Bank of America : Goldman Sachs U.S. Financial Services Conference Presentation 2019

Goldman Sachs U.S. Financial Services Conference

Bank of America's Consumer Banking Transformation

Brian Moynihan, Chairman and Chief Executive Officer

December 11, 2019

BAC has a Diversified Business Model with Scale in Every Business

Consumer Banking	Global Wealth & Investment		Global Banking		Global Markets
Management (GWIM)
	Preferred & Small		Bank of America		Global Commercial	Global Corporate &
Retail	Merrill Lynch	Business Banking	Investment	Global Markets
Business	Private Bank	Banking
			Banking

• • • Connecting across business lines to deepen client relationships
    • • Delivering leading high-tech and high-touch capabilities
  • Increasing relationship / sales coverage to better serve our clients' goals and life priorities
• Investing in digital to improve efficiency and client experience; moving from paper to electronic
• Optimizing size (client/product) and footprint to adapt to changing environment and behaviors

3Q19 YTD Revenue by Business Segment ($B) 1

3Q19 YTD Pre-tax Earnings by Segment ($B) 1

	$12.2	$13.1
	17%
	$29.1
	41%			$8.3
	$15.3
	22%
	$14.6		$4.3		$4.1
	21%
Consumer Banking	Global Wealth & Investment Management
Global Banking	Global Markets	Consumer Banking	Global Wealth &	Global Banking	Global Markets
			Investment Management

____________________

1 Presented on a fully taxable-equivalent basis. 3Q19 YTD net revenue (FTE basis) and pre-tax earnings (loss) for All Other of ($1.9B) and ($4.7B), respectively, not shown. On a GAAP basis, the Corporation's 3Q19 YTD net	2
revenues and pre-tax earnings inclusive of All Other were $68.9B and $24.6B.

What it took to become the Industry leading consumer financial services firm

• Decade-longtransformation
• Revenue hits and expense charges along the way
• Continuous investment in physical and digital capabilities
• Continuous investment in our people
• Rewarding clients for deepening relationships
• Focus on quality of relationships rather than quantity
• Continuous innovation
• Nice start… plenty of opportunity remains

3

Years of transformative change in Consumer Banking

~5 years ago

Today

Headcount

Efficiency Ratio

73K total with 17K Sales Reps (23% of total)	66K total (14%) with 25K Sales Reps (38% of total)
61% Efficiency Ratio	45% Efficiency Ratio (1,600bps)

Digital / Mobile

Payments

30MM digital users w/ 14% of Sales digitally

16MM mobile users

$2.3T annual Consumer payments

38MM digital users (26%) w/ 26% of Sales digitally (1,200bps)

29MM mobile users (78%)

• • 9MM Zelle Users in 3Q19; 9MM Erica Users since launch
• $3.0T annual Consumer payments (32%)

Deposits

Client Satisfaction

~40% in Financial Centers and ~60% Automated	~20% in Financial Centers and ~80% automated
− 51% at ATM	− 52% at ATM
− 10% via Mobile	− 27% via Mobile
73% total Consumer	84% total Consumer (1,080bps)

~6,100
Financial Centers	~5,000	4,302
Peak
Financial Centers	5 Yrs Ago	Current

Note: Facts and figures reflect 3Q'19 vs. 3Q'14 comparison unless noted.

4

Continuous investment in High-Techand High-Touch platforms

1 High-Tech

Leverage technology to engage clients…

	2 High-Touch
Life Plan	…and create capacity to help clients' financial lives

Good Afternoon,

David

Schedule an appointment with a Small Business Specialist today!

	•	Open an account
Advise	•	Meet a client rep
	•	Conduct business
	•	Deposit
Transact	•	Withdrawal
	•	Manage accounts

Pay

Borrow	•	Digital Auto
•	Digital Mortgage
& invest
•	Digital Investment

	Client Destination		Professionalism		Configuration
Last 3 years	~200 New				+1,300
Centers				Renovations
			25K Client

Erica

		Professionals
Next 3 years	~400 New	+1,500
Centers		Renovations

~600 Total

+2,800 Total

• 3 High-Priority

• Focus on drivers of satisfaction UP
• Focus on drivers of dissatisfaction DOWN

5

We invested and retrained the employee base shifting the mix to primary sales professionals

																							Growing Sales Power
																							Both Professionals +
																							Digital Sales (26% of Sales)
120																							40%
																					38%			38%
96.7																	36%				35%
92.8								33%
90			81.6				31%							30%
									75.6		71.5
												67.8	66.6				25%
60										23%			62.8		65.4
							20%															20%
			19%
		17%																					15%
30																							10%
																							5%
0																										0%
2011	2012	2013	2014		2015	2016	2017	2018		Oct 19
						Consumer Banking headcount (K)							% primary sales professionals

6

We developed an industry leading relationship rewards program

Enrolled Users (in millions)

Available to a broad set of clients

With eligibility at $20k in qualifying combined deposit and investment assets, Bank of America Preferred Rewards is the broadest in the industry

Incredible value proposition
 Priority service
 Product discounts	~6million
 Reduced/ No fees
 Interest rate boosters
 Free trades	Preferred Rewards clients
 Merchant discounts
 Increased card rewards
Incentivizes relationship deepening

As your qualifying balances grow, so do your benefits. Once enrolled, we'll move you up automatically when your balances qualify for the next rewards tier

			5.1	5.9
		4.5
	3.6
2.4
3Q15	3Q16	3Q17	3Q18	3Q19	7

We refocused all efforts on taking care of clients and reached new satisfaction highs

			Goal
			90%
Listening and responding to our clients drives:	+1,080bps
Deeper Relationships |	Higher Balances | Less Attrition	over 5 years
+400bps % primary accts.	+34% per HH	50% lower

Merrill Edge Guided Investing

4Q14

1Q16

2Q16

3Q16

4Q16

1Q17

2Q17

3Q17

4Q17

1Q18

2Q18

3Q18

4Q18

1Q19

2Q19

3Q19

Note: Client satisfaction defined as Top 2 Box for overall Consumer Banking (i.e., 9 or 10 out of 10)	8
Data prior to 4Q15 is limited due to survey methodology changes; 4Q14 represents FY2014 data

We became the primary bank for our customers and grew balances

% Primary of DDA accounts

82%

92%

2010

2019

Average Balance per Checking Account ($K)

$7.6

$3.7

2010

2019

9

Allowed us to grow quality deposits while reducing costs to service

Consumer Banking Average Deposits ($B)

+$153B

	$606	$659	$688	$709
$556					206
		181	194
	166
152
		151	163	174
119	136
285	304	327	331	330
3Q15		3Q16	3Q17	3Q18		3Q19
		Money market, Savings, CD/IRA			Interest checking			Noninterest-bearing
Cost of Deposits 1 and Rate Paid on Deposits (%)
1.83%	1.61%	1.60%
	1.53%	1.50%

														0.11%
												0.06%
0.04%		0.04%					0.04%
3Q15		3Q16		3Q17	3Q18		3Q19
					Cost of Deposits					Rate paid on deposits

4-yr CAGR

+6%

+8%

+10%

+4%

1 Cost of deposits calculated as annualized noninterest expense as a percentage of total average deposits within the Deposits subsegment.	10

And maintained great discipline on deposit pricing

Deposit growth versus cost (1Q16-3Q19)

		90			15%	23%
		80			Regional C
Increase1
-3Q19	70			Large B
		Large C	Regional A
Paid Deposit	points) 1Q16	60		Regional B
		Regional E
		Large A
50
		BAC 1	47bps
		Regional D
40	Regional F
Total Rates	(in basis
30
20
		10				7bps
		0			BAC Consumer Segment
		-10%	0%	10%	20%	30%

Total Company Deposit Growth

1Q16-3Q19

1 Reflects total corporate rate paid.

11

We grew loans responsibly, while maintaining strong credit quality

Consumer Banking Average Loans and Leases ($B)

+$71B

									$269		$285		$304
					$249				20
$233				19
		19
	18				34
18				42		37		51
		47			50
50				52
		49									92
42										92
						89
85			85
																		108
					50		68		86
	38
		3Q15			3Q16				3Q17			3Q18		3Q19	Origination FICO
						Residential mortgage		Consumer credit card			Vehicle lending		Home equity		Small business / other			1st Mort.:	770
																							Card:	774
Net Charge-Offs ($MM)																			Auto:	794
																							Home Eq.:	789
															$853		$905	Small biz:	779
									$800
$708		$710
		1.21%									1.18%				1.19%			1.18%
			1.14%

3Q15	3Q16	3Q17				3Q18	3Q19
			Net Charge-offs					NCO Ratio

12

And invested in a low-cost investment alternative for clients

2010 − 2016

2017 − 2018

Merrill Edge	Preferred Rewards	Merrill Guided	Stock & Portfolio
Field FSA Launch	$0 Equity Trades	Investing (MGI)	Story Launch

Merrill Edge Select	Premium Elite	Next Gen	Impact Investing
Financial Centers
Portfolios Launch	Relationship model

$64B

Client Investment Assets

2019 YTD

	Unlimited $0 Trades	$223B
MGI with	Sept '19
Advisor

3.5x

New "Merrill"

Brand

Fund Story &

Portfolio Videos

2010	2011	2012	2013	2014	2015	2016	2017	2018	2019
	Client Satisfaction 1:	77%							89%
					+1200bps				Oct '19
1 Clients rating their experience in surveys as top two highest scores on a 10 -point scale.						13

Industry leading digital banking platform

Consumer Banking Digital Usage Trends 1

Active Digital Banking Users (MM)	Total Payments ($B)	Person-to-Person Payments (Zelle) 4
		YoY

		9.0MM Erica users			YoY				$755	+8%
					$800		$702
								$644
			36.2	38.0	+5%	$612
40		34.5
32.8				$600			331	+2%
							324
30						+10%		316
		26.0	28.7	313
	21.3	23.6				$400
20
							$200		378	424	+12%
							328
10							299
0							$0
	3Q16	3Q17	3Q18	3Q19		3Q16	3Q17	3Q18	3Q19
			Digital	Non-Digital
	Digital banking users	Mobile banking users
Mobile Channel Usage 2, 3			YoY	Deposit Transactions
1,600				1,551	1,000	+13%	100%			22%
1,400			1,369				30%	27%	23%
						75%
		1,166			750	+19%
1,200
			613
	978					50%
1,000		515		500
800	345	414					70%	73%	77%	78%
					25%
					250
600
400					0		0%
	3Q16	3Q17	3Q18	3Q19			3Q16	3Q17	3Q18	3Q19

										8.9MM users
90																					$60
																80.8
60																							$40
											42.5
30								17.8								$	21			$20
	9.6		$	12
			$6
0			$	3																$0
		3Q16	3Q17	3Q18		3Q19
						Transactions (MM)							Volume ($B)

Digital % of Total Sales

30%				26%
25%		22%	23%
20%	18%			48%
15%		59%	52%
10%	65%
5%		41%	48%	52%
35%
0%
3Q16	3Q17	3Q18	3Q19

			Mobile Channel Usage (MM)		Mobile/ATM		Financial Center		Mobile		Desktop
			Digital Appointments (000's)
1 Digital users representmobile and/or online users.
2 Mobile channel usage represents the total number of mobile banking sessions.
3 Digital appointments represent the number of client-scheduled appointments made via online, smartphone or tablet.			14
4 Includes Bank of America person-to-person payments sent and received through e-mail or mobile identification. Zelle users represent 90-day active users.

We have digitalized lending

Digital % of Mortgage Originations

Launched Digital Mortgage Experience April 2018	38%

23%

13%	14%	16%

3Q153Q163Q173Q183Q19

Digital Auto Sales % of Client Originations

58%

Launched Digital Auto Buying Experience May 2017

52%

44%

40%

46%

3Q15

3Q16

3Q17

3Q18

3Q19

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Moving from digital enrollment to digital engagement

1 From: Enrollment To: Engagement

33MM Checking Clients

Digital

Enrollment			Digital Engagement
				Actively Using (MM)	Opportunity (MM)

	9.8	3
2	Easy - Convenient - Safe
Focus on

Relationship	70%	3.4									2.5
Customers
			16.5	15.4	17.5	14.4	14.4		13.5	14.2
					19.9
	23.1
	19.7									20.6
			6.6	7.7	5.6	8.7	8.7		9.6	8.9
					3.2
	Digital	Mobile	Mobile	Zelle	Erica	Bill	Digital	Digital	Biometric	Mobile	Paperless
			Check			Payments	Transfers	Wallet	ID	Alerts
			Deposits

Opportunity Areas

• Check & Cash Handling
• Phone calls
• Fraud
• Personnel
• Statements
• Capacity

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Premier consumer financial services provider 1

66 million Clients #1 Deposit Share in the U.S.

Top nationwide financial

16,500 ATMs	center network	#1 Digital Bank nationwide
4,300 Financial Centers		#1 Small business lender
25,000 Client Professionals		2018 net income of $12.1B
26 million client interactions each day		45% efficiency ratio
Record client satisfaction		55 Industry awards in 2019

1 Statistics for Consumer Banking segment as of 3Q19.

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What it took to become the Industry leading consumer financial services firm

• Decade-longtransformation
• Revenue hits and expense charges along the way
• Continuous investment in physical and digital capabilities
• Continuous investment in our people
• Rewarding clients for deepening relationships
• Focus on quality of relationships rather than quantity
• Continuous innovation
• Nice start… plenty of opportunity remains

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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 not relate strictly to historical or current facts. Forward -looking statements often use words such as "anticipates," "targets," "expects," "hopes," "estimates," "intends," "plans," "goals," "believes," "continue" and other similar expressions or future or conditional verbs suchas "will," "may," "might," "should," "would" and "could." Forward-looking statements represent the Company's current expectations, plans or forecasts of its future results, revenues, expenses, efficiency ratio, capital measures, strategy, and future business and economic conditions more generally,

and other future matters. These statements are not guarantees of future results or performance and involve certain known and unknown risks, uncertainties and assumptions that are difficult to predict and are

often beyond the Company's control. Actual outcomes and results may differ materially from those expressed in, or implied by, any of these forward-looking statements.

You should not place undue reliance on any forward-looking statement and should consider the following uncertainties and risks, as well as the risks and uncertainties more fully discussed under Item 1A. Risk Factors of the Company's 2018 Annual Report on Form 10-K and in any of the Company's subsequent Securities and Exchange Commissi on filings: the Company's potential claims, damages, penalties, fines and reputational damage resulting from pending or future litigation, regulatory proceedings and enforcement actions; the possibility that the Company's future liabilities may be in excess of its recorded liability and estimated range of possible loss for litigation, regulatory, and representations and warranties exposures; the possibility th at the Company could face increased servicing, fraud, indemnity, contribution, or other claims from one or more counterparties, including trustees, purchasers of loans, underwriters, issuers, monolines, private-label and other investors, or other parties involved in securitizations; the Company's ability to resolve representations and warranties repurchase and related claims, including claims brought by investors or trustees seeking to avoid the statute of limitations for repurchase claims; the risks related to the discontinuation of the London InterBank Offered Rate and other reference rates, including increased expenses and litigation a nd the effectiveness of hedging strategies; uncertainties about the financial stability and growth rates of non-U.S. jurisdictions, the risk that those jurisdictions may face difficulties servicing their sovereign debt, and related stresses on financial markets, currencies and trade, and the Company's exposures to such risks, including direct, indirect and operational; the impact of U.S. and global interest rates, inflation, currency exchange rates, economic conditions, trade policies and tensions, including tariffs, and potential geopolitical instability; the impact of the interest rate environment on the Company's business, financial cond ition and results of operations; the possibility that future credit losses may be higher than currently expected due to changes in economic assumptions, customer behavior, adverse developments with respect to U.S. or gl obal economic conditions and other uncertainties; the Company's ability to achieve its expense targets and expectations regarding net interest income, net charge-offs, effective tax rate, loan growth or other projections; adverse changes to the Company's credit ratings from the major credit rating

agencies; an inability to access capital markets or maintaindeposits or borrowing costs; estimates of the fair value and other accounting values, subject to impairment assessments, of certain of the Company's

assets and liabilities; the estimated or actual impact of changes in accounting standards or assumptions in applying those standards, including the new credit loss accounting standard; uncertainty regarding the content, timing and impact of regulatory capital andliquidity requirements; the impact of adverse changes to total loss -absorbing capacity requirements and/or global systemically important bank surcharges; the potential impact of actions of the Board of Governors of the Federal Reserve System on the Company's capital plans; the effec t of regulations, other guidance or additional information on the impact from the Tax

Cuts and Jobs Act; the impact of implementation and compliance with U.S. and international laws, regulations and regulatory i nterpretations, including, but not limited to, recovery and resolution planning

requirements, Federal Deposit Insurance Corporation assessments, the Volcker Rule, fiduciary standards and derivatives regulations; a failure or disruption in or breach of the Company's operational or security systems or infrastructure, or those of third parties, including as a result of cyber -attacks; the impact on the Company's business, financial condition and results of operations from the planned exit of the United

Kingdom from the European Union; the impact of any future federal government shutdown and uncertainty regarding the federal government's debt limit; and other matters.

Forward-looking statements speak only as of the date they are made, and the Company undertakes no obligation to update any forwa rd-looking statement to reflect the impact of circumstances or events that arise after the date the forward-looking statement was made.

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