Bank of America : 4Q20 Earnings Presentation

Bank of America

4Q20 Financial Results

January 19, 2021

Full Year 2020 Financial Results 1

	Summary Income Statement	FY20	FY19	$ Inc /	% Inc /
	($B, except per share data)	(Dec)	(Dec)
	Total revenue, net of interest expense	$85.5	$91.2	($5.7)	(6)
	Provision for credit losses	11.3	3.6	7.7	N/M
	Net charge-offs	4.1	3.6	0.5	13
	Reserve build / (release) 2	7.2	(0.1)	7.3	N/M
	Noninterest expense	55.2	54.9	0.3	1
	Pretax income	19.0	32.8	(13.8)	(42)
	Pretax, pre-provision income 3	30.3	36.3	(6.0)	(17)
	Income tax expense	1.1	5.3	(4.2)	(79)
	Net income	$17.9	$27.4	($9.5)	(35)
	Diluted earnings per share	$1.87	$2.75	($0.88)	(32)
	Average diluted common shares (in millions)	8,797	9,443	(646)	(7)

Return Metrics and Efficiency Ratio

Return on average assets

Return on average common shareholders' equity

Return on average tangible common shareholders' equity 3 Efficiency ratio

0.67 %

1.14 %

6.8 10.6

9.5 14.9

65 60

Note: Amounts may not total due to rounding. N/M stands for not meaningful.

1 Provision for credit losses, allowance for credit losses and related credit metrics in this presentation reflect the Company's adoption of the accounting standard on current expected credit losses (CECL) effective January 1, 2020. For more information, see important presentation information on slide 34.

2	For more information on reserve build / (release), see note A on slide 31.	2
3	Represent non-GAAP financial measures. For more information on pretax, pre-provision income and a reconciliation to GAAP, see note B on slide 31. For important presentation

information about these measures, see slide 34.

Consumer and Small Business Spending and Payments Trend

Payment Spend Year-over-Year % Growth

Credit Spend YTD 1		Debit Spend YTD		Total Payments YTD 2	Total Payments Monthly 2

20%
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

FY 2020 - Dollar Volume by Payment Type

	79%
Credit	9%
19%
Debit	12%

ACH	6%
Wires	$3.1T
P2B/P2P	18%
Cash	28%
Check		8%

FY 2020 - YoY Change in Transaction Volume

				22%
			7%
	(8%)
		(21%)
	Credit/Debit	Cash/Check	ACH/Wire	P2B/P2P
% of Total	75%	7%	10%	7%
Transaction
Volume

Note: Amounts may not total due to rounding.	3
1 Includes consumer and small business credit card portfolios in Consumer Banking and GWIM.

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

Global Banking Loan Trend

Global Banking Funded Loans and Leases (EOP, $B)

450

400

350

300

Dec-19

Jan-20

Feb-20

Mar-20

Apr-20

May-20

Jun-20

Jul-20

Aug-20

Sep-20

Oct-20

Nov-20

12/1

12/7

12/14

12/21

12/28

12/31

Indexed Funded Loans and Leases by Business

120

Global Corporate & Investment Banking

110

Global Commercial Banking

Business Banking

100

90

80

Dec-19

Jan-20

Feb-20

Mar-20

Apr-20

May-20

Jun-20

Jul-20

Aug-20

Sep-20

Oct-20

Nov-20

12/1

12/7

12/14

12/21

12/28

12/31

4