Bank of America : 2Q24 Earnings 8-K

As filed with the Securities and Exchange Commission on July 16, 2024

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(d) OF THE

SECURITIES EXCHANGE ACT OF 1934

Date of Report (Date of earliest event reported):

July 16, 2024

BANK OF AMERICA CORPORATION

(Exact name of registrant as specified in its charter)

Delaware	1-6523	56-0906609
(State or Other Jurisdiction of Incorporation)	(Commission File Number)	(IRS Employer Identification No.)
	100 North Tryon Street
	Charlotte, North Carolina 28255
	(Address of principal executive offices)

[phone]

(Registrant's telephone number, including area code)

Not Applicable

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

• Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
• Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
• Pre-commencementcommunications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
• Pre-commencementcommunications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, par value $0.01 per share	BAC	New York Stock Exchange
Depositary Shares, each representing a 1/1,000th interest in a share of	BAC PrE	New York Stock Exchange
Floating Rate Non-Cumulative Preferred Stock, Series E
Depositary Shares, each representing a 1/1,000th interest in a share of	BAC PrB	New York Stock Exchange
6.000% Non-Cumulative Preferred Stock, Series GG
Depositary Shares, each representing a 1/1,000th interest in a share of	BAC PrK	New York Stock Exchange
5.875% Non-Cumulative Preferred Stock, Series HH
7.25% Non-Cumulative Perpetual Convertible Preferred Stock, Series L	BAC PrL	New York Stock Exchange
Depositary Shares, each representing a 1/1,200th interest in a share of	BML PrG	New York Stock Exchange
Bank of America Corporation Floating Rate Non-Cumulative
Preferred Stock, Series 1
Depositary Shares, each representing a 1/1,200th interest in a share of	BML PrH	New York Stock Exchange
Bank of America Corporation Floating Rate Non-Cumulative
Preferred Stock, Series 2
Depositary Shares, each representing a 1/1,200th interest in a share of	BML PrJ	New York Stock Exchange
Bank of America Corporation Floating Rate Non-Cumulative
Preferred Stock, Series 4
Depositary Shares, each representing a 1/1,200th interest in a share of	BML PrL	New York Stock Exchange
Bank of America Corporation Floating Rate Non-Cumulative
Preferred Stock, Series 5
Floating Rate Preferred Hybrid Income Term Securities of BAC Capital	BAC/PF	New York Stock Exchange
Trust XIII (and the guarantee related thereto)
5.63% Fixed to Floating Rate Preferred Hybrid Income Term Securities	BAC/PG	New York Stock Exchange
of BAC Capital Trust XIV (and the guarantee related thereto)
Income Capital Obligation Notes initially due December 15, 2066 of	MER PrK	New York Stock Exchange
Bank of America Corporation
Senior Medium-Term Notes, Series A, Step Up Callable Notes, due	BAC/31B	New York Stock Exchange
November 28, 2031 of BofA Finance LLC (and the guarantee of the
Registrant with respect thereto)
Depositary Shares, each representing a 1/1,000th interest in a share of	BAC PrM	New York Stock Exchange
5.375% Non-Cumulative Preferred Stock, Series KK
Depositary Shares, each representing a 1/1,000th interest in a share of	BAC PrN	New York Stock Exchange
5.000% Non-Cumulative Preferred Stock, Series LL
Depositary Shares, each representing a 1/1,000th interest in a share of	BAC PrO	New York Stock Exchange
4.375% Non-Cumulative Preferred Stock, Series NN
Depositary Shares, each representing a 1/1,000th interest in a share of	BAC PrP	New York Stock Exchange
4.125% Non-Cumulative Preferred Stock, Series PP
Depositary Shares, each representing a 1/1,000th interest in a share of	BAC PrQ	New York Stock Exchange
4.250% Non-Cumulative Preferred Stock, Series QQ
Depositary Shares, each representing a 1/1,000th interest in a share of	BAC PrS	New York Stock Exchange
4.750% Non-Cumulative Preferred Stock, Series SS

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR 230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR 240.12b-2).

Emerging growth company

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

☐

☐

ITEM 2.02. RESULTS OF OPERATIONS AND FINANCIAL CONDITION.

On July 16, 2024, Bank of America Corporation (the "Corporation") announced financial results for the second quarter ended June 30, 2024, reporting second quarter net income of $6.9 billion, or $0.83 per diluted share. A copy of the press release announcing the Corporation's results for the second quarter ended June 30, 2024 (the "Press Release") is attached hereto as Exhibit 99.1 and is incorporated by reference in this Item 2.02. The Press Release is available on the Corporation's website.

The information provided in Item 2.02 of this report, including Exhibit 99.1, shall be deemed to be "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended.

ITEM 7.01. REGULATION FD DISCLOSURE.

On July 16, 2024, the Corporation will hold an investor conference call and webcast to discuss financial results for the second quarter ended June 30, 2024, including the Press Release and other matters relating to the Corporation.

The Corporation has also made available on its website presentation materials containing certain historical and forward-looking information relating to the Corporation (the "Presentation Materials") and materials that contain additional information about the Corporation's financial results for the second quarter ended June 30, 2024 (the "Supplemental Information"). The Presentation Materials and the Supplemental Information are furnished herewith as Exhibit 99.2 and Exhibit 99.3, respectively, and are incorporated by reference in this Item 7.01. All information in Exhibits 99.2 and 99.3 is presented as of the particular date or dates referenced therein, and the Corporation does not undertake any obligation to, and disclaims any duty to, update any of the information provided.

The information provided in Item 7.01 of this report, including Exhibits 99.2 and 99.3, shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, nor shall the information or Exhibits 99.2 or 99.3 be deemed incorporated by reference in any filings under the Securities Act of 1933, as amended.

ITEM 9.01. FINANCIAL STATEMENTS AND EXHIBITS.

(d) Exhibits.

Exhibit 99.1 is filed herewith. Exhibits 99.2 and 99.3 are furnished herewith.

EXHIBIT NO.

DESCRIPTION OF EXHIBIT

1. The Press Release
2. The Presentation Materials
3. The Supplemental Information

104	Cover Page Interactive Data File (embedded in the cover page formatted in Inline XBRL)

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the Corporation has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

BANK OF AMERICA CORPORATION

By:	/s/ Rudolf A. Bless
	Rudolf A. Bless
	Chief Accounting Officer

Dated: July 16, 2024

Bank of America Reports 2Q24 Net Income of $6.9 Billion, EPS of $0.83 Revenue Improved YoY to $25.4 Billion,1 led by Noninterest Income, up 6% to $11.7 Billion

CET1 Ratio of 11.9%; Book Value Per Share of $34.39 Grew 7% YoY

2Q24 Financial Highlights2(A)

• Net income of $6.9 billion, or $0.83 per diluted share, compared to $7.4 billion, or $0.88 per diluted share in 2Q23
• Revenue, net of interest expense, of $25.4 billion increased $180 million, or 1%, reflecting higher asset management and investment banking fees, as well as sales and trading revenue, and lower net interest income (NII)
• • NII decreased 3% to $13.7 billion ($13.9 billion FTE),(B) as higher deposit costs more than offset higher asset yields and modest loan growth
• Provision for credit losses of $1.5 billion, up from $1.3 billion in 1Q24 and $1.1 billion in 2Q23
• • Net charge-offs of $1.5 billion were relatively flat from 1Q24 and up from $869 million in 2Q23
  • Net reserve release of $25 million vs. $179 million in 1Q24 and net reserve build of $256 million in 2Q23(C)
• Noninterest expense of $16.3 billion increased $271 million, or 2%, driven by investments in people and revenue-related compensation
• Average deposit balances of $1.91 trillion increased $35 billion, or 2%
• Average loans and leases of $1.05 trillion increased modestly vs. 2Q23
• Average Global Liquidity Sources of $909 billion(D)
• Common equity tier 1 (CET1) capital of $198 billion increased $1 billion from 1Q24
• CET1 ratio of 11.9% (Standardized);(E) 122 bps above the new regulatory minimum that takes effect Oct. 1, 2024
• Returned $5.4 billion to shareholders; $1.9 billion through common stock dividends and $3.5 billion in share repurchases5
• Book value per common share rose 7% to $34.39; tangible book value per common share rose 9% to $25.376
• Return on average common shareholders' equity (ROE) ratio of 10.0%; return on average tangible common shareholders' equity (ROTCE) ratio of 13.6%6

From Chair and CEO Brian Moynihan:

"Our team produced another strong quarter, serving a growing client base. The strength and earnings power of our leading Consumer Banking business is complemented by the growth and profitability of our Global Markets, Global Banking, and Wealth Management businesses. Our Global Markets business delivered its ninth consecutive quarter of year-over-year revenue growth in sales and trading, earning double-digit returns. Our investments in this business are delivering for our shareholders."

2Q24 Business Segment Highlights2,3(A)

Consumer Banking

• Net income of $2.6 billion
• Revenue of $10.2 billion, down 3%
• Average deposits of $949 billion, down 6%; up 32% from pre-pandemic 4Q19
• Average loans and leases of $312 billion increased $6 billion, or 2%
• Combined credit / debit card spend of $234 billion, up 3%
• Client Activity
• • Added ~278,000 net new consumer checking accounts in 2Q24; 22nd consecutive quarter of growth
  • Record 37.2 million consumer checking accounts with 92% being primary4
  • Small business checking accounts of 3.9 million, up 1%
  • Record consumer investment assets of $476 billion grew 23%, including $38 billion of net client flows since 2Q23
  • Digital logins of 3.5 billion; digital sales represented 53% of total sales

Global Wealth and Investment Management

• Net income of $1.0 billion
• Revenue of $5.6 billion increased 6%
• Record client balances of more than $4 trillion increased 10%, driven by higher market valuations and positive net client flows
• AUM flows of $11 billion in 2Q24
• Client Activity
• • Added ~6,100 net new relationships across Merrill and Private Bank
  • AUM balances of $1.8 trillion, up $228 billion
  • 75% of Merrill eligible bank and brokerage accounts opened digitally

Global Banking

• Net income of $2.1 billion
• Total investment banking fees (excl. self-led) of $1.6 billion, up 29%
• No. 3 in investment banking fees7
• Average deposits of $525 billion increased $28 billion, or 6%
• Grew Middle Market ending loan balances 4%8

Global Markets

• Net income of $1.4 billion
• Sales and trading revenue up 9% to $4.7 billion, including net debit valuation adjustment (DVA) losses of $1 million; Fixed Income, Currencies and Commodities (FICC) revenue up 3% to $2.7 billion, and Equities revenue up 20% to $1.9 billion
• Excluding net DVA,(F) sales and trading revenue up 7% to $4.7 billion; FICC revenue down 1% to $2.7 billion, and Equities revenue up 20% to $1.9 billion
• Zero days of trading losses in 2Q24

See pages 10 and 11 for endnotes. Amounts may not total due to rounding.

• Revenue, net of interest expense.

• Financial Highlights and Business Segment Highlights are compared to the year-ago quarter unless noted.

• The Corporation reports the results of operations of its four business segments and All Other on a fully taxable-equivalent (FTE) basis.

• Represents the percentage of consumer checking accounts that are estimated to be the customer's primary account based on multiple relationship factors (e.g., linked to their direct deposit).

• Includes repurchases to offset shares awarded under equity-based compensation plans.

• Tangible book value per common share and return on average tangible common shareholders' equity ratio represent non-GAAP financial measures. For more

information, see page 20.
7 Source: Dealogic as of June 30, 2024.
8 Includes loans to Global Commercial Banking clients, excluding commercial real estate and specialized industries.	1

From Chief Financial Officer Alastair Borthwick:

"Our net income was $6.9 billion, and we returned $5.4 billion to shareholders through common stock dividends and share repurchases. We announced plans for an eight percent increase in our quarterly common stock dividend, to 26 cents per share, pending Board approval. Our diverse businesses leveraged our innovative platforms and services, attracting new client relationships and delivering for our clients, shareholders and the communities we serve."

Bank of America Financial Highlights

	Reported	Reported	Adjusted1	Reported
($ in billions, except per share data)	2Q24	1Q24	1Q24	2Q23
Total revenue, net of interest expense	$25.4	$25.8	$25.8	$25.2
Provision for credit losses	1.5	1.3	1.3	1.1
Noninterest expense	16.3	17.2	16.5	16.0
Pretax income	7.6	7.3	8.0	8.0
Pretax, pre-provision income2(H)	9.1	8.6	9.3	9.2
Income tax expense	0.7	0.6	0.8	0.6
Net income	6.9	6.7	7.2	7.4
Diluted earnings per share	$0.83	$0.76	$0.83	$0.88
Return on average assets	0.85 %	0.83 %	0.89 %	0.94 %
Return on average common shareholders' equity	10.0	9.4	10.2	11.2
Return on average tangible common shareholders' equity2	13.6	12.7	13.8	15.5
Efficiency ratio	64	67	64	64

• Amounts in this column (other than total revenue, net of interest expense, and provision for credit losses) are adjusted for the FDIC special assessment accrual. Adjusted amounts represent non-GAAP financial measures. For additional information and a reconciliation of these non-GAAPfinancial measures to the most directly comparable GAAP financial measures, see Endnote G on page 11.

• Pretax, pre-provision income and return on average tangible common shareholders' equity represent non-GAAP financial measures. For more information, see page 20.

Spotlight on Average Deposits and Common Equity Tier 1 Capital ($B)

	Average Deposits		Common Equity Tier 1 Capital 1
	$1,905	$1,907	$1,910	$194	$195	$197	$198
$1,875	$1,876			$190
				11.9%	11.8%	11.9%	11.9%
				11.6%

2Q23 3Q23 4Q23 1Q24 2Q24 2Q23 3Q23 4Q23 1Q24 2Q24

Common Equity Tier 1 capital

Common Equity Tier 1 capital ratio

1 Common equity tier 1 capital ratio under the Standardized approach. For additional information on regulatory capital ratios, see Endnote E on page 10.

2

Consumer Banking1,2

• Net income of $2.6 billion
• Revenue of $10.2 billion decreased 3%, driven primarily by the impact of lower deposit balances
• Provision for credit losses of $1.3 billion was relatively flat vs. 2Q23
• • Net charge-offs of $1.2 billion increased $369 million, driven by credit card
  • Net reserve build of $93 million(C) in 2Q24 vs. $448 million in 2Q23
• Noninterest expense of $5.5 billion was relatively flat
• • Efficiency ratio of 54%

Business Highlights1,3(A)

• Average deposits of $949 billion decreased $57 billion, or 6%
• • 58% of deposits in checking accounts;
    92% are primary accounts4
• Average loans and leases of $312 billion increased $6 billion, or 2%
• Combined credit / debit card spend of $234 billion increased 3%
• Record consumer investment assets5 of $476 billion grew $89 billion, or 23%, driven by $38 billion of net client flows from new and existing clients and higher market valuations
• • 3.9 million consumer investment accounts, up
    6%
• 11.1 million Total clients enrolled in Preferred Rewards, up 7%, with 99% annualized retention rate6

Strong Digital Usage Continued1

• Record 77% of overall households7 actively using digital platforms
• 47 million active digital banking users, up 3%, or
  1.6 million
• 1.7 million digital sales, representing 53% of total sales
• Record 3.5 billion digital logins, up 10%
• New Zelle® records: 22.6 million active users, up 11%; sent and received 382 million transactions, worth $115 billion, both up 26%8
• Clients booked more than 796,000 digital appointments

Financial Results
	Three months ended
($ in millions)	6/30/2024	3/31/2024	6/30/2023
Total revenue2	$10,206	$10,166	$10,524
Provision for credit losses	1,281	1,150	1,267
Noninterest expense	5,464	5,475	5,453
Pretax income	3,461	3,541	3,804
Income tax expense	866	885	951
Net income	$2,595	$2,656	$2,853
Business Highlights(A)
	Three months ended
($ in billions)	6/30/2024	3/31/2024	6/30/2023
Average deposits	$949.2	$952.5	$1,006.3
Average loans and leases	312.3	313.0	306.7
Consumer investment assets	476.1	456.4	386.8
(EOP)5
Active mobile banking users	39.0	38.5	37.3
(MM)
Number of financial centers	3,786	3,804	3,887
Efficiency ratio	54 %	54 %	52 %
Return on average allocated	24	25	27
capital
Total Consumer Credit Card3
Average credit card	$99.0	$99.8	$94.4
outstanding balances
Total credit / debit spend	233.6	219.4	226.1
Risk-adjusted margin	6.8 %	6.8 %	7.8 %

Continued Business Leadership

• No. 1 in estimated U.S. Retail Deposits(a)
• No. 1 Small Business Lender(b)
• Best Bank in North America(c)
• Best Bank in the U.S.(c)
• Best Consumer Digital Bank in the U.S. - Best Integrated Consumer Banking Site & Best Mobile Banking App(d)
• Best Bank in the U.S. for Small and Medium Enterprises(e)
• Certified by J.D. Power for Outstanding Client Satisfaction with Customer Financial Health Support - Banking & Payments(f)

See page 12 for Business Leadership sources.

• Comparisons are to the year-ago quarter unless noted.
  2 Revenue, net of interest expense.
  3 The Consumer credit card portfolio includes Consumer Banking and GWIM.
  4 Represents the percentage of consumer checking accounts that are estimated to be the customer's primary account based on multiple relationship factors (e.g., linked to their direct deposit).
  5 Consumer investment assets includes client brokerage assets, deposit sweep balances, Bank of America, N.A. brokered CDs, and AUM in Consumer Banking.
  6 As of May 2024. Includes clients in Consumer, Small Business and GWIM.
  7 Household adoption represents households with consumer bank login activities in a 90-day period, as of May 2024.
  8 Includes Bank of America person-to-person payments sent and received through e-mail or mobile identification. Zelle® users represent 90-day active users.

3

Global Wealth and Investment Management1,2

• Net income of $1.0 billion
• Revenue of $5.6 billion increased 6%, driven by 14% higher asset management fees, due to higher market levels and strong AUM flows, partially offset by lower NII
• Noninterest expense of $4.2 billion increased 7%, driven by revenue-related incentives

Business Highlights1(A)

• Record client balances of more than $4 trillion increased 10%, driven by higher market valuations and positive net client flows
  - AUM flows of $11 billion in 2Q24
• Average deposits of $288 billion decreased $8 billion, or 3%
• Average loans and leases of $223 billion increased $4 billion, or 2%

Merrill Wealth Management Highlights1 Client Engagement

• Record client balances of $3.4 trillion(A)
• AUM balances of $1.4 trillion
• ~5,500 net new households in 2Q24

Strong Digital Usage Continued

• 85% of Merrill households digitally active3 across the enterprise
• • 62% of Merrill households mobile active across the enterprise
• 81% of households enrolled in eDelivery4
• 75% of eligible checks deposited through automated channels5
• 75% of eligible bank and brokerage accounts opened through digital onboarding in 2Q24, up from 64% a year ago

Bank of America Private Bank Highlights1 Client Engagement

• Record client balances of $640 billion(A)
• AUM balances of $385 billion
• ~630 net new relationships in 2Q24

Strong Digital Usage Continued

• 92% of clients digitally active6 across the enterprise
• 76% of eligible checks deposited through automated channels5
• Clients continued leveraging the convenience and effectiveness of our digital capabilities:
• • Digital wallet transactions up 44%
  • Zelle® transactions up 33%

Financial Results
	Three months ended
($ in millions)	6/30/2024	3/31/2024	6/30/2023
Total revenue2	$5,574	$5,591	$5,242
Provision (benefit) for	7	(13)	13
credit losses
Noninterest expense	4,199	4,264	3,925
Pretax income	1,368	1,340	1,304
Income tax expense	342	335	326
Net income	$1,026	$1,005	$978
Business Highlights(A)
	Three months ended
($ in billions)	6/30/2024	3/31/2024	6/30/2023
Average deposits	$287.7	$297.4	$295.4
Average loans and leases	222.8	218.6	218.6
Total client balances (EOP)	4,011.9	3,973.4	3,635.2
AUM flows	10.8	24.7	14.3
Pretax margin	25 %	24 %	25 %
Return on average allocated	22	22	21
capital

Continued Business Leadership

• No. 1 on Forbes' Best-in-State Wealth Advisors (2023), Top Women Wealth Advisors (2024), and Top Next Generation Advisors (2023)
• No. 1 on Barron's Top 1200 Wealth Financial Advisors List (2024)
• No. 1 on Financial Planning's 'Top 40 Advisors Under 40' List (2024)
• No. 1 in personal trust AUM(b)
• Best Private Bank (U.S.); Best Private Bank for Philanthropic Services and Sustainable Investing (North America)(g)
• Best Private Bank in the Nation; Best Private Bank for Family Office and OCIO(h)
• Best Private Bank (U.S.); Best Private Bank for Digital Innovation, Best Family Office Offering, and Excellence in Philanthropy Services(i)

See page 12 for Business Leadership sources.

• Comparisons are to the year-ago quarter unless noted.
  2 Revenue, net of interest expense.
  3 Percentage of digitally active Merrill primary households ($250K+ in investable assets within the enterprise) as of June 2024. Excludes Stock Plan and Banking-only households.
  4 Includes Merrill Digital Households (excluding Stock Plan, Banking-only households, Retirement only, and 529 only) that receive statements digitally, as of May 2024.
  5 Includes mobile check deposits, remote deposit operations, and automated teller machine transactions, as of May 2024 for Private Bank and as of June 2024 for Merrill.
  6 Percentage of digitally active Private Bank core relationships ($3MM+ in total balances) as of May 2024. Includes third-party activities and excludes Irrevocable Trust-only relationships, Institutional Philanthropic relationships, and exiting relationships.

4

Global Banking1,2,3

• Net income of $2.1 billion
• Revenue of $6.1 billion decreased 6%, driven primarily by lower NII and leasing revenue, partially offset by higher investment banking fees
• Provision for credit losses of $235 million vs. $9 million in 2Q23
• • Net charge-offs of $346 million increased
    $287 million, driven primarily by commercial real estate office
  • Net reserve release of $111 million vs. $50 million in 2Q23
• Noninterest expense of $2.9 billion increased 3%

Business Highlights1,2(A)

• Total Corporation investment banking fees (excl. self-led) of $1.6 billion increased 29%
  - No. 3 in investment banking fees4
• Average deposits of $525 billion increased $28 billion, or 6%
• Average loans and leases of $373 billion decreased $10 billion, or 3%, reflecting lower client demand

Strong Digital Usage Continued1

• 76% digitally active clients across Commercial, Corporate, and Business Banking clients (CashPro® and BA360 platforms) (as of May 2024) with 87% of relationship clients digitally active
• Record total mobile sign-ins at 1.87 million, up 17%5
• Record quarterly CashPro® App Payment Approvals value of $253 billion, increased 33%
• CashPro® Chat is now supported by Erica® technology with nearly 30K interactions in 2Q24

Financial Results
	Three months ended
($ in millions)	6/30/2024	3/31/2024	6/30/2023
Total revenue2,3	$6,053	$5,980	$6,462
Provision for credit losses	235	229	9
Noninterest expense	2,899	3,012	2,819
Pretax income	2,919	2,739	3,634
Income tax expense	803	753	981
Net income	$2,116	$1,986	$2,653
Business Highlights2(A)
	Three months ended
($ in billions)	6/30/2024	3/31/2024	6/30/2023
Average deposits	$525.4	$525.7	$497.5
Average loans and leases	372.7	373.6	383.1
Total Corp. IB fees	1.6	1.6	1.2
(excl. self-led)
Global Banking IB fees	0.8	0.8	0.7
Business Lending revenue	2.6	2.4	2.7
Global Transaction Services	2.6	2.7	2.9
revenue
Efficiency ratio	48 %	50 %	44 %
Return on average allocated	17	16	22
capital

Continued Business Leadership

• World's Most Innovative Bank - 2024(g)
• World's Best Digital Bank, World's Best Bank for Financing, North America's Best Bank for Small to Medium-sized Enterprises, and North America's Best Bank for Sustainable Finance(j)
• 2023 Best Bank for Cash & Liquidity Management, Best Bank for Trade & Supply Chain - North America, and Best Mobile Technology Solution for Treasury - CashPro App(k)
• Best Global Bank for Transaction Banking (overall award), Best Global Bank for Collections(g)
• Model Bank Award for Reimagining Trade & Supply Chain Finance - 2024 for CashPro Supply Chain Solutions(l)
• 2023 Share & Excellence Awards for U.S. Large Corporate Banking & Cash Management(m)
• Relationships with 74% of the Global Fortune 500; 95% of the U.S. Fortune 1,000 (2023)

See page 12 for Business Leadership sources.

• Comparisons are to the year-ago quarter unless noted.

• Global Banking and Global Markets share in certain deal economics from investment banking, loan origination activities, and sales and trading activities.

• Revenue, net of interest expense.

• Source: Dealogic as of June 30, 2024.

• Includes CashPro, BA360, and Global Card Access.

5

Global Markets1,2,3

• Net income of $1.4 billion, both including and excluding net DVA4
• Revenue of $5.5 billion increased 12%, driven by higher sales and trading revenue and investment banking fees
• Noninterest expense of $3.5 billion increased
  4%, driven by higher revenue-related expenses and investments in the business, including technology
• Average VaR of $90 million5

Business Highlights1,2,3(A)

• Sales and trading revenue of $4.7 billion increased 9%; excluding net DVA, increased 7%(F)
• • FICC revenue increased 3% (ex. DVA, down 1%),(F) to $2.7 billion, driven by improved client activity and trading performance in mortgages, partially offset by a weaker trading environment in foreign exchange and interest rates products
  • Equities revenue increased 20% (ex. DVA, increased 20%),(F) to $1.9 billion, driven by strong client activity and trading performance in cash and derivatives

Additional Highlights

• 650+ research analysts covering over 3,450 companies; 1,250+ corporate bond issuers across 55+ economies and 25 industries

Financial Results
	Three months ended
($ in millions)	6/30/2024	3/31/2024	6/30/2023
Total revenue2,3	$5,459	$5,883	$4,871
Net DVA	(1)	(85)	(102)
Total revenue	$5,460	$5,968	$4,973
(excl. net DVA)2,3,4
Provision (benefit) for	(13)	(36)	(4)
credit losses
Noninterest expense	3,486	3,492	3,349
Pretax income	1,986	2,427	1,526
Income tax expense	576	704	420
Net income	$1,410	$1,723	$1,106
Net income	$1,411	$1,788	$1,184
(excl. net DVA)4
Business Highlights2(A)
	Three months ended
($ in billions)	6/30/2024	3/31/2024	6/30/2023
Average total assets	$908.5	$895.4	$877.5
Average trading-related	639.8	629.8	621.1
assets
Average loans and leases	135.1	133.8	128.5
Sales and trading revenue	4.7	5.1	4.3
Sales and trading revenue	4.7	5.2	4.4
(excl. net DVA)4(F)
Global Markets IB fees	0.7	0.7	0.5
Efficiency ratio	64 %	59 %	69 %
Return on average allocated	13	15	10
capital

Continued Business Leadership

• Securitization Bank of the Year(n)
• CLO Trading Desk of the Year(n)
• Derivatives House of the Year(o)
• Base Metals House of the Year(o)
• Currency Derivatives House of the Year(p)
• U.S. Muni Bond - Lead Manager of the Year for social bonds, green bonds, and sustainability bonds(q)
• No. 1 Foreign Exchange Options Market Dealer(r)
• Best CLO Tranche Trading Desk(s)
• Best Research House(s)

See page 12 for Business Leadership sources.

• Comparisons are to the year-ago quarter unless noted. The explanations for current period-over-

period changes for Global Markets are the same for amounts including and excluding net DVA.

• Global Banking and Global Markets share in certain deal economics from investment banking, loan

origination activities, and sales and trading activities.

• Revenue, net of interest expense.

• Revenue and net income, excluding net DVA, are non-GAAP financial measures. See Endnote F on

page 10 for more information.

• VaR model uses a historical simulation approach based on three years of historical data and an expected shortfall methodology equivalent to a 99% confidence level. Average VaR was $90MM, $80MM and $76MM for 2Q24, 1Q24 and 2Q23, respectively.

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