Bank of America : Earnings Release Q1 2024

Bank of America Reports Q1-24 Net Income of $6.7 Billion, EPS of $0.76 Revenue of $25.8 Billion,1 Including Net Interest Income of $14.0 Billion

Results Include FDIC Special Assessment Expense of $700 Million (Pretax)

Q1-24 Adjusted Net Income of $7.2 Billion, Adjusted EPS of $0.832(A)

Q1-24 Financial Highlights3(B)

• Net income of $6.7 billion, or $0.76 per diluted share, compared to $8.2 billion, or $0.94 per diluted share in Q1-23
• • Adjusted net income of $7.2 billion (excluding FDIC special assessment), or adjusted diluted earnings per share of $0.832
• Revenue, net of interest expense, of $25.8 billion decreased $440 million, or 2%, including higher investment banking and asset management fees, as well as sales and trading revenue, and lower net interest income (NII)
• • NII decreased 3% to $14.0 billion ($14.2 billion FTE),(C) as higher deposit costs more than offset higher asset yields and modest loan growth
• Provision for credit losses of $1.3 billion, up from $1.1 billion in Q4-23 and $931 million in Q1-23
• • Net reserve release of $179 million vs. $88 million in
    Q4-23 and net reserve build of $124 million in Q1-23(D)
  • Net charge-offs of $1.5 billion increased from $1.2 billion in Q4-23 and $807 million in Q1-23
• Noninterest expense of $17.2 billion increased $1.0 billion, or 6%
• • Excluding FDIC special assessment, adjusted noninterest expense of $16.5 billion increased approximately $300 million, or 2%2
• Average deposit balances of $1.91 trillion increased $14 billion vs. Q1-23
• End of period deposit balances increased $23 billion to $1.95 trillion vs. Q4-23
• Average loans and leases of $1.05 trillion were up 1% vs. Q1-23
• Average Global Liquidity Sources of $909 billion(E)
• Common equity tier 1 (CET1) capital of $197 billion increased $2 billion from Q4-23
• CET1 ratio of 11.8% (Standardized);(F) 184 bps above regulatory minimum
• Returned $4.4 billion to shareholders through common stock dividends and share repurchases8
• Book value per common share rose 7% to $33.71; tangible book value per common share rose 9% to $24.799
• Return on average common shareholders' equity (ROE) ratio of 9.4%; return on average tangible common shareholders' equity (ROTCE) ratio of 12.7%;9 adjusted ROE of 10.2%2 and adjusted ROTCE of 13.8%2

Q1-24 Business Segment Highlights3,4(B)

Consumer Banking

• Net income of $2.7 billion
• Revenue of $10.2 billion, down 5%
• Average deposits of $952 billion, down 7%; 32% above pre-pandemic levels
• Average loans and leases of $313 billion increased $9 billion, or 3%
• Combined credit / debit card spend of $219 billion, up 5%
• Client Activity
• • Added ~245,000 net new consumer checking accounts in Q1-24; 21st consecutive quarter of growth
  • Record 36.9 million consumer checking accounts with 92% being primary5
  • Small Business checking accounts of 3.9 million, up 2%
  • Record consumer investment assets of $456 billion grew 29%; including $44 billion of net client flows since Q1-23
  • Digital logins of 3.4 billion; digital sales represented 50% of total sales

Global Wealth and Investment Management

• Net income of $1.0 billion
• Record revenue of $5.6 billion increased 5%
• Client balances of nearly $4 trillion, up 13%, driven by higher market valuations and positive net client flows
• AUM flows of $25 billion in Q1-24
• Client Activity
• • Added over 7,300 net new relationships across Merrill and Private Bank
  • AUM balances of $1.7 trillion, up $263 billion
  • 76% of Merrill eligible accounts opened digitally

Global Banking

• Net income of $2.0 billion
• Total investment banking fees (excl. self-led) of $1.6 billion, up 35%
• No. 3 in investment banking fees6
• Client Activity
• • Average deposits of $526 billion increased $33 billion, or 7%
  • Added 25% more Global Commercial Banking new clients vs. Q1-237

Global Markets

• Net income of $1.7 billion
• Sales and trading revenue up less than 1% to $5.1 billion, including net debit valuation adjustment (DVA) losses of $85 million; Fixed Income, Currencies and Commodities (FICC) revenue down 6% to $3.2 billion, and Equities revenue up 14% to $1.9 billion
• Excluding net DVA,(G) sales and trading revenue up 2% to $5.2 billion; FICC revenue down 4% to $3.3 billion, and Equities revenue up 15% to $1.9 billion
• Zero days of trading losses in Q1-24

From Chair and CEO Brian Moynihan:

"We reported a strong quarter as our businesses performed well, adding clients and deepening relationships. We reached 36.9 million consumer checking accounts, with 21 consecutive quarters of net checking account growth. Our Wealth Management team generated record revenue, with record client balances, and investment banking rebounded. Bank of America's sales and trading businesses continued their strong 2023 momentum this quarter, reporting the best first quarter in over a decade. Continued strong earnings and strong expense management both position our company to continue to drive our market leading positions across our businesses."

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

• Revenue, net of interest expense.

• Adjusted net income, adjusted EPS, adjusted noninterest expense, adjusted ROE, and adjusted ROTCE represent non-GAAP financial measures. For more information and a reconciliation to the most directly comparable GAAP financial measures, see Endnote A on page 10. Q1-24 adjusted noninterest expense of $16.5B is calculated as reported noninterest expense of $17.2B, less the FDIC special assessment of $0.7B.

• Financial Highlights and Business Segment Highlights are compared to the year-ago quarter unless noted. Loan and deposit balances are shown on an average basis unless noted.
  4 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).
  6 Source: Dealogic as of March 31, 2024.
  7 Preliminary as of March 31, 2024.

8	Includes repurchases to offset shares awarded under equity-based compensation plans.	1
9	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 19.

From Chief Financial Officer Alastair Borthwick:

"The first quarter saw continued organic growth in our businesses as we grew loans and deposits from Q1-23. We saw increased digital engagement as clients utilized the power of the Bank of America platform to meet their financial needs. Our net income was $6.7 billion, and we were able to return $4.4 billion to shareholders through common stock dividends and share repurchases this quarter."

Bank of America Financial Highlights

	Reported	FDIC Special	Adjusted1	Reported
($ in billions, except per share data)	Q1-24	Assessment	Q1-24	Q1-23
Total revenue, net of interest expense	$25.8	$-	$25.8	$26.3
Provision for credit losses	1.3	-	1.3	0.9
Noninterest expense	17.2	0.7	16.5	16.2
Pretax income	7.3	(0.7)	8.0	9.1
Pretax, pre-provision income2(H)	8.6	(0.7)	9.3	10.0
Income tax expense	0.6	(0.2)	0.8	0.9
Net income	6.7	(0.5)	7.2	8.2
Diluted earnings per share	$0.76	($0.07)	$0.83	$0.94
Return on average assets	0.83 %		0.89 %	1.07 %
Return on average common shareholders' equity	9.4		10.2	12.5
Return on average tangible common shareholders' equity2	12.7		13.8	17.4
Efficiency ratio	67		64	62

• 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 A on page 10.

• Pretax, pre-provision income and return on average tangible common shareholders' equity represent non-GAAP financial measures. For more information, see page 19.

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

Average Deposits		Common Equity Tier 1 Capital 1
$1,894	$1,905	$1,907	$194	$195	$197
		$190
$1,875	$1,876

$184
11.9%	11.8%
11.8%
11.6%
11.4%

Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024

Common Equity Tier 1 capital

Common Equity Tier 1 capital ratio

• Common equity tier 1 capital ratio under the Standardized approach. For additional information on regulatory capital ratios, see Endnote F on page 11.

2

Consumer Banking1,2

• Net income of $2.7 billion
• Revenue of $10.2 billion decreased 5%, driven primarily by the impact of lower deposit balances
• Provision for credit losses of $1.2 billion vs. $1.1 billion in Q1-23
• • Net reserve build of $6 million(D) in Q1-24 vs. $360 million in Q1-23
  • Net charge-offs of $1.1 billion increased $415 million, driven by credit card
• Noninterest expense of $5.5 billion relatively flat
• • Efficiency ratio of 54%

Business Highlights1,3(B)

• Average deposits of $952 billion decreased $74 billion, or 7%
• • 58% of deposits in checking accounts;
    92% are primary accounts4
• Average loans and leases of $313 billion increased $9 billion, or 3%
• Combined credit / debit card spend of $219 billion increased 5%
• Record consumer investment assets5 of $456 billion grew $101 billion, or 29%, driven by $44 billion of net client flows from new and existing clients and higher market valuations
• • 3.9 million consumer investment accounts, up 7%
• 11.0 million Total clients enrolled in Preferred Rewards, up 8%, with 99% annualized retention rate6

Strong Digital Usage Continued1

• 76% of overall households7 actively using digital platforms
• Record 47 million active digital banking users, up 5%, or 2.1 million
• More than 1.6 million digital sales, representing 50% of total sales
• Record 3.4 billion digital logins, up 9%
• New Zelle® records: 21.9 million active users, up 12%; sent and received 348 million transactions, worth $106 billion, both up 27%
• Clients booked more than 832,000 digital appointments

Financial Results
	Three months ended
($ in millions)	3/31/2024	12/31/2023	3/31/2023
Total revenue2	$10,166	$10,329	$10,706
Provision for credit losses	1,150	1,405	1,089
Noninterest expense	5,475	5,234	5,473
Pretax income	3,541	3,690	4,144
Income tax expense	885	922	1,036
Net income	$2,656	$2,768	$3,108
Business Highlights(B)
	Three months ended
($ in billions)	3/31/2024	12/31/2023	3/31/2023
Average deposits	$952.5	$959.2	$1,026.2
Average loans and leases	313.0	313.4	303.8
Consumer investment assets	456.4	424.4	354.9
(EOP)5
Active mobile banking users	38.5	37.9	36.3
(MM)
Number of financial centers	3,804	3,845	3,892
Efficiency ratio	54 %	51 %	51 %
Return on average allocated	25	26	30
capital
Total Consumer Credit Card3
Average credit card	$99.8	$100.4	$91.8
outstanding balances
Total credit / debit spend	219.4	228.9	209.9
Risk-adjusted margin	6.8 %	7.2 %	8.7 %

• 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 February 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 February 2024.

Continued Business Leadership

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

See page 12 for Business Leadership sources.

3

Global Wealth and Investment Management1,2

• Net income of $1.0 billion
• Record revenue of $5.6 billion increased 5%, driven by 12% higher asset management fees, due to higher market levels and strong AUM flows, partially offset by lower NII
• Noninterest expense of $4.3 billion increased 5%, driven by revenue-related incentives

Business Highlights1(B)

• Record client balances of nearly $4 trillion increased 13%, driven by higher market valuations and positive net client flows
  - AUM flows of $25 billion in Q1-24
• Average deposits of $297 billion decreased $17 billion, or 5%
• Average loans and leases of $219 billion decreased $3 billion, or 1%

Merrill Wealth Management Highlights1 Client Engagement

• Record client balances of $3.3 trillion(B)
• AUM balances of $1.4 trillion
• ~6,500 net new households in Q1-24

Financial Results
	Three months ended
($ in millions)	3/31/2024	12/31/2023	3/31/2023
Total revenue2	$5,591	$5,227	$5,315
Provision (benefit) for	(13)	(26)	25
credit losses
Noninterest expense	4,264	3,894	4,067
Pretax income	1,340	1,359	1,223
Income tax expense	335	340	306
Net income	$1,005	$1,019	$917
Business Highlights(B)
	Three months ended
($ in billions)	3/31/2024	12/31/2023	3/31/2023
Average deposits	$297.4	$292.5	$314.0
Average loans and leases	218.6	219.4	221.4
Total client balances (EOP)	3,973.4	3,789.4	3,521.6
AUM flows	24.7	8.4	15.3
Pretax margin	24 %	26 %	23 %
Return on average allocated	22	22	20
capital

Strong Digital Usage Continued

• 86% of Merrill households digitally active3 across the enterprise
• • 62% of Merrill households mobile active across the enterprise
• 80% of households enrolled in eDelivery4
• 74% of eligible checks deposited through automated channels5
• Record 76% of eligible bank and brokerage accounts opened through digital onboarding in Q1-24, up from 53% a year ago

Bank of America Private Bank Highlights1 Client Engagement

• Record client balances of $634 billion(B)
• AUM balances of $380 billion
• ~865 net new relationships in Q1-24

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 41%
  • Zelle® transactions up 35%

• 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 March 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 February.
  5 Includes mobile check deposits, remote deposit operations, and automated teller machine
  transactions, as of February for Private Bank and as of March for Merrill.
  6 Percentage of digitally active Private Bank core relationships ($3MM+ in total balances) as of February 2024. Includes third-party activities and excludes Irrevocable Trust-only relationships, Institutional Philanthropic relationships, and exiting relationships.

Continued Business Leadership

• No. 1 on Forbes' Best-in-State Wealth Advisors (2023), Top Women Wealth Advisors (2023), Top Women Wealth Advisors Best-in-State (2024), Best-in-State Teams (2023), 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(h)
• Best Private Bank (U.S.), Best Private Bank for Philanthropic Services, and Best Private Bank for Sustainable Investing (North America)(i)
• Best for Philanthropic Advisory and Best for Next Gen in the U.S. and North America(j)
• Best Philanthropic / Educational Initiative(k)

See page 12 for Business Leadership sources.

4

Global Banking1,2,3

• Net income of $2.0 billion
• Revenue of $6.0 billion decreased 4%, driven primarily by lower NII, partially offset by higher investment banking fees
• Provision for credit losses of $229 million vs. provision benefit of $237 million in Q1-23
• • Net reserve release of $121 million vs. $324 million in Q1-23
  • Net charge-offs of $350 million increased $263 million, driven by commercial real estate office
• Noninterest expense of $3.0 billion increased 2%

Business Highlights1,2(B)

• Total Corporation investment banking fees (excl. self-led) of $1.6 billion increased 35%
• • Improved market share 115 bps; #3 in investment banking fees4
• Average deposits of $526 billion increased $33 billion, or 7%
• Average loans and leases of $374 billion decreased $7 billion, or 2%, 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 February 2024) with 87% of relationship clients digitally active
• Record total mobile sign-ins at 1.75 million, up 18%5
• Record quarterly CashPro® App Payment Approvals value of $246 billion, increased 41%
• CashPro® Chat is now supported by Erica® technology with 30K interactions in Q1-24

Financial Results
	Three months ended
($ in millions)	3/31/2024	12/31/2023	3/31/2023
Total revenue2,3	$5,980	$5,928	$6,203
Provision (benefit) for	229	(239)	(237)
credit losses
Noninterest expense	3,012	2,781	2,940
Pretax income	2,739	3,386	3,500
Income tax expense	753	914	945
Net income	$1,986	$2,472	$2,555
Business Highlights2(B)
	Three months ended
($ in billions)	3/31/2024	12/31/2023	3/31/2023
Average deposits	$525.7	$527.6	$492.6
Average loans and leases	373.6	374.9	381.0
Total Corp. IB fees	1.6	1.1	1.2
(excl. self-led)
Global Banking IB fees	0.8	0.7	0.7
Business Lending revenue	2.4	2.5	2.3
Global Transaction Services	2.7	2.7	3.1
revenue
Efficiency ratio	50 %	47 %	47 %
Return on average allocated	16	20	21
capital

• 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 March 31, 2024.

• Includes CashPro, BA360, and Global Card Access. CashPro data as of February.

Continued Business Leadership

• World's Most Innovative Bank - 2023(l)
• 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(m)
• 2023 Best Bank for Cash & Liquidity Management, Best Bank for Trade & Supply Chain - North America, and Best Mobile Technology Solution for Treasury - CashPro App(n)
• Best Bank for Payments & Collections in North America(o)
• Model Bank Award for Reimagining Trade & Supply Chain Finance - 2024 for CashPro Supply Chain Solutions(p)
• Best Transaction Bank in North America(q)
• 2023 Share & Excellence Awards for U.S. Large Corporate Banking & Cash Management(r)
• Relationships with 74% of the Global Fortune 500; 95% of the U.S. Fortune 1,000 (2023)

See page 12 for Business Leadership sources.

5

Global Markets1,2,3

• Net income of $1.7 billion
  - Excluding net DVA, net income of $1.8 billion4
• Revenue of $5.9 billion increased 5%, driven by higher investment banking fees and sales and trading revenue
• Noninterest expense of $3.5 billion increased 4%, driven by investments in the business, including technology
• Average VaR of $80 million5

Business Highlights1,2,3(B)

• Sales and trading revenue of $5.1 billion
  increased less than 1%; excluding net DVA, up 2%(G)
• • FICC revenue decreased 6% (ex. DVA, down 4%),(G) to $3.2 billion, driven by a weaker trading environment in macro products, partially offset by improved trading in mortgages
  • Equities revenue increased 14% (ex. DVA,
    up 15%),(G) to $1.9 billion, driven by strong trading performance in derivatives

Additional Highlights

• 665+ research analysts covering over 3,500 companies; 1,250+ corporate bond issuers across 55+ economies and 25 industries

Financial Results
	Three months ended
($ in millions)	3/31/2024	12/31/2023	3/31/2023
Total revenue2,3	$5,883	$4,088	$5,626
Net DVA4	(85)	(132)	14
Total revenue	$5,968	$4,220	$5,612
(excl. net DVA)2,3,4
Provision (benefit) for	(36)	(60)	(53)
credit losses
Noninterest expense	3,492	3,271	3,351
Pretax income	2,427	877	2,328
Income tax expense	704	241	640
Net income	$1,723	$636	$1,688
Net income	$1,788	$736	$1,677
(excl. net DVA)4
Business Highlights2(B)
	Three months ended
($ in billions)	3/31/2024	12/31/2023	3/31/2023
Average total assets	$895.4	$868.0	$870.0
Average trading-related	629.8	615.4	626.0
assets
Average loans and leases	133.8	133.6	125.0
Sales and trading revenue	5.1	3.6	5.1
Sales and trading revenue	5.2	3.8	5.1
(excl. net DVA)4(G)
Global Markets IB fees	0.7	0.4	0.5
Efficiency ratio	59 %	80 %	60 %
Return on average allocated	15	6	15
capital

• 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 G on page 11 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 $80MM, $79MM and $109MM for Q1-24,Q4-23 and Q1-23, respectively.

Continued Business Leadership

• World's Best Bank for Markets(m)
• Currency Derivatives House of the Year(s)
• Derivatives House & Foreign Exchange Derivatives House of the Year(t)
• North America Structured Finance House of the Year(t)
• Best Bank in the U.S. for Sustainable Finance(i)
• No. 1 Global Equity Research Provider(u)
• No. 1 Municipal Bonds Underwriter(v)
• No. 1 U.S. Asset-Backed Securities Underwriting(w)

See page 12 for Business Leadership sources.

6

All Other1,2

• Net loss of $696 million
• Noninterest expense of $1.0 billion included an accrual of $700 million 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 8%
• • Excluding the FDIC special assessment and other discrete tax items, the ETR would have been approximately 9%; further excluding recurring tax credits, primarily related to investments in renewable energy and affordable housing, the ETR would have been approximately 26%

Financial Results
	Three months ended
($ in millions)	3/31/2024	12/31/2023	3/31/2023
Total revenue2	($1,644)	($3,468)	($1,458)
Provision (benefit) for credit	(11)	24	107
losses
Noninterest expense	994	2,551	407
Pretax loss	(2,627)	(6,043)	(1,972)
Income tax expense (benefit)	(1,931)	(2,292)	(1,865)
Net income (loss)	($696)	($3,751)	($107)

• 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 $306 million from Q4-23
• • Consumer net charge-offs of $1.0 billion increased $115 million from Q4-23, driven primarily by higher credit card losses
  • Credit card loss rate of 3.62% in Q1-24 vs. 3.07% in Q4-23
  • Commercial net charge-offs of $470 million increased $191 million from Q4-23, driven by commercial real estate office
• Net charge-off ratio2 of 0.58% increased 13 bps from Q4-23

Provision for credit losses

• Provision for credit losses of $1.3 billion
• • Net reserve release of $179 million in Q1-24,(D) driven primarily by commercial

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 $14.4 billion included $1.2 billion for unfunded commitments
• Nonperforming loans (NPLs) of $5.9 billion increased $398 million from Q4-23, driven primarily by commercial real estate office
• • 61% of Consumer NPLs are contractually current
• Commercial reservable criticized utilized exposure of $24.5 billion increased $1.2 billion from Q4-23

Highlights
	Three months ended
($ in millions)	3/31/2024	12/31/2023	3/31/2023
Provision for credit losses	$1,319	$1,104	$931
Net charge-offs	1,498	1,192	807
Net charge-off ratio2	0.58 %	0.45 %	0.32 %
At period-end
Nonperforming loans and	$5,883	$5,485	$3,918
leases
Nonperforming loans and	0.56 %	0.52 %	0.38 %
leases ratio
Allowance for credit losses	$14,371	$14,551	$13,951
Allowance for loan and lease	13,213	13,342	12,514
losses
Allowance for loan and lease	1.26 %	1.27 %	1.20 %
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)(B) Three months ended

3/31/2024 12/31/2023 3/31/2023

Ending Balance Sheet
Total assets	$3,273.8	$3,180.2	$3,194.7
Total loans and leases	1,049.2	1,053.7	1,046.4
Total loans and leases in business segments (excluding All Other)	1,040.2	1,044.9	1,036.6
Total deposits	1,946.5	1,923.8	1,910.4
Average Balance Sheet
Average total assets	$3,247.2	$3,213.2	$3,096.1
Average loans and leases	1,047.9	1,050.7	1,041.4
Average deposits	1,907.5	1,905.0	1,893.6
Funding and Liquidity
Long-term debt	$296.3	$302.2	$283.9
Global Liquidity Sources, average(E)	909	897	854
Equity
Common shareholders' equity	$265.2	$263.2	$251.8
Common equity ratio	8.1 %	8.3 %	7.9 %
Tangible common shareholders' equity1	$195.0	$193.1	$181.6
Tangible common equity ratio1	6.1 %	6.2 %	5.8 %
Per Share Data
Common shares outstanding (in billions)	7.87	7.90	7.97
Book value per common share	$33.71	$33.34	$31.58
Tangible book value per common share1	24.79	24.46	22.78
Regulatory Capital(F)
CET1 capital	$196.6	$194.9	$184.4
Standardized approach
Risk-weighted assets	$1,660	$1,651	$1,622
CET1 ratio	11.8 %	11.8 %	11.4 %
Advanced approaches
Risk-weighted assets	$1,470	$1,459	$1,427
CET1 ratio	13.4 %	13.4 %	12.9 %
Supplementary leverage
Supplementary leverage ratio (SLR)	6.0 %	6.1 %	6.0 %

• Represents a non-GAAP financial measure. For reconciliation, see page 19.

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Endnotes

• In Q1-24, the FDIC increased its estimate of the loss to the Deposit Insurance Fund arising from the closures of Silicon Valley Bank and Signature Bank that will be recouped through the collection of a special assessment from certain insured depository institutions. Accordingly, the Corporation recorded pretax noninterest expense of $0.7B to increase its accrual for its estimated share of the special assessment. The Corporation has presented certain non-GAAP financial measures (labeled as "adj." in the tables below) that exclude the impact of the FDIC special assessment (FDIC SA) and has provided a reconciliation of these non-GAAP financial measures to the most directly comparable GAAP financial measures as set forth below. The Corporation believes the use of non-GAAP financial measures adjusting for the impact of the FDIC SA provides additional information for evaluating its results of operations and comparing its operational performance between periods by excluding these impacts that may not be reflective of its underlying operating performance.

Reconciliation
	Q1-24		Q1-24
	FDIC SA	adj. FDIC
	Reported
		SA
($ in billions, except per share data)
Noninterest expense	$17.2	$0.7	$16.5
Income before income taxes	7.3	(0.7)	8.0
Pretax, pre-provision income1	8.6	(0.7)	9.3
Income tax expense	0.6	(0.2)	0.8
Net income	6.7	(0.5)	7.2
Net income applicable to common shareholders	6.1	(0.5)	6.6
Diluted earnings per share2	$0.76	($0.07)	$0.83
Reconciliation of return metrics and efficiency ratio
	Q1-24		Q1-24
	FDIC SA	adj. FDIC
	Reported
		SA
($ in billions)
Return on average assets3	0.83 %	(6) bps	0.89 %
Return on average common shareholders' equity4	9.4	(81) bps	10.2 %
Return on average tangible common shareholders' equity5	12.7	(110) bps	13.8 %
Efficiency ratio6	67	271 bps	64 %

Note: Amounts may not total due to rounding.

	Increase / (Decrease)
Q1-23
Reported	Reported	adj.
		FDIC SA
$16.2	$1.0	$0.3
9.1	(1.8)	(1.1)
10.0	(1.4)	(0.7)
0.9	(0.3)	(0.2)
8.2	(1.5)	(1.0)
7.7	(1.5)	(1.0)
$0.94	($0.18)	($0.11)

• Represents a non-GAAP financial measure. For more information see Endnote H and for a reconciliation to the most directly comparable GAAP financial measure, see page 19.

• Calculated as net income applicable to common shareholders divided by average diluted common shares. Average diluted common shares of 8,031MM and 8,182MM for Q1-24 and Q1-23.

• Calculated as net income divided by average assets. Average assets were $3,247B for Q1-24.

• Calculated as net income applicable to common shareholders divided by average common shareholders' equity. Average common shareholders' equity was $264B for Q1-24.

• Calculated as net income applicable to common shareholders divided by average tangible common shareholders' equity. Average tangible common shareholders' equity was $194B for Q1-24. Average tangible common shareholders' equity represents a non-GAAP financial measure. For more information and a reconciliation of average tangible common shareholders' equity to average shareholders' equity, see page 19.

• Calculated as noninterest expense divided by revenue, net of interest expense.

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