Bank Of America Corporation · NYSE:BAC
Bank Of America — Q1 2021 Earnings Presentation
32 slides from Bank Of America's earnings presentation, Apr 15, 2021
Slide 1: Bank of America 1Q21 Financial Results
Bank of America 1Q21 Financial Results April 15, 2021
Slide 2: We Are in a Position of Strength as the Economy Recovers
We Are in a Position of Strength as the Economy Recovers The Company has grown stronger during the pandemic which supports our Responsible Growth model — More capital, more deposits, record liquidity and improved capital ratios Diverse and complementary businesses are competitive advantage — Mar
Slide 3: Economic Recovery Has Gained Speed
Economic Recovery Has Gained Speed BofA Global Research 2021 GDP Estimate Trend U.S. Unemployment Trend U.S. GDP Global GDP 16% 79% 14% 7.0% 6.5% 12% 6.0% 5.8% 5.6% 5.8% 5.4%5.4% 5.6% 10% 4.6% 3.8% 8% 3.4% Mar-21: 6% 6% 4% 2% 0% Payment Spend Year-over-Year % Change Credit Spend YTD1 Debit Spend YTD
Slide 4: Credit Card Days Past Due Trend
Credit Card Days Past Due Trend Credit Card Days Past Due ($MM) • Early stage credit card delinquencies have $4,000 declined below pre-pandemic levels as deferrals expired and balances declined $3,000 • As expected, increased later-stage Trend delinquencies led to higher credit card net charge-offs
Slide 5: Global Banking Loans and Leases Trend
Global Banking Loans and Leases Trend Global Banking Funded Loans and Leases (EOP, $B) 450 400 350 300 Indexed Funded Loans and Leases by Business1 120 Global Corporate and Investment Banking Global Commercial Banking 110 Business Banking 100 90 80 70 1 EOP loan and lease balances indexed to 100. 5
Slide 6: 1Q21 Financial Results
1Q21 Financial Results Summary Income Statement $ Inc / $ Inc / 1Q21 4Q20 1Q20 ($B, except per share data) (Dec) (Dec) Total revenue, net of interest expense $22.8 $20.1 $2.7 $22.8 $0.1 Provision (benefit) for credit losses (1.9) 0.1 (1.9) 4.8 (6.6) Net charge-offs 0.8 0.9 (0.1) 1.1 (0.3) Reserve bu
Slide 7: 1Q21 Highlights
1Q21 Highlights (Comparisons are to 4Q20 unless otherwise noted) • Diluted earnings per share of $0.86, up 46% • Net income of $8.1B increased $2.6B, or 47%, driven by reserve release and higher noninterest income, partially offset by higher expenses — Revenue of $22.8B increased 14%, as higher noni
Slide 8: Balance Sheet, Liquidity and Capital
Balance Sheet, Liquidity and Capital (EOP basis unless noted) Balance Sheet ($B) 1Q21 4Q20 1Q20 Basel 3 Capital ($B)4 1Q21 4Q20 1Q20 Total assets $2,970.0 $2,819.6 $2,620.0 Common equity tier 1 capital (CET1) $177.8 $176.7 $168.1 Total loans and leases 903.1 927.9 1,050.8 Standardized approach Total
Slide 9: Average Loans and Leases
Average Loans and Leases1 Total Loans and Leases ($B) Total Loans and Leases in All Other ($B) $1,250 $50 $990 $1,031 $974 $935 YoY $37 $1,000 $908 (8%) $40 5 $30 $750 $30 $24 5 $22 YoY $21 4 (43%) $500 $20 4 4 32 $250 25 $10 20 18 17 $0 $0 1Q20 2Q20 3Q20 4Q20 1Q21 1Q20 2Q20 3Q20 4Q20 1Q21 Residenti
Slide 10: Average Deposits
Average Deposits Bank of America Ranked #1 in U.S. Deposit Market Share1 Total Corporation ($B) Consumer Banking ($B) YoY YoY $2,000 $1,806 $1,000 $885 $924 +25% $1,658 $1,695 $1,737 +25% $861 $811 $1,439 $737 $1,500 675 $750 283 295 542 612 646 +61% 276 250 +31% 419 214 $1,000 $500 207 213 224 184
Slide 11: Net Interest Income
Net Interest Income Net Interest Income (FTE, $B)1 • Net interest income of $10.2B ($10.3B FTE1) $15.0 — Decreased $56MM from 4Q20, primarily driven by lower $12.27 loan balances, two fewer accrual days and higher premium $10.98 $10.37 amortization expense, partially offset by higher investment $10.
Slide 12: Expense and Efficiency
Expense and Efficiency Total Noninterest Expense ($B) $15.2 $14.4 $15.5 $15.0 $13.8 $13.2 $13.1 $13.2 $13.3 $13.2 $13.5 $13.4 $13.9 $13.0 2.1 5.8 5.4 5.3 5.0 5.3 5.3 5.1 5.4 6.2 5.7 $10.0 5.3 5.3 5.3 $5.0 9.7 8.5 7.9 7.7 7.7 8.2 8.0 7.8 8.0 8.3 8.0 8.2 8.2 $0.0 1 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4
Slide 13: Asset Quality
Asset Quality Net Charge-offs ($MM)1 • Total net charge-offs of $823MM1 decreased $58MM from 4Q20 $1,250 $1,146 1.00% — Consumer net charge-offs of $693MM increased $211MM, $1,122 driven by Card due to expired deferrals, but were $179MM $972 lower than 1Q20 $1,000 $881 $823 0.75% — Commercial net ch
Slide 14: Asset Quality – Consumer and Commercial Portfolios
Asset Quality – Consumer and Commercial Portfolios Consumer Net Charge-offs ($MM) $1,000 1.50% Consumer Metrics ($MM) 1Q21 4Q20 1Q20 $872 Provision ($756) ($139) $2,093 $734 $693 1.25% $750 Nonperforming loans and leases 3,091 2,725 2,204 $564 1.00% % of loans and leases1 0.75 % 0.64 % 0.47 % $482 $
Slide 15: Consumer Banking
Consumer Banking Inc / (Dec) • Net income of $2.7B increased $0.9B, or 50%, from 1Q20, driven by Summary Income Statement ($MM) 1Q21 4Q20 1Q20 lower provision for credit losses, reflecting a strong reserve release as Total revenue, net of interest expense $8,069 ($173) ($1,060) the macroeconomic out
Slide 16: Consumer Banking Trends
Consumer Banking Trends Business Leadership1 Total Revenue ($B) Total Expense ($B) and Efficiency • #1 Consumer Deposit Market Share(A) • #1 Small Business Lender(B) $10.0 $9.1 $6.0 75% $8.0 $8.2 $8.1 $5.1 $7.9 $4.8 $4.8 • #1 Online Banking and Mobile Banking $4.5 $4.7 Functionality(C) $8.0 2.3 64%
Slide 17: More Than 40MM Digital Users, ~1MM Added in 1Q21
More Than 40MM Digital Users, ~1MM Added in 1Q21 Digital Banking Users and Households1,2 Digital Channel Usage3,4 Digital % of Total Sales 45.0 100% 3,000 1,000 60% 40.3 2,579 49% 39.1 2,600 50% 40.0 37.0 90% 786 800 35.5 2,166 2,200 1,953 40% 33% 35.0 80% 1,846 586 600 30% 30% 1,800 523 30% 30.0 70
Slide 18: Global Wealth & Investment Management
Global Wealth & Investment Management Inc / (Dec) Summary Income Statement ($MM) 1Q21 4Q20 1Q20 • Net income of $0.9B increased $20MM from 1Q20 Total revenue, net of interest expense $4,971 $294 $35 — Pretax margin of 23% in 1Q21 Provision (benefit) for credit losses (65) (73) (254) • Revenue of $5.
Slide 19: Global Wealth & Investment Management Trends
Global Wealth & Investment Management Trends Business Leadership1 Average Deposits ($B) Average Loans and Leases ($B)2 • #1 in Barron’s Top 1,200 ranked Financial Advisors (2021) and Top 100 Women Advisors (2020) $350 $306 $326 $182 $186 $187 $188 $287 $292 $200 $179 • #1 in Forbes’ Top Next Generat
Slide 20: The Value of Digitally Engaged Wealth Management Relationships
The Value of Digitally Engaged Wealth Management Relationships Record online and mobile adoption in 1Q21 Digital is the key channel for clients interactions • Record 80% of Merrill Lynch households actively using online or • 315K forms signed in Merrill Lynch via eSignature process in 1Q21; mobile p
Slide 21: Global Banking
Global Banking Inc/(Dec) Summary Income Statement ($MM) 1Q21 4Q20 1Q20 • Net income of $2.2B increased $2.0B from 1Q20, due to a lower provision for credit losses Total revenue, net of interest expense 1 $4,633 ($146) $33 Provision (benefit) for credit losses (1,126) (1,174) (3,219) • Revenue of $4.
Slide 22: Global Banking Trends
Global Banking Trends Business Leadership1 Average Deposits ($B) Average Loans and Leases ($B)2 • North America’s Best Bank for Small to $494 $471 $478 $487 Medium-sized Enterprises(L) $500 $500 $424 • Best Global Bank for Cash Management and $382 $386 $373 Payments & Collections(M) $400 40% 35% 34%
Slide 23: Global Banking Digital Update
Global Banking Digital Update Creating an innovative digital experience for our clients Active Digital Clients 74% Digitally Active Clients Online Mobile Connect API across commercial, corporate, and business banking clients (CashPro® & BA360 platforms) 3% YoY1 Customer Engagement Volume 37% 99% $21
Slide 24: Global Markets
Global Markets Inc/(Dec) Summary Income Statement ($MM) 1Q21 4Q20 1Q20 • Net income of $2.1B increased $0.3B from 1Q20 Total revenue, net of interest expense 1 $6,198 $2,291 $972 — Excluding net DVA, net income of $2.1B increased 39%2 Net DVA (2) 54 (302) • Revenue of $6.2B increased 19% from 1Q20;
Slide 25: Global Markets Trends and Revenue Mix
Global Markets Trends and Revenue Mix Business Leadership1 1Q21 Global Markets Revenue Mix 1Q21 Total FICC S&T Revenue Mix (excl. net DVA)2 (excl. net DVA)2 • CMBS Bank of the Year(O) • Equity Derivatives House of the Year(P) • #2 Global Research Firm(Q) • #2 Global Fixed Income Research Team(Q) • #
Slide 26: All Other
All Other1 Inc/(Dec) Summary Income Statement ($MM) 1Q21 4Q20 1Q20 • Net income of $257MM in 1Q21 vs. net loss of $487MM in 1Q20, reflecting a larger tax benefit related to tax credits associated with Total revenue, net of interest expense ($939) $454 $41 increased ESG activities Provision (benefit)
Slide 27: Appendix
Appendix 27
Slide 28: 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 29: Sources
Sources A Estimated retail consumer deposits based on June 30, 2020 FDIC deposit data. B FDIC, 4Q20. C Keynova 4Q20 Online Banker Scorecard; Keynova 1Q21 Mobile Banker Scorecard; Javelin 2020 Online and Mobile Banking Scorecards. D Experian Autocount; Franchised Dealers; Largest percentage of 680+ V
Slide 30: 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 31: 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 32: Bank of America
BANK OF AMERICA “