Bank Of America Corporation · NYSE:BAC

Bank Of America — Bank of America Corp /De/ (Bac, Bac-Pb, Bac-Pe, Bac-Pk, Bac-Pl, Bac-Pm, Bac-Pn, Bac-Po, Bac-Pp, Bml-Pg, Bml-Ph, Bml-Pj, Bml-Pl) — Q4 2019 Earnings Presentation

31 slides from Bank Of America's earnings presentation, Jan 15, 2020

  1. Slide 1: Bank of America 4Q19 Financial Results

    Bank of America 4Q19 Financial Results January 15, 2020

  2. Slide 2: Full Year 2019 Financial Results

    Full Year 2019 Financial Results FY19 vs. FY19 ex-3Q19 JV FY19 FY18 Summary Income Statement FY18 vs. FY18 1 ($B, except per share data) Ex- 3Q19 JV Reported Reported % Inc / (Dec) % Inc / (Dec) impairment 1 Total revenue, net of interest expense $91.2 $91.2 $91.0 0 % 0 % Noninterest expense 54.9 52

  3. Slide 3: Capital Deployment Highlights in 2019

    Capital Deployment Highlights in 2019 Community Environment Infrastructure $5B in $125B & Innovation Associates Lending Capital community 10-year $1.7B capital development Committed to environmental $39B investments in lending for business Return $20 per hour of additional office space and affordabl

  4. Slide 4: Full Year Business Segment Results

    Full Year Business Segment Results 1 Net Income (Loss) ($B) 2 Consumer Banking GWIM Global Banking Global Markets All Other $13.0 $12.1 $8.0 $8.3 $8.1 $7.0 $6.9 $5.6 $4.3 $4.0 $3.7 $4.0 $3.5 $2.6 $3.0 $3.1 $0.1 $0.3 ($0.3) ($1.1) 2016 2017 2018 2019 FY 2019 Consumer Banking GWIM Global Banking Globa

  5. Slide 5: Increased Capital Returned to Shareholders

    Increased Capital Returned to Shareholders Average Diluted Shares Outstanding (B) Common Dividends and Share Repurchases ($B) $34.3 11.4 11.3 11.2 11.0 10.6 $25.5 10.0 $28.1 $16.8 9.1 $20.1 $12.8 $7.7 $4.5 $3.6 $2.9 $5.1 $2.4 $5.4 $6.1 $3.2 $1.7 $4.0 $2.6 $0.4 $1.3 $2.1 4Q13 4Q14 4Q15 4Q16 4Q17 4Q18

  6. Slide 6: 4Q19 Financial Results

    4Q19 Financial Results Summary Income Statement 4Q19 4Q18 % Inc / (Dec) ($B, except per share data) Total revenue, net of interest expense $22.3 $22.7 (1) % Noninterest expense 13.2 13.1 1 Provision for credit losses 0.9 0.9 4 Pretax income 8.2 8.7 (6) Income tax expense 1.2 1.4 (17) Net income $7.0

  7. Slide 7: Continued Progress in Driving Financial Performance

    Continued Progress in Driving Financial Performance 1 Diluted Earnings per Share Net Income ($B) $0.8 $0.74 $8 $0.70 YoY $7.3 $7.0 YoY +6% (4%) $6 $5.3 $0.47 $4.5 $0.39 $0.4 $4 $3.3 $0.27 $2 $0.0 $0 4Q15 4Q16 4Q17 4Q18 4Q19 4Q15 4Q16 4Q17 4Q18 4Q19 Average Diluted Shares Outstanding (B) Expenses ($B

  8. Slide 8: Balance Sheet, Liquidity and Capital

    Balance Sheet, Liquidity and Capital (EOP basis unless noted) 4 Balance Sheet ($B) 4Q19 3Q19 4Q18 Basel 3 Capital ($B) 4Q19 3Q19 4Q18 Total assets $2,434.1 $2,426.3 $2,354.5 Common equity tier 1 capital (CET1) $166.8 $169.2 $167.3 Total loans and leases 983.4 972.9 946.9 Standardized approach Total

  9. Slide 9: Average Deposits

    Average Deposits Bank of America Ranked #1 in U.S. Deposit Market Share 1 Total Corporation ($B) Consumer Banking ($B) YoY YoY $1,410 $1,500 $1,294 $1,345 +5% $800 $720 +5% $1,251 $666 $687 $618 409 422 (3%) $600 209 450 442 183 194 $1,000 169 +8% 178 $400 140 154 165 $500 923 1,002 +9% 801 852 $200

  10. Slide 10: Average Loans and Leases

    Average Loans and Leases Total Loans and Leases ($B) Total Loans and Leases in All Other ($B) YoY $974 +4% $1,000 $908 $928 $935 $150 $750 $100 $100 9 $71 $500 18 14 $53 $38 $50 10 $250 73 58 5 43 33 $0 $0 4Q16 4Q17 4Q18 4Q19 4Q16 4Q17 4Q18 4Q19 Residential mortgage Home equity Other Loans and Lease

  11. Slide 11: Net Interest Income

    Net Interest Income 1 Net Interest Income (FTE, $B) • Net interest income of $12.1B ($12.3B FTE 1) $15 – Decreased $0.4B, or 3%, from 4Q18, driven primarily by $12.7 $12.5 $12.3 $12.3 $12.3 lower interest rates, partially offset by loan and deposit growth $10 – Declined modestly from 3Q19, as lower

  12. Slide 12: Expense and Efficiency

    Expense and Efficiency Total Noninterest Expense ($B) $15.2 $15 $13.3 $13.8 $13.3 $13.2 $13.2 $13.0 $13.1 $13.2 2.1 $13.2 5.4 $10 5.5 5.6 5.3 5.3 5.3 5.0 5.3 5.3 5.3 $5 7.8 7.6 8.5 7.9 7.7 7.7 8.2 8.0 7.8 8.0 $0 1 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 Compensation and benefits Other JV i

  13. Slide 13: Asset Quality

    Asset Quality 1 Net Charge-offs ($MM) • Total net charge-offs of $959MM $1,200 1.0% – Net charge-offs were modestly down from 3Q19, excluding $991 $959 $924 $887 3Q19 recoveries from the sale of previously charged-off non- $811 core consumer real estate loans of $198MM $800 0.5% • Net charge-off (NC

  14. Slide 14: Asset Quality – Consumer and Commercial Portfolios

    Asset Quality – Consumer and Commercial Portfolios Consumer Net Charge-offs ($MM) Consumer Metrics ($MM) 4Q19 3Q19 4Q18 $1,000 $835 $838 1.5% Provision $798 $564 $734 $804 $691 $800 $622 Nonperforming loans and leases 2,053 2,189 3,842 1 $600 1.0% % of loans and leases 0.44 % 0.48 % 0.86 % Consumer

  15. Slide 15: Consumer Banking

    Consumer Banking Inc / (Dec) Net income of $3.1B decreased from 4Q18, as solid client activity Summary Income Statement ($MM) 4Q19 3Q19 4Q18 • partially offset the impact of lower interest rates in the second half Total revenue, net of interest expense $9,514 ($210) ($448) of 2019 Provision for cred

  16. Slide 16: Consumer Banking Trends

    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 $4.4 $4.4 $4.4 $4.5 60% $10.0 $9.6 $9.7 $9.7 $9.5 • #1 Online Banking and Mobile Banking $4 Functionality C $9 2.9 2.5 2.6

  17. Slide 17: Consumer Banking Digital Usage Trends

    Consumer Banking Digital Usage Trends 1 Active Digital Banking Users (MM) Total Payments ($B) Person-to-Person Payments (Zelle) 4 YoY YoY 10.3MM Erica users +7% 9.7MM users $900 $776 38.3 +6% $725 100 95.0 $60 40 34.9 36.3 $673 32.9 $618 +1% $600 333 75 30 29.2 +10% 331 26.4 324 $40 24.2 315 51.6 20

  18. Slide 18: Global Wealth & Investment Management

    Global Wealth & Investment Management Inc / (Dec) Net income of $1.0B decreased 4% from 4Q18; ROAAC of 28% Summary Income Statement ($MM) 4Q19 3Q19 4Q18 • Total revenue, net of interest expense $4,913 $9 ($126) – Pretax margin of 28% Provision for credit losses 19 (18) (4) • Revenue of $4.9B decreas

  19. Slide 19: Global Wealth & Investment Management Trends

    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 H $247 $262 $254 $254 $256 $200 $174 $164 $164 $166 $170 • #1 in personal trust assets unde

  20. Slide 20: Global Banking

    Global Banking Inc/(Dec) • Net income of $2.0B decreased 8% from 4Q18; ROAAC of 20% Summary Income Statement ($MM) 4Q19 3Q19 4Q18 • Revenue of $5.1B decreased 1% from 4Q18, as higher leasing- Total revenue, net of interest expense 1 $5,141 ($71) ($29) related revenue and investment banking fees were

  21. Slide 21: Global Banking Trends

    Global Banking Trends Business Leadership 1 Average Deposits ($B) Average Loans and Leases ($B) • North America’s Best Bank for Small to G $379 $373 $377 $377 Medium-sized Enterprises $400 $360 $349 $363 $360 $400 $357 $370 15 15 • North America’s Best Bank for Financing G 16 15 15 • 2019 Quality, S

  22. Slide 22: Global Banking Digital Update

    Global Banking Digital Update 1 CashPro® Online Users CashPro® Mobile CashPro® Mobile across commercial, corporate and business App Logins Payment Approvals Value banking clients +110% $160B ~500K Rolling 12 mos. YoY up 82% Rolling 12 mos. YoY CashPro® Mobile CashPro® Assistant eSignature Checks Dep

  23. Slide 23: Global Markets

    Global Markets Inc/(Dec) Net income of $574MM increased 13% from 4Q18; ROAAC of 7% Summary Income Statement ($MM) 4Q19 3Q19 4Q18 • • [ Bullets to come ] 2 Total revenue, net of interest expense 1 $3,426 ($437) $179 – Excluding net DVA, net income of $639MM increased 36% Net DVA (86) (71) (138) • Rev

  24. Slide 24: Global Markets Trends and Revenue Mix

    Global Markets Trends and Revenue Mix Business Leadership 1 2019 Global Markets Revenue Mix 2019 Total FICC S&T Revenue Mix • Derivatives House of the Year K, P (excl. net DVA) 2 (excl. net DVA) 2 • Most Innovative Bank for Equity Derivatives J • #1 for U.S. FICC Overall Trading Quality and #1 for U

  25. Slide 25: All Other

    All Other 1 Inc/(Dec) • Net income of $262MM in 4Q19 Summary Income Statement ($MM) 4Q19 3Q19 4Q18 • Comparison to the prior quarter impacted by the 3Q19 Total revenue, net of interest expense ($500) $248 $86 impairment charge related to the notice of termination of the Provision (benefit) for credi

  26. Slide 26: Appendix

    Appendix

  27. Slide 27: Notes

    Notes A Our financial results, after giving effect to the impact of the non-cash impairment charge related to the notice of termination of the merchant services joint venture at the conclusion of its current term, include non-GAAP financial measures. This impairment charge was recorded in 3Q19 and r

  28. Slide 28: Sources

    Sources A Estimated retail consumer deposits based on June 30, 2019 FDIC deposit data. B FDIC, 3Q19. C Dynatrace 4Q19 Online Banker Scorecard and 3Q19 Mobile Banker Scorecard; Javelin 2019 Online and Mobile Banking Scorecards. D Inside Mortgage Finance, 3Q19. E Experian Autocount; Franchised Dealers

  29. Slide 29: Forward-Looking Statements

    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 n

  30. Slide 30: Important Presentation Information

    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 t

  31. Slide 31: Bank of America

    BANK OF AMERICA

Bank of America Corp /De/ (Bac, Bac-Pb, Bac-Pe, Bac-Pk, Bac-Pl, Bac-Pm, Bac-Pn, Bac-Po, Bac-Pp, Bml-Pg, Bml-Ph, Bml-Pj, Bml-Pl) — Q4 2019 Earnings Presentation on 6ix