Bank Of America Corporation · NYSE:BAC
Bank Of America — Q2 2024 Earnings Presentation
37 slides from Bank Of America's earnings presentation, Jul 16, 2024
Slide 1: Bank of America 2Q24 Financial Results
Bank of America 2Q24 Financial Results July 16, 2024
Slide 2: 2Q24 Financial Results
2Q24 Financial Results 1Q24 2Q24 1Q24 Inc / (Dec) Adj.1 Inc / (Dec) 2Q23 Inc / (Dec) ($B, except per share data) Total revenue, net of interest expense $25.4 $25.8 ($0.4) (2) % $25.8 ($0.4) (2) % $25.2 $0.2 1 % Provision for credit losses 1.5 1.3 0.2 14 1.3 0.2 14 1.1 0.4 34 Net charge-offs 1.5 1.5
Slide 3: Continued Organic Growth in 2Q24
Continued Organic Growth in 2Q24 Consumer Banking Global Wealth & Investment Management Added ~278,000 net new checking accounts; Added ~6,100 net new relationships across Merrill 22 consecutive quarters of growth and Private Bank Added ~1MM credit card accounts1 Opened ~30,000 new bank accounts; ov
Slide 4: Average Deposits and Rate Paid Trends
Average Deposits and Rate Paid Trends Total Corporation ($B) Consumer Banking ($B) $2,250 1.00% $1,250 0.50% $2,012 $1,963 $1,926 $1,894 $1,875 $1,876 $1,905 $1,907 $1,910 $1,078 $1,069 $1,047 $1,026 $1,006 $980 $1,000 $959 $952 $949 $1,500 $750 0.50% 0.25% $500 $750 $250 $0 0.00% $0 0.00% 2Q22 3Q22
Slide 5: Credit Card Update
Credit Card Update 30+ Days Past Due ($MM)1 90+ Days Past Due ($MM)1 Delinquency rate Delinquency rate $3,000 $1,500 2.43% 1.26% 2.09% 1.07% $2,000 $1,000 $1,000 $500 $0 $0 4Q19 2Q24 4Q19 2Q24 Payment Rates Remain Elevated while Utilization Growth in Deposit and Investment Balances of Rates are Lowe
Slide 6: 2Q24 Highlights
2Q24 Highlights (Comparisons to 2Q23, unless otherwise noted) • Net income of $6.9B; diluted earnings per share of $0.83; ROE1 10.0%, ROTCE1,2 13.6% • Revenue, net of interest expense, of $25.4B increased $0.2B, or 1%, reflecting higher asset management and investment banking fees, as well as sales
Slide 7: Balance Sheet, Liquidity, and Capital
Balance Sheet, Liquidity, and Capital (EOP1 basis unless noted) Balance Sheet Metrics 2Q24 1Q24 2Q23 Basel 3 Capital ($B)4 2Q24 1Q24 2Q23 Assets ($B) Common equity tier 1 capital $198 $197 $190 Total assets $3,258 $3,274 $3,123 Standardized approach Total loans and leases 1,057 1,049 1,051 Risk-weig
Slide 8: Average Loan and Lease Trends
Average Loan and Lease Trends Total Loans and Leases ($B) Total Loans and Leases by Portfolio ($B) $1,100 $750 $1,051 $1,051 YoY $1,047 $1,046 $1,048 +0.5% $593 $589 $592 $591 $596 $1,000 $500 $454 $457 $459 $456 $456 $900 $250 $800 $0 2Q23 3Q23 4Q23 1Q24 2Q24 2Q23 3Q23 4Q23 1Q24 2Q24 Consumer Comme
Slide 9: Net Interest Income
Net Interest Income Net Interest Income (FTE, $B)1 • Net interest income of $13.7B ($13.9B FTE)1 $14.3 $14.5 $14.1 $14.2 – Decreased $0.5B YoY, as higher deposit costs more $15.0 $13.9 than offset higher asset yields, higher NII related to Global Markets (GM) activity, and modest loan growth $10.0 –
Slide 10: Net Interest Income Outlook
Net Interest Income Outlook1,2 ~($50MM)- ~($225MM) $200MM ~$14.5B ~$125MM ~$200MM ~$100MM ~$300MM $13.9B • 25 bp interest • Low-single rate cuts in digit loan • Held-to- September, and deposit maturity November, growth (HTM) and December securities 2024 • Slowing deposit • Mortgage rotation loans •
Slide 11: Expense and Efficiency
Expense and Efficiency Total Noninterest Expense ($B) $20.0 $17.7 $17.2 $16.0 $15.8 $16.3 2.1 0.7 0.7 6.6 6.3 6.1 6.3 6.5 $10.0 $15.61 $16.51 9.4 9.6 9.5 10.2 9.8 $0.0 2Q23 3Q23 4Q23 1Q24 2Q24 Compensation and benefits Other FDIC special assessment Efficiency Ratio 70% 66% 64% 64% 64% 65% 63% 60% 55
Slide 12: Asset Quality
Asset Quality Net Charge-offs ($MM)1 • Total net charge-offs of $1.5B increased $35MM from 1Q241 $1,600 $1,498 $1,533 1.00% – Consumer net charge-offs of $1.1B $1,192 increased $31MM, driven by higher credit $1,200 0.75% card losses $931 $869 – Credit card loss rate of 3.88% in 2Q24 $800 0.58% 0.59%
Slide 13: Asset Quality – Consumer and Commercial Portfolios
Asset Quality – Consumer and Commercial Portfolios Consumer Net Charge-offs ($MM) Consumer Metrics ($MM) 2Q24 1Q24 2Q23 Provision $1,094 $959 $1,100 $1,200 1.50% $1,028 $1,059 Nonperforming loans and leases 2,671 2,697 2,729 $913 $804 % of loans and leases1 0.58 % 0.59 % 0.60 % $800 $720 1.00% Consu
Slide 14: Consumer Banking
Consumer Banking Inc / (Dec) • Net income of $2.6B Summary Income Statement ($MM) 2Q24 1Q24 2Q23 • Revenue of $10.2B decreased 3% from 2Q23, driven Total revenue, net of interest expense $10,206 $40 ($318) primarily by the impact of lower deposit balances Provision for credit losses 1,281 131 14 • P
Slide 15: Global Wealth & Investment Management
Global Wealth & Investment Management Inc / (Dec) • Net income of $1.0B Summary Income Statement ($MM) 2Q24 1Q24 2Q23 • Revenue of $5.6B increased 6% from 2Q23, driven by Total revenue, net of interest expense $5,574 ($17) $332 14% higher asset management fees, due to higher Provision (benefit) for
Slide 16: Global Banking
Global Banking Inc / (Dec) • Net income of $2.1B Summary Income Statement ($MM) 2Q24 1Q24 2Q23 • Revenue of $6.1B decreased 6% from 2Q23, driven Total revenue, net of interest expense1 $6,053 $73 ($409) primarily by lower net interest income and leasing Provision for credit losses 235 6 226 revenue,
Slide 17: Global Markets
Global Markets1 Inc / (Dec) • Net income of $1.4B, both including and excluding Summary Income Statement ($MM) 2Q24 1Q24 2Q23 net DVA3 Total revenue, net of interest expense2 $5,459 ($424) $588 • Revenue of $5.5B increased 12% from 2Q23, driven Net DVA (1) 84 101 by higher sales and trading revenue
Slide 18: All Other
All Other1 Inc / (Dec) • Net loss of $0.3B Summary Income Statement ($MM) 2Q24 1Q24 2Q23 – Improved $0.4B vs. 1Q24, driven primarily by the Total revenue, net of interest expense ($1,755) ($111) $12 absence of the $0.7B 1Q24 accrual for the Provision (benefit) for credit losses (2) 9 158 estimated a
Slide 19: Additional Presentation Information
Additional Presentation Information
Slide 20: Commercial Real Estate Loans
Commercial Real Estate Loans Commercial Real Estate as a Percent of: Geographic Distribution ($B) $2.3 21.2% $2.1 3% $5.9 3% 8% $16.0 Northeast $2.8 4% 23% California Southeast 11.7% $6.7 Southwest 10% ~$70B Midwest 6.9% 6.7% Midsouth $14.1 Northwest $8.6 20% 12% Other $11.9 Non-U.S. Total Commercia
Slide 21: Average Deposit Trends
Average Deposit Trends Bank of America Ranked #1 in U.S. Retail Deposit Market Share1 Total Corporation ($B) Consumer Banking ($B) $2,250 $1,250 QoQ vs. 4Q19 $1,875 $1,876 $1,905 $1,907 $1,910 0% +35% $1,006 $980 QoQ vs. 4Q19 $959 $952 $949 $1,000 0% +32% $1,410 597 565 543 521 514 (1%) +26% $1,500
Slide 22: Managing Excess Deposits
Managing Excess Deposits Deposits in Excess of Loans (EOP, $B) Cash and Securities Portfolios ($B)1 $2.5T $1,331 $1,223 $1,199 348 313 321 308 $1,085B $854B $634 323 301 $451B 162 256 675 587 577 216 $0.5T 4Q19 4Q21 2Q24 4Q19 4Q21 2Q24 Deposits Loans Deposits in excess of loans HTM securities AFS &
Slide 23: Supplemental Business Segment Trends
Supplemental Business Segment Trends
Slide 24: Consumer Banking Trends
Consumer Banking Trends Business Leadership1 Total Revenue ($B) Total Expense ($B) and Efficiency (A) • No. 1 in estimated U.S. Retail Deposits $12.0 $6.0 $5.5 $5.3 $5.5 $5.5 70% • No. 1 Small Business Lender(B) $10.5 $10.5 $10.3 $10.2 $10.2 $5.2 • Best Bank in North America(C) 2.1 2.1 2.1 2.0 2.1 •
Slide 25: Consumer Credit Update
Consumer Credit Update Consumer Credit Card1 Consumer Vehicle Lending4 New Accounts (K) New Originations ($B) 1,500 $7.5 $6.8 $6.8 $6.6 1,137 $6.1 $6.0 1,062 998 889 951 1,000 $5.0 500 $2.5 0 $0.0 2Q23 3Q23 4Q23 1Q24 2Q24 2Q23 3Q23 4Q23 1Q24 2Q24 Key Stats 2Q23 1Q24 2Q24 Key Stats 2Q23 1Q24 2Q24 Ave
Slide 26: Consumer Digital Update
Consumer1 Digital Update Digital Adoption Client Engagement Digital Users2 and Households3 Digital Channel Usage4,5 Digital Sales6 3,466 60 57 58 100% 3,500 1,250 2,000 1,770 100% 53 55 3,148 1,640 1,659 47 90% 1,368 50 46 3,000 2,845 1,500 75% 43 1,000 41 80% 2,567 40 2,500 1,000 50% 77% 70% 911 51
Slide 27: Global Wealth & Investment Management Trends
Global Wealth & Investment Management Trends Business Leadership1 Average Deposits ($B) Average Loans and Leases ($B) • No. 1 on Forbes’ Best-in-State Wealth Advisors (2023), Top Women Wealth Advisors (2024), and $350 $250 $219 $219 $219 $219 $223 Top Next Generation Advisors (2023) • No. 1 on Barro
Slide 28: Global Wealth & Investment Management Digital Update
Global Wealth & Investment Management Digital Update Digital Adoption1 Client Engagement Digital Households / Relationships2 Digital Channel Adoption3 eDelivery4 750 742 100% 100% 100% 718 80% 75% 76% 76% 78% 75% 78% 690 73% 700 681 90% 75% 75% 59% 62% 53% 56% 650 85% 80% 50% 50% 82% 83% 80% 600 70%
Slide 29: Global Banking Trends
Global Banking Trends Business Leadership1 Average Deposits ($B) Average Loans and Leases ($B) (G) • World’s Most Innovative Bank – 2024 $600 $400 $383 $376 $375 $374 $373 • World’s Best Digital Bank, World’s Best Bank for $528 $504 $526 $525 Financing, North America’s Best Bank for Small to $498 Me
Slide 30: Global Banking Digital Update
Global Banking Digital Update Digital Adoption1 Client Engagement Business Adoption % Mobile App Sign-ins (K)2 CashPro® App Payments 100% 2,000 1,870 $300 8.0 Relationship clients: 87% $253 76% 76% 1,594 75% 75% 75% 1,500 6.0 $191 $200 $167 1,076 50% 1,000 4.0 727 4.0 $100 $84 3.5 25% 500 2.8 2.0 1.
Slide 31: Global Markets Trends and Revenue Mix
Global Markets Trends and Revenue Mix Business Leadership1 2024 YTD Global Markets Revenue Mix 2024 YTD Total FICC S&T Revenue Mix 2 • Securitization Bank of the Year (N) (excl. net DVA) (excl. net DVA)2 • CLO Trading Desk of the Year(N) • Derivatives House of the Year(O) • Base Metals House of the
Slide 32: Notes
Notes A In 1Q24, the FDIC increased its estimate of the loss to the Deposit Insurance Fund arising from the closures of Silicon Valley Bank and Signature Bank that will be recouped through the collection of a special assessment from certain insured depository institutions. Accordingly, the Corporati
Slide 33: Notes
Notes C Pretax, pre-provision income (PTPI) at the consolidated level is a non-GAAP financial measure calculated by adjusting consolidated pretax income to add back provision for credit losses. Similarly, PTPI at the segment level is a non-GAAP financial measure calculated by adjusting the segments’
Slide 34: Business Leadership Sources
Business Leadership Sources (A) Estimated U.S. retail deposits based on June 30, 2023 FDIC deposit data. (B) FDIC, 1Q24. (C) Global Finance, April 2024. (D) Global Finance, August 2023. (E) Global Finance, October 2023. (F) J.D. Power 2024 Financial Health Support CertificationSM is based on exceedi
Slide 35: Forward-Looking Statements
Forward-Looking Statements Bank of America Corporation (the Corporation) 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
Slide 36: Important Presentation Information
Important Presentation Information • The information contained herein is preliminary and based on Corporation 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 obligati
Slide 37: Bank of America
BANK OF AMERICA