Bank of America 1Q22 Financial Results
April 18, 2022
1Q22 Highlights
(Comparison to 1Q21, unless otherwise noted)
• Net income of $7.1B; diluted earnings per share of $0.80; ROE 11.0%, ROTCE1 15.5%
• Revenue, net of interest expense, of $23.2B increased $0.4B, or 2%
- Net interest income (NII) of $11.6B ($11.7B FTE1) increased $1.4B, or 13%, driven by strong deposit growth and related investment of excess liquidity, loan growth and lower premium amortization expense, partially offset by lower Paycheck Protection Program (PPP) fees
- Noninterest income of $11.7B decreased $1.0B, or 8%, driven by lower investment banking fees, which outperformed the decline in industry fee pools2, partially offset by higher asset management fees
• Provision for credit losses of $30MM included a $362MM net reserve release, driven primarily by asset quality improvement, offset by a reserve build related to Russian exposure and loan growth3
- Net charge-offs (NCOs) remained relatively flat vs. 4Q21, but declined 52% from 1Q21; net charge-off ratio of 16 bps remained near historical lows
• Noninterest expense of $15.3B decreased $0.2B, or 1% - Generated operating leverage4 for the third consecutive quarter (305 bps in 1Q22)
• Balance sheet expanded and remains strong
- Deposits increased $8B from 4Q21
- Loans and leases grew $14B from 4Q21
- CET1 ratio of 10.4% (9.5% minimum); average global liquidity sources5 increased to $1.1T
- Repurchased $2.6B of common stock, including repurchases to offset shares awarded under equity-based compensation plans
- Paid $1.7B in common dividends
• No material direct exposure to Russia - Approximately $700MM in lending and counterparty exposure, substantially all of which is lending - All loans have been downgraded and reported in reservable criticized with increased allowance coverage in 1Q22
Note: FTE stands for fully taxable-equivalent basis.
1 Represents a non-GAAP financial measure. For important presentation information about this measure, see slide 33.
2 Dealogic as of April 1, 2022.
3 For more information on reserve build (release), see note A on slide 30.
4 Operating leverage is calculated as the year-over-year percentage change in revenue, net of interest expense, less the percentage change in noninterest expense.
5 See note B on slide 30 for definition of Global Liquidity Sources.
Consumer Spend Remained Strong; 1Q22 at $980B, up 14% YoY
Payment Spend1 ($ volume) and YoY % Growth
$980B
1Q22
1Q19
1Q20
1Q22 Payment Spend ($ volume)
Credit
Debit
ACH
Wires
P2P/P2B4
Cash
Check
Note: Amounts may not total due to rounding.
1Q22 Credit and Debit Spend2,3 ($ volume) Growth
vs. 1Q19
75% 50% 25% 0%
1Q21
% of 1Q22 Credit / Debit Spend
1Q22 YoY Change in Payment Transaction Volume
% of 1Q22 Total
1 Total payments include total credit card, debit card, ACH, wires, billpay, person-to-person (P2P), cash and checks.
2 Includes consumer and small business credit card portfolios in Consumer Banking and GWIM.
Travel & Entertainment
Credit/Debit 75%ACH/Wire 11%P2P/P2B4 8%
Cash/Check 6%
3 Excludes credit and debit Money Transfers, Charitable Donations and miscellaneous categories with immaterial volume.
4 P2B stands for person-to-business.
57%
12%
vs . 1Q21
48%42%
GasFood
6%
Retail
23%
32%
14%
Services
27%
(4)%
Daily Loan and Lease Balance Trends ($B)
Total Loans and Leases ex. PPP1
Loans and Leases in Business Segments ex. PPP1
$600 $550 $500 $450 $400 $350
CommercialConsumer
12/31/19 03/31/22
Credit Card2
Residential Mortgage2
$100
$225
$90
$80
$70 12/31/19
$220 $215 $210 $205 $200 $195
03/31/22
12/31/19 03/31/22
1 Excludes balances related to PPP (recorded in Commercial) of $3.0B, $4.7B, $8.4B, $15.7B, and $21.1B for 1Q22, 4Q21, 3Q21, 2Q21 and 1Q21, respectively. End of period total loans and leases were $993.1B,
$979.1B, $927.7B, $918.9B, and $903.1B for 1Q22, 4Q21, 3Q21, 2Q21 and 1Q21, respectively. End of period Commercial loans and leases were $554.3B, $543.4B, $504.3B, $500.8B and $490.9B for 1Q22, 4Q21,
3Q21, 2Q21 and 1Q21, respectively. Excluding end of period PPP loan balances, total loans and leases were $990.2B and $974.4B for 1Q22 and 4Q21, and Commercial loan balances were $551.3B and $538.7B. Total loans and leases increased $14.0B, and excluding PPP loan balances, increased $15.7B, quarter-over-quarter. Total Commercial loans and leases increased $10.9B, and excluding PPP loan balances, increased
$12.6B, quarter-over-quarter. Loan data excludes loans held-for-sale.
2 Credit card and residential mortgage only include balances recorded in Consumer Banking and GWIM, and exclude loans held-for-sale.
Consumer Resiliency
Change in BofA Credit Card Customer1 Balances Since 1Q20
BofA Credit Card 5-29 and 30+ Days Past Due Rates
39%
39%
30+ days5-29 days
2.50%
Deferral related spike
2.00%
(8%)
(12%)
1.50%Avg. Credit Card BalanceAvg. Deposit
Balance
Avg. Credit Card Balance (<680 FICO)
Avg. Deposit
Balance (<680 FICO)
1.00%
4Q19 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 1Q22
U.S. Households Checkable Deposits and Currency ($B)2
U.S. Household Debt Service Payments as a % of Disposable Personal Income3
$4,000
$3,000
$2,000
$1,000
$0
15%
13%
10%
8%
Mar- Jun- Sep- Dec- Mar- Jun- Sep- Dec- Mar- Jun- Sep- Dec-19 19 19 19 20 20 20 20 21 21 21 21
5% 1991
1996
2001
2006
2011
2016
2021
1 Includes consumer clients who have a primary deposit account with the bank that also have a BAC credit card. Consumer checking accounts are estimated to be the customer's primary account based on multiple relationship factors (e.g., linked to their direct deposit).
2 Z.1 Financial Accounts of the United States release, The Federal Reserve Board.
3 Household Debt Service and Financial Obligations Ratios release, The Federal Reserve Board.
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Bank of America Corporation published this content on 18 April 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 18 April 2022 10:53:01 UTC.