Bank of America Results Presentation Deck
Important Presentation Information
The information contained herein is preliminary and based on Corporation data available at the time of the earnings presentation. It speaks only as of the
particular date or dates included in the accompanying slides. Bank of America does not undertake an obligation to, and disclaims any duty to, update any
of the information provided.
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The Corporation may present certain metrics and ratios, including year-over-year comparisons of revenue, noninterest expense and pretax income,
excluding certain items (e.g., DVA) that are non-GAAP financial measures. The Corporation believes the use of these non-GAAP financial measures
provides additional clarity in understanding its results of operations and trends. For more information about the non-GAAP financial measures contained
herein, please see the presentation of the most directly comparable financial measures calculated in accordance with GAAP and accompanying
reconciliations in the earnings press release for the quarter ended September 30, 2022, and other earnings-related information available through the
Bank of America Investor Relations website at: https://investor.bankofamerica.com/quarterly-earnings.
The Corporation presents certain key financial and nonfinancial performance indicators that management uses when assessing consolidated and/or
segment results. The Corporation believes this information is useful because it provides management with information about underlying operational
performance and trends. KPIs are presented in 3Q22 Financial Results on slide 2 and on the Summary Income Statement for each segment.
The Corporation views net interest income and related ratios and analyses on a fully taxable-equivalent (FTE) basis, which when presented on a
consolidated basis are non-GAAP financial measures. The Corporation believes managing the business with net interest income on an FTE basis provides
investors with meaningful information on the interest margin for comparative purposes. The Corporation believes that the presentation allows for
comparison of amounts from both taxable and tax-exempt sources and is consistent with industry practices. The FTE adjustment was $106MM, $103MM,
$106MM, $105MM and $101MM for 3Q22, 2022, 1022, 4Q21 and 3Q21, respectively.
The Corporation allocates capital to its business segments using a methodology that considers the effect of regulatory capital requirements in addition to
internal risk-based capital models. The Corporation's internal risk-based capital models use a risk-adjusted methodology incorporating each segment's
credit, market, interest rate, business and operational risk components. Allocated capital is reviewed periodically and refinements are made based on
multiple considerations that include, but are not limited to, risk-weighted assets measured under Basel 3 Standardized and Advanced approaches,
business segment exposures and risk profile, and strategic plans. As a result of this process, in the first quarter of 2022, the Corporation adjusted the
amount of capital being allocated to its business segments.
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