As filed with the Securities and Exchange Commission on July 17, 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):
July 17, 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))





Securities registered pursuant to Section 12(b) of the Act:
Title of each class
Trading Symbol(s)
Name of each exchange on which registered
Common Stock, par value $0.01 per share
BAC
New York Stock Exchange
Depositary Shares, each representing a 1/1,000th interest in a share of Floating Rate Non-Cumulative Preferred Stock, Series E
BAC PrE
New York Stock Exchange
Depositary Shares, each representing a 1/1,000th interest in a share of 6.625% Non-Cumulative Preferred Stock, Series W
BAC PrW
New York Stock Exchange
Depositary Shares, each representing a 1/1,000th interest in a share of 6.500% Non-Cumulative Preferred Stock, Series Y
BAC PrY
New York Stock Exchange
Depositary Shares, each representing a 1/1,000th interest in a share of 6.200% Non-Cumulative Preferred Stock, Series CC
BAC PrC
New York Stock Exchange
Depositary Shares, each representing a 1/1,000th interest in a share of 6.000% Non-Cumulative Preferred Stock, Series EE
BAC PrA
New York Stock Exchange
Depositary Shares, each representing a 1/1,000th interest in a share of 6.000% Non-Cumulative Preferred Stock, Series GG
BAC PrB
New York Stock Exchange
Depositary Shares, each representing a 1/1,000th interest in a share of 5.875% Non-Cumulative Preferred Stock, Series HH
BAC PrK
New York Stock Exchange
7.25% Non-Cumulative Perpetual Convertible Preferred Stock, Series L
BAC PrL
New York Stock Exchange
Depositary Shares, each representing a 1/1,200th interest in a share of Bank of America Corporation Floating Rate Non-Cumulative Preferred Stock, Series 1
BML PrG
New York Stock Exchange
Depositary Shares, each representing a 1/1,200th interest in a share of Bank of America Corporation Floating Rate Non-Cumulative Preferred Stock, Series 2
BML PrH
New York Stock Exchange
Depositary Shares, each representing a 1/1,200th interest in a share of Bank of America Corporation Floating Rate Non-Cumulative Preferred Stock, Series 4
BML PrJ
New York Stock Exchange
Depositary Shares, each representing a 1/1,200th interest in a share of Bank of America Corporation Floating Rate Non-Cumulative Preferred Stock, Series 5
BML PrL
New York Stock Exchange
Floating Rate Preferred Hybrid Income Term Securities of BAC Capital Trust XIII (and the guarantee related thereto)
BAC/PF
New York Stock Exchange
5.63% Fixed to Floating Rate Preferred Hybrid Income Term Securities of BAC Capital Trust XIV (and the guarantee related thereto)
BAC/PG
New York Stock Exchange
Income Capital Obligation Notes initially due December 15, 2066 of Bank of America Corporation
MER PrK
New York Stock Exchange
Senior Medium-Term Notes, Series A, Step Up Callable Notes, due November 28, 2031 of BofA Finance LLC (and the guarantee of the Registrant with respect thereto)
BAC/31B
New York Stock Exchange
Depositary Shares, each representing 1/1,000th interest in a share of 5.375% Non-Cumulative Preferred Stock, Series KK
BAC PrM
New York Stock Exchange

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 July 17, 2019 , Bank of America Corporation (the "Corporation") announced financial results for the second quarter ended June 30, 2019 , reporting second quarter net income of $7.3 billion , or $0.74 per diluted share. A copy of the press release announcing the Corporation's results for the second quarter ended June 30, 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 July 17, 2019 , the Corporation will hold an investor conference call and webcast to discuss financial results for the second quarter ended June 30, 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 second quarter ended June 30, 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: July 17, 2019



Bank of America Reports Record Quarterly Earnings of $7.3 Billion, EPS $0.74 18th Consecutive Quarter of Positive Operating Leverage 2Q19 Financial Highlights1 2Q19 Business Segment Highlights1,2 Consumer Banking • Net income rose 13% to $3.3 billion • Net income of $7.3 billion rose 8%, driven by • Loans up 6% to $296 billion continued positive operating leverage and strong • Deposits up 3% to $707 billion asset quality • Consumer investment assets up 15% to • Diluted earnings per share of $0.74 rose 17% $220 billion • Revenue, net of interest expense, of $23.1 billion • Efficiency ratio improved to 45% increased 2% • 27.8 million active mobile banking users – Net interest income (NII) rose 3% from increased interest rates and growth in loans Global Wealth and Investment • Net income rose 11% to $1.1 billion and deposits; noninterest income increased Management • Record pretax margin increased to 29% nearly 2% • Total client balances of $2.9 trillion • Net interest yield (FTE basis) of 2.44%, up • Loans up 3%; deposits up 7% 3 bps(A) • Year-to-date net new Merrill Lynch • Provision for credit losses stable at $857 million households up 45% – Net charge-off ratio remained low at 0.38% • • Noninterest expense up modestly to $13.3 Net income decreased 9% to $1.9 billion billion; efficiency ratio improved to 57% Global Banking • Firmwide investment banking fees of $1.4 billion (excludes self-led) • Average loan and lease balances in business segments rose $34 billion, or 4%, to $906 billion • No. 1 in U.S. IPOs by both volume and deals3 – Consumer and commercial loans each up 4% • Loans increased 5% to $373 billion • Average deposit balances rose $75 billion, or 6%, to $1.4 trillion • Deposits increased 12% to $363 billion • Repurchased $6.5 billion in common stock and • Sales and trading revenue of $3.2 billion, paid $1.4 billion in common dividends Global Markets including net debit valuation adjustment – Returned 112% of net income available to (DVA) losses of $31 million common shareholders • Excluding net DVA, sales and trading (B) • Book value per share increased 10% to $26.41 revenue down 10% to $3.3 billion per share – FICC down 8% to $2.1 billion(B) – Equities down 13% to $1.1 billion(B) Commentary from Chairman and CEO Brian Moynihan: “Our commitment to responsible growth resulted in the best quarter and first-half year of earnings in our company’s history. In the second quarter, we generated $7.3 billion in earnings and delivered $7.9 billion back to shareholders. Our return on assets was over 120 basis points and our return on equity was well above the firm's cost of capital. "Our view of the economy reflects the activity by the one-in-two American households we serve, which points to a steadily growing economy. We see solid consumer activity across the board, with spending by Bank of America consumers up five percent this quarter over the second quarter of last year. "Our customers gave us more of their assets to handle for them. That includes an increase of $75 billion in deposits, with $37 billion from consumers. And customers gave us more of their investment dollar, as we reached $2.9 trillion in balances. This quarter, we also regained the leading U.S. market share in lending to the important small business economy. These customers continue to engage in solid activity to build their businesses. We also see consistent borrowing and activity from our commercial and corporate clients, who are well positioned to take advantage of opportunities that arise as trade and other open issues are resolved. Importantly, we have seen improvement in our investment banking market share as we have repositioned that business." Financial Highlights Three months ended ($ in billions, except per share data) 6/30/2019 3/31/2019 6/30/2018 Total revenue, net of interest expense $23.1 $23.0 $22.5 Net income $7.3 $7.3 $6.8 Diluted earnings per share $0.74 $0.70 $0.63 Return on average assets 1.23% 1.26% 1.17% Return on average common shareholders’ equity 11.62 11.42 10.75 Return on average tangible common shareholders’ equity4 16.24 16.01 15.15 Efficiency ratio 57 57 59 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 Per Dealogic as of July 1, 2019. 4 Represents a non-GAAP financial measure. For additional information, see endnote C on page 10 and reconciliation on page 18. 1


 
Commentary from Chief Financial Officer Paul M. Donofrio: “Diluted EPS grew seventeen percent from the year-ago quarter, aided in part by the repurchase of seven percent of our shares in the past twelve months as book value per share grew ten percent and capital and liquidity measures strengthened. We have recorded eighteen consecutive quarters of positive operating leverage while consistently making significant investments in the franchise. In the next twelve months, we plan to return $37 billion to shareholders through common dividends and share repurchases." Consumer Banking Three months ended Financial Results1 ($ in millions) 6/30/2019 3/31/2019 6/30/2018 2 • Net income of $3.3 billion, up $372 million, or 13% Total revenue $9,717 $9,632 $9,233 Provision for credit losses 947 974 944 • Revenue increased $484 million, or 5%, to $9.7 billion, driven by NII, which reflected growth in Noninterest expense 4,407 4,356 4,367 deposits and loans as well as higher short-term Pretax income 4,363 4,302 3,922 interest rates Income tax expense 1,069 1,054 1,000 • Provision for credit losses remained stable at $947 Net income $3,294 $3,248 $2,922 million 1 Comparisons are to the year-ago quarter unless noted. 2 – Net charge-off ratio improved to 1.24%, compared Revenue, net of interest expense. to 1.28% in 2Q18 • Noninterest expense increased $40 million, or 1%, to $4.4 billion, as investments for business growth, including marketing, and higher compensation and benefits were largely offset by improved productivity and lower FDIC expense Three months ended Business Highlights1,2 ($ in billions) 6/30/2019 3/31/2019 6/30/2018 • Average deposits grew $19 billion, or 3%; average Average deposits $707.0 $696.9 $687.8 loans grew $16 billion, or 6% Average loans and leases 296.4 292.3 280.7 • Consumer investment assets grew $28 billion, or Consumer investment assets 219.7 210.9 191.5 15%, to $220 billion, driven by strong client flows (EOP) and market performance Active mobile banking users 27.8 27.1 25.3 (MM) • 17 new financial centers opened in 2Q19 Number of financial centers 4,349 4,353 4,433 – 45 renovated in 2Q19 Efficiency ratio 45% 45% 47% • Digital usage continued to grow Return on average allocated 36 36 32 – 27.8 million active mobile banking users, up 10% capital – Digital sales were 25% of all Consumer Banking Total U.S. Consumer Credit Card2 sales Average credit card $93.6 $95.0 $93.5 – 1.5 billion mobile logins in 2Q19 outstanding balances – 8.0 million active Zelle® users with 69 million Total credit/debit spend 154.3 141.2 147.5 transactions in 2Q19 Risk-adjusted margin 7.9% 8.0% 8.0% • Combined credit/debit card spend increased 5% 1 Comparisons are to the year-ago quarter unless noted. 2 The U.S. consumer credit card portfolio includes Consumer Banking and GWIM. • Efficiency ratio improved to 45% from 47% 2


 
Global Wealth and Investment Management Three months ended Financial Results1 ($ in millions) 6/30/2019 3/31/2019 6/30/2018 2 • Net income of $1.1 billion, up $102 million, or 11% Total revenue $4,900 $4,820 $4,742 • Revenue increased $158 million, or 3% Provision for credit losses 21 5 12 Noninterest expense 3,458 3,428 3,427 – Net interest income increased $86 million, or 6%, reflecting higher interest rates as well as growth in Pretax income 1,421 1,387 1,303 deposits and loans Income tax expense 348 340 332 – Noninterest income increased $72 million, or 2%, Net income $1,073 $1,047 $971 driven by higher asset management fees 1 Comparisons are to the year-ago quarter unless noted. • Noninterest expense increased 1% as investments 2 Revenue, net of interest expense. for business growth, including marketing, and higher revenue-related incentives were mostly offset by lower amortization of intangibles and FDIC expense Three months ended Business Highlights1 ($ in billions) 6/30/2019 3/31/2019 6/30/2018 • Total client balances of $2.9 trillion up 5%, driven by Average deposits $253.9 $261.8 $236.2 higher market valuations and positive net flows Average loans and leases 166.3 164.4 160.8 • Average deposits of $254 billion increased 7% from Total client balances (EOP) 2,898.8 2,837.0 2,754.2 2Q18 AUM flows 5.3 5.9 10.4 • Average loans and leases grew $5 billion, or 3%, Pretax margin 29% 29% 27% driven by residential mortgages and custom lending Return on average allocated 30 29 27 • Pretax margin improved to 29% capital • Strong wealth management household growth 1 Comparisons are to the year-ago quarter unless noted. continues – YTD net new Merrill Lynch households up 45% – YTD net new Private Bank households up 49% • Merrill Lynch mobile channel usage increased 39% from 2Q18 3


 
Global Banking Three months ended Financial Results1 ($ in millions) 6/30/2019 3/31/2019 6/30/2018 • Net income of $1.9 billion decreased $185 million, Total revenue2,3 $4,975 $5,155 $5,014 or 9% Provision for credit losses 125 111 (23) • Revenue of $5.0 billion decreased 1% from 2Q18; Noninterest expense 2,212 2,266 2,185 reflects the benefit of deposit and loan growth, Pretax income 2,638 2,778 2,852 which was more than offset by the firm’s allocation of ALM activities and loan spread compression Income tax expense 712 750 741 Net income $1,926 $2,028 $2,111 • Provision for credit losses increased $148 million to 1 Comparisons are to the year-ago quarter unless noted. $125 million, driven primarily by the absence of 2 Global Banking and Global Markets share in certain deal economics from investment banking, 2Q18 energy reserve releases loan origination activities, and sales and trading activities. 3 Revenue, net of interest expense. • Noninterest expense increased 1%, primarily due to continued investments in the business Three months ended Business Highlights1,2 ($ in billions) 6/30/2019 3/31/2019 6/30/2018 • Average deposits increased $39 billion, or 12%, to Average deposits $362.6 $349.0 $323.2 $363 billion Average loans and leases 372.5 370.1 355.1 • Average loans and leases grew $17 billion, or 5%, to Total Corp. IB fees (excl. self- 1.4 1.3 1.4 2 $373 billion led) 2 • Total Corporation investment banking fees of $1.4 Global Banking IB fees 0.7 0.7 0.7 billion (excl. self-led) declined 4%, driven by lower Business Lending revenue 2.1 2.2 2.2 debt underwriting fees partially offset by higher Global Transaction Services 2.2 2.2 2.0 equity underwriting fees revenue • Gained market share in Investment Banking YTD Efficiency ratio 44% 44% 44% 2019 versus 2018 across most major products3 Return on average allocated 19 20 21 • Efficiency ratio remained at 44% 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. 3 Per Dealogic as of July 1, 2019. 4


 
Global Markets Three months ended Financial Results1 ($ in millions) 6/30/2019 3/31/2019 6/30/2018 2,3 • Net income of $1.0 billion decreased $83 million, Total revenue $4,145 $4,181 $4,251 4 or 7% Net DVA (31) (90) (179) Total revenue $4,176 $4,271 $4,430 • Revenue of $4.1 billion decreased $106 million, or 2,3,4 4 (excl. net DVA) 2%; excluding net DVA, revenue decreased 6% – Reflects lower sales and trading revenue and lower Provision for credit losses 5 (23) (1) investment banking fees, partially offset by a gain Noninterest expense 2,677 2,755 2,726 on sale of an equity investment (excluded from Pretax income 1,463 1,449 1,526 sales and trading revenue) Income tax expense 417 413 397 • Noninterest expense decreased $49 million, or 2%, to Net income $1,046 $1,036 $1,129 $2.7 billion, driven primarily by lower revenue-related Net income (excl. net $1,070 $1,104 $1,265 compensation DVA)4 5 • Average VaR of $34 million remained low 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 $34MM, $37MM and $30MM for 2Q19, 1Q19 and 2Q18, respectively. Three months ended Business Highlights1,2 ($ in billions) 6/30/2019 3/31/2019 6/30/2018 • Reported sales and trading revenue decreased 6% Average total assets $685.4 $664.1 $678.5 to $3.2 billion Average trading-related 496.2 474.3 473.1 assets • Excluding net DVA, sales and trading revenue decreased 10% to $3.3 billion(B) Average loans and leases 70.6 70.1 75.1 2 – FICC revenue of $2.1 billion decreased 8% primarily Sales and trading revenue 3.2 3.5 3.5 due to lower client activity across most products Sales and trading revenue 3.3 3.6 3.6 (B),2 – Equities revenue of $1.1 billion decreased 13% (excl. net DVA) primarily due to weaker performance in EMEA Global Markets IB fees2 0.6 0.5 0.7 derivatives versus a stronger year-ago quarter Efficiency ratio 65% 66% 64% Return on average allocated 12 12 13 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) 6/30/2019 3/31/2019 6/30/2018 2 • Net income of $9 million, compared to net loss of Total revenue $(504) $(631) $(537) $349 million in 2Q18 Provision for credit losses (241) (54) (105) • Revenue improved $33 million Noninterest expense 514 419 519 • Benefit in provision for credit losses increased $136 Pretax loss (777) (996) (951) million to $241 million primarily due to recoveries Income tax expense (benefit) (786) (948) (602) from sales of previously charged-off non-core home Net income (loss) $9 $(48) $(349) equity loans 1 Comparisons are to the year-ago quarter unless noted. 2 • Tax rate improved from 2Q18 Revenue, net of interest expense. Note: 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 well as a portfolio of equity, real estate and other alternative investments. 6


 
Credit Quality Three months ended Highlights1 ($ in millions) 6/30/2019 3/31/2019 6/30/2018 • Overall credit quality remained strong across both Provision for credit losses $857 $1,013 $827 the consumer and commercial portfolios Net charge-offs 887 991 996 2 • Net charge-offs decreased $109 million to $887 Net charge-off ratio 0.38% 0.43% 0.43% million, primarily driven by recoveries from sales of At period-end previously charged-off non-core home equity loans, Nonperforming assets $4,452 $5,145 $6,181 partially offset by an increase in commercial charge- Nonperforming assets ratio3 0.47% 0.55% 0.66% offs Allowance for loan and lease $9,527 $9,577 $10,050 – The net charge-off ratio decreased 5 bps to 0.38%; losses excluding the impact of the loan sales mentioned Allowance for loan and lease 1.00% 1.02% 1.08% above, net charge-off ratio of 43 bps is unchanged 4 compared to 1Q19 and 2Q18 losses ratio 1 Comparisons are to the year-ago quarter unless noted. • The provision for credit losses increased $30 million 2 Net charge-off ratio is calculated as annualized net charge-offs divided by average to $857 million outstanding loans and leases during the period. 3 Nonperforming assets ratio is calculated as nonperforming loans, leases and foreclosed • Nonperforming assets declined $1.7 billion to $4.5 properties (nonperforming assets) divided by outstanding loans, leases and foreclosed properties at the end of the period. billion, driven by improvements in consumer and 4 Allowance for loan and lease losses ratio is calculated as allowance for loan and lease losses commercial, including loan sales divided by loans and leases outstanding at the end of the period. • Commercial reservable criticized utilized exposure of Note: Ratios do not include loans accounted for under the fair value option. $11.8 billion declined $0.5 billion, and the reservable criticized ratio remains near historic lows 7


 
Leadership in high-tech, high-touch (Figures are for 2Q19 unless otherwise specified) High-Tech High-Touch No. 1 in mobile banking, online banking and digital sales functionality 4,349 financial centers Digital banking has won 40+ digital awards in the last two years • 17 new openings in 2Q19 Online and Mobile certified by J.D. Power as providing • 45 renovations in 2Q19 “Outstanding Customer Experience” “Best in Class” in Javelin’s 2019 Mobile Banking Scorecard and 16,561 ATMs rd Online Banking Scorecard, 3 consecutive win • 277 new ATMs in 2Q19 No. 1 Overall | No. 1 Ease of Use | No. 1 in Functionality in • 811 upgraded ATMs in 2Q19 Dynatrace’s 2Q19 Online Banker Scorecard and 1Q19 Mobile • 100% contactless-enabled Banker Scorecard North America's Best Digital Bank (Euromoney, 2019), Expanded in 11 new and existing nd 2 consecutive year markets in 2Q19   Consumer digital banking momentum 37.3MM active digital banking users 66MM Consumer and Small Business 27.8MM active mobile banking users clients 1.5B logins to consumer banking app 25% of all Consumer sales through digital 19,512 Wealth advisors in Global • 50% of all digital sales came from mobile Wealth and Investment Management • 33% of total consumer mortgage applications came from and Consumer Banking digital Global footprint serving middle- 60% of total direct auto applications came from digital • market, large corporate and 69MM sent and received payments via Zelle®, representing $18B, institutional clients in 35 countries up 79% YoY 583K digital appointments 79% of the 2018 Global Fortune 500 and 7.6MM total users have completed 55MM interactions with 94% of the 2018 U.S. Fortune 1,000 have Erica® since launch a relationship with us Innovation in Global Banking 497K CashPro® Online users (digital banking platform) across our Increased client-facing professionals to commercial, corporate and business banking businesses further strengthen local market coverage • Mobile users up 94% YoY; mobile logins up 165% YoY with 59% using biometrics to login in June of 2019 Leading dealer in FX cash, derivatives, • $123B of mobile payment approvals over the last 12 months, electronic trading and payments services up 103% in 148 currencies • Mobile checks deposited up 212% YoY; dollar volume up 283% No. 2 Global Research firm (Institutional • Domestic volume of Digital Disbursements (business-to- Investor magazine) consumer payment solution that leverages the bank's – No. 1 U.S. Broker for StarMine Analyst investment in Zelle®) grew 155% YoY Awards (Source: Refinitiv) Volume of Intelligent Receivables (uses AI to match payments and 650+ analysts covering 3K+ companies, receivables) increased 10x YoY (May 2018-May 2019) 1.1K+ corporate bond issuers across 54 Mobile Wallet adoption for commercial cards grew 87% over the economies and 25 industries first five months of 2019 Innovation in Wealth Management Innovation in technology Increased usage of digital platforms by Wealth Management • Most U.S.-granted patents in the clients financial services industry • 62% of Merrill Lynch clients actively using an online or mobile • Ranked in top 10 of all holders of platform across Merrill and Bank of America banking-related patents and • Ranked as No. 2 mobile app by J.D. Power Wealth applications Management Mobile App Satisfaction Study • Own 3.5K+ patents and applications • Client usage of MyMerrill Mobile app grew 39% YoY • 52% YoY growth in mobile active users and 17% YoY growth in online platform users in Private Bank 8


 
Balance Sheet, Liquidity and Capital Highlights ($ in billions except per share data, end of period, unless otherwise noted) Three months ended 6/30/2019 3/31/2019 6/30/2018 Ending Balance Sheet Total assets $2,395.9 $2,377.2 $2,291.7 Total loans and leases 963.8 945.6 935.8 Total loans and leases in business segments (excluding All Other) 920.5 900.0 874.6 Total deposits 1,375.1 1,379.3 1,309.7 Average Balance Sheet Average total assets $2,399.1 $2,361.0 $2,322.7 Average loans and leases 950.5 944.0 934.8 Average deposits 1,375.5 1,359.9 1,300.7 Funding and Liquidity Long-term debt $238.0 $233.9 $226.7 Global Liquidity Sources, average(D) 552 546 512 Equity Common shareholders’ equity $246.7 $244.7 $241.0 Common equity ratio 10.3% 10.3% 10.5% Tangible common shareholders’ equity1 $176.8 $174.8 $170.9 Tangible common equity ratio1 7.6% 7.6% 7.7% Per Share Data Common shares outstanding (in billions) 9.34 9.57 10.01 Book value per common share $26.41 $25.57 $24.07 Tangible book value per common share1 18.92 18.26 17.07 Regulatory Capital(E) CET1 capital $171.5 $169.2 $164.9 Standardized approach Risk-weighted assets $1,466 $1,455 $1,444 CET1 ratio 11.7% 11.6% 11.4% Advanced approaches Risk-weighted assets $1,431 $1,423 $1,437 CET1 ratio 12.0% 11.9% 11.5% Supplementary leverage Supplementary leverage ratio (SLR) 6.8% 6.8% 6.7% 1 Represents a non-GAAP financial measure. For reconciliation, see page 18 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 $12.3 billion, $12.5 billion and $12.0 billion for the three months ended June 30, 2019, March 31, 2019 and June 30, 2018, respectively. The FTE adjustment was $149 million, $153 million and $154 million for the three months ended June 30, 2019, March 31, 2019 and June 30, 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 $(31) million, $(90) million and $(179) million for the three months ended June 30, 2019, March 31, 2019 and June 30, 2018, respectively. FICC net DVA gains (losses) were $(30) million, $(79) million and $(184) million for the three months ended June 30, 2019, March 31, 2019 and June 30, 2018, respectively. Equities net DVA gains (losses) were $(1) million, $(11) million and $5 million for the three months ended June 30, 2019, March 31, 2019 and June 30, 2018, respectively. C Return on average tangible common shareholders’ equity is a non-GAAP financial measure. See page 18 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 June 30, 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 June 30, 2019, March 31, 2019 and June 30, 2018. 10


 
Contact Information and Investor Conference Call Invitation Note: Chief Executive Officer Brian Moynihan and Chief Financial Officer Paul Donofrio will discuss second- 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 July 17 through July 24. Investors May Contact: Reporters May Contact: Lee McEntire, Bank of America, 1.980.388.6780 Lawrence Grayson, Bank of America, 1.704.995.5825 lee.mcentire@bofa.com lawrence.grayson@bofa.com Jonathan Blum, Bank of America (Fixed Income), 1.212.449.3112 jonathan.blum@bankofamerica.com Bank of America Bank of America is one of the world’s leading financial institutions, serving individual consumers, small and middle-market businesses and large corporations with a full range of banking, investing, asset management and other financial and risk management products and services. The company provides unmatched convenience in the United States, serving approximately 66 million consumer and small business clients with approximately 4,300 retail financial centers, including approximately 2,200 lending centers, 2,400 financial centers with a Consumer Investment Financial Solutions Advisor and 1,700 business centers; approximately 16,600 ATMs; and award- winning digital banking with more than 37 million active users, including approximately 28 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; the possibility that the Company’s future liabilities may be in excess of its 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, fraud, indemnity, contribution or other claims from one or more counterparties, including trustees, purchasers of loans, underwriters, issuers, monolines, private-label and other investors, or other parties involved in securitizations; 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, effective tax rate, loan growth or other projections; adverse changes to the Company’s credit ratings from the major credit rating agencies; an inability to access capital markets or maintain deposits or borrowing costs; estimates of the fair value and other accounting values, subject to impairment assessments, of certain of the Company’s assets and liabilities, including the Company’s merchant services joint venture; the estimated or actual impact of changes in accounting standards or assumptions in applying those standards, including the new credit loss accounting standard; 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 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 BofA Securities, Inc. and Merrill Lynch Professional Clearing Corp., both of which are registered broker-dealers and members of FINRA and SIPC, and in other jurisdictions, by locally registered entities. BofA Securities, Inc. and Merrill Lynch Professional Clearing Corp. are registered as futures commission merchants with the U.S. Commodity Futures Trading Commission and are members of the National Futures Association. 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) Six Months Ended Second First Second June 30 Quarter Quarter Quarter Summary Income Statement 2019 2018 2019 2019 2018 Net interest income $ 24,564 $ 23,597 $ 12,189 $ 12,375 $ 11,828 Noninterest income 21,524 22,022 10,895 10,629 10,721 Total revenue, net of interest expense 46,088 45,619 23,084 23,004 22,549 Provision for credit losses 1,870 1,661 857 1,013 827 Noninterest expense 26,492 27,066 13,268 13,224 13,224 Income before income taxes 17,726 16,892 8,959 8,767 8,498 Income tax expense 3,067 3,190 1,611 1,456 1,714 Net income $ 14,659 $ 13,702 $ 7,348 $ 7,311 $ 6,784 Preferred stock dividends 681 746 239 442 318 Net income applicable to common shareholders $ 13,978 $ 12,956 $ 7,109 $ 6,869 $ 6,466 Average common shares issued and outstanding 9,624.0 10,251.7 9,523.2 9,725.9 10,181.7 Average diluted common shares issued and outstanding 9,672.4 10,389.9 9,559.6 9,787.3 10,309.4 Summary Average Balance Sheet Total debt securities $ 444,077 $ 431,133 $ 446,447 $ 441,680 $ 429,191 Total loans and leases 947,291 933,375 950,525 944,020 934,818 Total earning assets 2,017,555 1,980,887 2,023,722 2,011,318 1,981,930 Total assets 2,380,127 2,324,269 2,399,051 2,360,992 2,322,678 Total deposits 1,367,700 1,298,973 1,375,450 1,359,864 1,300,659 Common shareholders’ equity 244,668 242,009 245,438 243,891 241,313 Total shareholders’ equity 267,101 265,330 267,975 266,217 265,181 Performance Ratios Return on average assets 1.24% 1.19% 1.23% 1.26% 1.17% Return on average common shareholders’ equity 11.52 10.80 11.62 11.42 10.75 Return on average tangible common shareholders’ equity (1) 16.13 15.21 16.24 16.01 15.15 Per Common Share Information Earnings $ 1.45 $ 1.26 $ 0.75 $ 0.71 $ 0.64 Diluted earnings 1.45 1.25 0.74 0.70 0.63 Dividends paid 0.30 0.24 0.15 0.15 0.12 Book value 26.41 24.07 26.41 25.57 24.07 Tangible book value (1) 18.92 17.07 18.92 18.26 17.07 June 30 March 31 June 30 Summary Period-End Balance Sheet 2019 2019 2018 Total debt securities $ 446,075 $ 440,674 $ 438,269 Total loans and leases 963,800 945,615 935,824 Total earning assets 2,027,935 2,011,503 1,948,663 Total assets 2,395,892 2,377,164 2,291,670 Total deposits 1,375,093 1,379,337 1,309,691 Common shareholders’ equity 246,719 244,684 241,035 Total shareholders’ equity 271,408 267,010 264,216 Common shares issued and outstanding 9,342.6 9,568.4 10,012.7 Six Months Ended Second First Second June 30 Quarter Quarter Quarter Credit Quality 2019 2018 2019 2019 2018 Total net charge-offs $ 1,878 $ 1,907 $ 887 $ 991 $ 996 Net charge-offs as a percentage of average loans and leases outstanding (2) 0.40% 0.41% 0.38% 0.43% 0.43% Provision for credit losses $ 1,870 $ 1,661 $ 857 $ 1,013 $ 827 June 30 March 31 June 30 2019 2019 2018 Total nonperforming loans, leases and foreclosed properties (3) $ 4,452 $ 5,145 $ 6,181 Nonperforming loans, leases and foreclosed properties as a percentage of total loans, leases and foreclosed properties (2) 0.47% 0.55% 0.66% Allowance for loan and lease losses $ 9,527 $ 9,577 $ 10,050 Allowance for loan and lease losses as a percentage of total loans and leases outstanding (2) 1.00% 1.02% 1.08% For footnotes, see page 14. Current period information is preliminary and based on company data available at the time of the presentation.


 
14 Bank of America Corporation and Subsidiaries Selected Financial Data (continued) (Dollars in millions) Capital Management June 30 March 31 June 30 2019 2019 2018 Regulatory capital metrics (4): Common equity tier 1 capital $ 171,498 $ 169,243 $ 164,872 Common equity tier 1 capital ratio - Standardized approach 11.7% 11.6% 11.4% Common equity tier 1 capital ratio - Advanced approaches 12.0 11.9 11.5 Tier 1 leverage ratio 8.4 8.4 8.4 Tangible equity ratio (5) 8.7 8.5 8.7 Tangible common equity ratio (5) 7.6 7.6 7.7 (1) Return on average tangible common shareholders’ equity and tangible book value per share of common stock are non-GAAP financial measures. We believe the use of ratios that utilize tangible equity provides additional useful information because they present measures of those assets that can generate income. Tangible book value per share provides additional useful information about the level of tangible assets in relation to outstanding shares of common stock. See Reconciliations to GAAP Financial Measures on page 18. (2) Ratios do not include loans accounted for under the fair value option. Charge-off ratios are annualized for the quarterly presentation. (3) Balances do not include past due consumer credit card loans, consumer loans secured by real estate where repayments are insured by the Federal Housing Administration and individually insured long-term stand-by agreements (fully insured home loans), and in general, other consumer and commercial loans not secured by real estate; 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 June 30, 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 June 30, 2019, March 31, 2019 and June 30, 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 18. Current period information is preliminary and based on company data available at the time of the presentation.


 
15 Bank of America Corporation and Subsidiaries Quarterly Results by Business Segment and All Other (Dollars in millions) Second Quarter 2019 Consumer Global Global All Banking GWIM Banking Markets Other Total revenue, net of interest expense $ 9,717 $ 4,900 $ 4,975 $ 4,145 $ (504) Provision for credit losses 947 21 125 5 (241) Noninterest expense 4,407 3,458 2,212 2,677 514 Net income 3,294 1,073 1,926 1,046 9 Return on average allocated capital (1) 36% 30% 19% 12% n/m Balance Sheet Average Total loans and leases $ 296,388 $ 166,324 $ 372,531 $ 70,587 $ 44,695 Total deposits 707,028 253,925 362,619 31,128 20,750 Allocated capital (1) 37,000 14,500 41,000 35,000 n/m Quarter end Total loans and leases $ 300,412 $ 168,993 $ 376,948 $ 74,136 $ 43,311 Total deposits 714,223 251,818 358,902 29,961 20,189 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 4,356 3,428 2,266 2,755 419 Net income (loss) 3,248 1,047 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 Second Quarter 2018 Consumer Global Global All Banking GWIM Banking Markets Other Total revenue, net of interest expense $ 9,233 $ 4,742 $ 5,014 $ 4,251 $ (537) Provision for credit losses 944 12 (23) (1) (105) Noninterest expense 4,367 3,427 2,185 2,726 519 Net income (loss) 2,922 971 2,111 1,129 (349) Return on average allocated capital (1) 32% 27% 21% 13% n/m Balance Sheet Average Total loans and leases $ 280,689 $ 160,833 $ 355,088 $ 75,053 $ 63,155 Total deposits 687,812 236,214 323,215 30,736 22,682 Allocated capital (1) 37,000 14,500 41,000 35,000 n/m Quarter end Total loans and leases $ 283,565 $ 162,034 $ 355,473 $ 73,496 $ 61,256 Total deposits 695,530 233,925 326,029 31,450 22,757 (1) Return on average allocated capital is calculated as net income, adjusted for cost of funds and earnings credits and certain expenses related to intangibles, divided by average allocated capital. Other companies may define or calculate these measures differently. n/m = not meaningful Certain prior period amounts have been reclassified among the segments to conform to current period presentation. The Company reports the results of operations of its four business segments and All Other on a fully taxable-equivalent (FTE) basis. Current period information is preliminary and based on company data available at the time of the presentation.


 
16 Bank of America Corporation and Subsidiaries Year-to-Date Results by Business Segment and All Other (Dollars in millions) Six Months Ended June 30, 2019 Consumer Global Global All Banking GWIM Banking Markets Other Total revenue, net of interest expense $ 19,349 $ 9,720 $ 10,130 $ 8,326 $ (1,135) Provision for credit losses 1,921 26 236 (18) (295) Noninterest expense 8,763 6,886 4,478 5,432 933 Net income (loss) 6,542 2,120 3,954 2,082 (39) Return on average allocated capital (1) 36% 30% 19% 12% n/m Balance Sheet Average Total loans and leases $ 294,340 $ 165,369 $ 371,326 $ 70,335 $ 45,921 Total deposits 702,011 257,856 355,866 31,246 20,721 Allocated capital (1) 37,000 14,500 41,000 35,000 n/m Period end Total loans and leases $ 300,412 $ 168,993 $ 376,948 $ 74,136 $ 43,311 Total deposits 714,223 251,818 358,902 29,961 20,189 Six Months Ended June 30, 2018 Consumer Global Global All Banking GWIM Banking Markets Other Total revenue, net of interest expense $ 18,214 $ 9,597 $ 10,009 $ 9,063 $ (960) Provision for credit losses 1,879 50 (7) (4) (257) Noninterest expense 8,915 7,008 4,477 5,651 1,015 Net income (loss) 5,527 1,892 4,099 2,528 (344) Return on average allocated capital (1) 30% 26% 20% 15% n/m Balance Sheet Average Total loans and leases $ 280,126 $ 159,969 $ 353,398 $ 74,412 $ 65,470 Total deposits 681,119 239,627 323,807 31,524 22,896 Allocated capital (1) 37,000 14,500 41,000 35,000 n/m Period end Total loans and leases $ 283,565 $ 162,034 $ 355,473 $ 73,496 $ 61,256 Total deposits 695,530 233,925 326,029 31,450 22,757 (1) Return on average allocated capital is calculated as net income, adjusted for cost of funds and earnings credits and certain expenses related to intangibles, divided by average allocated capital. Other companies may define or calculate these measures differently. n/m = not meaningful Certain prior period amounts have been reclassified among the segments to conform to current period presentation. Current period information is preliminary and based on company data available at the time of the presentation.


 
17 Bank of America Corporation and Subsidiaries Supplemental Financial Data (Dollars in millions) Six Months Ended Second First Second June 30 Quarter Quarter Quarter FTE basis data (1) 2019 2018 2019 2019 2018 Net interest income $ 24,866 $ 23,901 $ 12,338 $ 12,528 $ 11,982 Total revenue, net of interest expense 46,390 45,923 23,233 23,157 22,703 Net interest yield 2.48% 2.42% 2.44% 2.51% 2.41% Efficiency ratio 57.11 58.94 57.11 57.10 58.25 June 30 March 31 June 30 Other Data 2019 2019 2018 Number of financial centers - U.S. 4,349 4,353 4,433 Number of branded ATMs - U.S. 16,561 16,378 16,050 Headcount 208,984 205,292 207,992 (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 $302 million and $304 million for the six months ended June 30, 2019 and 2018, respectively; $149 million and $153 million for the second and first quarters of 2019, respectively, and $154 million for the second quarter of 2018. Certain prior period amounts have been reclassified to conform to current period presentation. Current period information is preliminary and based on company data available at the time of the presentation.


 
18 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 the most closely related financial measures defined by GAAP for the six months ended June 30, 2019 and 2018 and the three months ended June 30, 2019, March 31, 2019 and June 30, 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. Six Months Ended Second First Second June 30 Quarter Quarter Quarter 2019 2018 2019 2019 2018 Reconciliation of average shareholders’ equity to average tangible common shareholders’ equity and average tangible shareholders’ equity Shareholders’ equity $ 267,101 $ 265,330 $ 267,975 $ 266,217 $ 265,181 Goodwill (68,951) (68,951) (68,951) (68,951) (68,951) Intangible assets (excluding mortgage servicing rights) (1,750) (2,193) (1,736) (1,763) (2,126) Related deferred tax liabilities 805 927 770 841 916 Tangible shareholders’ equity $ 197,205 $ 195,113 $ 198,058 $ 196,344 $ 195,020 Preferred stock (22,433) (23,321) (22,537) (22,326) (23,868) Tangible common shareholders’ equity $ 174,772 $ 171,792 $ 175,521 $ 174,018 $ 171,152 Reconciliation of period-end shareholders’ equity to period-end tangible common shareholders’ equity and period-end tangible shareholders’ equity Shareholders’ equity $ 271,408 $ 264,216 $ 271,408 $ 267,010 $ 264,216 Goodwill (68,951) (68,951) (68,951) (68,951) (68,951) Intangible assets (excluding mortgage servicing rights) (1,718) (2,043) (1,718) (1,747) (2,043) Related deferred tax liabilities 756 900 756 773 900 Tangible shareholders’ equity $ 201,495 $ 194,122 $ 201,495 $ 197,085 $ 194,122 Preferred stock (24,689) (23,181) (24,689) (22,326) (23,181) Tangible common shareholders’ equity $ 176,806 $ 170,941 $ 176,806 $ 174,759 $ 170,941 Reconciliation of period-end assets to period-end tangible assets Assets $ 2,395,892 $ 2,291,670 $ 2,395,892 $ 2,377,164 $ 2,291,670 Goodwill (68,951) (68,951) (68,951) (68,951) (68,951) Intangible assets (excluding mortgage servicing rights) (1,718) (2,043) (1,718) (1,747) (2,043) Related deferred tax liabilities 756 900 756 773 900 Tangible assets $ 2,325,979 $ 2,221,576 $ 2,325,979 $ 2,307,239 $ 2,221,576 Book value per share of common stock Common shareholders’ equity $ 246,719 $ 241,035 $ 246,719 $ 244,684 $ 241,035 Ending common shares issued and outstanding 9,342.6 10,012.7 9,342.6 9,568.4 10,012.7 Book value per share of common stock $ 26.41 $ 24.07 $ 26.41 $ 25.57 $ 24.07 Tangible book value per share of common stock Tangible common shareholders’ equity $ 176,806 $ 170,941 $ 176,806 $ 174,759 $ 170,941 Ending common shares issued and outstanding 9,342.6 10,012.7 9,342.6 9,568.4 10,012.7 Tangible book value per share of common stock $ 18.92 $ 17.07 $ 18.92 $ 18.26 $ 17.07 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 2Q19 Financial Results July 17, 2019


 
2Q19 Financial Results Summary Income Statement 2Q19 2Q18 % Inc / (Dec) ($B, except per share data) Total revenue, net of interest expense $23.1 $22.5 2 % Noninterest expense 13.3 13.2 0 Provision for credit losses 0.9 0.8 4 Pretax income 9.0 8.5 5 Income tax expense 1.6 1.7 (6) Net income $7.3 $6.8 8 Diluted earnings per share $0.74 $0.63 17 Average diluted common shares (in millions) 9,560 10,309 (7) Return Metrics and Efficiency Return on average assets 1.23 % 1.17 % 6 bps Return on average common shareholders' equity 11.6 10.8 82 1 Return on average tangible common shareholders' equity 16.2 15.2 104 Efficiency ratio 57 59 (117) Note: Amounts may not total due to rounding. 1 Represents a non-GAAP financial measure. For important presentation information, see slide 28. 2


 
2Q19 Highlights (Comparisons are to 2Q18) Earnings Returns and Efficiency • Diluted earnings per share of $0.74, up 17% • Return on average assets of 1.23% improved 6 bps • Record net income of $7.3B, up 8% • Return on average common shareholders’ equity of 11.62% increased 87 bps • Operating leverage of >200 bps – Total revenue up 2% to $23.1B • Return on average tangible common shareholders’ equity of 16.24% improved 109 bps 1 – Noninterest expense stable at $13.3B • Efficiency ratio of 57% improved 117 bps • Strong asset quality • Average diluted common shares down 7% to 9.6B Client Balances Capital and Liquidity • Average loans and leases in business segments grew 4% • $171B of Common Equity Tier 1 Capital (CET1) and CET1 ratio of 11.7% 3 – Consumer and commercial each up 4% • $552B of average Global Liquidity Sources 4 • Average deposits increased $75B, or 6% • Plan to return $37B of capital to common shareholders over • GWIM total client balances of $2.9T, up 5% next four quarters – Assets Under Management (AUM) of $1.2T included $24B ‒ 20% increase in quarterly dividend of AUM flows since 2Q18 ‒ More than $30B in gross share repurchases • Consumer investment assets of $220B increased 15% 2 • Book value per share increased 10% to $26.41 – $24B of client flows since 2Q18 1 Represents a non-GAAP financial measure. For important presentation information, see slide 28. 2 Consumer investment assets include client brokerage assets, certain deposit sweep balances and assets under management in Consumer Banking. 3 Regulatory capital ratios at June 30, 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 2Q19. 3 4 See note A on slide 25 for definition of Global Liquidity Sources.


 
Record First Half Net Income Diluted Earnings per Share Net Income ($B) $1.6 +22% $1.45 $18 +17% CAGR $14.7 $1.25 CAGR $13.7 $1.2 $12 $0.89 $10.4 $8.5 $0.8 $0.66 $0.71 $7.9 +16% +7% $6 $0.4 $0.0 $0 1H15 1H16 1H17 1H18 1H19 1H15 1H16 1H17 1H18 1H19 Average Diluted Shares Outstanding (B) Operating Leverage 1 and Efficiency Ratio (4%) 22% 12 CAGR 11.3 11.1 10.9 11 10.4 7% 10 9.7 5% 5% 9 70% 66% 3% (7%) 62% 8 59% 57% 7 1H15 1H16 1H17 1H18 1H19 1H15 1H16 1H17 1H18 1H19 Operating Leverage Efficiency Ratio 1 Operating leverage calculated as the year-over-year percentage change in revenue, net of interest expense, less the percentage change in noninterest expense. 4


 
Delivered Positive Operating Leverage for 18 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% +2% 7% 7% 7% 6% 4% 4% 3% 2% 2% 1% 1% 1% 1% 0% (1%) (0%) (2%) (1%) (1%) (1%) (1%) (1%) (2%) (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 2Q19 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. 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 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 5 $0.9B noninterest income charge from enactment of the Tax Act, 4Q17 revenue was $21.4B. For important presentation information, see slide 28.


 
Consumer Banking Digital Usage Trends 1 Active Digital Banking Users (MM) Total Payments ($B) Person-to-Person Payments (Zelle) 4 YoY YoY 7.6MM Erica users 8.0MM users $800 $738 $786 +7% $678 37.3 +4% $637 75 69.0 $50 40 34.0 35.7 32.2 $600 354 +1% 351 $40 30 344 27.8 +10% 338 50 25.3 22.9 $400 $30 20 20.2 35.2 +12% $18 $20 $200 387 432 25 10 299 335 14.5 8.3 $10 $10 $5 0 $0 0 $3 $0 2Q16 2Q17 2Q18 2Q19 2Q16 2Q17 2Q18 2Q19 2Q16 2Q17 2Q18 2Q19 Digital banking users Mobile banking users Digital Non-Digital Transactions (MM) Volume ($B) 2, 3 Mobile Channel Usage YoY Digital Deposit Transactions Digital % of Total Sales 1,600 1,493 800 +8% 100% 30% 1,379 24% 25% 28% 24% 22% 80% 31% 25% 22% 1,200 1,061 600 583 +27% 20% 18% 942 60% 50% 460 54% 800 400 15% 61% 371 40% 76% 78% 67% 289 69% 72% 10% 400 200 20% 5% 46% 50% 33% 39% 0% 0% 0 0 2Q16 2Q17 2Q18 2Q19 2Q16 2Q17 2Q18 2Q19 2Q16 2Q17 2Q18 2Q19 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. 6 4 Includes Bank of America person-to-person payments sent and received through e-mail or mobile identification. Zelle users represent 90-day active users.


 
Global Banking Digital Update CashPro® Digital Banking Platform Leveraging same underlying technology as the retail bank to enable Anywhere, Anytime Execution CashPro® Online Users CashPro® Mobile CashPro® Mobile CashPro® Assistant across commercial, corporate app logins Payment Approvals and business banking clients 1 Utilizing AI, Predictive 1 Analytics and APIs to 1 $123B make it easier for 497K +165% up 103% YoY clients to analyze info (YoY, last 12 months) (last 12 months) Investing in Digital Technology to Develop Integrated Solutions for Our Clients Making Business Easier Faster, Cheaper, More Secure Anytime, Anywhere Automatically monitors CashPro® Mobile fraud Expanding access and capabilities Intelligent Receivables Internal Sales Tools Bringing AI to Receivables with award-winning CashPro® API solution Mobile Wallet Direct API connectivity Document Exchange For Commercial Card for expanded and real- time access and insights E-signature Mobile Token Digitized KYC Refreshes For Apple Watch Faster, easier with CashPro® Assistant Solving Client Leveraging Data and Improving Connectivity Pain Points Insights and Access 1 As of 2Q19. 7


 
Balance Sheet, Liquidity and Capital (EOP basis unless noted) 4 Balance Sheet ($B) 2Q19 1Q19 2Q18 Basel 3 Capital ($B) 2Q19 1Q19 2Q18 Total assets $2,395.9 $2,377.2 $2,291.7 Common equity tier 1 capital (CET1) $171.5 $169.2 $164.9 Total loans and leases 963.8 945.6 935.8 Standardized approach Total loans and leases in business segments 1 920.5 900.0 874.6 Risk-weighted assets $1,466 $1,455 $1,444 Total debt securities 446.1 440.7 438.3 CET1 ratio 11.7 % 11.6 % 11.4 % Advanced approaches Funding & Liquidity ($B) Risk-weighted assets $1,431 $1,423 $1,437 Total deposits $1,375.1 $1,379.3 $1,309.7 CET1 ratio 12.0 % 11.9 % 11.5 % Long-term debt 238.0 233.9 226.7 Supplementary leverage Global Liquidity Sources (average) 2 552 546 512 Supplementary leverage ratio (SLR) 6.8 % 6.8 % 6.7 % Equity ($B) Common shareholders' equity $246.7 $244.7 $241.0 Common equity ratio 10.3 % 10.3 % 10.5 % Tangible common shareholders' equity 3 $176.8 $174.8 $170.9 Tangible common equity ratio 3 7.6 % 7.6 % 7.7 % Per Share Data Book value per common share $26.41 $25.57 $24.07 Tangible book value per common share 3 18.92 18.26 17.07 Common shares outstanding (in billions) 9.34 9.57 10.01 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 June 30, 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 2Q19. 8


 
Average Deposits Bank of America Ranked #1 in U.S. Deposit Market Share 1 Total Corporation ($B) Consumer Banking ($B) YoY YoY $1,500 $1,375 $1,257 $1,301 +6% $800 $707 +3% $1,213 $653 $688 $596 399 (7%) $600 203 437 428 178 192 $1,000 432 163 +6% $400 162 174 133 150 $500 976 +12% 781 820 873 $200 300 324 333 330 (1%) $0 $0 2Q16 2Q17 2Q18 2Q19 2Q16 2Q17 2Q18 2Q19 Interest-bearing Noninterest-bearing Money market, Savings, CD/IRA Interest checking Noninterest-bearing GWIM ($B) Global Banking ($B) $400 $300 YoY $363 YoY $255 $254 +7% $245 $236 $323 +12% 17 15 $299 $300 17 17 (11%) $300 $200 167 (18%) 203 $200 229 223 238 228 239 +9% $100 219 $100 196 +62% 120 70 77 $0 $0 2Q16 2Q17 2Q18 2Q19 2Q16 2Q17 2Q18 2Q19 Interest-bearing Noninterest-bearing Interest-bearing Noninterest-bearing Note: Amounts may not total due to rounding. Total corporation also includes Global Markets and All Other. 1 Based on June 30, 2018 FDIC deposit data. 9


 
Average Loans and Leases Total Loans and Leases ($B) Total Loans and Leases in All Other ($B) YoY $951 +2% $1,000 $900 $915 $935 $150 $112 $750 $100 10 $88 20 7 $63 $500 16 $45 $50 12 82 7 $250 65 51 38 $0 $0 2Q16 2Q17 2Q18 2Q19 2Q16 2Q17 2Q18 2Q19 Residential mortgage Home equity Other Loans and Leases in Business Segments ($B) Year-Over-Year Growth in Business Segments YoY $1,000 $872 $906 +4% 8% $788 $827 75 71 (6%) $750 70 70 6% 355 373 +5% 5% 334 345 5% $500 4% 7% 4% 161 166 +3% 6% 141 151 $250 2% 5% 4% 3% 4% 243 262 281 296 +6% $0 0% 2Q16 2Q17 2Q18 2Q19 2Q17 2Q18 2Q19 Consumer Banking GWIM Global Banking Global Markets Consumer loans Commercial loans Total in business segments Note: Amounts may not total due to rounding. 10


 
Net Interest Income 1 Net Interest Income (FTE, $B) • Net interest income of $12.2B ($12.3B FTE 1) $15 – Increased $0.4B from 2Q18, or 3%, reflecting the benefits $12.7 $12.5 $12.3 $12.0 $12.2 from higher short-term interest rates, as well as loan and deposit growth $10 – Decreased $0.2B from 1Q19 $11.8 $12.1 $12.5 $12.4 $12.2 $5 • Reflected lower short-term rates (impacting variable- rate assets and improving long-term debt costs), higher bond premium amortization expense driven by lower $0 long-term rates and higher funding costs in Global 2Q18 3Q18 4Q18 1Q19 2Q19 Markets Net interest income (GAAP) FTE adjustment • Partially offset by one additional interest accrual day • Net interest yield of 2.44% increased 3 bps from 2Q18 and decreased 7 bps from 1Q19 1 Net Interest Yield (FTE) 1 – Excluding Global Markets, the net interest yield was 2.98%, 3.5% up 4 bps from 2Q18 1 3.03% 3.03% Asset sensitivity position increased, primarily driven by lower 2.94% 2.95% 2.98% • 3.0% long-term rates 2.5% 2.52% 2.51% 2.41% 2.45% 2.44% 2.0% 2Q18 3Q18 4Q18 1Q19 2Q19 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 $811MM, $953MM, $935MM, $933MM and $968MM, and average earning assets of $474B, $472B, $458B, $459B and $490B for 2Q19, 1Q19, 4Q18, 3Q18 and 2Q18, respectively. The Company believes the presentation of net interest yield excluding Global 11 Markets provides investors with transparency of NII and net interest yield in core banking activities. For important presentation information, see slide 28.


 
Expense and Efficiency Total Noninterest Expense ($B) • Noninterest expense of $13.3B increased modestly vs. 2Q18 $15 $13.2 $13.0 $13.1 $13.2 $13.3 – Reflects investments across the franchise, including higher marketing expense $10 5.3 5.3 5.3 5.0 5.3 – Partially offset by efficiency savings through operational excellence work, lower FDIC costs and lower amortization of intangibles $5 7.9 7.7 7.7 8.2 8.0 • Noninterest expense increased modestly from 1Q19, as higher initiative spend and marketing expense were partially offset by $0 the absence of seasonally elevated payroll tax costs 2Q18 3Q18 4Q18 1Q19 2Q19 – 2Q19 reflected increase in minimum wage to $17/hour; Compensation and benefits Other announced plans to move to $20/hour in 2021 • Efficiency ratio improved to 57% in 2Q19 vs. 2Q18 Efficiency Ratio 65% 60% 59% 55% 57% 58% 57% 57% 50% 2Q18 3Q18 4Q18 1Q19 2Q19 Note: Amounts may not total due to rounding. 12


 
Asset Quality 2Q19 included $118MM of recoveries from sales of 1 previously charged-off Net Charge-offs ($MM) non-core home equity loans • Total net charge-offs of $0.9B decreased $104MM from 1Q19 $1,200 1.0% $996 $991 – Consumer net charge-offs of $0.7B decreased $0.1B from $932 $924 $887 1Q19, driven primarily by recoveries of previously charged-off home equity loans that were sold in 2Q19 $800 0.5% – Commercial net charge-offs of $0.2B increased modestly 0.43% 0.40% 0.39% 0.43% from 1Q19 $400 0.38% • Net charge-off ratio of 38 bps decreased 5 bps from 1Q19 $0 0.0% – Loan sales positively impacted net charge-off ratio by 5 bps 2Q18 3Q18 4Q18 1Q19 2Q19 Provision expense of $0.9B decreased $0.2B from 1Q19 Net charge-offs Net charge-off ratio • – 2Q19 included a small reserve release of $30MM, compared to $22MM reserve build in 1Q19 Provision for Credit Losses ($MM) • Allowance for loan and lease losses of $9.5B represented 1.00% of total loans and leases 1 $1,200 $1,013 • Nonperforming loans (NPLs) of $4.2B decreased $0.7B from $905 $827 $857 1Q19, driven by loan sales and other improvements in Consumer $800 $716 and Commercial – 46% of consumer NPLs are contractually current $400 • Commercial reservable criticized utilized exposure of $11.8B was stable from 1Q19 and reservable criticized ratio remains near historic lows $0 2Q18 3Q18 4Q18 1Q19 2Q19 1 Excludes loans measured at fair value. 13


 
Asset Quality – Consumer and Commercial Portfolios Consumer Net Charge-offs ($MM) Consumer Metrics ($MM) 2Q19 1Q19 2Q18 2.0% Provision $640 $830 $757 $900 $830 $804 $835 $776 $691 Nonperforming loans and leases 3,027 3,578 4,639 1.5% $700 % of loans and leases 1 0.67 % 0.81 % 1.03 % $500 Consumer 30+ days performing past due $5,699 $6,030 $7,233 1.0% 2 $300 0.74% 0.77% Fully-insured 2,155 2,390 3,454 0.69% 0.71% 0.62% 0.5% Non fully-insured 3,544 3,640 3,779 $100 Allowance for loans and leases 4,689 4,756 5,140 ($100) 2Q18 3Q18 4Q18 1Q19 2Q19 0.0% 1 % of loans and leases 1.04 % 1.08 % 1.15 % Credit card Other Consumer NCO ratio # times annualized NCOs 1.69 x 1.40 x 1.54 x Commercial Net Charge-offs ($MM) Commercial Metrics ($MM) 2Q19 1Q19 2Q18 $196 $200 0.3% Provision $217 $183 $70 $166 $156 $156 Reservable criticized utilized exposure 11,834 11,821 12,357 $150 $120 0.2% Nonperforming loans and leases 1,160 1,272 1,258 0.16% 1 $100 % of loans and leases 0.23 % 0.26 % 0.26 % 0.14% 0.13% 0.13% 0.10% 0.1% Allowance for loans and leases $4,838 $4,821 $4,910 $50 % of loans and leases 1 0.95 % 0.97 % 1.02 % $0 0.0% 2Q18 3Q18 4Q18 1Q19 2Q19 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 $3.3B increased 13% from 2Q18; ROAAC of 36% Summary Income Statement ($MM) 2Q19 1Q19 2Q18 • Total revenue, net of interest expense $9,717 $85 $484 – 4% operating leverage and steady credit costs drove results Provision for credit losses 947 (27) 3 • Revenue of $9.7B increased $0.5B, or 5%, from 2Q18, driven Noninterest expense 4,407 51 40 primarily by NII due to growth in deposits and loans as well as Pretax income 4,363 61 441 higher short-term interest rates Income tax expense 1,069 15 69 • Provision was stable compared to 2Q18 Net income $3,294 $46 $372 • Noninterest expense increased 1% from 2Q18, driven by Key Indicators ($B) 2Q19 1Q19 2Q18 investments for business growth, including marketing, and higher compensation and benefits expense, largely offset by improved Average deposits $707.0 $696.9 $687.8 productivity and lower FDIC expense Rate paid on deposits 0.10 % 0.09 % 0.05 % Cost of deposits 1 1.52 1.55 1.56 – Efficiency ratio improved 194 bps to 45% Average loans and leases $296.4 $292.3 $280.7 – Continued investment in financial center builds/renovations, Net charge-off ratio 1.24 % 1.28 % 1.28 % sales professionals, digital capabilities, minimum wage and Consumer investment assets 2 $219.7 $210.9 $191.5 Shared Success programs Active mobile banking users (MM) 27.8 27.1 25.3 – Digital usage increased for sales, service and appointments % Consumer sales through digital channels 25 % 27 % 24 % • Average deposits of $707B grew $19B, or 3%, from 2Q18 Number of financial centers 4,349 4,353 4,433 – 53% of deposits in checking accounts; 92% primary accounts 4 Combined credit / debit purchase volumes 3 $154.3 $141.2 $147.5 – Average cost of deposits of 1.52% 1; rate paid of 10 bps Total consumer credit card risk-adjusted margin 3 7.93 % 8.03 % 7.96 % Return on average allocated capital 36 36 32 • Average loans and leases of $296B increased $16B, or 6%, from Allocated capital $37 $37 $37 2Q18, driven by growth in residential mortgages and small business Efficiency ratio 45 % 45 % 47 % • Consumer investment assets of $220B grew $28B, or 15%, from 2Q18, driven by strong client flows and market performance – $24B of client flows since 2Q18 – Client accounts of 2.7MM, up 7% • Combined credit / debit card spend increased 5% from 2Q18 • 5.7MM clients enrolled in Preferred Rewards; 99% retention 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 • #1 Small Business Lender B $12 $5 $4.4 $4.3 $4.4 $4.4 $4.4 50% $10.0 $9.7 C $9.2 $9.4 $9.6 • Named North America's Best Digital Bank $4 $9 • 2019 J.D. Power Certified Mobile App 2.9 47% 2.6 2.6 2.5 2.6 • 2019 J.D. Power Certified Website $3 46% $6 45% 45% 45% • #1 Online Banking and Mobile Banking Functionality D 45% $2 • #1 U.S. Checking Account Digital Sales Functionality E $3 6.6 6.8 7.1 7.1 7.1 • 4-Star Rating by Barron’s 2019 Best Online Brokers $1 • #1 Home Equity Originator F $0 $0 40% • #1 in Prime Auto Credit distribution of new 2Q18 3Q18 4Q18 1Q19 2Q19 2Q18 3Q18 4Q18 1Q19 2Q19 originations among peers G • #1 Customer Satisfaction for Retail Banking Advice H Net interest income Noninterest income Noninterest expense Efficiency ratio Average Deposits ($B) Average Loans and Leases ($B) Consumer Investment Assets (EOP, $B) 2 $300 $281 $285 $290 $292 $296 $250 $800 $697 $707 0.20% 20 $220 $688 $688 $687 19 19 20 20 $204 $211 $700 36 35 $191 38 37 37 $200 $186 $600 0.15% 50 51 $200 51 50 50 $500 352 354 357 365 374 $150 $400 0.10% 91 0.10% 92 93 92 0.09% 90 $100 $300 0.07% $100 0.06% $200 0.05% 0.05% 90 94 100 $50 $100 81 86 $0 0.00% $0 $0 2Q18 3Q18 4Q18 1Q19 2Q19 2Q18 3Q18 4Q18 1Q19 2Q19 2Q18 3Q18 4Q18 1Q19 2Q19 Residential mortgage Consumer credit card Other Checking Rate paid (%) Vehicle lending Home equity Small business / other Note: Amounts may not total due to rounding. 1 See slide 26 for business leadership sources. 2 Consumer investment assets include client brokerage assets, certain deposit sweep balances and assets under management in Consumer Banking. 16


 
Global Wealth & Investment Management Inc / (Dec) Net income of $1.1B increased 11% from 2Q18; ROAAC of 30% Summary Income Statement ($MM) 2Q19 1Q19 2Q18 • Total revenue, net of interest expense $4,900 $80 $158 – Record pretax margin of 29% Provision for credit losses 21 16 9 • Revenue of $4.9B increased 3% from 2Q18 Noninterest expense 3,458 30 31 – Net interest income improved due to higher interest rates as Pretax income 1,421 34 118 well as growth in deposits and loans Income tax expense 348 8 16 Asset management fees increased 2% driven by the impact Net income $1,073 $26 $102 – of positive AUM flows and higher market valuations Key Indicators ($B) 2Q19 1Q19 2Q18 • Noninterest expense increased 1% from 2Q18, as investments for business growth, including marketing, and higher revenue- Average deposits $253.9 $261.8 $236.2 related incentives were mostly offset by lower amortization of Average loans and leases 166.3 164.4 160.8 intangibles and FDIC expense Net charge-off ratio 0.03 % 0.03 % 0.04 % 1 Client balances of $2.9T, up 5% from 2Q18, driven by higher AUM flows $5.3 $5.9 $10.4 • Pretax margin 29 % 29 % 27 % market valuations and positive net flows Return on average allocated capital 30 29 27 – AUM flows of $5B in 2Q19 1 Allocated capital $14.5 $14.5 $14.5 – Average deposits of $254B increased 7% from 2Q18; included $8B impact due to money market fund conversion last year • Decreased 3% from 1Q19 driven by tax seasonality – Average loans and leases of $166B increased $5B, or 3%, from 2Q18, driven by residential mortgage and custom lending • 1H19 net new Merrill Lynch households increased 45% and Private Bank increased 49% vs. 1H18 • 1H19 Merrill Lynch asset flows as a result of internal referrals are up 17% vs. 1H18 • Merrill Lynch mobile channel usage increased 39% from 2Q18 1 Starting in 2Q19, AUM flows include managed deposits in investment accounts. Historical periods have been revised. 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 across client assets, deposits and loans I $247 $262 $254 $200 $236 $238 $162 $164 $164 $166 • #1 in personal trust assets under management J $161 $150 • #1 in Barron’s U.S. high net worth client assets $200 39 40 41 42 43 (2018) • #1 in Barron’s Top 1,200 ranked Financial $100 41 41 40 39 39 Advisors (2019) $100 • #1 in Forbes’ Top Next Generation Advisors $50 77 79 80 80 82 (2018) and Best-in-State Wealth Advisors (2019) • #1 in Financial Times Top 401K Retirement Plan $0 $0 Advisers (2018) 2Q18 3Q18 4Q18 1Q19 2Q19 2Q18 3Q18 4Q18 1Q19 2Q19 • #1 in Barron’s Top 100 Women Advisors (2019) Consumer real estate Securities-based lending Custom lending Credit card / Other Total Revenue ($B) Client Balances (EOP, $B) 2,3 $6 $3,000 $2,754 $2,841 $2,837 $2,899 $5.0 $2,621 172 $4.7 $4.8 $4.8 $4.9 165 165 167 234 240 168 261 252 269 0.7 0.7 0.9 0.7 0.8 $4 $2,000 1,183 1,170 1,204 1,139 1,072 2.5 2.5 2.5 2.4 2.5 $2 $1,000 1,254 1,292 1,163 1,282 1,314 1.5 1.5 1.6 1.7 1.6 $0 $0 2Q18 3Q18 4Q18 1Q19 2Q19 2Q18 3Q18 4Q18 1Q19 2Q19 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. 3 Managed deposits in investment accounts of $44B, $43B, $51B, $38B and $37B for 2Q19, 1Q19, 4Q18, 3Q18 and 2Q18, respectively, are included in both AUM and Deposits. Total 18 client balances only include these balances once. Historical periods have been revised.


 
Global Banking Inc/(Dec) Summary Income Statement ($MM) 2Q19 1Q19 2Q18 • Net income of $1.9B decreased 9% from 2Q18, largely due to the absence of prior year’s energy reserve releases; ROAAC of 19% Total revenue, net of interest expense 1 $4,975 ($180) ($39) Provision (benefit) for credit losses 125 14 148 • Revenue of $5.0B decreased 1% from 2Q18 Noninterest expense 2,212 (54) 27 – Reflects the benefit of deposit and loan growth, which was Pretax income 2,638 (140) (214) more than offset by the firm’s allocation of ALM activities Income tax expense 712 (38) (29) and loan spread compression Net income $1,926 ($102) ($185) • Total Corporation investment banking fees of $1.4B (excl. self- Selected Revenue Items ($MM) 2Q19 1Q19 2Q18 led) declined 4% from 2Q18 as lower debt underwriting fees were partially offset by higher equity underwriting fees Total Corporation IB fees (excl. self-led) 1 $1,371 $1,264 $1,422 Global Banking IB fees 1 717 709 743 – #1 in U.S. IPOs by both overall volume and number of deals 2 Business Lending revenue 2,059 2,173 2,192 • Provision increased $148MM from 2Q18 to $125MM, primarily Global Transaction Services revenue 2,161 2,164 2,026 driven by the absence of the prior year’s energy reserve releases Key Indicators ($B) 2Q19 1Q19 2Q18 • Noninterest expense increased 1% from 2Q18, due to continued Average deposits $362.6 $349.0 $323.2 investments in the business Average loans and leases 372.5 370.1 355.1 – Efficiency ratio remained at 44% Net charge-off ratio 0.14 % 0.09 % 0.10 % • Average loans and leases of $373B increased 5% from 2Q18, Return on average allocated capital 19 20 21 driven by growth across corporate and commercial clients Allocated capital $41 $41 $41 Efficiency ratio 44 % 44 % 44 % • Average deposit growth of $39B to $363B, or 12%, compared to 2Q18 1 Global Banking and Global Markets share in certain deal economics from investment banking, loan origination activities and sales and trading activities. 2 Per Dealogic as of July 1, 2019. 19


 
Global Banking Trends Business Leadership 1 Average Deposits ($B) Average Loans and Leases ($B) • North America’s Best Bank for Small to C $373 Medium-sized Enterprises $400 $360 $349 $363 $400 $355 $353 $357 $370 $323 $338 15 • Most Innovative Investment Bank of the Year 17 16 16 15 from North America K $300 $300 45% • Best Transaction Bank in North America K 37% 41% 50% 54% 164 162 166 176 176 • North America’s Best Bank for Financing C $200 $200 • 2018 Quality, Share and Excellence Awards for U.S. Large Corporate Banking and Cash $100 63% 59% 55% $100 Management L 50% 46% 175 174 176 178 182 • Best Global Debt Bank M $0 $0 • Relationships with 79% of the Global Fortune 2Q18 3Q18 4Q18 1Q19 2Q19 2Q18 3Q18 4Q18 1Q19 2Q19 500; 94% of the U.S. Fortune 1,000 (2018) Noninterest-bearing Interest-bearing Commercial Corporate Business Banking Total Revenue ($B) 2 Total Corporation IB Fees ($MM) 2 $6 $5.2 $5.0 $5.2 $5.0 $1,422 $1,371 $4.8 $1,348 $1,264 0.8 0.9 $1,204 0.8 0.7 0.8 303 288 $4 0.8 0.8 0.7 0.7 0.7 262 397 343 290 395 0.7 0.6 0.8 0.7 0.7 307 272 234 $2 874 2.7 2.7 2.8 2.8 2.7 684 699 748 746 $0 (45) (49) (20) (61) (58) 2Q18 3Q18 4Q18 1Q19 2Q19 2Q18 3Q18 4Q18 1Q19 2Q19 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 $1.0B decreased 7% from 2Q18; ROAAC of 12% Summary Income Statement ($MM) 2Q19 1Q19 2Q18 • • [ Bullets to come ] 2 Total revenue, net of interest expense 1 $4,145 ($36) ($106) – Excluding net DVA, net income of $1.1B decreased 15% Net DVA (31) 59 148 • Revenue declined 2% from 2Q18; excluding net DVA, revenue Total revenue (excl. net DVA) 1,2 4,176 (95) (254) decreased 6% 2 Provision for credit losses 5 28 6 Reflects lower sales and trading revenue and lower Noninterest expense 2,677 (78) (49) – investment banking fees, partially offset by a gain on sale of Pretax income 1,463 14 (63) an equity investment (excluded from sales and trading Income tax expense 417 4 20 revenue) Net income $1,046 $10 ($83) Net income (excl. net DVA) 2 $1,070 ($34) ($195) • Excluding net DVA, sales and trading revenue of $3.3B decreased 10% from 2Q18 2 1 Selected Revenue Items($MM) 2Q19 1Q19 2Q18 – FICC revenue of $2.1B decreased 8% primarily due to lower Sales and trading revenue $3,242 $3,460 $3,451 client activity across most products Sales and trading revenue (excl. net DVA) 2 3,273 3,550 3,630 Equities revenue of $1.1B decreased 13% primarily due to 2 2,128 2,358 2,316 – FICC (excl. net DVA) weaker performance in EMEA derivatives vs. a stronger year- 2 1,145 1,192 1,314 Equities (excl. net DVA) ago quarter Global Markets IB fees 584 537 651 • Noninterest expense decreased 2% vs. 2Q18, driven by lower Key Indicators ($B) 2Q19 1Q19 2Q18 revenue-related compensation Average total assets $685.4 $664.1 $678.5 • Average VaR remained low at $34MM in 2Q19 3 Average trading-related assets 496.2 474.3 473.1 Average 99% VaR ($MM) 3 34 37 30 Average loans and leases 70.6 70.1 75.1 Return on average allocated capital 12 % 12 % 13 % Allocated capital $35 $35 $35 Efficiency ratio 65 % 66 % 64 % 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 2019 YTD Global Markets Revenue Mix 2019 YTD 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 Foreign 62% Exchange Sales and Corporate FX Sales L 65% 38% • 2018 Share Leader in U.S. Fixed Income 35% Market Share - #1 Securitized, #2 Emerging Markets L • #1 Municipal Bonds Underwriter N O • #2 Global Research Firm 3 • #1 U.S. Broker for StarMine Analyst Awards P 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 $4 $496 $3.6 $500 $453 $473 $75 $3.4 $3.3 1.1 1.3 1.1 $50 $43 $2 $250 $34 $30 $25 2.3 2.3 2.1 $0 $0 $0 2Q17 2Q18 2Q19 2Q17 2Q18 2Q19 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 $3.2B, $3.5B and $3.2B for 2Q19, 2Q18 and 2Q17, respectively. Reported FICC sales & trading revenue was $2.1B, $2.1B and $2.1B for 2Q19, 2Q18 and 2Q17, respectively. Reported Equities sales & trading revenue was $1.1B, $1.3B and $1.1B for 2Q19, 2Q18 and 2Q17, 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) 2Q19 1Q19 2Q18 • Net income of $9MM compared to net loss of $349MM in 2Q18 Total revenue, net of interest expense ($504) $127 $33 – Provision benefit increased $136MM from 2Q18, driven by Provision (benefit) for credit losses (241) (187) (136) recoveries from 2Q19 sales of previously-charged off non- Noninterest expense 514 95 (5) core home equity loans Pretax income (loss) (777) 219 174 – Tax rate improved from 2Q18; total corporation tax rate was Income tax expense (benefit) (786) 162 (184) 18% Net income (loss) $9 $57 $358 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 ($31MM), ($90MM), ($179MM) and ($159MM) for 2Q19, 1Q19, 2Q18 and 2Q17, respectively. Net DVA gains (losses) included in FICC revenue were ($30MM), ($79MM), ($184MM) and ($148MM) for 2Q19, 1Q19, 2Q18 and 2Q17, respectively. Net DVA gains (losses) included in Equities revenue were ($1MM), ($11MM), $5MM and ($11MM) for 2Q19, 1Q19, 2Q18 and 2Q17, 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 $19MM, $21MM, $17MM and $23MM for 2Q19, 1Q19, 2Q18 and 2Q17, respectively. 25


 
Sources A Estimated retail consumer deposits based on June 30, 2018 FDIC deposit data. B FDIC, 1Q19. C Euromoney, July 2019. D Dynatrace 2Q19 Online Banker Scorecard and 1Q19 Mobile Banker Scorecard; Javelin 2019 Online and Mobile Banking Scorecards. E Forrester 2018 Banking Sales Wave: U.S. Mobile Sites. F Inside Mortgage Finance, 1Q19. G Experian Autocount; Franchised Dealers; Largest percentage of 680+ Vantage 3.0 originations among key competitors as of April 2019. H J.D. Power, January 2019. I U.S.-based full-service wirehouse peers based on 1Q19 earnings releases. J Industry 1Q19 call reports. K The Banker, 2018. L Greenwich, 2018. M Global Finance, 2018. N Thomson Reuters, 2018. O Institutional Investor, 2018. P Refinitiv, 2019. 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; the possibility that the Company’s future liabilities may be in excess of its 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, fraud, indemnity, contribution, or other claims from one or more counterparties, including trustees, purchasers of loans, underwriters, issuers, monolines, private-label and other investors, or other parties involved in securitizations; 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, effective tax rate, loan growth or other projections; adverse changes to the Company’s credit ratings from the major credit rating agencies; an inability to access capital markets or maintain deposits or borrowing costs; estimates of the fair value and other accounting values, subject to impairment assessments, of certain of the Company’s assets and liabilities, including the Company’s merchant services joint venture; the estimated or actual impact of changes in accounting standards or assumptions in applying those standards, including the new credit loss accounting standard; 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 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 June 30, 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 $149MM, $153MM, $155MM, $151MM and $154MM for 2Q19, 1Q19, 4Q18, 3Q18 and 2Q18, 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. 28


 


 





BACLOGO2018.JPG


Supplemental Information
Second 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
 
 
 
 
 
 
 
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 13-15 are reported on an FTE basis.

 
 








Bank of America Corporation and Subsidiaries
Consolidated Financial Highlights
(In millions, except per share information)
 
Six Months Ended
June 30
 
 
Second
Quarter
2019
 
First
Quarter
2019
 
Fourth
Quarter
2018
 
Third
Quarter
2018
 
Second
Quarter
2018
 
2019
 
2018
 
 
Income statement
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net interest income
$
24,564

 
$
23,597

 
 
$
12,189

 
$
12,375

 
$
12,504

 
$
12,061

 
$
11,828

Noninterest income
21,524

 
22,022

 
 
10,895

 
10,629

 
10,173

 
10,663

 
10,721

Total revenue, net of interest expense
46,088

 
45,619

 
 
23,084

 
23,004

 
22,677

 
22,724

 
22,549

Provision for credit losses
1,870

 
1,661

 
 
857

 
1,013

 
905

 
716

 
827

Noninterest expense
26,492

 
27,066

 
 
13,268

 
13,224

 
13,074

 
13,014

 
13,224

Income tax expense
3,067

 
3,190

 
 
1,611

 
1,456

 
1,420

 
1,827

 
1,714

Net income
14,659

 
13,702

 
 
7,348

 
7,311

 
7,278

 
7,167

 
6,784

Preferred stock dividends
681

 
746

 
 
239

 
442

 
239

 
466

 
318

Net income applicable to common shareholders
13,978

 
12,956

 
 
7,109

 
6,869

 
7,039

 
6,701

 
6,466

Diluted earnings per common share
1.45

 
1.25

 
 
0.74

 
0.70

 
0.70

 
0.66

 
0.63

Average diluted common shares issued and outstanding
9,672.4

 
10,389.9

 
 
9,559.6

 
9,787.3

 
9,996.0

 
10,170.8

 
10,309.4

Dividends paid per common share
$
0.30

 
$
0.24

 
 
$
0.15

 
$
0.15

 
$
0.15

 
$
0.15

 
$
0.12

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Performance ratios
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Return on average assets
1.24
%
 
1.19
%
 
 
1.23
%
 
1.26
%
 
1.24
%
 
1.23
%
 
1.17
%
Return on average common shareholders’ equity
11.52

 
10.80

 
 
11.62

 
11.42

 
11.57

 
10.99

 
10.75

Return on average shareholders’ equity
11.07

 
10.41

 
 
11.00

 
11.14

 
10.95

 
10.74

 
10.26

Return on average tangible common shareholders’ equity (1)
16.13

 
15.21

 
 
16.24

 
16.01

 
16.29

 
15.48

 
15.15

Return on average tangible shareholders’ equity (1)
14.99

 
14.16

 
 
14.88

 
15.10

 
14.90

 
14.61

 
13.95

Efficiency ratio
57.48

 
59.33

 
 
57.48

 
57.48

 
57.65

 
57.27

 
58.65

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
At period end
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Book value per share of common stock
$
26.41

 
$
24.07

 
 
$
26.41

 
$
25.57

 
$
25.13

 
$
24.33

 
$
24.07

Tangible book value per share of common stock (1)
18.92

 
17.07

 
 
18.92

 
18.26

 
17.91

 
17.23

 
17.07

Market capitalization
270,935

 
282,259

 
 
270,935

 
263,992

 
238,251

 
290,424

 
282,259

Number of financial centers - U.S.
4,349

 
4,433

 
 
4,349

 
4,353

 
4,341

 
4,385

 
4,433

Number of branded ATMs - U.S.
16,561

 
16,050

 
 
16,561

 
16,378

 
16,255

 
16,089

 
16,050

Headcount
208,984

 
207,992

 
 
208,984

 
205,292

 
204,489

 
204,681

 
207,992

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(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 36 .)


Certain prior period amounts have been reclassified to conform to current period presentation.

Current period information is preliminary and based on company data available at the time of the presentation.
2



Bank of America Corporation and Subsidiaries
Consolidated Statement of Income
(In millions, except per share information)
 
 
Six Months Ended June 30
 
 
Second
Quarter
2019
 
First
Quarter
2019
 
Fourth
Quarter
2018
 
Third
Quarter
2018
 
Second
Quarter
2018
 
 
2019
 
2018
 
 
Net interest income
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest income
 
$
36,394

 
$
31,968

 
 
$
18,224

 
$
18,170

 
$
17,836

 
$
16,965

 
$
16,369

Interest expense
 
11,830

 
8,371

 
 
6,035

 
5,795

 
5,332

 
4,904

 
4,541

Net interest income
 
24,564

 
23,597

 
 
12,189


12,375


12,504


12,061


11,828

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Noninterest income
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Fees and commissions
 
16,028

 
16,657

 
 
8,190

 
7,838

 
8,345

 
8,076

 
8,317

Trading account income
 
4,683

 
4,704

 
 
2,345

 
2,338

 
1,448

 
1,717

 
2,151

Other income
 
813

 
661

 
 
360

 
453

 
380

 
870

 
253

Total noninterest income
 
21,524

 
22,022

 
 
10,895

 
10,629

 
10,173

 
10,663

 
10,721

Total revenue, net of interest expense
 
46,088

 
45,619

 
 
23,084

 
23,004

 
22,677

 
22,724

 
22,549

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Provision for credit losses
 
1,870

 
1,661

 
 
857

 
1,013

 
905

 
716

 
827

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Noninterest expense
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Compensation and benefits
 
16,221

 
16,424

 
 
7,972

 
8,249

 
7,735

 
7,721

 
7,944

Occupancy and equipment
 
3,245

 
3,198

 
 
1,640

 
1,605

 
1,593

 
1,589

 
1,591

Information processing and communications
 
2,321

 
2,286

 
 
1,157

 
1,164

 
1,156

 
1,113

 
1,121

Product delivery and transaction related
 
1,371

 
1,462

 
 
709

 
662

 
708

 
687

 
706

Marketing
 
970

 
740

 
 
528

 
442

 
513

 
421

 
395

Professional fees
 
769

 
780

 
 
409

 
360

 
480

 
439

 
399

Other general operating
 
1,595

 
2,176

 
 
853

 
742

 
889

 
1,044

 
1,068

Total noninterest expense
 
26,492

 
27,066

 
 
13,268

 
13,224

 
13,074

 
13,014

 
13,224

Income before income taxes
 
17,726

 
16,892

 
 
8,959

 
8,767

 
8,698

 
8,994

 
8,498

Income tax expense
 
3,067

 
3,190

 
 
1,611

 
1,456

 
1,420

 
1,827

 
1,714

Net income
 
$
14,659

 
$
13,702

 
 
$
7,348

 
$
7,311

 
$
7,278

 
$
7,167

 
$
6,784

Preferred stock dividends
 
681

 
746

 
 
239

 
442

 
239

 
466

 
318

Net income applicable to common shareholders
 
$
13,978

 
$
12,956

 
 
$
7,109

 
$
6,869

 
$
7,039

 
$
6,701

 
$
6,466

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Per common share information
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Earnings
 
$
1.45

 
$
1.26

 
 
$
0.75

 
$
0.71

 
$
0.71

 
$
0.67

 
$
0.64

Diluted earnings
 
1.45

 
1.25

 
 
0.74

 
0.70

 
0.70

 
0.66

 
0.63

Average common shares issued and outstanding
 
9,624.0

 
10,251.7

 
 
9,523.2

 
9,725.9

 
9,855.8

 
10,031.6

 
10,181.7

Average diluted common shares issued and outstanding
 
9,672.4

 
10,389.9

 
 
9,559.6

 
9,787.3

 
9,996.0

 
10,170.8

 
10,309.4

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Consolidated Statement of Comprehensive Income
(Dollars in millions)
 
 
 
 
 
 
 
 
 
 
 
 
 
Six Months Ended June 30
 
 
Second
Quarter
2019
 
First
Quarter
2019
 
Fourth
Quarter
2018
 
Third
Quarter
2018
 
Second
Quarter
2018
 
2019
 
2018
 
 
Net income
$
14,659

 
$
13,702

 
 
$
7,348

 
$
7,311

 
$
7,278

 
$
7,167

 
$
6,784

Other comprehensive income (loss), net-of-tax:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net change in debt securities
4,693

 
(4,994
)
 
 
2,384

 
2,309

 
2,213

 
(1,172
)
 
(1,031
)
Net change in debit valuation adjustments
(501
)
 
452

 
 
(138
)
 
(363
)
 
566

 
(269
)
 
179

Net change in derivatives
533

 
(367
)
 
 
304

 
229

 
293

 
21

 
(92
)
Employee benefit plan adjustments
57

 
60

 
 
29

 
28

 
(496
)
 
31

 
30

Net change in foreign currency translation adjustments
(48
)
 
(189
)
 
 
(14
)
 
(34
)
 
49

 
(114
)
 
(141
)
Other comprehensive income (loss)
4,734

 
(5,038
)
 
 
2,565

 
2,169

 
2,625

 
(1,503
)
 
(1,055
)
Comprehensive income
$
19,393


$
8,664



$
9,913


$
9,480


$
9,903


$
5,664


$
5,729

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 


Certain prior period amounts have been reclassified to conform to current period presentation.


Current period information is preliminary and based on company data available at the time of the presentation.
3



Bank of America Corporation and Subsidiaries
Net Interest Income and Noninterest Income
(Dollars in millions) 
 
Six Months Ended June 30
 
 
Second
Quarter
2019
 
First
Quarter
2019
 
Fourth
Quarter
2018
 
Third
Quarter
2018
 
Second
Quarter
2018
 
2019
 
2018
 
 
Net interest income
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest income
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loans and leases
$
21,827

 
$
19,694

 
 
$
10,942

 
$
10,885

 
$
10,716

 
$
10,401

 
$
10,071

Debt securities
6,136

 
5,660

 
 
3,017

 
3,119

 
3,078

 
2,986

 
2,856

Federal funds sold and securities borrowed or purchased under agreements to resell
2,504

 
1,331

 
 
1,309

 
1,195

 
1,046

 
799

 
709

Trading account assets
2,643

 
2,334

 
 
1,321

 
1,322

 
1,305

 
1,172

 
1,198

Other interest income
3,284

 
2,949

 
 
1,635

 
1,649

 
1,691

 
1,607

 
1,535

Total interest income
36,394


31,968

 
 
18,224


18,170


17,836


16,965


16,369

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest expense
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Deposits
3,760

 
1,703

 
 
1,965

 
1,795

 
1,562

 
1,230

 
943

Short-term borrowings
3,849

 
2,597

 
 
1,997

 
1,852

 
1,716

 
1,526

 
1,462

Trading account liabilities
664

 
705

 
 
319

 
345

 
318

 
335

 
348

Long-term debt
3,557

 
3,366

 
 
1,754

 
1,803

 
1,736

 
1,813

 
1,788

Total interest expense
11,830


8,371

 
 
6,035


5,795


5,332


4,904


4,541

Net interest income
$
24,564

 
$
23,597

 
 
$
12,189


$
12,375


$
12,504


$
12,061


$
11,828

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Noninterest income
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Fees and commissions
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Card income
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interchange fees (1)
$
1,864

 
$
1,925

 
 
$
968

 
$
896

 
$
1,016

 
$
925

 
$
1,011

Other card income
957

 
960

 
 
478

 
479

 
506

 
492

 
472

Total card income
2,821

 
2,885

 
 
1,446


1,375


1,522


1,417


1,483

Service charges
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Deposit-related fees
3,218

 
3,326

 
 
1,638

 
1,580

 
1,659

 
1,682

 
1,680

Lending-related fees
524

 
549

 
 
265

 
259

 
272

 
279

 
274

Total service charges
3,742

 
3,875

 
 
1,903


1,839


1,931


1,961


1,954

Investment and brokerage services
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Asset management fees
4,994

 
5,077

 
 
2,554

 
2,440

 
2,536

 
2,576

 
2,513

Brokerage fees
1,836

 
2,045

 
 
916

 
920

 
1,008

 
918

 
945

Total investment and brokerage services
6,830

 
7,122

 
 
3,470


3,360


3,544


3,494


3,458

Investment banking fees
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Underwriting income
1,458

 
1,460

 
 
792

 
666

 
562

 
701

 
719

Syndication fees
546

 
716

 
 
291

 
255

 
389

 
241

 
400

Financial advisory services
631

 
599

 
 
288

 
343

 
397

 
262

 
303

Total investment banking fees
2,635

 
2,775

 
 
1,371


1,264


1,348


1,204


1,422

Total fees and commissions
16,028

 
16,657

 
 
8,190


7,838


8,345


8,076


8,317

Trading account income
4,683

 
4,704

 
 
2,345

 
2,338

 
1,448

 
1,717

 
2,151

Other income
813

 
661

 
 
360

 
453

 
380

 
870

 
253

Total noninterest income
$
21,524

 
$
22,022

 
 
$
10,895


$
10,629


$
10,173


$
10,663


$
10,721

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(1)  
Gross interchange fees were $4.8 billion and $4.6 billion and are presented net of $3.0 billion and $2.7 billion of expenses for rewards and partner payments for the six months ended June 30, 2019 and 2018 , respectively. Gross interchange fees were $2.5 billion , $2.3 billion , $2.5 billion , $2.4 billion and $2.4 billion and are presented net of $1.6 billion , $1.4 billion , $1.5 billion , $1.5 billion and $1.4 billion of expenses for rewards and partner payments for the second and first quarters of 2019 and the fourth, third and second 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)
 
 
 
 
 
 
June 30
2019
 
March 31
2019
 
June 30
2018
Assets
 
 
 
 
 
Cash and due from banks
$
29,409

 
$
28,083

 
$
29,365

Interest-bearing deposits with the Federal Reserve, non-U.S. central banks and other banks
141,985

 
143,540

 
141,834

Cash and cash equivalents
171,394


171,623


171,199

Time deposits placed and other short-term investments
8,692

 
9,480

 
8,212

Federal funds sold and securities borrowed or purchased under agreements to resell
248,077

 
267,017

 
226,486

Trading account assets
251,987

 
239,062

 
203,420

Derivative assets
44,912

 
42,391

 
45,210

Debt securities:
 
 
 
 
 
Carried at fair value
246,094

 
241,956

 
275,256

Held-to-maturity, at cost
199,981

 
198,718

 
163,013

Total debt securities
446,075


440,674


438,269

Loans and leases
963,800

 
945,615

 
935,824

Allowance for loan and lease losses
(9,527
)
 
(9,577
)
 
(10,050
)
Loans and leases, net of allowance
954,273


936,038


925,774

Premises and equipment, net
10,426

 
10,251

 
9,537

Goodwill
68,951

 
68,951

 
68,951

Loans held-for-sale
5,416

 
6,297

 
6,511

Customer and other receivables
53,329

 
53,496

 
57,813

Other assets
132,360

 
131,884

 
130,288

Total assets
$
2,395,892


$
2,377,164


$
2,291,670

 
 
 
 
 
 
 
Liabilities
 
 
 
 
 
Deposits in U.S. offices:
 
 
 
 
 
Noninterest-bearing
$
393,567

 
$
395,350

 
$
420,995

Interest-bearing
900,434

 
907,076

 
811,193

Deposits in non-U.S. offices:
 
 
 
 
 
Noninterest-bearing
12,864

 
12,066

 
14,247

Interest-bearing
68,228

 
64,845

 
63,256

Total deposits
1,375,093

 
1,379,337

 
1,309,691

Federal funds purchased and securities loaned or sold under agreements to repurchase
194,948

 
188,451

 
177,903

Trading account liabilities
82,150

 
84,410

 
87,028

Derivative liabilities
38,380

 
36,338

 
33,605

Short-term borrowings
27,244

 
14,008

 
40,622

Accrued expenses and other liabilities
168,658

 
173,681

 
151,949

Long-term debt
238,011

 
233,929

 
226,656

Total liabilities
2,124,484

 
2,110,154

 
2,027,454

Shareholders’ equity
 
 
 
 
 
Preferred stock, $0.01 par value; authorized – 100,000,000  shares; issued and outstanding –  3,939,040, 3,843,140   and 3,872,702 shares
24,689

 
22,326

 
23,181

Common stock and additional paid-in capital, $0.01 par value; authorized – 12,800,000,000 shares; issued and outstanding –  9,342,601,750 , 9,568,389,268 and 10,012,719,225 shares
106,619

 
112,838

 
128,822

Retained earnings
147,577

 
141,888

 
125,546

Accumulated other comprehensive income (loss)
(7,477
)
 
(10,042
)
 
(13,333
)
Total shareholders’ equity
271,408

 
267,010

 
264,216

Total liabilities and shareholders’ equity
$
2,395,892

 
$
2,377,164

 
$
2,291,670

 
 
 
 
 
 
 
 
Assets of consolidated variable interest entities included in total assets above (isolated to settle the liabilities of the variable interest entities)
 
Trading account assets
$
5,469

 
$
5,453

 
$
5,692

 
Loans and leases
40,676

 
41,528

 
45,483

 
Allowance for loan and lease losses
(882
)
 
(884
)
 
(959
)
 
Loans and leases, net of allowance
39,794


40,644


44,524

 
All other assets
342

 
332

 
399

 
Total assets of consolidated variable interest entities
$
45,605


$
46,429


$
50,615

 
 
 
 
 
 
 
 
Liabilities of consolidated variable interest entities included in total liabilities above
 
Short-term borrowings
$
1,845

 
$
1,547

 
$
396

 
Long-term debt
7,133

 
8,182

 
9,865

 
All other liabilities
27

 
25

 
39

 
Total liabilities of consolidated variable interest entities
$
9,005

 
$
9,754

 
$
10,300



Certain prior period amounts have been reclassified to conform to current period presentation.




Current period information is preliminary and based on company data available at the time of the presentation.
5



Bank of America Corporation and Subsidiaries
Capital Management
(Dollars in millions)
 
June 30
2019
 
March 31
2019
 
June 30
2018
Risk-based capital metrics (1) :
 
 
 
 
 
Standardized Approach
 
 
 
 
 
Common equity tier 1 capital
$
171,498

 
$
169,243

 
$
164,872

Tier 1 capital
195,539

 
190,963

 
187,506

Total capital
229,000

 
223,745

 
220,230

Risk-weighted assets
1,466,458

 
1,454,657

 
1,443,654

Common equity tier 1 capital ratio
11.7
%
 
11.6
%
 
11.4
%
Tier 1 capital ratio
13.3

 
13.1

 
13.0

Total capital ratio
15.6

 
15.4

 
15.3

 
 
 
 
 
 
Advanced Approaches
 
 
 
 
 
Common equity tier 1 capital
$
171,498

 
$
169,243

 
$
164,872

Tier 1 capital
195,539

 
190,963

 
187,506

Total capital
220,936

 
215,634

 
211,973

Risk-weighted assets
1,431,201

 
1,422,631

 
1,436,949

Common equity tier 1 capital ratio
12.0
%
 
11.9