Bank of America : Q1 Presentation

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.