Bank Of America Corporation · NYSE:BAC
Bank Of America — Q4 2021 Earnings Presentation
35 slides from Bank Of America's earnings presentation, Jan 19, 2022
Slide 1: Bank of America 4Q21 Financial Results
Bank of America 4Q21 Financial Results January 19, 2022
Slide 2: 2021 Financial Highlights
2021 Financial Highlights • Record full year net income of $32.0B on revenue of $89.1B; diluted earnings per share of $3.57 • Balance sheet – Deposits increased $269B, or 15% YoY, to $2.1T – Loans and leases grew $51B, or 6% YoY, to $979B, and have nearly returned to pre-pandemic levels – CET1 capit
Slide 3: Return to Pre-pandemic Organic Growth
Return to Pre-pandemic Organic Growth 2021 vs. 2019 Net New Consumer Checking Accounts 901K +64% Average Consumer Checking Account Balance $10.4K +37% New Consumer Investment Accounts 525K +24% Total Preferred Rewards Enrolled Clients1 9.3MM +31% Consumer and Small Business Digital Sales (units) 5.6
Slide 4: Record Consumer Spend of $3.8T in 2021 Increased 24% vs. 2019
Record Consumer Spend of $3.8T in 2021 Increased 24% vs. 2019 Payment Spend1,2 % Growth Credit and Debit Spend2,3 by Category vs 2019 Credit YTD (vs 2019) Debit YTD (vs 2019) Travel & Entertainment Gas Food Retail Services Total Payments YTD (vs 2019) Total Payments YTD (vs 2020) 40% 50% 25% 20% 0%
Slide 5: Daily Loan and Lease Balance Trends ($B)
Daily Loan and Lease Balance Trends ($B) Total Loans and Leases ex. PPP1,2 Loans and Leases in Business Segments ex. PPP2 $1,100 $600 Commercial Consumer $1,050 $550 $1,000 $500 $950 $450 $900 $400 $850 $350 12/31/19 12/31/21 12/31/19 12/31/21 Credit Card3 Residential Mortgage3 $100 $225 $220 $90 $2
Slide 6: Making Financial Lives Better via Community Banking
Making Financial Lives Better via Community Banking Community Banking focuses on the financial well-being of our mass market clients, providing products, employment opportunities, and capital to help them meet their financial goals Financial Essential Solutions Access to Capital Empowerment Providin
Slide 7: 4Q21 Financial Results
4Q21 Financial Results Summary Income Statement 4Q21 3Q21 Inc / (Dec) 4Q20 Inc / (Dec) ($B, except per share data) Total Revenue, net of interest expense $22.1 $22.8 ($0.7) (3) % $20.1 $2.0 10 % Provision (benefit) for credit losses (0.5) (0.6) 0.1 (22) 0.1 (0.5) N/M Net charge-offs 0.4 0.5 (0.1) (2
Slide 8: 4Q21 Highlights
4Q21 Highlights (Comparison to 4Q20, unless otherwise noted) • Net income of $7.0B; diluted earnings per share of $0.82 • Revenue, net of interest expense, of $22.1B increased $2.0B, or 10% – Net interest income (NII) of $11.4B ($11.5B FTE1) increased $1.2B, or 11%, driven by strong deposit growth a
Slide 9: Balance Sheet, Liquidity and Capital
Balance Sheet, Liquidity and Capital (EOP basis unless noted) Balance Sheet Metrics 4Q21 3Q21 4Q20 Basel 3 Capital ($B)4 4Q21 3Q21 4Q20 Assets ($B) Common equity tier 1 capital (CET1) $172 $174 $177 Total assets $3,170 $3,085 $2,820 Standardized approach Total loans and leases 979 928 928 Risk-weigh
Slide 10: Average Loans and Leases
Average Loans and Leases1 Total Loans and Leases ($B) Total Loans and Leases in All Other ($B) $1,200 $30 QoQ $1,000 $935 $945 Annualized2 $22 $908 $908 $921 +11% $21 $19 $800 $20 4 $18 $16 4 4 $600 4 3 $400 $10 18 17 15 14 13 $200 $0 $0 4Q20 1Q21 2Q21 3Q21 4Q21 4Q20 1Q21 2Q21 3Q21 4Q21 QoQ Ex. Annu
Slide 11: Average Deposits
Average Deposits Bank of America Ranked #1 in U.S. Retail Deposit Market Share1 Total Corporation ($B) Consumer Banking ($B) $2,500 $1,250 YoY YoY $2,017 +16% $979 $1,001 $1,027 +16% $2,000 $1,889 $1,943 $1,000 $924 $1,737 $1,806 $885 806 +25% 323 333 344 $1,500 729 764 $750 283 295 +17% 646 675 224
Slide 12: Net Interest Income
Net Interest Income Net Interest Income (FTE, $B)1 • Net interest income of $11.4B ($11.5B FTE1) $15.0 – Increased $316MM from 3Q21, driven by higher loan balances, deposit growth and $11.2 $11.5 related investment of liquidity, and lower $10.4 $10.3 $10.3 premium amortization expense, partially off
Slide 13: Net Interest Income, Net Interest Yield, Average Balances, and Rates
Net Interest Income, Net Interest Yield, Average Balances, and Rates Net Interest Income (FTE, $B)1 Average Debt Securities and Cash Balances ($B) 2.48% 2.11% 2.48% 2.76% 2.48% $12.7 $12.3 1.48% $984 $11.9 $11.5 1.45% $10.5 $10.4 $653 $9.9 $399 $431 $442 $441 $465 2.52% $357 2.23% 2.42% 2.35% $286 2
Slide 14: Expense and Efficiency
Expense and Efficiency Total Noninterest Expense ($B) $20.0 $15.5 $15.0 $14.4 $14.7 $13.9 5.8 6.4 5.7 5.7 5.7 $10.0 8.2 9.7 8.7 8.7 9.0 $0.0 4Q20 1Q21 2Q21 3Q21 4Q21 Compensation and benefits Other Efficiency Ratio 80% 69% 70% 68% 67% 70% 63% 60% 50% 4Q20 1Q21 2Q21 3Q21 4Q21 • Noninterest expense of
Slide 15: Asset Quality
Asset Quality Net Charge-offs ($MM)1 • Total net charge-offs of $362MM1 decreased $101MM from 3Q21 $1,250 1.00% – Consumer net charge-offs of $312MM decreased $17MM, driven by lower Credit Card losses $1,000 $881 0.75% $823 – Commercial net charge-offs of $50MM $750 remained low $595 0.50% • Histori
Slide 16: Asset Quality – Consumer and Commercial Portfolios
Asset Quality – Consumer and Commercial Portfolios Consumer Net Charge-offs ($MM) Consumer Metrics ($MM) 4Q21 3Q21 4Q20 Provision $149 $81 ($139) $1,000 1.50% Nonperforming loans and leases 2,989 3,017 2,725 $750 $693 % of loans and leases1 0.69 % 0.71 % 0.64 % 1.00% Consumer 30+ days performing pas
Slide 17: Consumer Banking
Consumer Banking Inc / (Dec) • Net income of $3.1B increased significantly from 4Q20 Summary Income Statement ($MM) 4Q21 3Q21 4Q20 as a result of improved revenue and lower expenses Total revenue, net of interest expense $8,912 $74 $670 • Revenue of $8.9B increased 8% from 4Q20, driven by Provision
Slide 18: Global Wealth & Investment Management
Global Wealth & Investment Management Inc / (Dec) • Net income of $1.2B increased 47% from 4Q20 Summary Income Statement ($MM) 4Q21 3Q21 4Q20 – Pretax margin of 30% in 4Q21 Total revenue, net of interest expense $5,402 $92 $725 Provision (benefit) for credit losses (56) 2 (64) • Record revenue of $5
Slide 19: Global Banking
Global Banking Inc / (Dec) • Net income of $2.7B increased $1.0B from 4Q20, Summary Income Statement ($MM) 4Q21 3Q21 4Q20 driven by higher revenue and lower credit costs, Total revenue, net of interest expense1 $5,907 $662 $1,128 partially offset by higher noninterest expense Provision (benefit) for
Slide 20: Global Markets
Global Markets1 Inc / (Dec) • Net income of $0.7B decreased $122MM from 4Q20 Summary Income Statement ($MM) 4Q21 3Q21 4Q20 – Excluding net DVA, net income of $0.7B Total revenue, net of interest expense2 $3,818 ($701) ($89) decreased 20%3 Net DVA 2 22 58 • Revenue of $3.8B decreased 2% from 4Q20; ex
Slide 21: All Other
All Other1 Inc/(Dec) • Net loss of $673MM, compared to net loss of Summary Income Statement ($MM) 4Q21 3Q21 4Q20 $421MM in 4Q20 Total revenue, net of interest expense ($1,874) ($829) ($481) • Revenue declined $481MM, reflecting higher Provision (benefit) for credit losses (34) 14 (9) partnership los
Slide 22: Supplemental Business Segment Trends
Supplemental Business Segment Trends
Slide 23: Consumer Banking Trends
Consumer Banking Trends Business Leadership1 Total Revenue ($B) Total Expense ($B) and Efficiency (A) • No. 1 in customer satisfaction for U.S. Online Banking among National Banks by J.D. Power(B) $10.0 $6.0 80% $8.8 $8.9 $5.1 • No. 1 in customer satisfaction for U.S. Mobile $8.2 $8.1 $8.2 $4.8 $4.9
Slide 24: 54MM Verified Digital Users in 4Q21, with 41MM Active
54MM Verified Digital Users in 4Q21, with 41MM Active Digital Adoption Client Engagement Digital Users1 and Households2 Digital Channel Usage3,4 Digital Sales 60 100% 3,000 1,000 1,750 100% 54 2,740 1,461 52 1,500 50 90% 80% 50 47 2,500 2,355 1,250 750 977 998 41 80% 2,094 882 60% 38 39 1,949 764 1,
Slide 25: Global Wealth & Investment Management Trends
Global Wealth & Investment Management Trends Business Leadership1 Average Deposits ($B) Average Loans and Leases ($B)2 • No. 1 in Barron’s Top 1,200 Financial Advisors and Top 100 Women Advisors (2021) $400 $250 $361 • No. 1 in Forbes’ Top Next Generation Advisors and $205 Best-in-State Wealth Advis
Slide 26: Global Wealth & Investment Management Digital Update
Global Wealth & Investment Management Digital Update1 Advisor-led Client Interactions, Powered by Digital Digital Adoption GWIM2 79%, up from 77% Online Mobile 79% of Merrill Lynch3 households digitally active across the enterprise, up from 77% in 4Q20 Record 85% of Private Bank4 relationships digit
Slide 27: Global Banking Trends
Global Banking Trends Business Leadership1 Average Deposits ($B) Average Loans and Leases ($B)2 • Outstanding Financial Innovator – 2021 Global(M) • North America’s Best Bank for Small to Medium-sized $600 $562 $400 Enterprises(O) $534 $500 $478 $487 $507 $346 $330 $325 $325 $339 • Best Global Bank
Slide 28: Global Banking Digital Update
Global Banking Digital Update Creating an innovative digital experience for our clients Digital Adoption 75% Digitally Active Clients Online Mobile Connect API across commercial, corporate, and business banking clients (CashPro® & BA360 platforms) 2% YoY1 Client Engagement Digital Volume 55% ~61MM $
Slide 29: Global Markets Trends and Revenue Mix
Global Markets Trends and Revenue Mix Business Leadership1 2021 Global Markets Revenue Mix 2021 Total FICC S&T Revenue Mix 2 • Global Derivatives House of the Year (T) (excl. net DVA) (excl. net DVA)2 • Clearing House of the Year(T) • Overall Leader for North America in Sustainable Finance(M) • No.
Slide 30: Additional Presentation Information
Additional Presentation Information
Slide 31: 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 32: Business Leadership Sources
Business Leadership Sources (A) Tied in the national segment of the J.D. Power 2021 U.S. Online Banking Satisfaction Study. (B) J.D. Power’s 2021 U.S. Banking Mobile App Satisfaction, U.S. Online Banking Satisfaction studies measure overall satisfaction with banking digital channels based on four fa
Slide 33: 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 34: 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 35: Bank of America
BANK OF AMERICA