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) — Q3 2019 Earnings Presentation

28 slides from Bank Of America's earnings presentation, Oct 16, 2019

  1. Slide 1: Bank of America 3Q19 Financial Results

    Bank of America 3Q19 Financial Results October 16, 2019

  2. Slide 2: 3Q19 Financial Results: Summary Income Statement

    3Q19 Financial Results 3Q19 ex-JV vs. 3Q19 3Q18 3Q19 vs. 3Q18 Summary Income Statement 3Q18 1 ($B, except per share data) Ex-JV Reported % Inc / (Dec) % Inc / (Dec) impairment 1 Total revenue, net of interest expense $22.8 $22.8 $22.7 0 % 0 % Noninterest expense 15.2 13.1 13.0 17 1 Provision for cre

  3. Slide 3: Strong Client Activity Across our Franchise

    Strong Client Activity Across our Franchise (Comparisons are YTD 2019 to YTD 2018 unless noted) Supporting Consumer and Wealth Clients Serving Companies and Institutional Clients +2.3%; highest Small Business core clients / +4% / +6% Consumer checking accounts total in last 10 years loan growth 1 #1

  4. Slide 4: Average Deposits

    Average Deposits Bank of America Ranked #1 in U.S. Deposit Market Share 1 Total Corporation ($B) Consumer Banking ($B) YoY YoY $1,375 $1,500 $1,272 $1,316 +4% $800 $709 +3% $1,227 $659 $688 $606 396 (6%) $600 206 437 423 181 194 $1,000 439 166 +6% 163 174 $400 136 151 $500 979 +10% 789 835 894 $200

  5. Slide 5: Average Loans and Leases

    Average Loans and Leases Total Loans and Leases ($B) Total Loans and Leases in All Other ($B) YoY $965 +4% $1,000 $901 $918 $931 $150 $105 $750 $100 9 $77 19 $500 $60 15 $42 $50 12 $250 77 6 62 48 36 $0 $0 3Q16 3Q17 3Q18 3Q19 3Q16 3Q17 3Q18 3Q19 Residential mortgage Home equity Other Loans and Lease

  6. Slide 6: 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 5.4 $10 5.5 5.6 5.3 5.3 5.3 5.0 5.3 5.3 +$13.1B 1 $5 7.8 7.6 8.5 7.9 7.7 7.7 8.2 8.0 7.8 $0 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 Compensation and benefits Other JV impairment c

  7. Slide 7: Operating Leverage Trend

    Operating Leverage Trend 1 +22% +21% +29% +3% +8% +3% +5% +6% +8% +6% +4% +8% 2 +5% +4% +7% +7% 2 +4% +2% 0% 3 3Q19 reported expense growth of +17% and 7% 7% 7% operating 6% leverage of (16%) 3 4% 4% 3% 2% 2% 1% 1% 1% 1% 0% 0%1% (1%) (0%) (2%) (1%) (1%) (1%) (1%) (1%) (2%) (2%) (2%) (3%) (3%) (4%) (

  8. Slide 8: Balance Sheet, Liquidity and Capital

    Balance Sheet, Liquidity and Capital (EOP basis unless noted) 4 Balance Sheet ($B) 3Q19 2Q19 3Q18 Basel 3 Capital ($B) 3Q19 2Q19 3Q18 Total assets $2,426.3 $2,395.9 $2,338.8 Common equity tier 1 capital (CET1) $169.2 $171.5 $164.4 Total loans and leases 972.9 963.8 929.8 Standardized approach Total

  9. Slide 9: Net Interest Income

    Net Interest Income 1 Net Interest Income (FTE, $B) • Net interest income of $12.2B ($12.3B FTE 1) $15 – Increased $0.1B from 3Q18, or 1%, driven primarily by loan $12.7 $12.5 $12.3 $12.3 $12.2 and deposit growth, partially offset by impact of lower long- end interest rates $10 – Stable from 2Q19 as

  10. Slide 10: Asset Quality

    Asset Quality 1 Net Charge-offs ($MM) • Total net charge-offs of $0.8B decreased $76MM from 2Q19; $1,200 1.0% excluding recoveries from sales of previously charged-off non- $991 core consumer real estate loans of $198MM and $118MM in $932 $924 $887 $811 3Q19 and 2Q19, net charge-offs were stable fro

  11. Slide 11: Asset Quality – Consumer and Commercial Portfolios

    Asset Quality – Consumer and Commercial Portfolios Consumer Net Charge-offs ($MM) Consumer Metrics ($MM) 3Q19 2Q19 3Q18 2.0% Provision $564 $640 $710 $900 $804 $835 $776 $691 $622 Nonperforming loans and leases 2,189 3,027 4,306 1.5% $700 % of loans and leases 1 0.48 % 0.67 % 0.97 % $500 Consumer 30

  12. Slide 12: Consumer Banking

    Consumer Banking Inc / (Dec) Net income of $3.3B increased 5% from 3Q18; ROAAC of 36% Summary Income Statement ($MM) 3Q19 2Q19 3Q18 • Total revenue, net of interest expense $9,724 $7 $282 • Revenue of $9.7B increased $0.3B, or 3%, from 3Q18, driven Provision for credit losses 917 (30) 47 primarily b

  13. Slide 13: Consumer Banking Trends

    Consumer Banking Trends Business Leadership 1 Total Revenue ($B) Total Expense ($B) and Efficiency • #1 Consumer Deposit Market Share A B $12 $5 $4.4 $4.4 60% • #1 Small Business Lender $10.0 $4.3 $4.4 $4.4 C $9.4 $9.6 $9.7 $9.7 • #1 Online Banking and Mobile Banking Functionality $4 • #1 U.S. Check

  14. Slide 14: 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 9.0MM Erica users $755 +8% 8.9MM users $800 $702 38.0 +5% $612 $644 90 80.8 $60 40 34.5 36.2 32.8 $600 331 +2% 324 30 28.7 +10% 313 316 60 $40 26.0 $400 23.6 42.5

  15. Slide 15: Global Wealth & Investment Management

    Global Wealth & Investment Management Inc / (Dec) Net income of $1.1B increased 8% from 3Q18; ROAAC of 30% Summary Income Statement ($MM) 3Q19 2Q19 3Q18 • Total revenue, net of interest expense $4,904 $4 $87 – Record pretax margin of 30% Provision for credit losses 37 16 24 • Revenue of $4.9B increa

  16. Slide 16: 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 I $247 $262 $254 $254 $200 $238 $162 $164 $164 $166 $170 • #1 in personal trust assets unde

  17. Slide 17: Global Banking

    Global Banking Inc/(Dec) • Net income of $2.1B increased 3% from 3Q18; ROAAC of 20% Summary Income Statement ($MM) 3Q19 2Q19 3Q18 • Revenue of $5.2B increased 8% from 3Q18 largely driven by Total revenue, net of interest expense 1 $5,212 $237 $389 higher investment banking fees as well as leasing-re

  18. Slide 18: 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 H $373 $377 Medium-sized Enterprises $400 $360 $349 $363 $360 $400 $353 $357 $370 $338 15 15 • Most Innovative Investment Bank of the Year 16 16 15 from North Amer

  19. Slide 19: 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 banking clients +126% $144B 500K Rolling 12 mos. YoY up 95% Rolling 12 mos. YoY CashPro® Mobile CashPro® Assistant eSignature Checks Deposited

  20. Slide 20: Global Markets

    Global Markets Inc/(Dec) Net income of $0.8B decreased 8% from 3Q18; ROAAC of 10% Summary Income Statement ($MM) 3Q19 2Q19 3Q18 • • [ Bullets to come ] 2 Total revenue, net of interest expense 1 $3,864 ($280) ($9) – Excluding net DVA, net income of $0.9B decreased 14% Net DVA (15) 16 84 • Revenue st

  21. Slide 21: Global Markets Trends and Revenue Mix

    Global Markets Trends and Revenue Mix Business Leadership 1 YTD Global Markets Revenue Mix YTD Total FICC S&T Revenue Mix • Derivatives House of the Year L (excl. net DVA) 2 (excl. net DVA) 2 • #1 Equity Portfolio Trading Share – North American Institutions M • #1 for U.S. FICC Overall Trading Quali

  22. Slide 22: All Other

    All Other 1 Inc/(Dec) • Net loss of $1.6B compared to net income of $32MM in 3Q18; Summary Income Statement ($MM) 3Q19 2Q19 3Q18 excluding the impact of the joint venture impairment charge 2 Total revenue, net of interest expense ($749) ($246) ($669) (described below), net income of $0.1B Provision

  23. Slide 23: Appendix

    Appendix

  24. Slide 24: Notes

    Notes A The non-cash impairment charge related to the notice of termination of the merchant services joint venture at the conclusion of its current term reduced 3Q19 net income by $1.7B, or $0.19 per diluted share, which included an increase in noninterest expense and a reduction in pretax income of

  25. Slide 25: Sources

    Sources A Estimated retail consumer deposits based on June 30, 2019 FDIC deposit data. B FDIC, 2Q19. C Dynatrace 2Q19 Online Banker Scorecard and 3Q19 Mobile Banker Scorecard; Javelin 2019 Online and Mobile Banking Scorecards. D Forrester 2018 Banking Sales Wave: U.S. Mobile Sites. E Inside Mortgage

  26. Slide 26: 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

  27. Slide 27: 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

  28. Slide 28: 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) — Q3 2019 Earnings Presentation on 6ix