Bank Of America Corporation · NYSE:BAC
Bank Of America — Q3 2024 Earnings Presentation
35 slides from Bank Of America's earnings presentation, Oct 15, 2024
Slide 1: Bank of America 3Q24 Financial Results
Bank of America 3Q24 Financial Results October 15, 2024
Slide 2: 3Q24 Financial Results
3Q24 Financial Results Summary Income Statement 3Q24 2Q24 Inc / (Dec) 3Q23 Inc / (Dec) ($B, except per share data) Total revenue, net of interest expense $25.3 $25.4 $— — % $25.2 $0.2 1 % Provision for credit losses 1.5 1.5 — 2 1.2 0.3 25 Net charge-offs 1.5 1.5 — — 0.9 0.6 65 Reserve build (release
Slide 3: Continued Organic Growth in 3Q24
Continued Organic Growth in 3Q24 Consumer Banking Global Wealth & Investment Management Added ~360,000 net new checking accounts; Added ~5,500 net new relationships across Merrill 23 consecutive quarters of growth and Private Bank Added ~1MM credit card accounts1 Opened ~30,000 new bank accounts; ov
Slide 4: 3Q24 Digital Update
3Q24 Digital Update Additional line of business digital updates on slides 25, 27, and 29 Creating an innovative digital experience for our clients Digital Adoption %1 Online Mobile Connect API Consumer GWIM Global Banking 77% Merrill 84% | Private Bank 92% 87% Client Engagement YoY YoY YoY 48MM digi
Slide 5: 3Q24 Highlights
3Q24 Highlights (Comparisons to 3Q23, unless otherwise noted) • Net income of $6.9B; diluted earnings per share of $0.81; ROE1 9.4%, ROTCE2 12.8% • Revenue, net of interest expense, of $25.3B ($25.5B FTE)2 increased $0.2B, or 1%, reflecting higher asset management and investment banking fees, as wel
Slide 6: Balance Sheet, Liquidity, and Capital
Balance Sheet, Liquidity, and Capital (EOP1 basis unless noted) Balance Sheet Metrics 3Q24 2Q24 3Q23 Basel 3 Capital ($B)4 3Q24 2Q24 3Q23 Assets ($B) Common equity tier 1 capital $200 $198 $194 Total assets $3,324 $3,258 $3,153 Standardized approach Total loans and leases 1,076 1,057 1,049 Risk-weig
Slide 7: Average Deposits and Rate Paid Trends
Average Deposits and Rate Paid Trends Total Corporation ($B) Consumer Banking ($B) $2,250 4.00% $1,200 4.00% $1,963 $1,926 $1,069 $1,047 $1,894 $1,875 $1,876 $1,905 $1,907 $1,910 $1,921 $1,026 $1,006 $980 $959 $952 $949 $938 3.00% 3.00% $1,500 $800 2.10% 2.00% 2.00% $750 $400 1.00% 1.00% 0.65% $0 0.
Slide 8: Average Loan and Lease Trends
Average Loan and Lease Trends Total Loans and Leases ($B) Total Loans and Leases by Portfolio ($B) $1,100 YoY $750 $1,051 $1,048 $1,051 $1,060 +1% $1,046 $596 $602 $589 $592 $591 $1,000 $500 $457 $459 $456 $456 $458 $900 $250 $800 $0 3Q23 4Q23 1Q24 2Q24 3Q24 3Q23 4Q23 1Q24 2Q24 3Q24 Consumer Commerc
Slide 9: Net Interest Income
Net Interest Income Net Interest Income (FTE, $B)1 • Net interest income of $14.0B ($14.1B FTE)1 $14.5 $14.1 $14.2 $14.1 – Increased $0.3B from 2Q24, driven by fixed-rate asset $15.0 $13.9 repricing, higher NII related to Global Markets (GM) activity, and one additional day of interest accrual, part
Slide 10: Expense and Efficiency
Expense and Efficiency Total Noninterest Expense ($B) $20.0 $17.7 $17.2 $16.5 $15.8 $16.3 2.1 0.7 0.7 6.3 6.1 6.3 6.5 6.6 $10.0 $15.61 $16.51 9.6 9.5 10.2 9.8 9.9 $0.0 3Q23 4Q23 1Q24 2Q24 3Q24 Compensation and benefits Other FDIC special assessment Efficiency Ratio 70% 66% 64% 65% 64% 65% 63% 60% 55
Slide 11: Asset Quality
Asset Quality Net Charge-offs ($MM)1 • Total net charge-offs of $1.5B were flat vs. 2Q241 $1,600 $1,498 $1,533 $1,534 1.00% – Consumer net charge-offs of $1.0B decreased $15MM, driven by lower credit card losses $1,192 ▪ Credit card loss rate of 3.70% in 3Q24 $1,200 0.75% vs. 3.88% in 2Q24 $931 – Co
Slide 12: Asset Quality – Consumer and Commercial Portfolios
Asset Quality – Consumer and Commercial Portfolios Consumer Net Charge-offs ($MM) Consumer Metrics ($MM) 3Q24 2Q24 3Q23 Provision $1,125 $1,094 $1,218 $1,200 1.50% $1,028 $1,059 $1,044 Nonperforming loans and leases 2,677 2,671 2,792 $913 $804 % of loans and leases1 0.58 % 0.58 % 0.61 % $800 1.00% C
Slide 13: Consumer Banking
Consumer Banking Inc / (Dec) • Net income of $2.7B Summary Income Statement ($MM) 3Q24 2Q24 3Q23 • Revenue of $10.4B decreased 1% from 3Q23 Total revenue, net of interest expense $10,418 $212 ($54) • Provision for credit losses of $1.3B decreased $95MM, Provision for credit losses 1,302 21 (95) or 7
Slide 14: Global Wealth & Investment Management
Global Wealth & Investment Management Inc / (Dec) • Net income of $1.1B Summary Income Statement ($MM) 3Q24 2Q24 3Q23 • Revenue of $5.8B increased 8% from 3Q23, driven by Total revenue, net of interest expense $5,762 $188 $441 14% higher asset management fees, due to higher Provision (benefit) for c
Slide 15: Global Banking
Global Banking Inc / (Dec) • Net income of $1.9B Summary Income Statement ($MM) 3Q24 2Q24 3Q23 • Revenue of $5.8B decreased 6% from 3Q23, driven Total revenue, net of interest expense1 $5,834 ($219) ($369) primarily by lower net interest income Provision (benefit) for credit losses 229 (6) 348 – Tot
Slide 16: Global Markets
Global Markets1 Inc / (Dec) • Net income of $1.5B ($1.6B excluding net DVA)3 Summary Income Statement ($MM) 3Q24 2Q24 3Q23 • Revenue of $5.6B increased 14% from 3Q23, driven Total revenue, net of interest expense2 $5,630 $171 $688 by higher sales and trading revenue and investment Net DVA (8) (7) 8
Slide 17: All Other
All Other1 Inc / (Dec) • Net loss of $0.3B Summary Income Statement ($MM) 3Q24 2Q24 3Q23 • Revenue of ($2.2B) declined $0.5B from 3Q23 and Total revenue, net of interest expense ($2,152) ($397) ($534) included a charge in other income of approximately Provision (benefit) for credit losses (3) (1) 21
Slide 18: Additional Presentation Information
Additional Presentation Information
Slide 19: Commercial Real Estate Loans
Commercial Real Estate Loans 6.4% of Total Loans and Leases Distribution by Property Type ($B) Geographic Distribution ($B) Office Industrial / Warehouse $2.2 Multi-family rental Shopping centers / Retail $1.9 3% $6.6 Hotel / Motels Multi-use 3% $2.7 10% $15.7 Northeast Residential Other 23% Califor
Slide 20: Average Deposit Trends
Average Deposit Trends Bank of America Ranked #1 in U.S. Retail Deposit Market Share1 Total Corporation ($B) Consumer Banking ($B) $2,250 QoQ vs. 4Q19 $1,200 $1,876 $1,905 $1,907 $1,910 $1,921 +1% +36% $980 $959 QoQ vs. 4Q19 $952 $949 $938 (1%) +30% 543 521 514 507 (1%) +24% $1,500 $1,410 565 $800 $
Slide 21: Managing Excess Deposits
Managing Excess Deposits Deposits in Excess of Loans (EOP, $B) Cash and Securities Portfolios ($B)1 $2.5T $1,331 $1,199 $1,188 348 321 295 308 $1,085B $855B $634 301 325 $451B 162 256 675 577 568 216 $0.5T 4Q19 4Q21 3Q24 4Q19 4Q21 3Q24 Deposits Loans Deposits in excess of loans HTM securities AFS &
Slide 22: Supplemental Business Segment Trends
Supplemental Business Segment Trends
Slide 23: Consumer Banking Trends
Consumer Banking Trends Business Leadership1 Total Revenue ($B) Total Expense ($B) and Efficiency • No. 1 in estimated U.S. Retail $12.0 $6.0 $5.5 70% Deposits(A) $10.5 $10.3 $10.2 $10.2 $10.4 $5.3 $5.2 $5.5 $5.5 • No. 1 Small Business Lender(B) 2.1 2.1 2.0 2.1 2.1 • Best Bank in North America(C) $8
Slide 24: Consumer Credit Update
Consumer Credit Update Consumer Credit Card1 Consumer Vehicle Lending4 New Accounts (K) New Originations ($B) 1,500 $10.0 $7.9 1,062 998 970 $6.8 $6.6 889 951 $7.5 $6.1 $6.0 1,000 $5.0 500 $2.5 0 $0.0 3Q23 4Q23 1Q24 2Q24 3Q24 3Q23 4Q23 1Q24 2Q24 3Q24 Key Stats 3Q23 2Q24 3Q24 Key Stats 3Q23 2Q24 3Q24
Slide 25: Consumer Digital Update
Consumer1 Digital Update Digital Adoption Client Engagement Digital Users2 and Households3 Digital Channel Usage4 Digitally-Enabled Sales5 60 57 58 100% 4,000 2,000 1,855 1,809 100% 56 3,616 54 90% 3,244 1,503 50 46 48 2,954 1,500 1,367 75% 43 3,000 2,635 41 80% 40 1,000 50% 77% 70% 54% 72% 74% 2,00
Slide 26: Global Wealth & Investment Management Trends
Global Wealth & Investment Management Trends Business Leadership1 Average Deposits ($B) Average Loans and Leases ($B) • No. 1 on Forbes' Top Women Wealth Advisors (2024), $292 $292 $297 $288 Best-in-State Wealth Management Teams (2024), $300 $280 $250 $223 $225 and Top Next Generation Advisors (2024
Slide 27: Global Wealth & Investment Management Digital Update
Global Wealth & Investment Management Digital Update Digital Adoption1 Client Engagement Digital Households / Relationships2 Digital Channel Adoption3 eDelivery4 750 741 100% 100% 100% 716 80% 76% 76% 74% 76% 78% 72% 72% 700 90% 75% 75% 668 672 60% 62% 53% 57% 650 84% 80% 50% 50% 83% 80% 78% 600 70%
Slide 28: Global Banking Trends
Global Banking Trends Business Leadership1 Average Deposits ($B) Average Loans and Leases ($B) (F) • World’s Most Innovative Bank – 2024 $600 $550 $400 $376 $375 $374 $373 $371 • World’s Best Bank for Trade Finance and for FX $528 $526 $525 payments; North America’s Best Digital Bank and Best $504 B
Slide 29: 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 $283 8.0 Relationship clients: 87% 2,042 74% 76% 75% 76% 2,000 75% 1,629 $192 6.0 $200 1,500 $164 1,199 50% 4.0 848 $101 4.3 1,000 $100 3.6 25% 3.0 2.0
Slide 30: Global Markets Trends and Revenue Mix
Global Markets Trends and Revenue Mix Business Leadership1 2024 YTD Global Markets Revenue Mix 2024 YTD 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) • Americas Derivatives House of the Year(M) • Americas Equi
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) Estimated U.S. retail deposits based on June 30, 2024 FDIC deposit data. (B) FDIC, 2Q24. (C) Global Finance, April 2024. (D) Global Finance, October 2023. (E) J.D. Power 2024 Financial Health Support CertificationSM is based on exceeding customer experience benchmarks
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