Bank of America Results Presentation Deck slide image

Bank of America Results Presentation Deck

Consumer Banking Summary Income Statement ($MM) Total revenue, net of interest expense Provision (benefit) for credit losses Noninterest expense Pretax income Pretax, pre-provision income¹ Income tax expense Net income Key Indicators ($B) Average deposits Rate paid on deposits Cost of deposits² Average loans and leases Net charge-off ratio Net charge-offs ($MM) Reserve build (release) ($MM) Consumer investment assets³ Active mobile banking users (MM) % Consumer sales through digital channels Number of financial centers Combined credit/debit purchase volumes¹ Total consumer credit card risk-adjusted margin¹ Return on average allocated capital Allocated capital Efficiency ratio 3Q22 $9,904 738 5,097 4,069 4,807 997 $3,072 3Q22 $1,069.1 0.03 % 1.17 $295.2 0.69% $512 226 $302.4 34.9 48 % 3,932 $218.2 10.07 % 30 $40.0 51 % Inc / (Dec) 2Q22 $768 388 138 242 630 59 $183 2Q22 $1,078.0 0.02 % 1.14 $289.6 0.70% $502 (152) $315.2 34.2 48 % 3,984 $220.5 9.95 % 29 $40.0 54 % 3Q21 $1,066 491 539 36 527 9 $27 3Q21 $1,000.8 0.02 % 1.09 $281.4 0.69 % $489 (242) $353.3 32.5 43 % 4,215 $200.6 10.70 % 31 $38.5 52 % . . . Net income of $3.1B increased 1% from 3Q21, as revenue improvement was partially offset by business investments and higher provision for credit losses Pretax, pre-provision income¹ of $4.8B increased 12% from 3Q21 6th consecutive quarter of operating leverage; efficiency ratio improved to 51% Revenue of $9.9B improved 12% from 3Q21, due to increased NII driven by higher balances and interest rates, partially offset by the impact of reduced customer non- sufficient funds and overdraft fees Provision for credit losses was $738MM, primarily driven by loan growth, and increased $491MM from 3Q21 - The prior year benefited from a reserve release of $242MM Noninterest expense of $5.1B increased 12% from 3Q21, primarily driven by investments in the business, including marketing and technology, and compensation and benefits Average deposits exceeded $1T and were $68B, or 7%, higher than 3Q21 56% of deposits in checking accounts; 92% primary accounts5 Average loans and leases of $295B increased $14B, or 5%, from 3Q21 Combined credit/debit card spend of $218B increased 9% from 3Q21, with credit up 13% and debit up 6% Consumer investment assets³ of $302B declined $51B, or 14%, from 3Q21, driven by lower market valuations, partially offset by $24B of strong client flows from new and existing clients Record 3.4MM consumer investment accounts, up 6% 10.1 MM Total clients enrolled in Preferred Rewards, up 10% from 3Q21; 99% annualized retention rate ¹Represents a non-GAAP financial measure. For more information and a reconciliation to GAAP, see note B on slide 32. For important presentation information, see slide 35. 2 Cost of deposits calculated as annualized noninterest expense as a percentage of total average deposits within the Deposits sub-segment. 3 All ³ Consumer investment assets includes client brokerage assets, deposit sweep balances and assets under management (AUM) in Consumer Banking. 4 Includes consumer credit card portfolios in Consumer Banking and GWIM. 5 Represents the percentage of consumer checking accounts that are estimated to be the customer's primary account based on multiple relationship factors (e.g., linked to their direct deposit). 6 As of August, 2022. Includes clients in Consumer, Small Business and GWIM. 15
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