheet 2019 2018 2018 Total debt securities $ 440,674 $ 441,753 $ 426,837 Total loans and leases 945,615 946,895 934,078 Total earning assets 2,011,503 2,011,474 2,002,678 Total assets 2,377,164 2,354,507 2,328,478 Total deposits 1,379,337 1,381,476 1,328,664 Common shareholders’ equity 244,684 242,999 241,552 Total shareholders’ equity 267,010 265,325 266,224 Common shares issued and outstanding 9,568.4 9,669.3 10,175.9 First Fourth First Quarter Quarter Quarter Credit Quality 2019 2018 2018 Total net charge-offs $ 991 $ 924 $ 911 Net charge-offs as a percentage of average loans and leases outstanding (2) 0.43% 0.39% 0.40% Provision for credit losses $ 1,013 $ 905 $ 834 March 31 December 31 March 31 2019 2018 2018 Total nonperforming loans, leases and foreclosed properties (3) $ 5,145 $ 5,244 $ 6,694 Nonperforming loans, leases and foreclosed properties as a percentage of total loans, leases and foreclosed properties (2) 0.55% 0.56% 0.72% Allowance for loan and lease losses $ 9,577 $ 9,601 $ 10,260 Allowance for loan and lease losses as a percentage of total loans and leases outstanding (2) 1.02% 1.02% 1.11% 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 March 31 December 31 March 31 2019 2018 2018 Regulatory capital metrics (4): Common equity tier 1 capital $ 169,243 $ 167,272 $ 164,828 Common equity tier 1 capital ratio - Standardized approach 11.6% 11.6% 11.4% Common equity tier 1 capital ratio - Advanced approaches 11.9 11.9 11.3 Tier 1 leverage ratio 8.4 8.4 8.4 Tangible equity ratio (5) 8.5 8.6 8.7 Tangible common equity ratio (5) 7.6 7.6 7.6 (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 17. (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; purchased credit-impaired loans even though the customer may be contractually past due; and nonperforming loans held for sale or accounted for under the fair value option. (4) Regulatory capital ratios at March 31, 2019 are preliminary. Bank of America Corporation (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 CET1 is the Standardized approach at March 31, 2019 and December 31, 2018 and the Advanced approaches at March 31, 2018. (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 17. 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) First Quarter 2019 Consumer Global Global All Banking GWIM Banking Markets Other Total revenue, net of interest expense $ 9,632 $ 4,820 $ 5,155 $ 4,181 $ (631) Provision for credit losses 974 5 111 (23) (54) Noninterest expense 4,359 3,426 2,266 2,755 418 Net income (loss) 3,246 1,049 2,028 1,036 (48) Return on average allocated capital (1) 36% 29% 20% 12% n/m Balance Sheet Average Total loans and leases $ 292,269 $ 164,403 $ 370,108 $ 70,080 $ 47,160 Total deposits 696,939 261,831 349,037 31,366 20,691 Allocated capital (1) 37,000 14,500 41,000 35,000 n/m Quarter end Total loans and leases $ 292,454 $ 164,483 $ 373,017 $ 70,052 $ 45,609 Total deposits 721,727 261,168 343,897 31,073 21,472 Fourth Quarter 2018 Consumer Global Global All Banking GWIM Banking Markets Other Total revenue, net of interest expense $ 9,963 $ 5,038 $ 5,169 $ 3,247 $ (585) Provision for credit losses 915 23 85 6 (124) Noninterest expense 4,442 3,560 2,127 2,553 392 Net income 3,433 1,085 2,188 510 62 Return on average allocated capital (1) 37% 30% 21% 6% n/m Balance Sheet Average Total loans and leases $ 289,862 $ 163,516 $ 357,410 $ 70,609 $ 53,324 Total deposits 686,826 247,427 359,642 31,077 19,979 Allocated capital (1) 37,000 14,500 41,000 35,000 n/m Quarter end Total loans and leases $ 294,335 $ 164,854 $ 365,717 $ 73,928 $ 48,061 Total deposits 696,146 268,700 360,248 37,841 18,541 First Quarter 2018 Consumer Global Global All Banking GWIM Banking Markets Other Total revenue, net of interest expense $ 8,980 $ 4,856 $ 4,995 $ 4,812 $ (423) Provision for credit losses 935 38 16 (3) (152) Noninterest expense 4,548 3,580 2,291 2,923 500 Net income 2,604 922 1,989 1,400 3 Return on average allocated capital (1) 29% 26% 20% 16% n/m Balance Sheet Average Total loans and leases $ 279,557 $ 159,095 $ 351,689 $ 73,763 $ 67,811 Total deposits 674,351 243,077 324,405 32,320 23,115 Allocated capital (1) 37,000 14,500 41,000 35,000 n/m Quarter end Total loans and leases $ 279,055 $ 159,636 $ 355,165 $ 75,638 $ 64,584 Total deposits 701,488 241,531 331,238 32,301 22,106 (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 Supplemental Financial Data (Dollars in millions) First Fourth First Quarter Quarter Quarter FTE basis data (1) 2019 2018 2018 Net interest income $ 12,528 $ 12,659 $ 11,919 Total revenue, net of interest expense 23,157 22,832 23,220 Net interest yield 2.51% 2.52% 2.42% Efficiency ratio 57.10 57.26 59.61 March 31 December 31 March 31 Other Data 2019 2018 2018 Number of financial centers - U.S. 4,353 4,341 4,452 Number of branded ATMs - U.S. 16,378 16,255 16,011 Headcount 205,292 204,489 207,953 (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 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 $153 million, $155 million and $150 million for the first quarter of 2019 and fourth and first quarters of 2018, 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.


 
17 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 applicable to common shareholders 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 financial measures defined by GAAP for the three months ended March 31, 2019, December 31, 2018 and March 31, 2018. 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. First Fourth First Quarter Quarter Quarter 2019 2018 2018 Reconciliation of average shareholders’ equity to average tangible common shareholders’ equity and average tangible shareholders’ equity Shareholders’ equity $ 266,217 $ 263,698 $ 265,480 Goodwill (68,951) (68,951) (68,951) Intangible assets (excluding mortgage servicing rights) (1,763) (1,857) (2,261) Related deferred tax liabilities 841 874 939 Tangible shareholders’ equity $ 196,344 $ 193,764 $ 195,207 Preferred stock (22,326) (22,326) (22,767) Tangible common shareholders’ equity $ 174,018 $ 171,438 $ 172,440 Reconciliation of period-end shareholders’ equity to period-end tangible common shareholders’ equity and period-end tangible shareholders’ equity Shareholders’ equity $ 267,010 $ 265,325 $ 266,224 Goodwill (68,951) (68,951) (68,951) Intangible assets (excluding mortgage servicing rights) (1,747) (1,774) (2,177) Related deferred tax liabilities 773 858 920 Tangible shareholders’ equity $ 197,085 $ 195,458 $ 196,016 Preferred stock (22,326) (22,326) (24,672) Tangible common shareholders’ equity $ 174,759 $ 173,132 $ 171,344 Reconciliation of period-end assets to period-end tangible assets Assets $ 2,377,164 $ 2,354,507 $ 2,328,478 Goodwill (68,951) (68,951) (68,951) Intangible assets (excluding mortgage servicing rights) (1,747) (1,774) (2,177) Related deferred tax liabilities 773 858 920 Tangible assets $ 2,307,239 $ 2,284,640 $ 2,258,270 Book value per share of common stock Common shareholders’ equity $ 244,684 $ 242,999 $ 241,552 Ending common shares issued and outstanding 9,568.4 9,669.3 10,175.9 Book value per share of common stock $ 25.57 $ 25.13 $ 23.74 Tangible book value per share of common stock Tangible common shareholders’ equity $ 174,759 $ 173,132 $ 171,344 Ending common shares issued and outstanding 9,568.4 9,669.3 10,175.9 Tangible book value per share of common stock $ 18.26 $ 17.91 $ 16.84 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.


 
Bank of America 1Q19 Financial Results April 16, 2019


 
Responsible Growth Has Continued to Deliver 1 Diluted Earnings per Share Pretax Income ($B) $0.8 +16% $0.70 $10 +27% CAGR $8.8 CAGR $0.62 $8.4 $0.6 $8 $7.3 $0.45 $6 $5.6 $0.4 $4.8 $0.31 $0.27 +13% $4 +4% $0.2 $2 $0.0 $0 1Q15 1Q16 1Q17 1Q18 1Q19 1Q15 1Q16 1Q17 1Q18 1Q19 Average Diluted Shares Outstanding (B) Operating Leverage 2 (3)% 12 11.3 CAGR 22% 11.1 10.9 11 10.5 8% 8% 10 9.8 5% 9 4% 8 (7%) 7 1Q15 1Q16 1Q17 1Q18 1Q19 1Q15 1Q16 1Q17 1Q18 1Q19 1 This presentation reflects certain financial reporting changes and reclassifications effective January 1, 2019, which were adopted on a retrospective basis as disclosed in a Current Report on Form 8-K filed with the SEC on April 1, 2019. Additionally, certain prior-period financial information in this presentation has been revised to reflect such changes and reclassifications to conform to current period presentation. For important presentation information, see slide 28. 2 Operating leverage calculated as the year-over-year percentage change in revenue, net of interest expense, less the percentage change in noninterest expense. Quarterly expense 2 for 2018 and 2017 has been revised; 2016, 2015 and 2014 periods are as reported.


 
Delivered Positive Operating Leverage for 17 Consecutive Quarters Operating Leverage Trend 1 +22% +21% +29% +3% +8% +3% +5% +6% +8% +6% +4% +8% 2 +5% +4% +7% +7% 2 +4% 7% 7% 7% 6% 4% 4% 3% 2% 1% 1% 1% 1% (0%) (1%) (1%) (1%) (1%) (2%) (2%) (1%) (1%) (2%) (2%) (3%) (3%) (4%) (5%) (5%) (4%) (7%) (25%) (10%) (29%) (31%) 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 YoY revenue growth (decline) YoY expense growth (decline) Operating leverage Note: Amounts may not total due to rounding. 1 Operating leverage calculated as the year-over-year percentage change in revenue, net of interest expense, less the percentage change in noninterest expense. Quarterly revenue and expense for 2018 and 2017 have been revised; 2016, 2015 and 2014 periods are as reported. 2 Operating leverage calculated after adjusting 4Q17 revenue for the impact of the Tax Cuts and Jobs Act (Tax Act) is a non-GAAP financial measure. Reported revenue growth and 3 operating leverage were 11% and 12% for 4Q18, and 2% and 3% for 4Q17. Reported revenue was $22.7B, $20.4B and $20.0B for 4Q18, 4Q17 and 4Q16, respectively. Excluding a $0.9B noninterest income charge from enactment of the Tax Act, 4Q17 revenue was $21.4B. For important presentation information, see slide 28.


 
Drove Operating Leverage With Continued Investment in… Technology/Digitalization Physical Delivery Network Current location New financial center markets Expanded financial center presence in 31 new and Initiative spend expected to increase 10% in 2019 existing markets in last 12 months Our Brand Our People Communities We Serve 4


 
Consumer Banking Digital Usage Trends 1 Active Digital Banking Users (MM) Total Payments ($B) Person-to-Person Payments (Zelle) 4 YoY 6.3MM Erica users +3% 5.4MM users $800 $686 $705 $626 58.1 40 37.0 $592 60 $60 33.7 35.5 32.0 $600 (3%) 50 30 318 309 27.1 309 40 $40 24.8 $400 307 22.2 28.6 20 19.6 30 +8% 20 $20 $200 368 396 12.4 10 286 317 $16 10 7.6 $9 $4 0 $0 0 $2 $0 1Q16 1Q17 1Q18 1Q19 1Q16 1Q17 1Q18 1Q19 1Q16 1Q17 1Q18 1Q19 Digital banking users Mobile banking users Digital Non-Digital Transactions (MM) Volume ($B) Mobile Channel Usage 2, 3 Digital Deposit Transactions Digital % of Total Sales 1,600 1,475 700 100% 30% 27% 1,381 26% 600 23% 25% 22% 80% 32% 1,200 1,048 523 19% 500 20% 49% 891 445 57% 400 60% 800 355 15% 61% 300 40% 67% 263 68% 77% 10% 400 200 20% 5% 43% 51% 100 33% 39% 0 0 0% 0% 1Q16 1Q17 1Q18 1Q19 1Q16 1Q19 1Q16 1Q17 1Q18 1Q19 Mobile Channel Usage (MM) Digital (Mobile/ATM) Financial Center Digital Appointments (000's) Mobile Desktop 1 Digital users represent mobile and/or online users. 2 Mobile channel usage represents the total number of mobile banking sessions. 3 Digital appointments represent the number of client-scheduled appointments made via online, smartphone or tablet. 5 4 Includes Bank of America person-to-person payments sent and received through e-mail or mobile identification. Zelle launched in June 2017.


 
Average Deposits Bank of America Ranked #1 in U.S. Deposit Market Share 1 Total Corporation ($B) Consumer Banking ($B) YoY YoY $1,500 $1,297 $1,360 +5% $800 +3% $1,257 $674 $697 $1,131 $1,198 $636 $578 401 (7%) $600 $538 444 431 186 197 $1,000 405 429 172 +7% 145 157 $400 147 158 171 115 128 $500 866 959 +11% 726 770 812 $200 278 293 317 330 329 (0%) $0 $0 1Q15 1Q16 1Q17 1Q18 1Q19 1Q15 1Q16 1Q17 1Q18 1Q19 Interest-bearing Noninterest-bearing Money market, Savings, CD/IRA Interest checking Noninterest-bearing GWIM ($B) Global Banking ($B) $300 YoY $400 $260 $257 $262 $349 YoY $244 $243 +8% $324 $305 +8% 18 17 15 $286 $297 16 17 (9%) $300 $200 174 (18%) 211 $200 220 231 234 227 243 240 226 246 +9% $100 $100 175 +54% 113 66 66 71 $0 $0 1Q15 1Q16 1Q17 1Q18 1Q19 1Q15 1Q16 1Q17 1Q18 1Q19 Interest-bearing Noninterest-bearing Interest-bearing Noninterest-bearing Note: Amounts may not total due to rounding. Total corporation includes Global Markets and All Other. 1 Based on June 30, 2018 FDIC deposit data. 6


 
Average Loans and Leases Total Loans and Leases ($B) Total Loans and Leases in All Other ($B) YoY +1% $1,000 $914 $932 $944 $200 $867 $893 $165 $800 $150 11 26 $118 $600 10 $95 $100 21 9 $68 $400 17 $47 127 13 $50 $200 87 69 8 55 39 $0 $0 1Q15 1Q16 1Q17 1Q18 1Q19 1Q15 1Q16 1Q17 1Q18 1Q19 Residential mortgage Home equity Other Loans and Leases in Business Segments ($B) Average Loan Yields YoY $1,000 $897 +4% $819 $864 6% $775 70 (5%) $702 74 $750 69 70 5.29% 57 5% 4.89% 352 370 +5% 4.54% 4.61% 4.68% 4.69% 329 343 $500 288 4% 4.20% 4.15% 3.76% 3.88% 159 164 +3% 3.74% 3.56% 127 139 148 $250 3.11% 3% 2.85% 230 238 258 280 292 +5% 2.78% $0 2% 1Q15 1Q16 1Q17 1Q18 1Q19 1Q15 1Q16 1Q17 1Q18 1Q19 Consumer Banking GWIM Global Banking Global Markets Consumer loans Commercial loans Total loans and leases Note: Amounts may not total due to rounding. 7


 
First Quarter 2019 Highlights (% comparisons are to 1Q18) Earnings Returns and Efficiency • Diluted earnings per share of $0.70, up 13% • Return on average assets of 1.26% improved 5 bps • Record net income of $7.3B, up 6% • Return on average common shareholders’ equity of 11.42% increased 57 bps • Pretax income of $8.8B, up 4% Return on average tangible common shareholders’ equity of • Operating leverage of >400bps • 16.01% improved 75 bps 1 – Total revenue stable at $23.0B • Efficiency ratio of 57% improved 252 bps – Noninterest expense down 4% to $13.2B • Net charge-off ratio of 0.43% Client Balances Capital and Liquidity • Average loans and leases in business segments grew 4% • $169B of Common Equity Tier 1 Capital (CET1) and CET1 ratio of 11.6% 2 – Consumer up 3% and Commercial up 4% • $546B of average Global Liquidity Sources 3 • Average deposits increased 5% • Capital returned to shareholders • GWIM Assets Under Management (AUM) balances of $1.1T with flows of $13B in 1Q19 ‒ Repurchased $6.3B of common shares and paid $1.5B in common dividends in 1Q19; returned 112% of net income • Consumer Investment Assets of $211B increased 16% available to common shareholders ‒ Average diluted common shares down 7% to 9.8B 1 Represents a non-GAAP financial measure. For important presentation information, see slide 28. 2 Regulatory capital ratios at March 31, 2019 are preliminary. The Company 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 CET1 is the Standardized approach for 1Q19. 3 See note A on slide 25 for definition of Global Liquidity Sources. 8


 
1Q19 Financial Results Summary Income Statement 1Q19 1Q18 % Inc / (Dec) ($B, except per share data) Total revenue, net of interest expense $23.0 $23.1 (0) % Noninterest expense 13.2 13.8 (4) Provision for credit losses 1.0 0.8 21 Pretax income 8.8 8.4 4 Income tax expense 1.5 1.5 (1) Net income $7.3 $6.9 6 Diluted earnings per share $0.70 $0.62 13 Average diluted common shares (in millions) 9,787 10,473 (7) Return Metrics and Efficiency Return on average assets 1.26 % 1.21 % 5 bps Return on average common shareholders' equity 11.4 10.9 57 1 Return on average tangible common shareholders' equity 16.0 15.3 75 Efficiency ratio 57 60 (212) Note: Amounts may not total due to rounding. 1 Represents a non-GAAP financial measure. For important presentation information, see slide 28. 9


 
Balance Sheet, Liquidity and Capital (EOP basis unless noted) 4 Balance Sheet ($B) 1Q19 4Q18 1Q18 Basel 3 Capital ($B) 1Q19 4Q18 1Q18 Total assets $2,377.2 $2,354.5 $2,328.5 Common equity tier 1 capital (CET1) $169.2 $167.3 $164.8 Total loans and leases 945.6 946.9 934.1 Standardized approach Total loans and leases in business segments 1 900.0 898.8 869.5 Risk-weighted assets $1,455 $1,437 $1,452 Total debt securities 440.7 441.8 426.8 CET1 ratio 11.6 % 11.6 % 11.4 % Advanced approaches Funding & Liquidity ($B) Risk-weighted assets $1,423 $1,409 $1,458 Total deposits $1,379.3 $1,381.5 $1,328.7 CET1 ratio 11.9 % 11.9 % 11.3 % Long-term debt 233.9 229.4 232.3 Supplementary leverage Global Liquidity Sources (average) 2 546 544 522 Supplementary leverage ratio (SLR) 6.8 % 6.8 % 6.8 % Equity ($B) Common shareholders' equity $244.7 $243.0 $241.6 Common equity ratio 10.3 % 10.3 % 10.4 % Tangible common shareholders' equity 3 $174.8 $173.1 $171.3 Tangible common equity ratio 3 7.6 % 7.6 % 7.6 % Per Share Data Book value per common share $25.57 $25.13 $23.74 Tangible book value per common share 3 18.26 17.91 16.84 Common shares outstanding (in billions) 9.57 9.67 10.18 1 Excludes loans and leases in All Other. 2 See note A on slide 25 for definition of Global Liquidity Sources. 3 Represents a non-GAAP financial measure. For important presentation information, see slide 28. 4 Regulatory capital metrics at March 31, 2019 are preliminary. The Company 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 CET1 is the Standardized approach for 1Q19. 10


 
Net Interest Income 1 Net Interest Income (FTE, $B) • Net interest income of $12.4B ($12.5B FTE 1) $15 Increased $0.6B from 1Q18, or 5%, reflecting the benefits $12.7 $12.5 – $11.9 $12.0 $12.2 from higher interest rates as well as loan and deposit growth, modestly offset by loan spread compression $10 – Decreased $0.1B from 4Q18 as two fewer interest accrual $11.8 $11.8 $12.1 $12.5 $12.4 days more than offset the benefits of loan and deposit $5 growth • Net interest yield of 2.51% increased 9 bps from 1Q18 $0 1Q18 2Q18 3Q18 4Q18 1Q19 – Excluding Global Markets, the net interest yield was 3.03%, up 10 bps from 1Q18 1 Net interest income (GAAP) FTE adjustment • Interest rate sensitivity as of March 31, 2019 2 – +100 bps parallel shift in interest rate yield curve is Net Interest Yield (FTE) 1 estimated to benefit NII by $3.7B over the next 12 months, driven primarily by sensitivity to short-end interest rates 3.5% 3.03% 3.03% 2.93% 2.94% 2.95% 3.0% 2.5% 2.52% 2.51% 2.42% 2.41% 2.45% 2.0% 1Q18 2Q18 3Q18 4Q18 1Q19 Reported net interest yield Net interest yield excl. GM 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 $953MM, $936MM, $933MM, $968MM and $1,020MM, and average earning assets of $472B, $458B, $459B, $490B and $486B for 1Q19, 4Q18, 3Q18, 2Q18 and 1Q18, 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 28. 11 2 NII asset sensitivity represents banking book positions.


 
Expense and Efficiency Total Noninterest Expense ($B) • Total noninterest expense of $13.2B declined $0.6B, or 4%, from 1Q18, as efficiency savings, lower FDIC insurance costs and lower $13.8 $15 $13.2 $13.0 $13.1 $13.2 amortization of intangibles were partially offset by investments 5.4 – Noninterest expense increased $0.2B from 4Q18, as 5.3 5.3 5.0 $10 5.3 seasonally elevated payroll tax costs of $0.4B were partially offset by timing of marketing and technology initiative spend as well as lower deferred compensation expense $5 8.5 7.9 7.7 7.7 8.2 • Efficiency ratio improved to 57% in 1Q19 Full-year 2019 expenses expected to approximate prior year $0 • 1Q18 2Q18 3Q18 4Q18 1Q19 – 2018 expenses revised to $53.2B, which reflected certain Compensation and benefits Other financial reporting changes and reclassifications previously announced in 8-K filing on April 1, 2019 1 Efficiency Ratio 65% 60% 60% 59% 55% 57% 58% 57% 50% 1Q18 2Q18 3Q18 4Q18 1Q19 Note: Amounts may not total due to rounding. 1 For important presentation information, see slide 28. 12


 
Asset Quality 1 Net Charge-offs ($MM) • Total net charge-offs of $1.0B increased $67MM from 4Q18 and $1,500 1.0% $80MM from 1Q18 – Consumer net charge-offs of $0.8B increased $31MM from $996 $991 4Q18 driven primarily by credit card seasonality; stable from $1,000 $911 $932 $924 1Q18 0.5% 0.40% 0.43% 0.40% 0.39% 0.43% – Commercial net charge-offs of $0.2B increased $36MM from $500 4Q18 and $75MM from 1Q18 driven primarily by a single- name utility client charge-off $0 0.0% Net charge-off ratio of 43 bps increased 4 bps from 4Q18 and 1Q18 2Q18 3Q18 4Q18 1Q19 • 3 bps from 1Q18 Net charge-offs Net charge-off ratio • Provision expense of $1.0B increased $0.1B from 4Q18 – 1Q19 included a small reserve build of $22MM Provision for Credit Losses ($MM) • Allowance for loan and lease losses of $9.6B represented 1.02% of total loans and leases 1 $1,500 • Nonperforming loans (NPLs) of $4.9B decreased $0.1B from $1,013 4Q18, driven by improvements in Consumer $1,000 $834 $827 $905 $716 – 51% of consumer NPLs are contractually current $500 • Commercial reservable criticized utilized exposure of $11.8B increased $0.8B from 4Q18, but decreased $1.5B from 1Q18 and remains near historic lows $0 1Q18 2Q18 3Q18 4Q18 1Q19 1 Excludes loans measured at fair value. 13


 
Asset Quality – Consumer and Commercial Portfolios Consumer Net Charge-offs ($MM) Consumer Metrics ($MM) 1Q19 4Q18 1Q18 $1,000 2.0% Provision $830 $734 $748 $830 $830 $835 $776 $804 Nonperforming loans and leases 3,578 3,842 4,906 $750 1.5% % of loans and leases 1 0.81 % 0.86 % 1.10 % $500 1.0% Consumer 30+ days performing past due $6,030 $6,741 $7,823 2 2,390 2,790 3,915 0.75% 0.74% 0.69% 0.71% 0.77% Fully-insured $250 0.5% Non fully-insured 3,640 3,951 3,908 Allowance for loans and leases 4,756 4,802 5,250 $0 0.0% 1 1Q18 2Q18 3Q18 4Q18 1Q19 % of loans and leases 1.08 % 1.08 % 1.18 % # times annualized NCOs 1.40 x 1.51 x 1.56 x Credit card Other Consumer NCO ratio Commercial Net Charge-offs ($MM) Commercial Metrics ($MM) 1Q19 4Q18 1Q18 $200 0.3% Provision $183 $171 $86 $166 $156 $156 Reservable criticized utilized exposure 11,821 11,061 13,366 $150 $120 0.2% Nonperforming loans and leases 1,272 1,102 1,472 $100 $81 % of loans and leases 1 0.26 % 0.22 % 0.31 % 0.14% 0.13% 0.13% 0.10% 0.1% Allowance for loans and leases $4,821 $4,799 $5,010 $50 0.07% % of loans and leases 1 0.97 % 0.97 % 1.04 % $0 0.0% 1Q18 2Q18 3Q18 4Q18 1Q19 C&I Small business and other Commercial NCO ratio 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. 14


 
Consumer Banking Inc / (Dec) Net income of $3.2B increased 25% from 1Q18; ROAAC of 36% Summary Income Statement ($MM) 1Q19 4Q18 1Q18 • Total revenue, net of interest expense $9,632 ($331) $652 – 11% operating leverage and steady credit costs drove results Provision for credit losses 974 59 39 • Revenue of $9.6B increased $0.7B, or 7%, from 1Q18, driven Noninterest expense 4,359 (83) (189) primarily by NII due to higher interest rates and growth in deposits Pretax income 4,299 (307) 802 and loans Income tax expense 1,053 (120) 160 • Provision increased modestly from 1Q18 Net income $3,246 ($187) $642 – Net charge-offs increased due to credit card portfolio seasoning Key Indicators ($B) 1Q19 4Q18 1Q18 • Noninterest expense declined 4% from 1Q18, driven by improved Average deposits $696.9 $686.8 $674.4 productivity and lower FDIC expense, partially offset by investments Rate paid on deposits 0.09 % 0.07 % 0.05 % for business growth Cost of deposits 1 1.55 1.55 1.65 – Efficiency ratio decreased 540 bps to 45% Average loans and leases $292.3 $289.9 $279.6 – Continued investment in financial center builds/renovations Net charge-off ratio 1.28 % 1.22 % 1.27 % and digital capabilities Consumer Investment Assets 2 $210.9 $185.9 $182.1 – Digital usage increased for sales, service and appointments Active mobile banking users (MM) 27.1 26.4 24.8 • Average deposits of $697B grew $23B, or 3%, from 1Q18 % Consumer sales through digital channels 27 % 27 % 26 % 4 Number of financial centers 4,353 4,341 4,452 – 52% of deposits in checking accounts; 91% primary accounts 1 Combined credit / debit purchase volumes 3 $141.2 $151.9 $137.4 – Average cost of deposits of 1.55% ; rate paid of 9 bps Total consumer credit card risk-adjusted margin 3 8.03 % 8.73 % 8.22 % • Average loans and leases of $292B increased $13B, or 5%, from Return on average allocated capital 36 37 29 1Q18, driven by growth in residential mortgage and credit card Allocated capital $37 $37 $37 • Consumer Investment Assets of $211B grew $29B, or 16%, from Efficiency ratio 45 % 45 % 51 % 1Q18, driven by strong client flows and market performance – $25B of client flows since 1Q18 – Client accounts of 2.6MM, up 7% Note: ROAAC stands for return on average allocated capital. 1 Cost of deposits calculated as annualized noninterest expense as a percentage of total average deposits within the Deposits subsegment. 2 Consumer Investment Assets include client brokerage assets, certain deposit sweep balances and assets under management in Consumer Banking. 3 Includes U.S. consumer credit card portfolios in Consumer Banking and GWIM. 15 4 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).


 
Consumer Banking Trends Business Leadership 1 Total Revenue ($B) Total Expense ($B) and Efficiency • #1 Consumer Deposit Market Share A $12 $5 $4.5 $4.4 60% • 2019 J.D. Power Certified Mobile App $10.0 $4.4 $4.3 $4.4 $9.2 $9.4 $9.6 • 2019 J.D. Power Certified Website $9.0 $4 B $9 • Named North America's Best Digital Bank 2.9 2.5 2.5 2.6 2.6 • #1 Online Banking and Mobile Banking Functionality C $3 $6 51% 50% • #1 U.S. Checking Account Digital Sales Functionality D $2 • 4-Star Rating by Barron’s 2019 Best Online Brokers 47% $3 6.5 6.6 6.8 7.1 7.1 46% 45% • #1 Home Equity Originator E $1 45% • #1 in Prime Auto Credit distribution of new originations among peers F $0 $0 40% 1Q18 2Q18 3Q18 4Q18 1Q19 1Q18 2Q18 3Q18 4Q18 1Q19 • #2 Small Business Lender G • Global Retail Bank of the Year H Net interest income Noninterest income Noninterest expense Efficiency ratio Average Deposits ($B) Average Loans and Leases ($B) Consumer Investment Assets (EOP, $B) $674 $688 $688 $687 $697 $285 $290 $292 $700 0.20% $300 $280 $281 $225 $204 $211 19 19 19 20 20 $191 $186 $600 $182 90 94 $500 352 354 357 365 0.15% 77 81 86 341 $200 $150 $400 39 38 37 37 36 0.10% 0.09% $300 52 51 50 50 50 0.07% $100 $75 $200 0.06% 0.05% 0.05% 0.05% $100 91 90 92 93 92 $0 0.00% $0 $0 1Q18 2Q18 3Q18 4Q18 1Q19 1Q18 2Q18 3Q18 4Q18 1Q19 1Q18 2Q18 3Q18 4Q18 1Q19 Consumer credit card Vehicle lending Other deposits Checking Home equity Residential mortgage Rate paid (%) Small business / other Note: Amounts may not total due to rounding. 1 See slide 26 for business leadership sources. 16


 
Global Wealth & Investment Management Inc / (Dec) Net income of $1.0B increased 14% from 1Q18; ROAAC of 29% Summary Income Statement ($MM) 1Q19 4Q18 1Q18 • Total revenue, net of interest expense $4,820 ($218) ($36) – Strong pretax margin of 29% Provision for credit losses 5 (18) (33) • Revenue of $4.8B decreased 1% from 1Q18 Noninterest expense 3,426 (134) (154) – Net interest income improved due to higher interest rates as Pretax income 1,389 (66) 151 well as growth in deposits and loans Income tax expense 340 (30) 24 Net income $1,049 ($36) $127 – Asset management fees declined as the positive impact from AUM flows was more than offset by lower market valuations Key Indicators ($B) 1Q19 4Q18 1Q18 – Brokerage revenue declined from lower client activity Average deposits $261.8 $247.4 $243.1 • Noninterest expense decreased 4% from 1Q18, as investments Average loans and leases 164.4 163.5 159.1 for business growth were more than offset by lower Net charge-off ratio 0.03 % 0.02 % 0.06 % amortization of intangibles, revenue-related incentives, and FDIC AUM flows $13.5 ($6.2) $24.2 expense Pretax margin 29 % 29 % 25 % • Client balances of $2.8T, up 4% from 1Q18, driven by positive Return on average allocated capital 29 30 26 net flows and higher end-of-period market valuations Allocated capital $14.5 $14.5 $14.5 – Total client balance flows of $17B in 1Q19 included AUM flows of $13B • Record net new Merrill Lynch households, up 85% versus 1Q18 • Average deposits of $262B increased 8% from 1Q18 and 6% from 4Q18 • Average loans and leases of $164B increased $5B, or 3%, from 1Q18, driven by custom lending and residential mortgage • Wealth advisor count grew 1% from 1Q18 to 19,523 1 1 Includes financial advisors in Consumer Banking of 2,773 and 2,538 in 1Q19 and 1Q18. 17


 
Global Wealth & Investment Management Trends Business Leadership 1 Average Deposits ($B) Average Loans and Leases ($B) • #1 U.S. wealth management market position $300 $262 $180 $162 $164 $164 across client assets, deposits and loans I $243 $238 $247 $159 $161 $250 $236 • #1 in personal trust assets under management J 38 39 40 41 42 • #1 in Barron’s U.S. high net worth client assets $200 $120 (2018) $150 42 41 41 40 39 • #1 in Barron’s Top 1,200 ranked Financial Advisors (2019) $100 $60 • #1 in Forbes’ Top 500 America’s Top Next $50 77 77 79 80 80 Generation Advisors (2018) • #1 in Financial Times Top 401K Retirement Plan $0 $0 Advisers (2018) 1Q18 2Q18 3Q18 4Q18 1Q19 1Q18 2Q18 3Q18 4Q18 1Q19 • #1 in Barron’s Top 100 Women Advisors (2018) Consumer real estate Securities-based lending Custom lending Credit card / Other Total Revenue ($B) Client Balances (EOP, $B) 2 $6 $3,000 $2,725 $2,754 $2,841 $2,837 $5.0 $2,621 $4.9 $4.7 $4.8 $4.8 162 165 165 167 $5 $2,500 242 234 240 168 261 0.7 0.7 0.7 0.9 0.7 269 $4 $2,000 1,085 1,101 1,144 1,126 $3 1,021 2.5 2.5 2.5 2.5 2.4 $1,500 $2 $1,000 $1 1,237 1,254 1,292 1,163 1,282 1.6 1.5 1.5 1.6 1.7 $500 $0 $0 1Q18 2Q18 3Q18 4Q18 1Q19 1Q18 2Q18 3Q18 4Q18 1Q19 Net interest income Asset management fees Brokerage / Other Brokerage / Other AUM Deposits Loans and leases Note: Amounts may not total due to rounding. 1 See slide 26 for business leadership sources. 2 Loans and leases include margin receivables which are classified in customer and other receivables on the Consolidated Balance Sheet. 18


 
Global Banking Inc/(Dec) Summary Income Statement ($MM) 1Q19 4Q18 1Q18 • Net income of $2.0B increased 2% from 1Q18; ROAAC of 20% Total revenue, net of interest expense 1 $5,155 ($14) $160 • Revenue of $5.2B increased 3% from 1Q18 Provision (benefit) for credit losses 111 26 95 – Reflects the benefit of higher interest rates as well as loan Noninterest expense 2,266 139 (25) and deposit growth and higher leasing-related revenue, Pretax income 2,778 (179) 90 partially offset by loan spread compression Income tax expense 750 (19) 51 Net income $2,028 ($160) $39 • Total Corporation investment banking fees of $1.3B (excl. self- led) declined 7% from 1Q18 driven by lower debt and equity Selected Revenue Items ($MM) 1Q19 4Q18 1Q18 underwriting fees Total Corporation IB fees (excl. self-led) 1 $1,264 $1,348 $1,353 • Provision increased $95MM from 1Q18 to $111MM, driven by a Global Banking IB fees 1 709 760 744 single-name utility client charge-off in 1Q19 and the absence of Business Lending revenue 2,173 2,213 2,149 the prior year’s energy reserve releases Global Transaction Services revenue 2,164 2,142 1,966 • Noninterest expense decreased 1% from 1Q18, primarily due to lower FDIC expense, partially offset by continued investment in Key Indicators ($B) 1Q19 4Q18 1Q18 the business Average deposits $349.0 $359.6 $324.4 Average loans and leases 370.1 357.4 351.7 – Efficiency ratio improved to 44% Net charge-off ratio 0.09 % 0.06 % 0.02 % • Average loans and leases of $370B increased 5% from 1Q18, Return on average allocated capital 20 21 20 driven by growth across corporate and commercial clients Allocated capital $41 $41 $41 Balances increased 4% from 4Q18 Efficiency ratio 44 % 41 % 46 % – • Strong average deposit growth of $25B to $349B, or 8%, compared to 1Q18 1 Global Banking and Global Markets share in certain deal economics from investment banking, loan origination activities and sales and trading activities. 19


 
Global Banking Trends Business Leadership 1 Average Deposits ($B) Average Loans and Leases ($B) • North America’s Best Bank for Small to $400 $370 Medium-sized Enterprises B $360 $349 $400 $352 $355 $353 $357 $324 $323 $338 15 • Most Innovative Investment Bank of the Year 17 17 16 16 from North America K $300 $300 35% 37% 41% 45% 176 • Best Transaction Bank in North America K 50% 162 164 162 166 • 2018 Quality, Share and Excellence Awards for $200 $200 U.S. Large Corporate Banking and Cash Management L 65% $100 $100 63% 59% 55% 50% 172 175 174 176 178 • Best Global Debt Bank M • Relationships with 79% of the Global Fortune $0 $0 500; 94% of the U.S. Fortune 1,000 (2018) 1Q18 2Q18 3Q18 4Q18 1Q19 1Q18 2Q18 3Q18 4Q18 1Q19 Noninterest-bearing Interest-bearing Commercial Corporate Business Banking Total Revenue ($B) 2 Total Corporation IB Fees ($MM) 2 $6 $5.0 $5.0 $5.2 $5.2 $1,353 $1,422 $4.8 $1,348 $1,264 0.8 0.9 $1,204 0.8 0.8 0.7 296 303 $4 0.8 0.8 0.8 0.7 0.7 262 397 343 314 290 0.7 0.7 0.6 0.8 0.7 307 272 234 $2 874 2.7 2.7 2.7 2.8 2.8 827 684 699 748 $0 (84) (45) (49) (20) (61) 1Q18 2Q18 3Q18 4Q18 1Q19 1Q18 2Q18 3Q18 4Q18 1Q19 Net interest income IB fees Service charges All other income Debt Equity Advisory 3 Self-led deals Note: Amounts may not total due to rounding. 1 See slide 26 for business leadership sources. 2 Global Banking and Global Markets share in certain deal economics from investment banking, loan origination activities and sales and trading activities. 20 3 Advisory includes fees on debt and equity advisory and mergers and acquisitions.


 
Global Markets Inc/(Dec) Net income of $1.0B decreased 26% from 1Q18; ROAAC of 12% Summary Income Statement ($MM) 1Q19 4Q18 1Q18 • • [ Bullets to come ] 2 Total revenue, net of interest expense 1 $4,181 $934 ($631) – Excluding net DVA, net income of $1.1B decreased 18% Net DVA (90) (142) (154) • Revenue declined 13% from 1Q18; excluding net DVA, revenue Total revenue (excl. net DVA) 1,2 4,271 1,076 (477) decreased 10% 2 Provision for credit losses (23) (29) (20) Reflects lower sales and trading revenue and lower Noninterest expense 2,755 202 (168) – investment banking fees Pretax income 1,449 761 (443) Income tax expense 413 235 (79) • Sales and trading revenue of $3.5B decreased 17% from 1Q18 Net income $1,036 $526 ($364) • Excluding net DVA, sales and trading revenue of $3.6B decreased 2 Net income (excl. net DVA) $1,104 $634 ($247) 13% from 1Q18 2 Selected Revenue Items ($MM) 1 1Q19 4Q18 1Q18 – FICC revenue of $2.4B decreased 8% from 1Q18, primarily Sales and trading revenue $3,460 $2,588 $4,145 due to lower client activity across most businesses Sales and trading revenue (excl. net DVA) 2 3,550 2,536 4,081 – Equities revenue of $1.2B decreased 22% from a record FICC (excl. net DVA) 2,358 1,472 2,556 1Q18 as the year-ago quarter benefited from higher client Equities (excl. net DVA) 1,192 1,064 1,525 volumes and a strong performance in derivatives on elevated Global Markets IB fees 537 514 609 market volatility Key Indicators ($B) 1Q19 4Q18 1Q18 • Noninterest expense decreased 6% vs. 1Q18, driven by lower revenue-related expenses Average total assets $664.1 $655.1 $678.4 Average trading-related assets 474.3 464.0 463.2 • Average VaR remained low at $37MM in 1Q19 3 Average 99% VaR ($MM) 3 37 36 40 Average loans and leases 70.1 70.6 73.8 Return on average allocated capital 12 % 6 % 16 % Allocated capital $35 $35 $35 Efficiency ratio 66 % 79 % 61 % 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; see note B on slide 25 and slide 28 for important presentation information. 21 3 See note C on slide 25 for definition of VaR.


 
Global Markets Trends and Revenue Mix Business Leadership 1 1Q19 Global Markets Revenue Mix 1Q19 Total FICC S&T Revenue Mix • #1 Equity Portfolio Trading Share – North (excl. net DVA) 2 (excl. net DVA) 2 American Institutions L • #1 for U.S. FICC Overall Trading Quality and #1 for U.S. FICC Overall Sales Quality L • 2018 Quality Leader in Global Top-Tier 66% Foreign Exchange Sales and Corporate FX 62% L Sales 34% 38% • 2018 Share Leader in U.S. Fixed Income Market Share - #1 Securitized, #2 Emerging Markets L • #1 Municipal Bonds Underwriter N 3 • #2 Global Research Firm O U.S. / Canada International Credit / other Macro Total Sales & Trading Revenue (excl. net DVA) ($B) 2 Average Trading-related Assets ($B) and VaR ($MM) 4 $5 $500 $463 $474 $100 $4.0 $4.1 $422 $4 $3.6 $400 $75 1.1 1.5 $3 1.2 $300 $50 $2 $200 $38 $40 $37 2.9 $25 $1 2.6 2.4 $100 $0 $0 $0 1Q17 1Q18 1Q19 1Q17 1Q18 1Q19 FICC Equities Avg. trading-related assets Avg. VaR Note: Amounts may not total due to rounding. 1 See slide 26 for business leadership sources. 2 Represents a non-GAAP financial measure. Reported sales & trading revenue was $3.5B, $4.1B and $3.9B for 1Q19, 1Q18 and 1Q17, respectively. Reported FICC sales & trading revenue was $2.3B, $2.6B and $2.8B for 1Q19, 1Q18 and 1Q17, respectively. Reported Equities sales & trading revenue was $1.2B, $1.5B and $1.1B for 1Q19, 1Q18 and 1Q17, respectively. See note B on slide 25 and slide 28 for important presentation information. 22 3 Macro includes G10 FX, rates and commodities products. 4 See note C on slide 25 for definition of VaR.


 
All Other 1 Inc/(Dec) Summary Income Statement ($MM) 1Q19 4Q18 1Q18 • Net loss of $48MM compared to net income of $3MM in 1Q18, Total revenue, net of interest expense ($631) ($46) ($208) as revenue declined Provision (benefit) for credit losses (54) 70 98 • Provision benefit decreased $98MM from 1Q18, primarily due to Noninterest expense 418 26 (82) a slower pace of portfolio improvement Pretax income (loss) (995) (142) (224) • Noninterest expense declined $82MM from 1Q18, reflecting Income tax expense (benefit) (947) (32) (173) lower non-core mortgage costs, primarily due to lower volume, Net income (loss) ($48) ($110) ($51) as well as lower FDIC expense • 1Q19 and 1Q18 included a $0.2B tax benefit related to stock- based compensation 1 All Other consists of asset and liability management (ALM) activities, equity investments, non-core mortgage loans and servicing activities, liquidating businesses and certain expenses not otherwise allocated to a business segment. ALM activities encompass certain residential mortgages, debt securities, and interest rate and foreign currency risk management activities. Substantially all of the results of ALM activities are allocated to our business segments. Equity investments include our merchant services joint venture, as 23 well as a portfolio of equity, real estate and other alternative investments.


 
Appendix


 
Notes A Global Liquidity Sources (GLS) include cash and high-quality, liquid, unencumbered securities, limited to 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 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. B 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 ($90MM), $52MM, $64MM and ($130MM) for 1Q19, 4Q18, 1Q18 and 1Q17 respectively. Net DVA gains (losses) included in FICC revenue were ($79MM), $45MM, $77MM and ($120MM) for 1Q19, 4Q18, 1Q18, and 1Q17 respectively. Net DVA gains (losses) included in Equities revenue were ($11MM), $7MM, ($13MM) and ($10MM) for 1Q19, 4Q18, 1Q18, and 1Q17 respectively. C 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 $21MM, $22MM, $21MM and $21MM for 1Q19, 4Q18, 1Q18, and 1Q17 respectively. 25


 
Sources A Estimated retail consumer deposits based on June 30, 2018 FDIC deposit data. B Euromoney, 2018. C Dynatrace 1Q19 Mobile Banker Scorecard and 4Q18 Online Banker Scorecard; Javelin 2018 Mobile Banking Scorecard and 2018 Online Banking Scorecard. D Forrester 2018 Banking Sales Wave: U.S. Mobile Sites. E Inside Mortgage Finance FY2018. F Experian Autocount; Franchised Dealers; Largest percentage of 680+ Vantage 3.0 originations among key competitors as of January 2019. G FDIC, 4Q18. H 2018 Global Retail Banking Awards. I U.S.-based full-service wirehouse peers based on 4Q18 earnings releases. J Industry 4Q18 call reports. K The Banker, 2018. L Greenwich, 2018. M Global Finance, 2018. N Thomson Reuters, 2018. O Institutional Investor, 2018. 26


 
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, 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 2018 Annual Report on Form 10-K and in any of the Company’s subsequent Securities and Exchange Commission filings: the Company’s potential claims, damages, penalties, fines and reputational damage resulting from pending or future litigation, regulatory proceedings and enforcement actions, and the possibility that amounts may be in excess of the Company’s recorded liability and estimated range of possible loss for litigation, regulatory, and representations and warranties exposures; the possibility that the Company could face increased servicing, securities, fraud, indemnity, contribution or other claims from one or more counterparties, including trustees, purchasers of loans, underwriters, issuers, other parties involved in securitizations, monolines or private-label and other investors; the Company’s ability to resolve representations and warranties repurchase and related claims, including claims brought by investors or trustees seeking to avoid the statute of limitations for repurchase 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, 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 ability to achieve its expense targets and expectations regarding net interest income, net charge-offs, 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; estimates of the fair value and other accounting values, subject to impairment assessments, of certain of the Company’s assets and liabilities; uncertainty regarding the content, timing and impact of regulatory capital and liquidity requirements; the impact of adverse changes to total loss-absorbing capacity requirements and/or global systemically important bank surcharges; the success of our reorganization of Merrill Lynch, Pierce, Fenner & Smith Incorporated; the potential impact of actions of the Board of Governors of the Federal Reserve System on the Company’s capital plans; the effect of regulations, other guidance or additional information on the impact from the Tax Cuts and Jobs Act; 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 and derivatives regulations; a failure 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; the impact on the Company’s business, financial condition and results of operations from the planned exit of the United Kingdom from the European Union; the impact of a federal government shutdown and uncertainty regarding the federal government’s debt limit; and other similar 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. 27


 
Important Presentation Information • 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 key performance indicators and ratios, including year-over-year comparisons of revenue, noninterest expense and pretax income, excluding certain items (e.g., DVA) which result 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 March 31, 2019 and other earnings-related information available through the Bank of America Investor Relations website at: http://investor.bankofamerica.com. • 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 $153MM, $155MM, $151MM, $154MM and $150MM for 1Q19, 4Q18, 3Q18, 2Q18 and 1Q18 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. • Effective January 1, 2019, the Company made certain financial reporting changes and reclassifications, which were adopted on a retrospective basis. The changes and reclassifications reflect changes to both the format of the Consolidated Statement of Income and segment allocations. For additional information, see the Company’s Current Report on Form 8-K filed with the SEC on April 1, 2019. Certain prior-period financial information presented herein for the Consolidated Statement of Income, Consolidated Balance Sheet and segment results has been updated to reflect the changes and reclassifications to conform to current period presentation. 28


 


 





BACLOGO2018.JPG


Supplemental Information
First Quarter 2019

                










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
 
 
 
 
 
 
 
Financial Reporting Changes and Reclassifications
Effective January 1, 2019, the Corporation made certain financial reporting changes and reclassifications, which were adopted on a retrospective basis. The changes and reclassifications reflect changes to both the format of the Consolidated Statement of Income and segment allocations. For additional information, see the Corporation’s Current Report on Form 8-K filed with the SEC on April 1, 2019. Prior-period financial information presented herein for the Consolidated Statement of Income, Consolidated Balance Sheet, certain consolidated quarterly averages and segment results has been updated to reflect the changes and reclassifications.
 
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 11-12 are reported on an FTE basis.

 
 








Bank of America Corporation and Subsidiaries
Consolidated Financial Highlights
(In millions, except per share information)
 
First
Quarter
2019
 
Fourth
Quarter
2018
 
Third
Quarter
2018
 
Second
Quarter
2018
 
First
Quarter
2018
 
Income statement
 
 
 
 
 
 
 
 
 
Net interest income
$
12,375

 
$
12,504

 
$
12,061

 
$
11,828

 
$
11,769

Noninterest income
10,629

 
10,173

 
10,663

 
10,721

 
11,301

Total revenue, net of interest expense
23,004

 
22,677

 
22,724

 
22,549

 
23,070

Provision for credit losses
1,013

 
905

 
716

 
827

 
834

Noninterest expense
13,224

 
13,074

 
13,014

 
13,224

 
13,842

Income tax expense
1,456

 
1,420

 
1,827

 
1,714

 
1,476

Net income
7,311

 
7,278

 
7,167

 
6,784

 
6,918

Preferred stock dividends
442

 
239

 
466

 
318

 
428

Net income applicable to common shareholders
6,869

 
7,039

 
6,701

 
6,466

 
6,490

Diluted earnings per common share
0.70

 
0.70

 
0.66

 
0.63

 
0.62

Average diluted common shares issued and outstanding
9,787.3

 
9,996.0

 
10,170.8

 
10,309.4

 
10,472.7

Dividends paid per common share
$
0.15

 
$
0.15

 
$
0.15

 
$
0.12

 
$
0.12

 
 
 
 
 
 
 
 
 
 
Performance ratios
 
 
 
 
 
 
 
 
 
Return on average assets
1.26
%
 
1.24
%
 
1.23
%
 
1.17
%
 
1.21
%
Return on average common shareholders’ equity
11.42

 
11.57

 
10.99

 
10.75

 
10.85

Return on average shareholders’ equity
11.14

 
10.95

 
10.74

 
10.26

 
10.57

Return on average tangible common shareholders’ equity (1)
16.01

 
16.29

 
15.48

 
15.15

 
15.26

Return on average tangible shareholders’ equity (1)
15.10

 
14.90

 
14.61

 
13.95

 
14.37

Efficiency ratio
57.48

 
57.65

 
57.27

 
58.65

 
60.00

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
At period end
 
 
 
 
 
 
 
 
 
Book value per share of common stock
$
25.57

 
$
25.13

 
$
24.33

 
$
24.07

 
$
23.74

Tangible book value per share of common stock (1)
18.26

 
17.91

 
17.23

 
17.07

 
16.84

Market capitalization
263,992

 
238,251

 
290,424

 
282,259

 
305,176

Number of financial centers - U.S.
4,353

 
4,341

 
4,385

 
4,433

 
4,452

Number of branded ATMs - U.S.
16,378

 
16,255

 
16,089

 
16,050

 
16,011

Headcount
205,292

 
204,489

 
204,681

 
207,992

 
207,953

 
 
 
 
 
 
 
 
 
 
(1)  
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 31 .)


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)
 
First
Quarter
2019
 
Fourth
Quarter
2018
 
Third
Quarter
2018
 
Second
Quarter
2018
 
First
Quarter
2018
 
Net interest income
 
 
 
 
 
 
 
 
 
Interest income
$
18,170

 
$
17,836

 
$
16,965

 
$
16,369

 
$
15,599

Interest expense
5,795

 
5,332

 
4,904

 
4,541

 
3,830

Net interest income
12,375


12,504


12,061


11,828


11,769

 
 
 
 
 
 
 
 
 
 
Noninterest income
 
 
 
 
 
 
 
 
 
Fees and commissions
7,838

 
8,345

 
8,076

 
8,317

 
8,340

Trading account income
2,338

 
1,448

 
1,717

 
2,151

 
2,553

Other income
453

 
380

 
870

 
253

 
408

Total noninterest income
10,629

 
10,173

 
10,663

 
10,721

 
11,301

Total revenue, net of interest expense
23,004

 
22,677

 
22,724

 
22,549

 
23,070

 
 
 
 
 
 
 
 
 
 
Provision for credit losses
1,013

 
905

 
716

 
827

 
834

 
 
 
 
 
 
 
 
 
 
Noninterest expense
 
 
 
 
 
 
 
 
 
Compensation and benefits
8,249

 
7,735

 
7,721

 
7,944

 
8,480

Occupancy and equipment
1,605

 
1,593

 
1,589

 
1,591

 
1,607

Information processing and communications
1,164

 
1,156

 
1,113

 
1,121

 
1,165

Product delivery and transaction related
662

 
708

 
687

 
706

 
756

Marketing
442

 
513

 
421

 
395

 
345

Professional fees
360

 
480

 
439

 
399

 
381

Other general operating
742

 
889

 
1,044

 
1,068

 
1,108

Total noninterest expense
13,224

 
13,074

 
13,014

 
13,224

 
13,842

Income before income taxes
8,767

 
8,698

 
8,994

 
8,498

 
8,394

Income tax expense
1,456

 
1,420

 
1,827

 
1,714

 
1,476

Net income
$
7,311

 
$
7,278

 
$
7,167

 
$
6,784

 
$
6,918

Preferred stock dividends
442

 
239

 
466

 
318

 
428

Net income applicable to common shareholders
$
6,869

 
$
7,039

 
$
6,701

 
$
6,466

 
$
6,490

 
 
 
 
 
 
 
 
 
 
Per common share information
 
 
 
 
 
 
 
 
 
Earnings
$
0.71

 
$
0.71

 
$
0.67

 
$
0.64

 
$
0.63

Diluted earnings
0.70

 
0.70

 
0.66

 
0.63

 
0.62

Average common shares issued and outstanding
9,725.9

 
9,855.8

 
10,031.6

 
10,181.7

 
10,322.4

Average diluted common shares issued and outstanding
9,787.3

 
9,996.0

 
10,170.8

 
10,309.4

 
10,472.7

 
 
 
 
 
 
 
 
 
 

Consolidated Statement of Comprehensive Income
(Dollars in millions)
 
 
 
 
 
 
 
 
 
 
First
Quarter
2019
 
Fourth
Quarter
2018
 
Third
Quarter
2018
 
Second
Quarter
2018
 
First
Quarter
2018
 
Net income
$
7,311

 
$
7,278

 
$
7,167

 
$
6,784

 
$
6,918

Other comprehensive income (loss), net-of-tax:
 
 
 
 
 
 
 
 
 
Net change in debt and equity securities
2,309

 
2,213

 
(1,172
)

(1,031
)

(3,963
)
Net change in debit valuation adjustments
(363
)
 
566

 
(269
)
 
179

 
273

Net change in derivatives
229

 
293

 
21

 
(92
)
 
(275
)
Employee benefit plan adjustments
28

 
(496
)
 
31

 
30

 
30

Net change in foreign currency translation adjustments
(34
)
 
49

 
(114
)
 
(141
)
 
(48
)
Other comprehensive income (loss)
2,169

 
2,625

 
(1,503
)
 
(1,055
)
 
(3,983
)
Comprehensive income
$
9,480


$
9,903


$
5,664



$
5,729



$
2,935

 
 
 
 
 
 
 
 
 
 


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) 
 
First
Quarter
2019
 
Fourth
Quarter
2018
 
Third
Quarter
2018
 
Second
Quarter
2018
 
First
Quarter
2018
 
Net interest income
 
 
 
 
 
 
 
 
 
Interest income
 
 
 
 
 
 
 
 
 
Loans and leases
$
10,885

 
$
10,716

 
$
10,401

 
$
10,071

 
$
9,623

Debt securities
3,119

 
3,078

 
2,986

 
2,856

 
2,804

Federal funds sold and securities borrowed or purchased under agreements to resell
1,195

 
1,046

 
799

 
709

 
622

Trading account assets
1,322

 
1,305

 
1,172

 
1,198

 
1,136

Other interest income
1,649

 
1,691

 
1,607

 
1,535

 
1,414

Total interest income
18,170


17,836


16,965


16,369


15,599

 
 
 
 
 
 
 
 
 
 
Interest expense
 
 
 
 
 
 
 
 
 
Deposits
1,795

 
1,562

 
1,230

 
943

 
760

Short-term borrowings
1,852

 
1,716

 
1,526

 
1,462

 
1,135

Trading account liabilities
345

 
318

 
335

 
348

 
357

Long-term debt
1,803

 
1,736

 
1,813

 
1,788

 
1,578

Total interest expense
5,795


5,332


4,904


4,541


3,830

Net interest income
$
12,375


$
12,504


$
12,061


$
11,828


$
11,769

 
 
 
 
 
 
 
 
 
 
Noninterest income
 
 
 
 
 
 
 
 
 
Fees and commissions
 
 
 
 
 
 
 
 
 
Card income
 
 
 
 
 
 
 
 
 
Interchange fees (1)
$
896

 
$
1,016

 
$
925

 
$
1,011

 
$
914

Other card income
479

 
506

 
492

 
472

 
488

Total card income
1,375


1,522


1,417


1,483


1,402

Service charges
 
 
 
 
 
 
 
 
 
Deposit-related fees
1,580

 
1,659

 
1,682

 
1,680

 
1,646

Lending-related fees
259

 
272

 
279

 
274

 
275

Total service charges
1,839


1,931


1,961


1,954


1,921

Investment and brokerage services
 
 
 
 
 
 
 
 
 
Asset management fees
2,440

 
2,536

 
2,576

 
2,513

 
2,564

Brokerage fees
920

 
1,008

 
918

 
945

 
1,100

Total investment and brokerage services
3,360


3,544


3,494


3,458


3,664

Investment banking fees
 
 
 
 
 
 
 
 
 
Underwriting income
666

 
562

 
701

 
719

 
740

Syndication fees
255

 
389

 
241

 
400

 
317

Financial advisory services
343

 
397

 
262

 
303

 
296

Total investment banking fees
1,264


1,348


1,204


1,422


1,353

Total fees and commissions
7,838


8,345


8,076


8,317


8,340

Trading account income
2,338

 
1,448

 
1,717

 
2,151

 
2,553

Other income
453

 
380

 
870

 
253

 
408

Total noninterest income
$
10,629


$
10,173


$
10,663


$
10,721


$
11,301

 
 
 
 
 
 
 
 
 
 
(1)  
Gross interchange fees were $2.3 billion , $2.5 billion , $2.4 billion , $2.4 billion and $2.2 billion and are presented net of $1.4 billion , $1.5 billion , $1.5 billion , $1.4 billion and $1.3 billion of expenses for rewards and partner payments for the first quarter of 2019 and fourth, third, second and first quarters of 2018 , 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)
 
 
 
 
 
 
March 31
2019
 
December 31
2018
 
March 31
2018
Assets
 
 
 
 
 
Cash and due from banks
$
28,083

 
$
29,063

 
$
26,247

Interest-bearing deposits with the Federal Reserve, non-U.S. central banks and other banks
143,540

 
148,341

 
177,994

Cash and cash equivalents
171,623


177,404


204,241

Time deposits placed and other short-term investments
9,480

 
7,494

 
8,069

Federal funds sold and securities borrowed or purchased under agreements to resell
267,017

 
261,131

 
244,630

Trading account assets
239,062

 
214,348

 
198,477

Derivative assets
42,391

 
43,725

 
47,869

Debt securities:
 
 
 
 
 
Carried at fair value
241,956

 
238,101

 
303,298

Held-to-maturity, at cost
198,718

 
203,652

 
123,539

Total debt securities
440,674


441,753


426,837

Loans and leases
945,615

 
946,895

 
934,078

Allowance for loan and lease losses
(9,577
)
 
(9,601
)
 
(10,260
)
Loans and leases, net of allowance
936,038


937,294


923,818

Premises and equipment, net
10,251

 
9,906

 
9,399

Goodwill
68,951

 
68,951

 
68,951

Loans held-for-sale
6,297

 
10,367

 
9,227

Customer and other receivables
53,496

 
65,814

 
58,127

Other assets
131,884

 
116,320

 
128,833

Total assets
$
2,377,164


$
2,354,507


$
2,328,478

 
 
 
 
 
 
 
Liabilities
 
 
 
 
 
Deposits in U.S. offices:
 
 
 
 
 
Noninterest-bearing
$
395,350

 
$
412,587

 
$
434,709

Interest-bearing
907,076

 
891,636

 
811,212

Deposits in non-U.S. offices:
 
 
 
 
 
Noninterest-bearing
12,066

 
14,060

 
13,768

Interest-bearing
64,845

 
63,193

 
68,975

Total deposits
1,379,337

 
1,381,476

 
1,328,664

Federal funds purchased and securities loaned or sold under agreements to repurchase
188,451

 
186,988

 
178,528

Trading account liabilities
84,410

 
68,220

 
100,218

Derivative liabilities
36,338

 
37,891

 
33,900

Short-term borrowings
14,008

 
20,189

 
38,073

Accrued expenses and other liabilities
173,681

 
165,026

 
150,563

Long-term debt
233,929

 
229,392

 
232,308

Total liabilities
2,110,154

 
2,089,182

 
2,062,254

Shareholders’ equity
 
 
 
 
 
Preferred stock, $0.01 par value; authorized – 100,000,000  shares; issued and outstanding –  3,843,140, 3,843,140   and 3,931,683 shares
22,326

 
22,326

 
24,672

Common stock and additional paid-in capital, $0.01 par value; authorized – 12,800,000,000 shares; issued and outstanding –  9,568,389,268 , 9,669,286,370 and 10,175,910,851 shares
112,838

 
118,896

 
133,532

Retained earnings
141,888

 
136,314

 
120,298

Accumulated other comprehensive income (loss)
(10,042
)
 
(12,211
)
 
(12,278
)
Total shareholders’ equity
267,010

 
265,325

 
266,224

Total liabilities and shareholders’ equity
$
2,377,164

 
$
2,354,507

 
$
2,328,478

 
 
 
 
 
 
 
 
Assets of consolidated variable interest entities included in total assets above (isolated to settle the liabilities of the variable interest entities)
 
Trading account assets
$
5,453

 
$
5,798

 
$
6,065

 
Loans and leases
41,528

 
43,850

 
46,590

 
Allowance for loan and lease losses
(884
)
 
(912
)
 
(984
)
 
Loans and leases, net of allowance
40,644


42,938


45,606

 
All other assets
332

 
337

 
412

 
Total assets of consolidated variable interest entities
$
46,429


$
49,073


$
52,083

 
 
 
 
 
 
 
 
Liabilities of consolidated variable interest entities included in total liabilities above
 
Short-term borrowings
$
1,547

 
$
742

 
$
286

 
Long-term debt
8,182

 
10,944

 
10,051

 
All other liabilities
25

 
30

 
38

 
Total liabilities of consolidated variable interest entities
$
9,754

 
$
11,716

 
$
10,375



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)
 
March 31
2019
 
December 31
2018
 
March 31
2018
Risk-based capital metrics (1) :
 
 
 
 
 
Standardized Approach
 
 
 
 
 
Common equity tier 1 capital
$
169,243

 
$
167,272

 
$
164,828

Tier 1 capital
190,963

 
189,038

 
188,900

Total capital
223,710

 
221,304

 
223,772

Risk-weighted assets
1,454,968

 
1,437,206

 
1,451,791

Common equity tier 1 capital ratio
11.6
%
 
11.6
%
 
11.4
%
Tier 1 capital ratio
13.1

 
13.2

 
13.0

Total capital ratio
15.4

 
15.4

 
15.4

 
 
 
 
 
 
Advanced Approaches
 
 
 
 
 
Common equity tier 1 capital
$
169,243

 
$
167,272

 
$
164,828

Tier 1 capital
190,963

 
189,038

 
188,900

Total capital
215,594

 
212,878

 
215,261

Risk-weighted assets
1,423,456

 
1,408,939

 
1,457,795

Common equity tier 1 capital ratio
11.9
%
 
11.9
%
 
11.3
%
Tier 1 capital ratio
13.4

 
13.4

 
13.0

Total capital ratio
15.1

 
15.1

 
14.8

 
 
 
 
 
 
Leverage-based metrics (1)
 
 
 
 
 
Adjusted average assets
$
2,283,983

 
$
2,257,545

 
$
2,247,247

Tier 1 leverage ratio
8.4
%
 
8.4
%
 
8.4
%
 
 
 
 
 
 
Supplementary leverage exposure
$
2,822,155

 
$
2,791,316

 
$
2,794,363

Supplementary leverage ratio
6.8
%
 
6.8
%
 
6.8
%
 
 
 
 
 
 
Tangible equity ratio (2)
8.5

 
8.6

 
8.7

Tangible common equity ratio  (2)
7.6

 
7.6

 
7.6

 
 
 
 
 
 
(1)  
Regulatory capital ratios at March 31, 2019 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.
(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 31 .)



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
Quarterly Average Balances and Interest Rates – Fully Taxable-equivalent Basis
(Dollars in millions)
 
 
First Quarter 2019
 
 
Fourth Quarter 2018
 
 
First Quarter 2018
 
 
Average
Balance
 
Interest
Income/
Expense
 
Yield/
Rate
 
 
Average
Balance
 
Interest
Income/
Expense
 
Yield/
Rate
 
 
Average
Balance
 
Interest
Income/
Expense
 
Yield/
Rate
Earning assets
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest-bearing deposits with the Federal Reserve, non-U.S. central banks and other banks
 
$
134,962

 
$
506

 
1.52
%
 
 
$
129,814

 
$
494

 
1.51
%
 
 
$
140,247

 
$
422

 
1.22
%
Time deposits placed and other short-term investments
 
8,453

 
59

 
2.82

 
 
8,691

 
59

 
2.72

 
 
10,786

 
61

 
2.31

Federal funds sold and securities borrowed or purchased under agreements to resell
 
274,308

 
1,195

 
1.77

 
 
263,626

 
1,046

 
1.57

 
 
248,320

 
622

 
1.02

Trading account assets
 
140,228

 
1,341

 
3.87

 
 
138,046

 
1,327

 
3.82

 
 
131,123

 
1,147

 
3.54

Debt securities
 
441,680

 
3,148

 
2.83

 
 
440,967

 
3,108

 
2.76

 
 
433,096

 
2,830

 
2.58

Loans and leases (1) :
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Residential mortgage
 
210,174

 
1,862

 
3.55

 
 
209,646

 
1,857

 
3.54

 
 
204,830

 
1,782

 
3.48

Home equity
 
47,690

 
593

 
5.03

 
 
50,757

 
634

 
4.96

 
 
56,952

 
643

 
4.56

U.S. credit card
 
95,008

 
2,530

 
10.80

 
 
95,766

 
2,533

 
10.49

 
 
94,423

 
2,313

 
9.93

Direct/Indirect and other consumer
 
90,430

 
821

 
3.69

 
 
91,458

 
823

 
3.57

 
 
95,292

 
728

 
3.10

Total consumer
 
443,302

 
5,806

 
5.29

 
 
447,627

 
5,847

 
5.20

 
 
451,497

 
5,466

 
4.89

U.S. commercial
 
316,089

 
3,349

 
4.29

 
 
308,557

 
3,203

 
4.12

 
 
299,850

 
2,717

 
3.68

Non-U.S. commercial
 
101,996

 
886

 
3.52

 
 
95,937

 
835

 
3.45

 
 
99,504

 
738

 
3.01

Commercial real estate
 
60,859

 
702

 
4.68

 
 
60,876

 
703

 
4.59

 
 
59,231

 
587

 
4.02

Commercial lease financing
 
21,774

 
196

 
3.60

 
 
21,724

 
182

 
3.36

 
 
21,833

 
175

 
3.20

Total commercial
 
500,718

 
5,133

 
4.15

 
 
487,094

 
4,923

 
4.01

 
 
480,418

 
4,217

 
3.56

Total loans and leases
 
944,020

 
10,939

 
4.69

 
 
934,721

 
10,770

 
4.58

 
 
931,915

 
9,683

 
4.20

Other earning assets
 
67,667

 
1,135

 
6.80

 
 
70,869

 
1,187

 
6.65

 
 
84,345

 
984

 
4.72

Total earning assets  (2)
 
2,011,318

 
18,323

 
3.68

 
 
1,986,734

 
17,991

 
3.60

 
 
1,979,832

 
15,749

 
3.21

Cash and due from banks
 
25,824

 
 
 
 
 
 
26,081

 
 
 
 
 
 
26,275

 
 
 
 
Other assets, less allowance for loan and lease losses
 
323,850

 
 
 
 
 
 
321,771

 
 
 
 
 
 
319,771

 
 
 
 
Total assets
 
$
2,360,992

 
 
 
 
 
 
$
2,334,586

 
 
 
 
 
 
$
2,325,878

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(1)  
Nonperforming loans are included in the respective average loan balances. Income on these nonperforming loans is generally recognized on a cost recovery basis.
(2)  
The impact of interest rate risk management derivatives on interest income is presented below. Interest income includes the impact of interest rate risk management contracts, which increased (decreased) interest income on:
 
 
First Quarter 2019
 
 
 
 
Fourth Quarter 2018
 
 
 
 
First Quarter 2018
 
 
   Federal funds sold and securities borrowed or purchased under agreements to resell
 
 
 
$
(74
)
 
 
 
 
 
 
$
(61
)
 
 
 
 
 
 
$
5

 
 
   Debt securities
 
 
 
10

 
 
 
 
 
 
13

 
 
 
 
 
 
(3
)
 
 
   U.S. commercial loans and leases
 
 
 
(9
)
 
 
 
 
 
 
(10
)
 
 
 
 
 
 
(9
)
 
 
Net hedge expense on assets
 
 
 
$
(73
)
 
 
 
 
 
 
$
(58
)
 
 
 
 
 
 
$
(7
)
 
 


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