Bank of America : Q2 2024 Earnings Release

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.

6

All Other1,2

• Net loss of $250 million
• • Improved $446 million v. 1Q24, driven primarily by the absence of the $700 million 1Q24 accrual for the estimated amount of the FDIC special assessment for uninsured deposits of certain failed banks
• Total corporate effective tax rate (ETR) for the quarter was approximately 9%
• • Excluding discrete tax items and recurring tax credits primarily related to investments in renewable energy and affordable housing, the ETR would have been approximately 25%

Financial Results
	Three months ended
($ in millions)	6/30/2024	3/31/2024	6/30/2023
Total revenue2	($1,755)	($1,644)	($1,767)
Provision (benefit) for	(2)	(11)	(160)
credit losses
Noninterest expense	261	994	492
Pretax loss	(2,014)	(2,627)	(2,099)
Income tax expense (benefit)	(1,764)	(1,931)	(1,917)
Net income (loss)	($250)	($696)	($182)

• Comparisons are to the year-ago quarter unless noted.
  2 Revenue, net of interest expense.

Note: All Other primarily consists of asset and liability management (ALM) activities, liquidating businesses and certain expenses not otherwise allocated to a business segment. ALM activities encompass interest rate and foreign currency risk management activities for which substantially all of the results are allocated to our business segments.

7

Credit Quality1

Charge-offs

• Total net charge-offs of $1.5 billion increased $35 million from 1Q24
• • Consumer net charge-offs of $1.1 billion increased $31 million from 1Q24, driven by higher credit card losses
  • Credit card loss rate of 3.88% in 2Q24 vs. 3.62% in 1Q24
  • Commercial net charge-offs of $474 million remained relatively flat compared to 1Q24
• Net charge-off ratio2 of 0.59% increased 1 bp from 1Q24

Provision for credit losses

• Provision for credit losses of $1.5 billion increased $189 million vs. 1Q24
• • Net reserve release of $25 million in 2Q24 vs. $179 million in 1Q24(C)

Allowance for credit losses

• Allowance for loan and lease losses of $13.2 billion represented 1.26% of total loans and leases3
• • Total allowance for credit losses of $14.3 billion included $1.1 billion for unfunded commitments
• Nonperforming loans (NPLs) of $5.5 billion decreased $410 million from 1Q24, driven primarily by the commercial real estate office portfolio
• • 61% of Consumer NPLs are contractually current
• Commercial reservable criticized utilized exposure of $24.8 billion increased $232 million from 1Q24

Highlights
	Three months ended
($ in millions)	6/30/2024	3/31/2024	6/30/2023
Provision for credit losses	$1,508	$1,319	$1,125
Net charge-offs	1,533	1,498	869
Net charge-off ratio2	0.59 %	0.58 %	0.33 %
At period-end
Nonperforming loans and	$5,473	$5,883	$4,126
leases
Nonperforming loans and	0.52 %	0.56 %	0.39 %
leases ratio
Consumer 90+ days	$1,474	$1,531	$1,185
performing past due
Allowance for credit losses	14,342	14,371	14,338
Allowance for loan and lease	13,238	13,213	12,950
losses
Allowance for loan and lease	1.26 %	1.26 %	1.24 %
losses ratio3

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

• Net charge-off ratio is calculated as annualized net charge-offs divided by average outstanding loans and leases during the period.

• Allowance for loan and lease losses ratio is calculated as allowance for loan and lease losses divided by loans and leases outstanding at the end of the period.

Note: Ratios do not include loans accounted for under the fair value option.

8

Balance Sheet, Liquidity, and Capital Highlights ($ in billions except per share data, end of period, unless otherwise noted)(A)
		Three months ended
	6/30/2024	3/31/2024	6/30/2023
Ending Balance Sheet
Total assets	$3,258.0	$3,273.8	$3,123.2
Total loans and leases	1,056.8	1,049.2	1,051.2
Total loans and leases in business segments (excluding All Other)	1,048.5	1,040.2	1,041.7
Total deposits	1,910.5	1,946.5	1,877.2
Average Balance Sheet
Average total assets	$3,275.0	$3,247.2	$3,175.4
Average loans and leases	1,051.5	1,047.9	1,046.6
Average deposits	1,909.9	1,907.5	1,875.4
Funding and Liquidity
Long-term debt	$290.5	$296.3	$286.1
Global Liquidity Sources, average(D)	909	909	867
Equity
Common shareholders' equity	$267.3	$265.2	$254.9
Common equity ratio	8.2 %	8.1 %	8.2 %
Tangible common shareholders' equity1	$197.2	$195.0	$184.8
Tangible common equity ratio1	6.2 %	6.1 %	6.1 %
Per Share Data
Common shares outstanding (in billions)	7.77	7.87	7.95
Book value per common share	$34.39	$33.71	$32.05
Tangible book value per common share1	25.37	24.79	23.23
Regulatory Capital(E)
CET1 capital	$198.1	$196.6	$190.1
Standardized approach
Risk-weighted assets	$1,662	$1,658	$1,639
CET1 ratio	11.9 %	11.9 %	11.6 %
Advanced approaches
Risk-weighted assets	$1,469	$1,463	$1,436
CET1 ratio	13.5 %	13.4 %	13.2 %
Supplementary leverage
Supplementary leverage ratio (SLR)	6.0 %	6.0 %	6.0 %

• Represents a non-GAAP financial measure. For reconciliation, see page 20.

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Endnotes

• We present certain key financial and nonfinancial performance indicators (KPIs) that management uses when assessing consolidated and/or segment results. We believe this information is useful because it provides management and investors with information about underlying operational performance and trends. KPIs are presented in Consolidated and Business Segment Highlights on page 1, Balance Sheet, Liquidity, and Capital Highlights on page 9 and on the Segment pages for each segment.

• We also measure NII on an FTE basis, which is a non-GAAP financial measure. FTE basis is a performance measure used in operating the business that management believes provides investors with meaningful information on the interest margin for comparative purposes. We believe that this presentation allows for comparison of amounts from both taxable and tax-exempt sources and is consistent with industry practice. NII on an FTE basis was $13.9 billion, $14.2 billion and $14.3 billion for the three months ended June 30, 2024, March 31, 2024 and June 30, 2023, respectively. The FTE adjustment was $160 million, $158 million and $135 million for the three months ended June 30, 2024, March 31, 2024 and June 30, 2023, respectively.

• 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 in that period plus the provision for credit losses and other valuation accounts recognized in that period.

• Global Liquidity Sources (GLS) include cash and high-quality, liquid, unencumbered securities, inclusive of U.S. government securities, U.S. agency securities, U.S. agency mortgage-backed securities, and a select group of non-U.S. government and supranational securities, and other investment- grade securities, and are readily available to meet funding requirements as they arise. It does not include Federal Reserve Discount Window or Federal Home Loan Bank borrowing capacity. Transfers of liquidity among legal entities may be subject to certain regulatory and other restrictions.

• Regulatory capital ratios at June 30, 2024 are preliminary. The Corporation reports regulatory capital ratios under both the Standardized and Advanced approaches. Capital adequacy is evaluated against the lower of the Standardized or Advanced approaches compared to their respective regulatory capital ratio requirements. The Corporation's binding ratio was Total capital ratio under the Standardized approach for June 30, 2024 and March 31, 2024; and the Common equity tier 1 ratio under the Standardized approach for June 30, 2023.

• The below table includes Global Markets sales and trading revenue, excluding net DVA, which is a non-GAAP financial measure. We believe that the presentation of measures that exclude this item is useful because such measures provide additional information to assess the underlying operational performance and trends of our businesses and to allow better comparison of period-to-period operating performance.

		Three months ended
(Dollars in millions)		6/30/2024			3/31/2024			6/30/2023
Sales and trading revenue
Fixed-income, currencies and commodities	$	2,742	$	3,231	$	2,667
Equities		1,937			1,861			1,618
Total sales and trading revenue	$	4,679	$	5,092	$	4,285
Sales and trading revenue, excluding net debit valuation adjustment1
Fixed-income, currencies and commodities	$	2,737	$	3,307	$	2,764
Equities		1,943			1,870			1,623
Total sales and trading revenue, excluding net debit valuation adjustment	$	4,680	$	5,177	$	4,387

• For the three months ended June 30, 2024, March 31, 2024 and June 30, 2023, net DVA gains (losses) were ($1) million, ($85) million and ($102) million, FICC net DVA gains (losses) were $5 million, ($76) million and ($97) million, and Equities net DVA gains (losses) were ($6) million, ($9) million and ($5) million, respectively.

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