Bank Of America Corporation · NYSE:BAC
Bank Of America — Q4 2024 Earnings Presentation
37 slides from Bank Of America's earnings presentation, Jan 16, 2025
Slide 1: Bank of America 4Q24 Financial Results
Bank of America 4Q24 Financial Results January 16, 2025
Slide 2: 2024 Highlights
2024 Highlights Solid earnings Strong balance sheet Healthy returns Return on avg. 1 Revenue Deposits $1.97T common equity $101.9B increased 2% YoY 9.5% Net income CET1 11.9%2 Return on avg. tangible $27.1B well above reg. min.3 common equity5 12.9% EPS Robust liquidity $3.21 GLS $953B4 Return on av
Slide 3: Continued Organic Growth in 2024
Continued Organic Growth in 2024 Consumer Banking Global Wealth & Investment Management Added ~1.1MM net new checking accounts in 2024; Added ~24,000 net new relationships across Merrill 24 consecutive quarters of growth and Private Bank Added ~4MM credit card accounts1 Opened ~115,000 new bank acco
Slide 4: Average Deposit and Rate Paid Trends
Average Deposit and Rate Paid Trends Total Corporation ($B) Consumer Banking ($B) $1,958 $2,000 $1,875 $1,876 $1,905 $1,907 $1,910 $1,921 4.00% $1,200 4.00% $1,006 $980 $959 $952 $949 $938 $942 $1,500 3.00% 3.00% $800 2.10% $1,000 1.94% 2.00% 2.00% 1.24% $400 $500 1.00% 1.00% 0.65% 0.64% 0.22% $0 0.
Slide 5: Financial Results
Financial Results1 Summary Income Statement 4Q24 4Q23 Inc / (Dec) ($B, except per share data) Total revenue, net of interest expense $25.3 $22.0 $3.4 15 % Provision for credit losses 1.5 1.1 0.3 32 Net charge-offs 1.5 1.2 0.3 23 Reserve build (release)2 — (0.1) 0.1 84 Noninterest expense 16.8 17.7 (
Slide 6: 4Q24 Highlights
4Q24 Highlights (Comparisons to 4Q23, unless otherwise noted) • Net income of $6.7B; diluted earnings per share (EPS) of $0.82; ROE1 9.4%, ROTCE1,2 12.6% • Revenue, net of interest expense, of $25.3B ($25.5B FTE)1,2 increased $3.4B, or 15% – Adjusted for the 4Q23 BSBY cessation charge, revenue incre
Slide 7: Balance Sheet, Liquidity, and Capital
Balance Sheet, Liquidity, and Capital (EOP1 basis unless noted) Balance Sheet Metrics 4Q24 3Q24 4Q23 Basel 3 Capital ($B)4 4Q24 3Q24 4Q23 Assets ($B) Common equity tier 1 capital $201 $200 $195 Total assets $3,262 $3,324 $3,180 Standardized approach Total loans and leases 1,096 1,076 1,054 Risk-weig
Slide 8: Average Loan and Lease Trends
Average Loan and Lease Trends Total Loans and Leases ($B) Total Loans and Leases by Portfolio ($B) YoY $1,100 $1,081 +3% $750 $1,051 $1,048 $1,051 $1,060 $592 $591 $596 $602 $620 $1,000 $500 $459 $456 $456 $458 $461 $900 $250 $800 $0 4Q23 1Q24 2Q24 3Q24 4Q24 4Q23 1Q24 2Q24 3Q24 4Q24 Consumer Commerc
Slide 9: Net Interest Income
Net Interest Income Net Interest Income (FTE, $B)1 • Net interest income of $14.4B ($14.5B FTE)1 $14.1 $14.2 $14.1 $14.5 $15.0 $13.9 – Increased $0.4B from 3Q24, driven by deposit favorability, higher loan balances, and fixed-rate asset repricing, partially offset by the impact of lower interest rat
Slide 10: Expense and Efficiency
Expense and Efficiency Total Noninterest Expense ($B) $20.0 $17.7 $17.2 $16.5 $16.8 $16.3 2.1 0.7 6.1 6.3 6.5 6.6 6.9 $10.0 9.5 10.2 9.8 9.9 10.2 $0.0 (0.3) 4Q23 1Q24 2Q24 3Q24 4Q24 Compensation and benefits Other FDIC special assessment Efficiency Ratio 70% 67% 66% 64% 65% 64% 65% 60% 55% 4Q231 1Q2
Slide 11: Asset Quality
Asset Quality Net Charge-offs ($MM)1 • Total net charge-offs of $1.5B decreased $68MM from 3Q241 $1,600 $1,498 $1,533 $1,534 $1,466 1.00% – Consumer net charge-offs of $1.1B increased $1,192 $63MM, driven primarily by seasonally higher $1,200 0.75% credit card losses ▪ Credit card loss rate of 3.79%
Slide 12: Asset Quality – Consumer and Commercial Portfolios
Asset Quality – Consumer and Commercial Portfolios Consumer Net Charge-offs ($MM) Consumer Metrics ($MM) 4Q24 3Q24 4Q23 Provision $1,083 $1,125 $1,264 $1,200 $1,107 1.50% $1,028 $1,059 $1,044 Nonperforming loans and leases 2,647 2,677 2,712 $913 % of loans and leases1 0.57 % 0.58 % 0.59 % $800 1.00%
Slide 13: Consumer Banking
Consumer Banking Inc / (Dec) • Net income of $2.8B Summary Income Statement ($MM) 4Q24 3Q24 4Q23 • Revenue of $10.6B increased 3% from 4Q23, driven Total revenue, net of interest expense $10,646 $228 $317 primarily by NII and card income Provision for credit losses 1,254 (48) (151) • Provision for c
Slide 14: Global Wealth & Investment Management
Global Wealth & Investment Management Inc / (Dec) • Net income of $1.2B Summary Income Statement ($MM) 4Q24 3Q24 4Q23 • Revenue of $6.0B increased 15% from 4Q23, driven Total revenue, net of interest expense $6,002 $240 $775 by 23% higher asset management fees from higher Provision (benefit) for cre
Slide 15: Global Banking
Global Banking Inc / (Dec) • Net income of $2.1B Summary Income Statement ($MM) 4Q24 3Q24 4Q23 • Revenue of $6.1B increased 3% from 4Q23, driven by Total revenue, net of interest expense1 $6,091 $257 $163 higher investment banking fees, partially offset by Provision (benefit) for credit losses 190 (
Slide 16: Global Markets
Global Markets1 Inc / (Dec) • Net income of $0.9B ($1.0B excluding net DVA)3 Summary Income Statement ($MM) 4Q24 3Q24 4Q23 • Revenue of $4.8B increased 18% from 4Q23, driven Total revenue, net of interest expense2 $4,840 ($790) $752 by higher sales and trading revenue and investment Net DVA (19) (11
Slide 17: All Other
All Other1 Inc / (Dec) • Net loss of $0.4B improved from a net loss of $3.8B Summary Income Statement ($MM) 4Q24 3Q24 4Q23 in 4Q23, driven primarily by the absence of the 4Q23 Total revenue, net of interest expense ($2,078) $74 $1,390 FDIC special assessment and BSBY cessation charges Provision (ben
Slide 18: 2025 Outlook
2025 Outlook Expect 1Q25 NII (FTE) of $14.5B-$14.6B; expect to grow sequentially to ~$15.5B-$15.7B in 4Q25 with 2H25 growth >1H25 growth1 Net Interest • 1Q25 includes two fewer days of interest accrual vs. 4Q24 (~$250MM) Income • Assumes January 10, 2025 forward curve materializes, continued fixed-r
Slide 19: Additional Presentation Information
Additional Presentation Information
Slide 20: Commercial Real Estate Loans
Commercial Real Estate Loans 6% of Total Loans and Leases Distribution by Property Type ($B) Geographic Distribution ($B) $2.2 $0.9 3% 1% $2.2 $4.7 $6.1 3% 7% $2.0 9% $5.6 $14.7 3% 9% $13.2 22% $2.5 20% 4% $11.0 $5.5 17% ~$66B 8% ~$66B $7.7 $13.7 Office 21% $15.1 12% $13.2 23% • ~75% Class A propert
Slide 21: Managing Excess Deposits
Managing Excess Deposits Deposits in Excess of Loans (EOP) Cash and Securities Portfolios ($B)1 $2.5T $1,331 $1,189 $1,207 348 296 290 308 $1,085B $870B $634 325 359 $451B 162 256 675 568 559 216 $0.5T 4Q19 4Q21 4Q24 4Q19 4Q21 4Q24 Deposits Loans Deposits in excess of loans HTM securities AFS & othe
Slide 22: Average Deposit Trends
Average Deposit Trends Bank of America Ranked #1 in U.S. Retail Deposit Market Share1 Total Corporation ($B) Consumer Banking ($B) QoQ vs. 4Q19 $2,000 $1,905 $1,907 $1,910 $1,921 $1,958 +2% +39% $1,200 QoQ vs. 4Q19 $959 $952 $949 $938 $942 +0.4% +31% 543 521 514 507 512 +1% +25% $1,500 $1,410 $800 $
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 • No. 1 in estimated U.S. Retail Deposits(A) $12.0 $6.0 $5.5 $5.5 $5.5 $5.6 70% $10.3 $10.2 $10.2 $10.4 $10.6 $5.2 • No. 1 Small Business Lender(B) 2.2 2.1 2.0 2.1 2.1 (C) • Best Bank in North America $
Slide 25: Consumer Credit Update
Consumer Credit Update Consumer Credit Card1 Consumer Vehicle Lending4 New Accounts (K) New Originations ($B) 1,500 $10.0 $7.9 998 951 970 $7.5 $6.6 $6.8 1,000 889 900 $6.1 $6.0 $5.0 500 $2.5 0 $0.0 4Q23 1Q24 2Q24 3Q24 4Q24 4Q23 1Q24 2Q24 3Q24 4Q24 Key Stats 4Q23 3Q24 4Q24 Key Stats 4Q23 3Q24 4Q24 A
Slide 26: Consumer Digital Update
Consumer1 Digital Update Digital Adoption Client Engagement Digital Users2 and Households3 Digital Channel Usage4 Digitally-Enabled Sales5 60 57 58 100% 4,000 3,865 2,000 100% 56 1,789 54 1,579 3,339 48 90% 3,046 1,461 1,397 50 46 1,500 75% 44 3,000 2,740 41 80% 40 1,000 61% 50% 78% 75% 70% 49% 49%
Slide 27: Global Wealth & Investment Management Trends
Global Wealth & Investment Management Trends Business Leadership1 Average Deposits ($B) Average Loans and Leases ($B) • No. 1 on Forbes' Top Women Wealth Advisors $297 $292 $288 $285 (2024), Best-in-State Wealth Management Teams $300 $280 $250 $223 $225 $229 $219 $219 (2024), and Top Next Generation
Slide 28: Global Wealth & Investment Management Digital Update
Global Wealth & Investment Management Digital Update Digital Adoption1 Client Engagement Digital Households / Relationships2 Digital Channel Adoption3 eDelivery4 800 100% 100% 100% 750 728 79% 81% 690 74% 76% 77% 75% 77% 700 674 90% 75% 72% 75% 60% 63% 54% 57% 600 84% 85% 80% 50% 50% 82% 79% 500 70%
Slide 29: Global Banking Trends
Global Banking Trends Business Leadership1 Average Deposits ($B) Average Loans and Leases ($B) (F) • World’s Most Innovative Bank – 2024 $582 $600 $550 $400 $375 $374 $373 $371 $375 • World’s Best Bank for Trade Finance and for FX $528 $526 $525 payments; North America’s Best Digital Bank, Best Bank
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% 2,500 $300 $284 8.0 Relationship clients: 86% 2,119 $245 75% 75% 75% 75% 2,000 75% 1,676 6.0 1,403 $200 $181 1,500 50% $133 4.0 913 4.5 1,000 $100 3.7 3.2 25% 2.6
Slide 31: Global Markets Trends and Revenue Mix
Global Markets Trends and Revenue Mix Business Leadership1 2024 Global Markets Revenue Mix 2024 Total FICC S&T Revenue Mix 2 • World's Best Bank for Markets(I) (excl. net DVA) (excl. net DVA)2 • World's Best Bank for FX Payments(I) • Equity Derivatives House of the Year(L) • No. 1 All-America Tradin
Slide 32: Notes
Notes A Global Liquidity Sources (GLS) include cash and high-quality, liquid, unencumbered securities, inclusive of 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 other investment-grade securities, and
Slide 33: Notes
Notes D 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, 2024 FDIC deposit data. (B) FDIC, 3Q24. (C) Global Finance, April 2024. (D) J.D. Power 2024 Financial Health Support CertificationSM is based on exceeding customer experience benchmarks using client surveys and a best p
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