Bank of America
3Q21 Financial Results
October 14, 2021
3Q21 Highlights
(Comparison to 3Q20, unless otherwise noted)
- Net income of $7.7B; diluted earnings per share of $0.85
- Revenue, net of interest expense, of $22.8B increased $2.4B, or 12%
- Net interest income (NII) of $11.1B ($11.2B FTE1) increased $1.0B, or 10%, driven by strong deposit growth and related investment of excess liquidity, as well as Paycheck Protection Program (PPP) loan activity
- Noninterest income of $11.7B increased $1.5B, or 14%, with growth across every business segment
- Digital consumer and small business sales grew 27%
- Provision for credit loss benefit of $0.6B included a $1.1B reserve release, primarily driven by asset quality improvement, with a net charge-off ratio approaching 50-year lows, lower nonperforming loans (NPLs) and reservable criticized commercial loans
- Noninterest expense of $14.4B declined $0.6B, or 4%, from 2Q21, and was relatively flat YoY
- Efficiency ratio of 63%; operating leverage2 of approximately 1,200 bps
- Balance sheet expanded and remains strong
- Average deposits of $1.9T increased $54B from 2Q21; up $247B, or 15% YoY
- Average loans and leases of $921B grew at a QoQ annualized3 rate of 6%, excluding PPP loans, annualized growth was 9%4
- CET1 ratio of 11.1%; average global liquidity sources5 increased to $1.1T
- Repurchased $9.9B of common stock in 3Q21, including repurchases to offset shares awarded under equity-based compensation plans
- Paid $1.7B in common dividends, having increased the quarterly dividend 17%, to $0.21 per share
- Making significant progress toward our $1.25B commitment to address racial equality and economic opportunity
Note: FTE stands for fully taxable-equivalent basis.
- Represents a non-GAAP financial measure. For important presentation information about this measure, see slide 33.
- Operating leverage is calculated as the year-over-year percentage change in revenue, net of interest expense, less the percentage change in noninterest expense.
3 Annualized growth represents linked-quarter growth multiplied by four.
4 | Average loans and leases was $921B and $908B for 3Q21 and 2Q21, an increase of $13B. Excluding average PPP loan balances of $13B and $20B, loan balances were $908B and $888B for the same periods. | 2 |
5 | See note C on slide 30 for definition of Global Liquidity Sources. |
U.S. Economic Recovery Continues
Nominal U.S. GDP
$24T | Above | ||||||||
pre-pandemic | |||||||||
levels | |||||||||
$22T | |||||||||
$20T | |||||||||
$18T | |||||||||
1Q19 | 2Q19 | 3Q19 | 4Q19 | 1Q20 | 2Q20 | 3Q20 | 4Q20 | 1Q21 | 2Q21 |
Total Consumer and Small Business Payments1,2
$3.0T | $2.8 | |
$2.1 | $2.3 | $2.3 |
$2.0T |
$1.0T
$0.0T
2018 YTD | 2019 YTD | 2020 YTD | 2021 YTD |
U.S. Unemployment Rate
16% | |||||
14% | |||||
12% | |||||
10% | |||||
8% | |||||
6% | 4.8% | ||||
4% | |||||
2% | |||||
0% | |||||
Jan-19 | Jul-19 | Jan-20 | Jul-20 | Jan-21 | Jul-21 |
Cumulative Total Consumer and Small Business Payments1,2
$3.0T | 2021 | Avg. '18-'20 | |||||||
$2.5T | |||||||||
$2.0T | YTD September | ||||||||
$1.5T | spending level | ||||||||
equivalent to | |||||||||
YTD November | |||||||||
$1.0T | for the average | ||||||||
of the last | |||||||||
$0.5T | three years. | ||||||||
$0.0T | |||||||||
Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | Sep | Oct Nov Dec |
-
Total payments include total credit card, debit card, ACH, wires, bill pay, person-to-person, cash and checks.
2 Includes consumer and small business credit card portfolios in Consumer Banking and GWIM.
3
Daily Loan and Lease Balance Trends ($B)
Total Loans and Leases ex. PPP1 | Total Loans and Leases by Product ex. PPP1 | |||||||||
$1,100 | $600 | Commercial | Consumer | |||||||
$1,050 | $550 | |||||||||
$1,000 | $500 | |||||||||
$950 | $450 | |||||||||
$900 | $400 | |||||||||
$850 | $350 | |||||||||
03/31/20 | 09/30/21 | 03/31/20 | 09/30/21 | |||||||
Credit Card2 | Residential Mortgage2 | |||||||||
$95 | $225 | |||||||||
$90 | $220 | |||||||||
$85 | $215 | |||||||||
$210 | ||||||||||
$80 | $205 | |||||||||
$75 | $200 | |||||||||
$70 | $195 | |||||||||
03/31/20 | 09/30/21 | 03/31/20 | 09/30/21 | |||||||
- Excludes balances related to PPP (recorded in Commercial) of $8.4B, $15.7B, $21.1B, $22.7B, and $24.7B for 3Q21, 2Q21, 1Q21, 4Q20 and 3Q20, respectively. End of period total loans and leases were $927.7B, $918.9B, $903.1B, $927.9B, and $955.2B for 3Q21, 2Q21, 1Q21, 4Q20 and 3Q20, respectively. End of period Commercial loans and leases were $504.3B, $500.8B, $490.9B, $499.1B and $515.4B for 3Q21, 2Q21, 1Q21, 4Q20 and 3Q20, respectively. Excluding end of period PPP loan balances, total loans and leases were $919.4B and $903.3B for 3Q21 and 2Q21, and Commercial loan balances were $495.9B and $485.1B.
Total loans and leases increased $8.8B, and excluding PPP loan balances, increased $16.1B, quarter-over-quarter. Total Commercial loans and leases increased $3.5B, and excluding PPP loan balances, increased | |
$10.8B, quarter-over-quarter. | 4 |
2 Credit card and residential mortgage only include balances recorded in Consumer Banking and GWIM.
Return to Pre-pandemic Organic Growth
3Q211 | vs. 3Q191 | ||
Net New Consumer Checking Accounts (YTD) | 739K | +56% | |
Average Consumer Checking Account Balance | $10.6K | +40% | |
New Consumer Investment Accounts | 104K | +9% | |
Consumer Preferred Rewards Enrolled Clients2 | 7.8MM | +31% | |
Consumer and Small Business Digital Sales (units) | 1.4MM | +33% | |
AUM Flows (YTD) | $45B | +167% | |
GWIM Average Loans | $200B | +17% | |
GTS FX3 (YTD) | Volume: | 14MM | +89% |
Value: | $203B | +30% | |
Commercial Committed Exposure | $1,094B | +4% | |
Investment Banking Fee Market Share4 | 6.9% | +60 bps | |
Global Markets Average Assets (YTD) | $776B | +14% | |
Equities Sales & Trading Revenues (incl. DVA) (YTD) | $5.1B | +46% | |
- Except where otherwise noted, reflects figures for 3Q21 compared to 3Q19. YTD figures reflect figures for the first nine months of 2021 compared to the first nine months of 2019.
2 As of August 2021.
3 GTS stands for Global Transaction Services. Volume represents number of transactions; value represents notional dollars.
4 As per Dealogic data for the respective periods; includes self-led and asset-backed securities and mortgage-backed securities.
5
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Bank of America Corporation published this content on 14 October 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 14 October 2021 11:01:08 UTC.