Bank of America : Q2 Presentation

Bank of America

2Q21 Financial Results

July 14, 2021

2Q21 Highlights

• Diluted earnings per share of $1.03, net income of $9.2B included the following significant items:
• • $1.6B provision for credit losses benefit
  • $2.0B positive tax adjustment related to revaluation of UK deferred tax assets
• Noninterest expense of $15.0B declined $0.5B, or 3%, from 1Q21, including:
• • $0.5B charitable contribution to Bank of America Foundation
  • $0.3B associated with processing transactional card claims related to state unemployment benefits
• Revenue of $21.5B decreased 6% vs. 1Q21
• • Net interest income was flat, as long-end rates declined
  • Noninterest income declined, driven by lower sales and trading revenue, partially offset by higher Consumer and Wealth Management revenues
• Balance sheet is strong with CET1 ratio of 11.5%; average global liquidity sources increased to $1.1T
• • $25B ongoing share repurchase program initiated in April 2021
  • Repurchased $4.2B in 2Q21, including repurchases to offset shares awarded under equity-based compensation plans; paid $1.5B in common dividends
  • Announced expectation for 17% increase in quarterly dividend to begin in 3Q21
• Vaccination progress aided faster reopening of U.S. economy
• • Year-to-date,Bank of America consumers spent at a 22% higher rate than 1H19
  • Deposits grew $190B vs. 2Q20; up $24B from 1Q21
  • Consumer and Commercial Loans in aggregate grew $16B from 1Q21
• Asset quality continued to improve from 1Q21
• • Lower net charge-offs
  • Lower consumer delinquencies
  • Lower nonperforming loans
  • Lower reservable criticized commercial loans

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U.S. Economic Recovery Continues

GDP Trends

U.S. Real GDP

2021 U.S. Real GDP Forecast1

Credit and Debit Spend by Category2

Spending ($)

vs 2020	vs. 2019
+28%	+34%

		33.4%
			4.3% 6.4% 10.0%
(5.0%)
	(31.4%)
1Q	2Q	3Q	4Q	1Q	2Q	1
20	20	20	20	21	21F

6.1%			6.0%	7.0% 7.0%
		4.5%
	2.8%
Apr-	Jul-	Oct-	Jan-	Apr-	Jul-
20	20	20	21	21	21

31%	Retail
	Services	+33%	+20%
25%	Food	+28%	+16%
20%	Travel &	+223%	(13%)
Entertainment	+34%	+15%
9%	Gas	+75%	+8%
5%
10%	Other	+57%	+57%
2Q21

Payment Spend Year-over-Year % Change

Credit Spend YTD2		Debit Spend YTD		Total Payments YTD3	Total Payments Monthly3

40%

30%

20%

22%

10%

0%

(10%)

(20%)

(30%)

Jan-20

Feb-20

Mar-20

Apr-20

May-20

Jun-20

Jul-20

Aug-20

Sep-20

Oct-20

Nov-20

Dec-20

Jan-21

Feb-21

Mar-21

Apr-21

May-21

Jun-21

• Estimates from BofA Global Research.

• Includes consumer and small business credit card portfolios in Consumer Banking and GWIM.

• Total payments include total credit card, debit card, ACH, wires, bill pay, person-to-person, cash and checks.

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Credit Card Days Past Due Trend

Credit Card 30+ Days Past Due ($MM)

$2,500

$2,000

$1,500

$1,000

$500

$0

Jun-19

Sep-19

Dec-19

Mar-20

Jun-20

Sep-20

Dec-20

Mar-21

Jun-21

• Credit card delinquencies remain below pre- pandemic levels as deferrals expired and balances declined
• As of the end of 2Q21, most early-stage delinquency categories are at or near historical lows
• 2Q21 30+ and 90+ days past due ratios of 1.29% and 0.71% remain well below the pre-pandemic 4Q19 level of 2.09% and 1.07%, respectively

5-29 Days ($MM)				30-59 Days ($MM)				60-89 Days ($MM)				90+ Days ($MM)
$2,500					$700					$500					$1,200
$2,000					$600					$400					$1,000
					$500										$800
$1,500										$300
				$400
														$600
					$300
$1,000									$200
													$400
					$200
$500					$100					$100					$200
$0					$0					$0					$0
Jun-19	Sep-19Dec-19Mar-20Jun-20Sep-20	Dec-20	Mar-21	Jun-21	Jun-19	Sep-19Dec-19Mar-20Jun-20Sep-20	Dec-20	Mar-21	Jun-21	Jun-19	Sep-19Dec-19Mar-20Jun-20Sep-20	Dec-20	Mar-21	Jun-21	Jun-19	Sep-19Dec-19Mar-20Jun-20	Sep-20	Dec-20	Mar-21	Jun-21

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Daily Loans and Leases Balance Trends

Total Loans and Leases ex. PPP ($B)1	Total Loans and Leases by Product ex. PPP ($B)1
			Commercial		Consumer

Credit Card ($B)

Residential Mortgage ($B)2

• Excludes balances related to the Paycheck Protection Program (PPP) of $15.7B, $21.1B, $22.7B, $24.7B, and $24.4B recorded in Commercial for 2Q21, 1Q21, 4Q20, 3Q20 and 2Q20, respectively. Ending Commercial loans and leases were $500.8B, $490.9B, $499.1B, $515.4B, and $547.4B for 2Q21, 1Q21, 4Q20, 3Q20 and 2Q20, respectively.

• Only includes Residential Mortgages recorded in Consumer and GWIM.

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