Bank Of America Corporation · NYSE:BAC
Bank Of America — Q1 2022 Earnings Presentation
34 slides from Bank Of America's earnings presentation, Apr 18, 2022
Slide 1: Bank of America 1Q22 Financial Results
Bank of America 1Q22 Financial Results April 18, 2022
Slide 2: 1Q22 Highlights
1Q22 Highlights (Comparison to 1Q21, unless otherwise noted) • Net income of $7.1B; diluted earnings per share of $0.80; ROE 11.0%, ROTCE1 15.5% • Revenue, net of interest expense, of $23.2B increased $0.4B, or 2% – Net interest income (NII) of $11.6B ($11.7B FTE1) increased $1.4B, or 13%, driven by
Slide 3: Consumer Spend Remained Strong; 1Q22 at $980B, up 14% YoY
Consumer Spend Remained Strong; 1Q22 at $980B, up 14% YoY Payment Spend1 ($ volume) and YoY % Growth 1Q22 Credit and Debit Spend2,3 ($ volume) Growth vs. 1Q19 vs . 1Q21 $980B $859B 75% $778B 14% 57% $713B 48% 10% 50% 42% 9% 37% 31% 25% 3% 25% 17% 15% 14% 5% 0% 1Q19 1Q20 1Q21 1Q22 Travel & Gas Food R
Slide 4: Daily Loan and Lease Balance Trends ($B)
Daily Loan and Lease Balance Trends ($B) Total Loans and Leases ex. PPP1 Loans and Leases in Business Segments ex. PPP1 $1,100 $600 Commercial Consumer $1,050 $550 $1,000 $500 $950 $450 $900 $400 $850 $350 12/31/19 03/31/22 12/31/19 03/31/22 Credit Card2 Residential Mortgage2 $100 $225 $220 $90 $215
Slide 5: Consumer Resiliency
Consumer Resiliency Change in BofA Credit Card Customer1 Balances BofA Credit Card 5-29 and 30+ Days Past Due Rates Since 1Q20 39% 39% 30+ days 5-29 days 2.50% Deferral related spike 2.00% vs. 4Q19 (8%) 1.50% (50 bps) (12%) (83 bps) Avg. Credit Avg. Deposit Avg. Credit Avg. Deposit Card Balance Bala
Slide 6: Common Equity Tier 1 Ratio Drivers
Common Equity Tier 1 Ratio1 Drivers Total payout ratio:2 66% +41 bps (16) bps (11) bps 10.6% (21) bps (14) bps (4) bps 10.4% 4Q21 Net income Share Common OCI on AFS Risk-weighted Other 5 1Q22 applicable to repurchases 3 dividends debt securities 4 assets common shareholders Note: Amounts may not tot
Slide 7: 1Q22 Financial Results
1Q22 Financial Results Summary Income Statement 1Q22 4Q21 Inc / (Dec) 1Q21 Inc / (Dec) ($B, except per share data) Total Revenue, net of interest expense $23.2 $22.1 $1.2 5 % $22.8 $0.4 2 % Provision (benefit) for credit losses — (0.5) 0.5 (106) (1.9) 1.9 (102) Net charge-offs 0.4 0.4 — 8 0.8 (0.4)
Slide 8: Balance Sheet, Liquidity and Capital
Balance Sheet, Liquidity and Capital (EOP basis unless noted) Balance Sheet Metrics 1Q22 4Q21 1Q21 Basel 3 Capital ($B)4 1Q22 4Q21 1Q21 Assets ($B) Common equity tier 1 capital (CET1) $170 $172 $178 Total assets $3,238 $3,169 $2,970 Standardized approach Total loans and leases 993 979 903 Risk-weigh
Slide 9: Average Loan and Lease Trends
Average Loan and Lease Trends1 Total Loans and Leases ($B) Total Loans and Leases in All Other ($B) $1,250 $30 YoY $1,000 $945 $978 +8% $21 $908 $908 $921 $19 $20 $18 $16 4 $15 YoY $750 4 4 (26%) 3 3 $500 $10 17 15 $250 14 13 12 $0 $0 1Q21 2Q21 3Q21 4Q21 1Q22 1Q21 2Q21 3Q21 4Q21 1Q22 Ex. $885 $888 $
Slide 10: Average Deposit Trends
Average Deposit Trends Bank of America Ranked #1 in U.S. Retail Deposit Market Share1 Total Corporation ($B) Consumer Banking ($B) $2,500 $1,250 YoY YoY $2,046 $1,027 $1,056 +14% $1,943 $2,017 +13% $979 $1,001 $2,000 $1,806 $1,889 $1,000 $924 344 352 806 799 +18% 323 333 $1,500 729 764 $750 295 675
Slide 11: Net Interest Income Increased $1.4B, or 13% YoY
Net Interest Income Increased $1.4B, or 13% YoY Net Interest Income (FTE, $B)1 • Net interest income of $11.6B ($11.7B FTE1) $15.0 – Increased $162MM from 4Q21, driven by lower premium amortization expense and $11.2 $11.5 $11.7 higher loan balances, partially offset by two $10.3 $10.3 fewer accrual
Slide 12: Expense and Efficiency
Expense and Efficiency Total Noninterest Expense ($B) $20.0 $15.5 $15.0 $14.4 $14.7 $15.3 5.8 6.4 5.7 5.8 5.7 $10.0 9.7 8.7 8.7 9.0 9.5 $0.0 1Q21 2Q21 3Q21 4Q21 1Q22 Compensation and benefits Other Efficiency Ratio 80% 70% 68% 67% 70% 66% 63% 60% 50% 1Q21 2Q21 3Q21 4Q21 1Q22 • Noninterest expense of
Slide 13: Asset Quality
Asset Quality Net Charge-offs ($MM)1 • Total net charge-offs of $392MM1 increased $30MM from 4Q21 $1,000 0.50% – Consumer net charge-offs of $340MM increased $823 $28MM, driven by Credit Card 0.40% $750 – Commercial net charge-offs of $52MM 0.37% $595 remained low 0.30% $500 $463 • Net charge-off ra
Slide 14: Asset Quality – Consumer and Commercial Portfolios
Asset Quality – Consumer and Commercial Portfolios Consumer Net Charge-offs ($MM) Consumer Metrics ($MM) 1Q22 4Q21 1Q21 Provision $14 $149 ($756) $800 1.00% $693 Nonperforming loans and leases 3,104 2,989 3,091 $600 0.75% % of loans and leases1 0.71 % 0.69 % 0.75 % $513 Consumer 30+ days performing
Slide 15: Consumer Banking
Consumer Banking Inc / (Dec) • Net income of $3.0B increased 11% from 1Q21, as a Summary Income Statement ($MM) 1Q22 4Q21 1Q21 result of improved revenue and lower expenses, Total revenue, net of interest expense $8,813 ($99) $744 partially offset by a decrease in provision benefit Provision (benefi
Slide 16: Global Wealth & Investment Management
Global Wealth & Investment Management Inc / (Dec) • Net income of $1.1B increased 28% from 1Q21 Summary Income Statement ($MM) 1Q22 4Q21 1Q21 • Record revenue of $5.5B increased 10% compared to Total revenue, net of interest expense $5,476 $74 $505 1Q21, driven by higher asset management fees and Pr
Slide 17: Global Banking
Global Banking Inc / (Dec) • Net income of $1.7B decreased $0.4B from 1Q21, Summary Income Statement ($MM) 1Q22 4Q21 1Q21 driven by the absence of a reserve release that Total revenue, net of interest expense1 $5,194 ($713) $561 benefited the prior period, partially offset by higher Provision (benef
Slide 18: Global Markets
Global Markets1 Inc / (Dec) • Net income of $1.6B decreased $459MM from 1Q21 Summary Income Statement ($MM) 1Q22 4Q21 1Q21 – Excluding net DVA, net income of $1.5B Total revenue, net of interest expense2 $5,292 $1,474 ($906) decreased 25%3 Net DVA 69 67 71 • Revenue of $5.3B decreased 15% from 1Q21;
Slide 19: All Other
All Other1 Inc/(Dec) • Net loss of $0.4B compared to net income of $0.3B Summary Income Statement ($MM) 1Q22 4Q21 1Q21 in 1Q21 Total revenue, net of interest expense ($1,441) $433 ($502) • Revenue declined $0.5B from 1Q21, reflecting higher Provision (benefit) for credit losses (47) (13) — partnersh
Slide 20: Supplemental Business Segment Trends
Supplemental Business Segment Trends
Slide 21: Consumer Banking Trends
Consumer Banking Trends Business Leadership1 Total Revenue ($B) Total Expense ($B) and Efficiency (A) • No. 1 in estimated U.S. Retail Deposits $10.0 $6.0 80% • No. 1 Online Banking and Mobile Banking $8.8 $8.9 $8.8 Functionality(B) $8.2 $5.1 $4.9 $8.1 $4.9 • No. 1 in customer satisfaction for U.S.
Slide 22: Consumer Creditworthiness Remains Strong
Consumer Creditworthiness Remains Strong Consumer Credit Card Consumer Vehicle Lending New Accounts (000s)1 New Originations ($B) 1,500 $10.0 1,049 977 $7.1 $6.8 $6.8 $7.1 931 940 1,000 $5.2 674 $5.0 500 0 $0.0 1Q21 2Q21 3Q21 4Q21 1Q22 1Q21 2Q21 3Q21 4Q21 1Q22 Key Stats 1Q21 4Q21 1Q22 Key Stats 1Q21
Slide 23: 54MM Verified and 42MM Active Digital Users in 1Q22
54MM Verified and 42MM Active Digital Users1 in 1Q22 Digital Adoption Client Engagement Digital Users1 and Households2 Digital Channel Usage3,4 Digital Sales 1,721 60 100% 3,000 1,000 1,750 100% 52 54 2,748 50 2,579 1,500 1,360 47 90% 80% 50 2,500 1,250 42 2,166 750 1,081 40 80% 786 813 921 60% 39 1
Slide 24: Global Wealth & Investment Management Trends
Global Wealth & Investment Management Trends Business Leadership1 Average Deposits ($B) Average Loans and Leases ($B)2 • No. 1 on Forbes’ Top 100 Women Advisors (2022), Top Women Advisors Best-in State (2022), Best-in- $400 $385 $250 State Wealth Advisors (2022) and Top Next $361 $211 $333 $339 $205
Slide 25: Global Wealth & Investment Management Digital Update
Global Wealth & Investment Management Digital Update1 Advisor-led Client Interactions, Powered by Digital Digital Adoption GWIM2 81%, up from 79% Online Mobile Record 81% of Merrill3 households digitally active across the enterprise, up from 80% in 1Q21 Record 85% of Private Bank4 relationships digi
Slide 26: Global Banking Trends
Global Banking Trends Business Leadership1 Average Deposits ($B) Average Loans and Leases ($B)2 • Outstanding Financial Innovator – 2021 Global(K) • North America’s Best Bank for Small to Medium-sized $600 $562 $400 Enterprises(M) $534 $540 $359 $507 (N) $500 $487 $330 $325 $325 $339 13 • Best Globa
Slide 27: Global Banking Digital Update
Global Banking Digital Update Creating an innovative digital experience for our clients Digital Adoption 74% Digitally active clients Online Mobile Connect API across commercial, corporate, and business banking clients (CashPro® & BA360 platforms) 133 bps YoY1 Client Engagement 1.7MM ~63MM $454B Sig
Slide 28: Global Markets Trends and Revenue Mix
Global Markets Trends and Revenue Mix Business Leadership1 1Q22 Global Markets Revenue Mix 1Q22 Total FICC Sales and Trading • Global Derivatives House of the Year (R) (excl. net DVA)2 Revenue Mix (excl. net DVA)2 • Clearing House of the Year(R) • Interest Rate Derivatives House of the Year(S) • Ove
Slide 29: Additional Presentation Information
Additional Presentation Information
Slide 30: Notes
Notes A Reserve Build (or Release) is calculated by subtracting net charge-offs for the period from the provision for credit losses recognized in that period. The period-end allowance, or reserve, for credit losses reflects the beginning of the period allowance adjusted for net charge-offs recorded
Slide 31: Business Leadership Sources
Business Leadership Sources (A) Estimated U.S. retail deposits based on June 30, 2021 FDIC deposit data. (B) Javelin 2021 Online and Mobile Banking Scorecards. (C) Tied in the national segment of the J.D. Power 2021 U.S. Online Banking Satisfaction Study. (D) J.D. Power’s 2021 U.S. Banking Mobile Ap
Slide 32: 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
Slide 33: 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
Slide 34: Bank of America
BANK OF AMERICA