Bank of America : Third Quarter 2020 Earnings Presentation

Bank of America

3Q20 Financial Results

October 14, 2020

3Q Earnings Themes

• Solid, diverse earnings of $4.9B, or $0.51 per diluted share
• • Revenue pressured by low interest rates
  • Expense elevated from COVID-related costs and litigation
  • Credit costs improved
• Strong balance sheet and capital positions
• Digital Banking adoption by customers across the company continued to accelerate
• Economy continued to recover in the quarter
• • Consumer spending improved
  • Consumer deposit growth was strong
  • Capital markets remained active
  • Loan demand weakened

2

Credit Quality Trends

Provision Expense ($MM)

$4,761 $5,117

		1,122	1,146
	$941	3,639	3,971	$1,389
$779	972
811	959
		417

1. (18)

3Q19	4Q19	1Q20		2Q20	3Q20
			Reserve Build (Release)		Net charge-offs

Active Consumer Deferrals

					1.5		1.7		1.7
												1.1
					$35	$39		$37
		0.5
								0.2
				$20			0.1
$9
						$13
						$9
		March	April		May	June			July	August	September
			Balances on Deferral ($B)			Accounts on Deferral (MM)

Commercial Reservable Criticized Utilized Exposure ($B)	Nonperforming Loans ($B)
																												$4.4		$4.6
											$36											$4.1
													$3.5			$3.6
																										0.48%
																									0.44%
									$26														0.39%
															0.36%			0.36%
							$17		6.6%
												$2.2			$2.1
$12	$11		4.5%								$2.2			$2.2 $2.2	$2.4 $2.2
													$1.9
								2.8%							$1.3	$1.5
			2.2%		2.1%
			3Q19		4Q19		1Q20		2Q20		3Q20
									3Q19		4Q19		1Q20		2Q20		3Q20
				Commercial Reservable Criticized Utilized Exposure						Consumer			Commercial			NPL Ratio
				Commercial Reservable Criticized Utilized Exposure Ratio

3

Digital Engagement

(Data is for 3Q20 and comparisons are YoY unless otherwise noted)

• 2.3B digital banking logins
• Average logins per user up 5%
• Erica users rose to ~15.9MM
• Zelle users rose to ~12.2MM
• 2.3MM Spanish mobile users, up 12%
• Record high of 688K digitally scheduled appointments
• Merrill Edge self-directed trading up 151%
• ~500K CashPro online users
• CashPro mobile logins up 54%
• CashPro app has seen 19 "billion dollar days" since March
• Nearly 4,400 patents granted or applied for with ~275 granted in 2020
• 370K secure texts with Merrill clients, up 58%
• Over 100K WebEx meetings hosted by advisors, up nearly 7x
• Record logins on Merrill Lynch digital platforms of ~95MM YTD
• Record Private Bank client adoption of 77% across online and mobile platforms
• 813K new mobile check deposit users, ~20% of which were baby boomers and seniors
• Digital sales represented 44% of total consumer sales, up from 29%

Continued to deliver on high-tech,high-touch strategy

4