Bank Of America Corporation · NYSE:BAC
Bank Of America — Q1 2024 Earnings Presentation
35 slides from Bank Of America's earnings presentation, Apr 16, 2024
Slide 1: Bank of America 1Q24 Financial Results
Bank of America 1Q24 Financial Results April 16, 2024
Slide 2: 1Q24 Financial Results
1Q24 Financial Results 1Q24 Inc / (Dec) 1Q24 1Q23 Inc / (Dec) ($B, except per share data) Adjusted1 Adjusted1 Total Revenue, net of interest expense $25.8 $25.8 $26.3 ($0.4) (2) % ($0.4) (2) % Provision for credit losses 1.3 1.3 0.9 0.4 42 0.4 42 Net charge-offs 1.5 1.5 0.8 0.7 86 0.7 86 Reserve bui
Slide 3: Continued Organic Growth in 1Q24
Continued Organic Growth in 1Q24 Consumer Banking Global Wealth & Investment Management Added ~245,000 net new checking accounts; Added over 7,300 net new relationships across Merrill 21 consecutive quarters of growth and Private Bank Added over 1MM credit card accounts1 Opened ~29,000 new bank acco
Slide 4: 1Q24 Highlights
1Q24 Highlights (Comparisons to 1Q23, unless otherwise noted) • Net income of $6.7B; diluted earnings per share (EPS) of $0.76; ROE1 9.4%, ROTCE1,2 12.7% – Excluding FDIC special assessment, adj. net income $7.2B; adj. diluted EPS $0.83; adj. ROE 10.2%, adj. ROTCE 13.8%3 • Revenue, net of interest e
Slide 5: Balance Sheet, Liquidity, and Capital
Balance Sheet, Liquidity, and Capital (EOP1 basis unless noted) Balance Sheet Metrics 1Q24 4Q23 1Q23 Basel 3 Capital ($B)4 1Q24 4Q23 1Q23 Assets ($B) Common equity tier 1 capital $197 $195 $184 Total assets $3,274 $3,180 $3,195 Standardized approach Total loans and leases 1,049 1,054 1,046 Risk-weig
Slide 6: Average Loan and Lease Trends
Average Loan and Lease Trends Total Loans and Leases ($B) Total Loans and Leases by Portfolio ($B) $1,100 $750 YoY $1,041 $1,047 $1,046 $1,051 $1,048 +1% $588 $593 $589 $592 $591 $1,000 $500 $453 $454 $457 $459 $456 $900 $250 $800 $0 1Q23 2Q23 3Q23 4Q23 1Q24 1Q23 2Q23 3Q23 4Q23 1Q24 Consumer Commerc
Slide 7: Average Deposit Trends
Average Deposit Trends Bank of America Ranked #1 in U.S. Retail Deposit Market Share1 Total Corporation ($B) Consumer Banking ($B) $2,250 QoQ vs. 4Q19 $1,250 $1,894 $1,875 $1,876 $1,905 $1,907 0% +35% $1,026 $1,006 $980 QoQ vs. 4Q19 $959 $952 $1,000 (1%) +32% $1,410 630 597 565 543 521 (4%) +27% $1,
Slide 8: Managing Excess Deposits
Managing Excess Deposits Deposits in Excess of Loans (EOP, $B) Cash and Securities Portfolios ($B)1 $2.5T $1,331 $1,205 $1,223 348 333 313 308 $1,085B $897B $634 277 323 $451B 162 256 675 595 587 216 $0.5T 4Q19 4Q21 1Q24 4Q19 4Q21 1Q24 Deposits Loans Deposits in excess of loans HTM securities AFS &
Slide 9: Net Interest Income
Net Interest Income Net Interest Income (FTE, $B)1 • Net interest income of $14.0B ($14.2B FTE)1 decreased $0.4B YoY, as higher deposit costs more than offset higher asset yields, higher $14.6 $14.3 $14.5 $14.1 $14.2 $15.0 NII related to Global Markets (GM) activity, and modest loan growth – Increas
Slide 10: Expense and Efficiency
Expense and Efficiency Total Noninterest Expense ($B) $20.0 $17.7 $17.2 $16.2 $16.0 $15.8 2.1 0.7 6.3 6.6 6.3 6.1 6.3 $10.0 $15.61 $16.51 9.9 9.4 9.6 9.5 10.2 $0.0 1Q23 2Q23 3Q23 4Q23 1Q24 Compensation and benefits Other FDIC special assessment Efficiency Ratio 70% 66% 64% 64% 65% 63% 62% 60% 55% 1Q
Slide 11: Asset Quality
Asset Quality Net Charge-offs ($MM)1 • Total net charge-offs of $1.5B increased $306MM $1,498 from 4Q231 $1,500 1.00% – Consumer net charge-offs of $1.0B $1,192 increased $115MM, driven primarily by higher credit card losses 0.75% $1,000 $869 $931 – Credit card loss rate of 3.62% in 1Q24 vs. $807 3.
Slide 12: Asset Quality – Consumer and Commercial Portfolios
Asset Quality – Consumer and Commercial Portfolios Consumer Net Charge-offs ($MM) Consumer Metrics ($MM) 1Q24 4Q23 1Q23 Provision $959 $1,264 $945 $1,250 1.25% $1,028 Nonperforming loans and leases 2,697 2,712 2,714 $1,000 $913 1.00% % of loans and leases1 0.59 % 0.59 % 0.60 % $804 $720 0.91% Consum
Slide 13: Consumer Banking
Consumer Banking Inc / (Dec) • Net income of $2.7B Summary Income Statement ($MM) 1Q24 4Q23 1Q23 • Revenue of $10.2B decreased 5% from 1Q23, driven Total revenue, net of interest expense $10,166 ($163) ($540) primarily by the impact of lower deposit balances Provision for credit losses 1,150 (255) 6
Slide 14: Global Wealth & Investment Management
Global Wealth & Investment Management Inc / (Dec) • Net income of $1.0B Summary Income Statement ($MM) 1Q24 4Q23 1Q23 • Record revenue of $5.6B increased 5% from 1Q23, Total revenue, net of interest expense $5,591 $364 $276 driven by 12% higher asset management fees, due to Provision (benefit) for c
Slide 15: Global Banking
Global Banking Inc / (Dec) • Net income of $2.0B Summary Income Statement ($MM) 1Q24 4Q23 1Q23 • Revenue of $6.0B decreased 4% from 1Q23, driven Total revenue, net of interest expense1 $5,980 $52 ($223) primarily by lower net interest income, partially offset Provision (benefit) for credit losses 22
Slide 16: Global Markets
Global Markets1 Inc / (Dec) • Net income of $1.7B Summary Income Statement ($MM) 1Q24 4Q23 1Q23 – Excluding net DVA, net income of $1.8B3 Total revenue, net of interest expense2 $5,883 $1,795 $257 • Revenue of $5.9B increased 5% from 1Q23, driven Net DVA (85) 47 (99) by higher investment banking fee
Slide 17: All Other
All Other1 Inc / (Dec) • Net loss of $0.7B Summary Income Statement ($MM) 1Q24 4Q23 1Q23 • Noninterest expense of $1.0B included an accrual Total revenue, net of interest expense ($1,644) $1,824 ($186) of $0.7B for the estimated amount of the FDIC Provision (benefit) for credit losses (11) (35) (118
Slide 18: Supplemental Business Segment Trends
Supplemental Business Segment Trends
Slide 19: Consumer Banking Trends
Consumer Banking Trends Business Leadership1 Total Revenue ($B) Total Expense ($B) and Efficiency (A) • No. 1 in estimated U.S. Retail Deposits $12.0 $6.0 $5.5 $5.5 $5.3 $5.5 60% • No. 1 Online Banking and Mobile Banking $10.7 $10.5 $10.5 $10.3 $5.2 $10.2 Functionality(B) 2.1 2.1 2.1 2.1 • No. 1 Sma
Slide 20: Consumer Digital Update
Consumer1 Digital Update Digital Adoption Client Engagement Digital Users2 and Households3 Digital Channel Usage4,5 Digital Sales6 60 57 100% 3,500 3,400 1,500 2,000 100% 54 56 1,721 1,784 52 3,115 1,623 90% 3,000 2,748 1,250 1,360 50 47 2,579 1,500 75% 45 42 80% 2,500 1,000 40 40 1,000 50% 76% 70%
Slide 21: Global Wealth & Investment Management Trends
Global Wealth & Investment Management Trends Business Leadership1 Average Deposits ($B) Average Loans and Leases ($B) • No. 1 on Forbes’ Best-in-State Wealth Advisors (2023), Top Women Wealth Advisors (2023), Top Women $350 $250 $221 $219 $219 $219 $219 Wealth Advisors Best-in-State (2024), Best-in-
Slide 22: Global Wealth & Investment Management Digital Update
Global Wealth & Investment Management Digital Update Digital Adoption1 Client Engagement Digital Households / Relationships2 Digital Channel Adoption3 eDelivery4 800 100% 100% 100% 748 80% 79% 717 74% 75% 77% 74% 77% 90% 75% 75% 71% 700 688 62% 667 56% 58% 53% 86% 80% 50% 50% 84% 81% 600 79% 70% 25%
Slide 23: Global Banking Trends
Global Banking Trends Business Leadership1 Average Deposits ($B) Average Loans and Leases ($B) (L) • World’s Most Innovative Bank – 2023 $600 $400 $381 $383 $376 $375 $374 • World’s Best Digital Bank, World’s Best Bank for $528 $526 13 13 12 12 12 Financing, North America’s Best Bank for Small to $4
Slide 24: Global Banking Digital Update
Global Banking Digital Update Digital Adoption1 Client Engagement Business Adoption % Mobile App Sign-ins (K)2 CashPro® App Payments 100% Relationship clients: 87% 2,000 $300 8.0 1,752 $246 74% 74% 76% 76% 1,482 75% 1,500 6.0 $200 $174 50% 1,000 931 $136 4.0 651 $100 3.3 3.5 25% 500 $62 2.0 2.4 1.3
Slide 25: Global Markets Trends and Revenue Mix
Global Markets Trends and Revenue Mix Business Leadership1 1Q24 Global Markets Revenue Mix 1Q24 Total FICC Sales and Trading • World's Best Bank for Markets (M) (excl. net DVA)2 Revenue Mix (excl. net DVA)2 • Currency Derivatives House of the Year(S) • Derivatives House & Foreign Exchange Derivative
Slide 26: Additional Presentation Information
Additional Presentation Information
Slide 27: Consumer Credit Update
Consumer Credit Update Consumer Credit Card1 Consumer Vehicle Lending3 New Accounts (K) New Originations ($B) 1,500 $7.5 $7.0 $6.8 $6.8 $6.6 1,187 1,137 $6.1 1,062 998 1,000 889 $5.0 500 $2.5 0 $0.0 1Q23 2Q23 3Q23 4Q23 1Q24 1Q23 2Q23 3Q23 4Q23 1Q24 Key Stats 1Q23 4Q23 1Q24 Key Stats 1Q23 4Q23 1Q24 A
Slide 28: Credit Card Days Past Due Trend
Credit Card Days Past Due Trend Credit Card 30+ Days Past Due ($MM) • Beginning in 4Q20, we saw early stage delinquencies Delinquency rate $3,000 recede below pre-pandemic levels, as expired 2.48% deferrals worked through the delinquency periods and payment rates increased, fueled by stimulus paymen
Slide 29: Commercial Real Estate Loans
Commercial Real Estate Loans Commercial Real Estate as a Percent of: Geographic Distribution ($B) $2.2 21.2% $2.2 3% $6.2 3% 9% $15.7 Northeast $2.9 4% 22% California 12.0% Southeast $6.3 Southwest 9% ~$72B Midwest 6.9% 6.8% Midsouth $14.0 $9.1 19% Northwest 13% Other $13.2 Non-U.S. Total Commercial
Slide 30: 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 31: Notes
Notes B 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) Estimated U.S. retail deposits based on June 30, 2023 FDIC deposit data. (B) Javelin 2023 Online and Mobile Banking Scorecards. (C) FDIC, 4Q23. (D) Global Finance, March 2023. (E) Global Finance, August 2023. (F) Global Finance, October 2023. (G) J.D. Power 2024 Finan
Slide 33: 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 34: 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 35: Bank of America
BANK OF AMERICA