| Schedule of Compliance with Regulatory Capital Requirements under Banking Regulations |
The following table presents capital ratios and related information in accordance with Basel 3 Standardized and Advanced approaches – Transition as measured at December 31, 2017 and 2016 for the Corporation and BANA.
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Regulatory Capital under Basel 3 – Transition (1)
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Bank of America Corporation |
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Bank of America, N.A. |
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Standardized Approach |
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Advanced Approaches |
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Regulatory Minimum (2)
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Standardized Approach |
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Advanced Approaches |
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Regulatory Minimum (3)
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(Dollars in millions, except as noted) |
December 31, 2017 |
Risk-based capital metrics: |
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Common equity tier 1 capital |
$ |
171,063 |
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$ |
171,063 |
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$ |
150,552 |
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$ |
150,552 |
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Tier 1 capital |
191,496 |
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191,496 |
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150,552 |
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150,552 |
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Total capital (4)
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227,427 |
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218,529 |
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163,243 |
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154,675 |
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Risk-weighted assets (in billions) (5)
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1,434 |
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1,449 |
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1,201 |
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1,007 |
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Common equity tier 1 capital ratio |
11.9 |
% |
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11.8 |
% |
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7.25 |
% |
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12.5 |
% |
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14.9 |
% |
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6.5 |
% |
Tier 1 capital ratio |
13.4 |
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13.2 |
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8.75 |
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12.5 |
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14.9 |
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8.0 |
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Total capital ratio |
15.9 |
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15.1 |
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10.75 |
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13.6 |
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15.4 |
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10.0 |
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Leverage-based metrics: |
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Adjusted quarterly average assets (in billions) (6)
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$ |
2,224 |
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$ |
2,224 |
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$ |
1,672 |
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$ |
1,672 |
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Tier 1 leverage ratio |
8.6 |
% |
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8.6 |
% |
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4.0 |
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9.0 |
% |
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9.0 |
% |
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5.0 |
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December 31, 2016 |
Risk-based capital metrics: |
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Common equity tier 1 capital |
$ |
168,866 |
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$ |
168,866 |
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$ |
149,755 |
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$ |
149,755 |
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Tier 1 capital |
190,315 |
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190,315 |
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149,755 |
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149,755 |
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Total capital (4)
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228,187 |
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218,981 |
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163,471 |
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154,697 |
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Risk-weighted assets (in billions) |
1,399 |
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1,530 |
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1,176 |
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1,045 |
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Common equity tier 1 capital ratio |
12.1 |
% |
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11.0 |
% |
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5.875 |
% |
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12.7 |
% |
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14.3 |
% |
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6.5 |
% |
Tier 1 capital ratio |
13.6 |
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12.4 |
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7.375 |
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12.7 |
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14.3 |
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8.0 |
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Total capital ratio |
16.3 |
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14.3 |
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9.375 |
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13.9 |
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14.8 |
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10.0 |
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Leverage-based metrics: |
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Adjusted quarterly average assets (in billions) (6)
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$ |
2,131 |
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$ |
2,131 |
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$ |
1,611 |
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$ |
1,611 |
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Tier 1 leverage ratio |
8.9 |
% |
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8.9 |
% |
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4.0 |
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9.3 |
% |
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9.3 |
% |
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5.0 |
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(1) |
Under the applicable bank regulatory rules, the Corporation is not required to and, accordingly, will not restate previously-filed regulatory capital metrics and ratios in connection with the change in accounting method as described in Note 1 – Summary of Significant Accounting Principles . Therefore, the December 31, 2016 amounts in the table are as originally reported. The cumulative impact of the change in accounting method resulted in an insignificant pro forma change to the Corporation’s capital metrics and ratios.
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(2) |
The December 31, 2017 and 2016 amounts include a transition capital conservation buffer of 1.25 percent and 0.625 percent and a transition global systemically important bank surcharge of 1.5 percent and 0.75 percent. The countercyclical capital buffer for both periods is zero.
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(3) |
Percentage required to meet guidelines to be considered “well capitalized” under the PCA framework. |
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(4) |
Total capital under the Advanced approaches differs from the Standardized approach due to differences in the amount permitted in Tier 2 capital related to the qualifying allowance for credit losses. |
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(5) |
During the fourth quarter of 2017, the Corporation obtained approval from U.S. banking regulators to use its Internal Models Methodology to calculate counterparty credit risk-weighted assets for derivatives under the Advanced approaches. |
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(6) |
Reflects adjusted average total assets for the three months ended December 31, 2017 and 2016.
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