UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES

EXCHANGE ACT OF 1934

For the Quarterly Period Ended June 30, 2020

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES

EXCHANGE ACT OF 1934

For the transition period from to

Commission file number:

1-6523

Exact name of registrant as specified in its charter:

Bank of America Corporation

State or other jurisdiction of incorporation or organization:

Delaware

IRS Employer Identification No.:

56-0906609

Address of principal executive offices:

Bank of America Corporate Center

100 N. Tryon Street

Charlotte, North Carolina 28255

Registrant’s telephone number, including area code:

(704) 386-5681

Former name, former address and former fiscal year, if changed since last report:

Securities registered pursuant to Section 12(b) of the Act:



Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, par value $0.01 per share	BAC	New York Stock Exchange
Depositary Shares, each representing a 1/1,000th interest in a share	BAC PrE	New York Stock Exchange
of Floating Rate Non-Cumulative Preferred Stock, Series E
Depositary Shares, each representing a 1/1,000th interest in a share	BAC PrC	New York Stock Exchange
of 6.200% Non-Cumulative Preferred Stock, Series CC
Depositary Shares, each representing a 1/1,000th interest in a share	BAC PrA	New York Stock Exchange
of 6.000% Non-Cumulative Preferred Stock, Series EE
Depositary Shares, each representing a 1/1,000th interest in a share	BAC PrB	New York Stock Exchange
of 6.000% Non-Cumulative Preferred Stock, Series GG
Depositary Shares, each representing a 1/1,000th interest in a share	BAC PrK	New York Stock Exchange
of 5.875% Non-Cumulative Preferred Stock, Series HH
7.25% Non-Cumulative Perpetual Convertible Preferred Stock, Series L	BAC PrL	New York Stock Exchange
Depositary Shares, each representing a 1/1,200th interest in a share	BML PrG	New York Stock Exchange
of Bank of America Corporation Floating Rate
Non-Cumulative Preferred Stock, Series 1



1 Bank of America



Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Depositary Shares, each representing a 1/1,200th interest in a share	BML PrH	New York Stock Exchange
of Bank of America Corporation Floating Rate
Non-Cumulative Preferred Stock, Series 2
Depositary Shares, each representing a 1/1,200th interest in a share	BML PrJ	New York Stock Exchange
of Bank of America Corporation Floating Rate
Non-Cumulative Preferred Stock, Series 4
Depositary Shares, each representing a 1/1,200th interest in a share	BML PrL	New York Stock Exchange
of Bank of America Corporation Floating Rate
Non-Cumulative Preferred Stock, Series 5
Floating Rate Preferred Hybrid Income Term Securities of BAC Capital	BAC/PF	New York Stock Exchange
Trust XIII (and the guarantee related thereto)
5.63% Fixed to Floating Rate Preferred Hybrid Income Term Securities	BAC/PG	New York Stock Exchange
of BAC Capital Trust XIV (and the guarantee related thereto)
Income Capital Obligation Notes initially due December 15, 2066 of	MER PrK	New York Stock Exchange
Bank of America Corporation
Senior Medium-Term Notes, Series A, Step Up Callable Notes, due	BAC/31B	New York Stock Exchange
November 28, 2031 of BofA Finance LLC (and the guarantee
of the Registrant with respect thereto)
Depositary Shares, each representing a 1/1,000th interest in a share of	BAC PrM	New York Stock Exchange
5.375% Non-Cumulative Preferred Stock, Series KK
Depositary Shares, each representing a 1/1,000th interest in a share	BAC PrN	New York Stock Exchange
5.000% Non-Cumulative Preferred Stock, Series LL

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes ☑ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).

Yes ☑ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.



Large accelerated filer	☑	Accelerated filer	☐	Non-accelerated filer	☐	Smaller reporting company	☐

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Exchange Act Rule 12b-2).

Yes ☐ No ☑

On July 29, 2020, there were 8,664,097,768 shares of Bank of America Corporation Common Stock outstanding.



		Bank of America 2

Bank of America Corporation and Subsidiaries

June 30, 2020

Form 10-Q

INDEX

Part I. Financial Information



Item 1. Financial Statements		Page
Consolidated Statement of Income		52
Consolidated Statement of Comprehensive Income		52
Consolidated Balance Sheet		53
Consolidated Statement of Changes in Shareholders’ Equity		54
Consolidated Statement of Cash Flows		55
Notes to Consolidated Financial Statements		56
Note 1 – Summary of Significant Accounting Principles		56
Note 2 – Net Interest Income and Noninterest Income		59
Note 3 – Derivatives		60
Note 4 – Securities		67
Note 5 – Outstanding Loans and Leases and Allowance for Credit Losses		70
Note 6 – Securitizations and Other Variable Interest Entities		79
Note 7 – Goodwill and Intangible Assets		82
Note 8 – Leases		82
Note 9 – Federal Funds Sold or Purchased, Securities Financing Agreements, Short-term Borrowings and Restricted Cash		83
Note 10 – Commitments and Contingencies		84
Note 11 – Shareholders’ Equity		87
Note 12 – Earnings Per Common Share		87
Note 13 – Accumulated Other Comprehensive Income (Loss)		88
Note 14 – Fair Value Measurements		88
Note 15 – Fair Value Option		95
Note 16 – Fair Value of Financial Instruments		97
Note 17 – Business Segment Information		97
Glossary		102
Acronyms		103



Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations
Executive Summary		3
Recent Developments		3
Financial Highlights		6
Supplemental Financial Data		8
Business Segment Operations		12
Consumer Banking		12
Global Wealth & Investment Management		16
Global Banking		18
Global Markets		20
All Other		22
Off-Balance Sheet Arrangements and Contractual Obligations		23
Managing Risk		23
Capital Management		23
Liquidity Risk		28
Credit Risk Management		31
Consumer Portfolio Credit Risk Management		31
Commercial Portfolio Credit Risk Management		37
Non-U.S. Portfolio		43
Allowance for Credit Losses		44
Market Risk Management		46
Trading Risk Management		46
Interest Rate Risk Management for the Banking Book		47
Mortgage Banking Risk Management		49
Complex Accounting Estimates		49
Non-GAAP Reconciliations		51

Item 3. Quantitative and Qualitative Disclosures about Market Risk		51
Item 4. Controls and Procedures		51



1 Bank of America

Part II. Other Information



Item 1. Legal Proceedings		104
Item 1A. Risk Factors		104
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds		105
Item 6. Exhibits		106
Signature		106

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

Bank of America Corporation (the “Corporation”) and its management may make certain statements that constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These statements can be identified by the fact that they do not relate strictly to historical or current facts. Forward-looking statements often use words such as “anticipates,” “targets,” “expects,” “hopes,” “estimates,” “intends,” “plans,” “goals,” “believes,” “continue” and other similar expressions or future or conditional verbs such as “will,” “may,” “might,” “should,” “would” and “could.” Forward-looking statements represent the Corporation’s current expectations, plans or forecasts of its future results, revenues, expenses, efficiency ratio, capital measures, strategy, and future business and economic conditions more generally, and other future matters. These statements are not guarantees of future results or performance and involve certain known and unknown risks, uncertainties and assumptions that are difficult to predict and are often beyond the Corporation’s control. Actual outcomes and results may differ materially from those expressed in, or implied by, any of these forward-looking statements.

You should not place undue reliance on any forward-looking statement and should consider the following uncertainties and risks, as well as the risks and uncertainties more fully discussed under Item 1A. Risk Factors of our 2019 Annual Report on Form 10-K and in any of the Corporation’s subsequent Securities and Exchange Commission filings: the Corporation’s potential judgments, claims, damages, penalties, fines and reputational damage resulting from pending or future litigation and regulatory and government actions, including as a result of our participation in and execution of government programs related to the Coronavirus Disease 2019 (COVID-19) pandemic; the possibility that the Corporation’s future liabilities may be in excess of its recorded liability and estimated range of possible loss for litigation, regulatory, and representations and warranties exposures; the possibility that the Corporation could face increased servicing, fraud, indemnity, contribution or other claims from one or more counterparties, including trustees, purchasers of loans, underwriters, issuers, monolines, private-label and other investors, or other parties involved in securitizations; the Corporation’s ability to resolve representations and warranties repurchase and related claims, including claims brought by investors or trustees seeking to avoid the statute of limitations for repurchase claims; the risks related to the discontinuation of the London Interbank Offered Rate and other reference rates, including increased expenses and litigation and the effectiveness of hedging strategies; uncertainties about the financial stability and growth rates of non-U.S. jurisdictions, the risk that those jurisdictions may face difficulties servicing their sovereign debt, and related stresses on financial markets, currencies and trade, and the Corporation’s exposures to such risks, including direct, indirect and operational; the impact of U.S. and global interest rates, inflation, currency exchange rates, economic conditions, trade policies and tensions, including tariffs, and potential geopolitical instability; the impact of the interest rate environment on the Corporation’s business, financial condition and results of operations; the possibility that

future credit losses may be higher than currently expected due to changes in economic assumptions, customer behavior, adverse developments with respect to U.S. or global economic conditions and other uncertainties; the Corporation’s ability to achieve its expense targets and expectations regarding net interest income, provision for credit losses, net charge-offs, effective tax rate, loan growth or other projections; adverse changes to the Corporation’s credit ratings from the major credit rating agencies; an inability to access capital markets or maintain deposits or borrowing costs; estimates of the fair value and other accounting values, subject to impairment assessments, of certain of the Corporation’s assets and liabilities; the estimated or actual impact of changes in accounting standards or assumptions in applying those standards; uncertainty regarding the content, timing and impact of regulatory capital and liquidity requirements; the impact of adverse changes to total loss-absorbing capacity requirements, stress capital buffer requirements and/or global systemically important bank surcharges; the potential impact of actions of the Board of Governors of the Federal Reserve System on the Corporation’s capital plans; the effect of regulations, other guidance or additional information on the impact from the Tax Cuts and Jobs Act; the impact of implementation and compliance with U.S. and international laws, regulations and regulatory interpretations, including, but not limited to, recovery and resolution planning requirements, Federal Deposit Insurance Corporation assessments, the Volcker Rule, fiduciary standards, derivatives regulations and the Coronavirus Aid, Relief, and Economic Security Act and any similar or related rules and regulations; a failure or disruption in or breach of the Corporation’s operational or security systems or infrastructure, or those of third parties, including as a result of cyber attacks or campaigns; the impact on the Corporation’s business, financial condition and results of operations from the United Kingdom's exit from the European Union; the impact of any future federal government shutdown and uncertainty regarding the federal government’s debt limit or changes to the U.S. presidential administration and Congress; the emergence of widespread health emergencies or pandemics, including the magnitude and duration of the COVID-19 pandemic and its impact on the U.S. and/or global economy, financial market conditions and our business, results of operations and financial condition; the impact of natural disasters, military conflict, terrorism or other geopolitical events; and other matters.

Forward-looking statements speak only as of the date they are made, and the Corporation undertakes no obligation to update any forward-looking statement to reflect the impact of circumstances or events that arise after the date the forward-looking statement was made.

Notes to the Consolidated Financial Statements referred to in Management’s Discussion and Analysis of Financial Condition and Results of Operations (MD&A) are incorporated by reference into the MD&A. Certain prior-period amounts have been reclassified to conform to current-period presentation. Throughout the MD&A, the Corporation uses certain acronyms and abbreviations which are defined in the Glossary.



		Bank of America 2

Executive Summary

Business Overview

The Corporation is a Delaware corporation, a bank holding company (BHC) and a financial holding company. When used in this report, “the Corporation,” “we,” “us” and “our” may refer to Bank of America Corporation individually, Bank of America Corporation and its subsidiaries, or certain of Bank of America Corporation’s subsidiaries or affiliates. Our principal executive offices are located in Charlotte, North Carolina. Through our banking and various nonbank subsidiaries throughout the U.S. and in international markets, we provide a diversified range of banking and nonbank financial services and products through four business segments: Consumer Banking, Global Wealth & Investment Management (GWIM), Global Banking and Global Markets, with the remaining operations recorded in All Other. We operate our banking activities primarily under the Bank of America, National Association (Bank of America, N.A. or BANA) charter. At June 30, 2020, the Corporation had $2.7 trillion in assets and a headcount of approximately 213,000 employees.

As of June 30, 2020, we served clients through operations across the U.S., its territories and approximately 35 countries. Our retail banking footprint covers 100 percent of major markets in the U.S., and we serve approximately 66 million consumer and small business clients with approximately 4,300 retail financial centers, approximately 16,900 ATMs, and leading digital banking platforms (www.bankofamerica.com) with more than 39 million active users, including approximately 30 million active mobile users. We offer industry-leading support to approximately three million small business households. Our wealth management businesses, with client balances of $2.9 trillion, provide tailored solutions to meet client needs through a full set of investment management, brokerage, banking, trust and retirement products. We are a global leader in corporate and investment banking and trading across a broad range of asset classes serving corporations, governments, institutions and individuals around the world.

Recent Developments

Capital Management

In June 2020, the Board of Governors of the Federal Reserve System (Federal Reserve) notified BHCs of their 2020 Comprehensive Capital Analysis and Review (CCAR) supervisory stress test results. Based on our results, we will be subject to a preliminary 2.5 percent stress capital buffer (SCB) for the period beginning October 1, 2020 and ending on September 30, 2021. The Federal Reserve plans to finalize the SCB for all BHCs by August 31, 2020. For more information on SCB, see Capital Management on page 23.

The Federal Reserve also announced that due to economic uncertainty resulting from the Coronavirus Disease 2019 (COVID-19) pandemic, all large banks will be required to suspend share repurchase programs in the third quarter of 2020, except for repurchases to offset shares awarded under equity-based compensation plans, and limit dividends to existing rates that do not exceed the average of the last four quarters’ net income. Large banks will also be required to resubmit and update their capital plans later this year based on instructions that the Federal Reserve will provide. The Federal Reserve plans to conduct additional analysis to assess the Corporation's capital plans and will review capital preservation measures on a quarter-by-quarter basis.

The Federal Reserve’s directive regarding share repurchases aligns with our decision to voluntarily suspend repurchases in the first quarter of 2020 from the date of the announcement on March 15, 2020 through the end of the second quarter of 2020. The suspension of our repurchases did not include repurchases to offset shares awarded under our equity-based compensation plans, for which we repurchased $286 million of common stock during the second quarter of 2020 pursuant to the Board's repurchase authorization under our 2019 CCAR capital plan.

On July 22, 2020, the Board of Directors (the Board) declared a quarterly common stock dividend at the existing rate of $0.18 per share. We intend to maintain the quarterly common stock dividend at this rate until further notice, subject to approval by the Board. We will also continue our current suspension of common stock repurchases in the third quarter of 2020, except for repurchases to offset shares awarded under equity-based compensation plans.

For more information on our capital resources, see Capital Management on page 23.

COVID-19 Pandemic

In the first quarter of 2020, the World Health Organization declared the outbreak of COVID-19 a pandemic. In an attempt to contain the spread and impact of the COVID-19 pandemic, travel bans and restrictions, quarantines, shelter-in-place orders and limitations on business activity have been implemented. Additionally, there has been a sharp decline in global economic activity, reduced U.S. and global economic output and a significant deterioration in macroeconomic conditions in the U.S. and globally. This has resulted in, among other things, high rates of unemployment and underemployment and caused volatility and disruptions in the global financial markets, including the energy and commodity markets. Although some restrictive measures have been eased in certain areas, many of the restrictive measures remain in place or have been reinstated, and in some cases additional restrictive measures are being implemented. Businesses, market participants, our counterparties and clients, and the U.S. and global economies have been negatively impacted and are likely to be so for an extended period of time, as there remains significant uncertainty about the timing and strength of an economic recovery.

In response to the pandemic, the Corporation has implemented protocols and processes to execute its business continuity plans and help protect its employees and support its clients. The Corporation is managing its response to the COVID-19 pandemic according to its Enterprise Response Framework, which invokes centralized management of the crisis event and the integration of its response. The CEO and key members of the Corporation’s management team meet daily with co-leaders of the Executive Response Team, which is composed of senior executives across the Corporation, to help drive decisions, communications, and consistency of response across all businesses and functions. We are also coordinating with global, regional and local authorities and health experts, including the U.S. Centers for Disease Control and Prevention (CDC) and the World Health Organization.

Additionally, we have implemented a number of measures to assist our employees, clients and the communities we serve, including the following:



3 Bank of America

Employees

We are providing support to our teammates to help promote the health and safety of our employees, including:


●	Monitoring guidance from the CDC, medical boards and health authorities and sharing such guidance with our employees.

●

Operating our businesses from remote locations and leveraging our business continuity plans and capabilities. The Corporation has globally implemented a work-from-home posture, which has resulted in a substantial majority of our employees working from home, and pre-planned contingency strategies for site-based operations for our remaining employees. We continue to evaluate our continuity plans and work-from-home strategy in an effort to best protect the health and safety of our employees.


●	Providing access to various benefits and resources related to the COVID-19 pandemic.

Clients

We have taken measures to leverage our business continuity plans and capabilities to continue to service our clients and meet our clients’ financial needs, including:

●

Offering assistance to our commercial, consumer and small business clients affected by the COVID-19 pandemic, which includes payment deferrals, refunds of certain fees, pausing foreclosure sales, evictions and repossessions, and continuing to provide access to credit and the important financial services on which our clients rely. For more information on payment deferrals, see Note 1 – Summary of Significant Accounting Principles to the Consolidated Financial Statements.

●

Participating in the programs created by the Coronavirus Aid, Relief and Economic Security (CARES Act) and Federal Reserve lending programs for businesses, including originating Paycheck Protection Program (PPP) loans. Through the second quarter of 2020, we funded approximately 334,000 PPP loans totaling $25.1 billion, which were recorded in the Consumer, GWIM and Global Banking segments. For more information, see Credit Risk Management on page 31 and Note 1 – Summary of Significant Accounting Principles to the Consolidated Financial Statements.


●	Providing access to important financial resources, including 24/7 access to mobile and online banking, with no limits on cash withdrawals, and virtual connection to advisors.

Community partners

We have supported the communities where we live and work by engaging to help those affected through initiatives, including:


●	Committed $100 million to local communities to purchase medical supplies, food and other priorities.


●	Committed $250 million in capital to community development financial institutions to fund loans they extend through the PPP.


●	Issued a $1 billion, four-year corporate social bond to support the fight against COVID-19, the first such offering by a U.S. commercial bank.


●	Made a $1 billion, four-year pledge of additional support to address economic and racial inequality accelerated by the global pandemic. The programs will be focused on assisting people and communities of color who have experienced a greater impact from the health crisis.

We will continue to manage the increased operational risk related to the execution of our business continuity plans in accordance with our Enterprise Response Framework, Risk Framework and Operational Risk Management Program. For more information, see Managing Risk on page 23.

Loan Modifications

The Corporation has implemented various consumer and commercial loan modification programs to provide its borrowers relief from the economic impacts of COVID-19. Based on guidance in the CARES Act that the Corporation adopted, COVID-19 related modifications to consumer and commercial loans that were current as of December 31, 2019 are exempt from troubled debt restructuring (TDR) classification under accounting principles generally accepted in the United States of America (GAAP). In addition, the bank regulatory agencies issued interagency guidance stating that COVID-19 related short-term modifications (i.e., six months or less) granted to consumer or commercial loans that were current as of the loan modification program implementation date are not TDRs. For more information, see Note 1 – Summary of Significant Accounting Principles and Note 5 – Outstanding Loans and Leases and Allowance for Credit Losses to the Consolidated Financial Statements.

The following table provides a summary of the percentage of our loans and loan balances with modifications in place as of July 23, 2020. The modifications were made in response to COVID-19 under payment deferral or forbearance programs, none of which are classified as TDRs. As of the date presented, loan balances of deferred consumer and small business accounts totaled $28.5 billion. Deferred commercial accounts, excluding small business, totaled $7.7 billion.



		Bank of America 4




Table 1	Client Loan Modifications

		July 23, 2020
		% of Accounts with Completed Modifications		% of Balances with Completed Modifications		Program Details

Consumer card		4	%	7	%	Initial deferral up to 60 days, with automatic extensions for payments due through August 15.
Small Business card		13		20		Initial deferral up to 90 days, with automatic extensions for payments due through August 15.
Small Business non-credit card lending		10		14		Initial deferral of 90 days; deferral extension available for an additional 90 days.
Mortgage and home equity lines of credit ⁽¹⁾		5		6		Initial deferral or forbearance of up to 90 days; additional 90-day extension available.
Consumer vehicle lending ⁽²⁾		2		3		Initial extension of 60 days for Consumer and 90 days for Small Business, with up to three extensions available in matching increments.
Commercial loans ⁽³⁾		2		2		Primarily deferral of up to 90 days; interest continues to accrue with various repayment options; may include short-term covenant waivers.


⁽¹⁾	Mortgage and home equity lines of credit includes loans that are held for investment (owned by Bank of America).


⁽²⁾	Vehicle lending includes both consumer and small business.


⁽³⁾	Statistics represent clients who have been given temporary deferment of principal and/or interest for a defined period of time.

We have processed 1.8 million consumer deferral requests, of which 1.4 million were in place as of July 23, 2020. The largest number of processed deferrals has been for consumer and small business credit card holders, of which 85 percent were initiated in late March and April 2020. At the time the deferrals were requested, more than 95 percent of these customers were current. During the second quarter of 2020, approximately 61 percent of these customers have made at least one payment, and 33 percent have made a payment each month since being placed on deferral.

Other Related Matters

As part of our ongoing review of our financial condition in light of the pandemic, we evaluated goodwill and other intangibles and equity investments for potential impairment. Based upon our review as of June 30, 2020, no impairments have been recorded. For more information on goodwill, see Complex Accounting Estimates – Goodwill and Intangible Assets on page 50 and Note 7 – Goodwill and Intangible Assets to the Consolidated Financial Statements.

Given the significant uncertainty regarding the duration and further spread of COVID-19 and rapidly evolving economic effects and social impacts of the COVID-19 pandemic, the future direct and indirect impact on our businesses, results of operations and financial condition remain highly uncertain. Should current economic conditions persist or continue to deteriorate, we expect that this macroeconomic environment will have a continued adverse effect on our businesses and results of operations and could have an effect on our financial condition. For more information on how the risks related to the COVID-19 pandemic may adversely affect our businesses, results of operations and financial condition, see Part II, Item 1A. Risk Factors on page 104.

LIBOR and Other Benchmark Rates

As previously disclosed, to facilitate an orderly transition from Interbank Offered Rates (IBORs) and other benchmark rates to alternative reference rates (ARRs), the Corporation has established an enterprise-wide program to identify, assess and monitor risks associated with the expected discontinuation or unavailability of benchmarks, including the London Interbank Offered Rate (LIBOR). As part of this program, the Corporation continues to identify, assess and monitor risks associated with the expected discontinuation or unavailability of LIBOR and other

benchmarks, and evaluate and address documentation and contractual mechanics of outstanding IBOR-based products and contracts that may mature after LIBOR is no longer deemed a representative benchmark and new and potential future ARR-based products and contracts to achieve operational readiness. This program, which is led by the Corporation's Chief Operating Officer, includes active involvement of senior management and regular reports to the Enterprise Risk Committee. The program is structured to address the Corporation's industry and regulatory engagement, client and financial contract changes, internal and external communications, technology and operations modifications, introduction of new products, migration of existing clients, and program strategy and governance. As the markets for ARRs continue to grow, the Corporation continues to monitor the development and usage of ARRs, including the Secured Overnight Financing Rate. Additionally, the Corporation continues to monitor the impact of COVID-19 on the market and industry transition to ARRs, including the readiness of other market participants and third-party vendors, and impacted clients and their operational readiness to transition to ARRs. For more information on the expected replacement of LIBOR and other benchmark rates, see Executive Summary - Recent Developments - LIBOR and Other Benchmark Rates in the MD&A and Item 1A. Risk Factors - Other of the Corporation’s 2019 Annual Report on Form 10-K. For more information about the Corporation's risks related to the COVID-19 pandemic, see Part II, Item 1A. Risk Factors on page 104.

Merchant Services Joint Venture

Prior to the third quarter of 2020, a significant portion of our merchant processing activity was performed by a joint venture in which we hold a 49 percent ownership interest. In 2019, we delivered notice of termination of the joint venture at the conclusion of its term in June 2020 to the joint venture partner. For more information, see Note 10 – Commitments and Contingencies to the Consolidated Financial Statements.

Effective July 1, 2020, the Corporation received its share of the joint venture's merchant contracts and began providing merchant services for the customer relationships received. Beginning in the third quarter of 2020, merchant revenue and the related noninterest expense will be recorded in the Consolidated Statement of Income and are not expected to be material.



5 Bank of America

Financial Highlights

Effective January 1, 2020, we adopted the new accounting standard on current expected credit losses (CECL), under which the allowance is measured based on management’s best estimate of lifetime expected credit losses (ECL). Prior-year periods presented reflect measurement of the allowance based on management’s estimate of probable incurred credit losses. For more information, see Note 1 – Summary of Significant Accounting Principles to the Consolidated Financial Statements.




Table 2	Summary Income Statement and Selected Financial Data

		Three Months Ended June 30						Six Months Ended June 30
(Dollars in millions, except per share information)		2020			2019			2020			2019
Income statement
Net interest income		$	10,848		$	12,189		$	22,978		$	24,564
Noninterest income		11,478			10,895			22,115			21,524
Total revenue, net of interest expense		22,326			23,084			45,093			46,088
Provision for credit losses		5,117			857			9,878			1,870
Noninterest expense		13,410			13,268			26,885			26,492
Income before income taxes		3,799			8,959			8,330			17,726
Income tax expense		266			1,611			787			3,067
Net income		3,533			7,348			7,543			14,659
Preferred stock dividends		249			239			718			681
Net income applicable to common shareholders		$	3,284		$	7,109		$	6,825		$	13,978

Per common share information
Earnings		$	0.38		$	0.75		$	0.78		$	1.45
Diluted earnings		0.37			0.74			0.77			1.45
Dividends paid		0.18			0.15			0.36			0.30
Performance ratios
Return on average assets ⁽¹⁾		0.53		%	1.23		%	0.58		%	1.24		%
Return on average common shareholders’ equity ⁽¹⁾		5.44			11.62			5.67			11.52
Return on average tangible common shareholders’ equity ⁽²⁾		7.63			16.24			7.97			16.13
Efficiency ratio⁽¹⁾		60.06			57.48			59.62			57.48

								June 30 2020			December 31 2019
Balance sheet
Total loans and leases								$	998,944		$	983,426
Total assets								2,741,688			2,434,079
Total deposits								1,718,666			1,434,803
Total liabilities								2,476,051			2,169,269
Total common shareholders’ equity								242,210			241,409
Total shareholders’ equity								265,637			264,810


⁽¹⁾	For definitions, see Key Metrics on page 103.


⁽²⁾	Return on average tangible common shareholders’ equity is a non-GAAP financial measure. For more information and a corresponding reconciliation to the most closely related financial measures defined by accounting principles generally accepted in the United States of America, see Non-GAAP Reconciliations on page 51.

Net income was $3.5 billion and $7.5 billion, or $0.37 and $0.77 per diluted share, for the three and six months ended June 30, 2020 compared to $7.3 billion and $14.7 billion, or $0.74 and $1.45 per diluted share, for the same periods in 2019. The decline in net income was largely due to an increase in the provision for credit losses primarily due to the weaker economic outlook related to COVID‐19, and to a lesser extent, lower revenue and an increase in noninterest expense.

Total assets increased $307.6 billion from December 31, 2019 to $2.7 trillion primarily driven by higher federal funds sold and securities borrowed or purchased under agreements to resell and higher cash and cash equivalents as a result of elevated deposit balances being deployed as short-term investments.

Total liabilities increased $306.8 billion from December 31, 2019 to $2.5 trillion primarily driven by higher deposit inflows resulting from government stimulus actions, lower consumer spending, and client responses to market volatility as clients improved their liquidity positions. Additionally, long-term debt

increased due to debt issuances and a debt basis adjustment primarily due to lower interest rates.

Shareholders’ equity increased $827 million from December 31, 2019 primarily due to net income and market value increases on debt securities, partially offset by returns of capital to shareholders through common stock repurchases and common and preferred stock dividends as well as the impact of the adoption of the new credit loss accounting standard.

Net Interest Income

Net interest income decreased $1.3 billion to $10.8 billion, and $1.6 billion to $23.0 billion for the three and six months ended June 30, 2020 compared to the same periods in 2019. Net interest yield on a fully taxable-equivalent (FTE) basis decreased 57 basis points (bps) to 1.87 percent, and 39 bps to 2.09 percent for the same periods. The decrease in net interest income was primarily driven by lower asset yields from the decline in interest rates, partially offset by reduced deposit and funding costs as well as



		Bank of America 6

loan and deposit growth. Based on the forward interest rate curve and other relevant assumptions as of June 30, 2020, we expect net interest income to decline modestly in the third quarter of 2020 as compared to the second quarter of 2020. For more

information on net interest yield and the FTE basis, see Supplemental Financial Data on page 8, and for more information on interest rate risk management, see Interest Rate Risk Management for the Banking Book on page 47.

Noninterest Income




Table 3	Noninterest Income

		Three Months Ended June 30				Six Months Ended June 30
(Dollars in millions)		2020		2019		2020		2019
Fees and commissions:
Card income		$	1,249	$	1,446	$	2,521	$	2,821
Service charges		1,562		1,903		3,465		3,742
Investment and brokerage services		3,422		3,470		7,180		6,830
Investment banking fees		2,159		1,371		3,547		2,635
Total fees and commissions		8,392		8,190		16,713		16,028
Market making and similar activities		2,487		2,381		5,294		5,149
Other income		599		324		108		347
Total noninterest income		$	11,478	$	10,895	$	22,115	$	21,524

Noninterest income increased $583 million to $11.5 billion, and $591 million to $22.1 billion for the three and six months ended June 30, 2020 compared to the same periods in 2019. The following highlights the significant changes.


●	Card income decreased $197 million and $300 million primarily driven by lower levels of consumer spending due to the impact of COVID-19.


●	Service charges decreased $341 million and $277 million primarily due to lower overdraft charge rates and client activity due to the impact of COVID-19.

●

Investment and brokerage services income decreased $48 million for the three-month period primarily due to lower market valuations and assets under management (AUM) pricing, partially offset by the benefit of positive AUM flows. For the six-month period, there was an increase of $350 million primarily due to higher client transactional activity, higher market valuations and AUM flows, partially offset by declines in AUM pricing.


●	Investment banking fees increased $788 million and $912 million due to higher debt and equity underwriting fees and higher advisory fees.

●

Market making and similar activities increased $106 million and $145 million. For the three-month period the improvement was primarily due to increased client activity and market recoveries from the end of the prior quarter, partially offset by lower income in equity derivatives from a weaker trading performance. The increase in the six-month period was primarily driven by higher client activity, partially offset by valuation adjustments in credit-sensitive products.


●	Other income increased $275 million for the three-month period and decreased $239 million for the six-month period. The increase was primarily due to a $704 million gain on sales of certain mortgage loans, partially offset by certain valuation adjustments. The decrease in the six-month period was primarily due to net unrealized losses in the fair value option and leveraged finance portfolios.

Provision for Credit Losses

The provision for credit losses increased $4.3 billion to $5.1 billion, and $8.0 billion to $9.9 billion for the three and six months ended June 30, 2020 compared to the same periods in 2019, primarily driven by increased ECL due to a weaker economic outlook related to COVID-19. For more information on the provision for credit losses, see Allowance for Credit Losses on page 44.

Noninterest Expense




Table 4	Noninterest Expense

		Three Months Ended June 30				Six Months Ended June 30
(Dollars in millions)		2020		2019		2020		2019
Compensation and benefits		$	7,994	$	7,972	$	16,335	$	16,221
Occupancy and equipment		1,802		1,640		3,504		3,245
Information processing and communications		1,265		1,157		2,474		2,321
Product delivery and transaction related		811		709		1,588		1,371
Marketing		492		528		930		970
Professional fees		381		409		756		769
Other general operating		665		853		1,298		1,595
Total noninterest expense		$	13,410	$	13,268	$	26,885	$	26,492

Noninterest expense increased $142 million to $13.4 billion, and $393 million to $26.9 billion for the three and six months ended June 30, 2020 compared to the same periods in 2019. The increase was primarily due to the net impact of COVID-19 expense after considering related savings, partially offset by other cost reductions.



7 Bank of America

Income Tax Expense




Table 5	Income Tax Expense

		Three Months Ended June 30						Six Months Ended June 30
(Dollars in millions)		2020			2019			2020			2019
Income before income taxes		$	3,799		$	8,959		$	8,330		$	17,726
Income tax expense		266			1,611			787			3,067
Effective tax rate		7.0		%	18.0		%	9.4		%	17.3		%

The effective tax rates for the three and six months ended June 30, 2020 and 2019 were driven by our recurring tax preference benefits, primarily consisting of tax credits from investments in affordable housing and renewable energy, aligning with our responsible growth strategy to address global sustainability challenges. The six-month effective rates also included tax benefits from deductions associated with share-based compensation. The declines in the effective tax rates for the three and six months ended June 30, 2020 were driven by the impact of our recurring tax preference benefits on the lower levels of pretax income. We expect the effective tax rate for the rest of 2020 to be approximately 11 percent, excluding the change in U.K. tax law discussed below and other unusual items. Absent these tax credits, we would expect the effective tax rate to be approximately 25 percent.

On July 22, 2020, the U.K. enacted a change in its tax rates under which the Corporation will record an income tax benefit of approximately $700 million in the third quarter of 2020. For more information, see Note 1 - Summary of Significant Accounting Principles to the Consolidated Financial Statements.

Supplemental Financial Data

Non-GAAP Financial Measures

In this Form 10-Q, we present certain non-GAAP financial measures. Non-GAAP financial measures exclude certain items or otherwise include components that differ from the most directly comparable measures calculated in accordance with GAAP. Non-GAAP financial measures are provided as additional useful information to assess our financial condition, results of operations (including period-to-period operating performance) or compliance with prospective regulatory requirements. These non-GAAP financial measures are not intended as a substitute for GAAP financial measures and may not be defined or calculated the same way as non-GAAP financial measures used by other companies.

We view net interest income and related ratios and analyses on an FTE basis, which when presented on a consolidated basis are non-GAAP financial measures. To derive the FTE basis, net interest income is adjusted to reflect tax-exempt income on an equivalent before-tax basis with a corresponding increase in income tax expense. For purposes of this calculation, we use the federal statutory tax rate of 21 percent and a representative state tax rate. Net interest yield, which measures the basis points we earn over the cost of funds, utilizes net interest income on an FTE basis. We believe that presentation of these items on an FTE basis allows for comparison of amounts from both taxable and tax-exempt sources and is consistent with industry practices.

We may present certain key performance indicators and ratios excluding certain items (e.g., debit valuation adjustment (DVA) gains (losses)) which result in non-GAAP financial measures. We believe that the presentation of measures that exclude these items is useful because such measures provide additional information to assess the underlying operational performance and trends of our businesses and to allow better comparison of period-to-period operating performance.

We also evaluate our business based on certain ratios that utilize tangible equity, a non-GAAP financial measure. Tangible equity represents shareholders’ equity or common shareholders’ equity reduced by goodwill and intangible assets (excluding mortgage servicing rights (MSRs)), net of related deferred tax liabilities ("adjusted" shareholders' equity or common shareholders' equity). These measures are used to evaluate our use of equity. In addition, profitability, relationship and investment models use both return on average tangible common shareholders’ equity and return on average tangible shareholders’ equity as key measures to support our overall growth objectives. These ratios are as follows:


●	Return on average tangible common shareholders’ equity measures our net income applicable to common shareholders as a percentage of adjusted average common shareholders’ equity. The tangible common equity ratio represents adjusted ending common shareholders’ equity divided by total tangible assets.


●	Return on average tangible shareholders' equity measures our net income as a percentage of adjusted average total shareholders’ equity. The tangible equity ratio represents adjusted ending shareholders’ equity divided by total tangible assets.


●	Tangible book value per common share represents adjusted ending common shareholders’ equity divided by ending common shares outstanding.

We believe that the use of ratios that utilize tangible equity provides additional useful information because they present measures of those assets that can generate income. Tangible book value per common share provides additional useful information about the level of tangible assets in relation to outstanding shares of common stock.

The aforementioned supplemental data and performance measures are presented in Tables 6 and 7.

For more information on the reconciliation of these non-GAAP financial measures to the corresponding GAAP financial measures, see Non-GAAP Reconciliations on page 51.

Key Performance Indicators

We present certain key financial and nonfinancial performance indicators (key performance indicators) that management uses when assessing our consolidated and/or segment results. We believe they are useful to investors because they provide additional information about our underlying operational performance and trends. These key performance indicators (KPIs) may not be defined or calculated in the same way as similar KPIs used by other companies. For information on how these metrics are defined, see Key Metrics on page 103.

Our consolidated key performance indicators, which include various equity and credit metrics, are presented in Table 2 on page 6 and/or Table 6 on page 9.

For information on key segment performance metrics, see Business Segment Operations on page 12.



		Bank of America 8




Table 6	Selected Financial Data

		2020 Quarters						2019 Quarters									Six Months Ended June 30
(In millions, except per share information)		Second			First			Fourth			Third			Second			2020			2019
Income statement
Net interest income		$	10,848		$	12,130		$	12,140		$	12,187		$	12,189		$	22,978		$	24,564
Noninterest income		11,478			10,637			10,209			10,620			10,895			22,115			21,524
Total revenue, net of interest expense		22,326			22,767			22,349			22,807			23,084			45,093			46,088
Provision for credit losses		5,117			4,761			941			779			857			9,878			1,870
Noninterest expense		13,410			13,475			13,239			15,169			13,268			26,885			26,492
Income before income taxes		3,799			4,531			8,169			6,859			8,959			8,330			17,726
Income tax expense		266			521			1,175			1,082			1,611			787			3,067
Net income		3,533			4,010			6,994			5,777			7,348			7,543			14,659
Net income applicable to common shareholders		3,284			3,541			6,748			5,272			7,109			6,825			13,978
Average common shares issued and outstanding		8,739.9			8,815.6			9,017.1			9,303.6			9,523.2			8,777.6			9,624.0
Average diluted common shares issued and outstanding		8,768.1			8,862.7			9,079.5			9,353.0			9,559.6			8,813.3			9,672.4
Performance ratios
Return on average assets ⁽¹⁾		0.53		%	0.65		%	1.13		%	0.95		%	1.23		%	0.58		%	1.24		%
Four-quarter trailing return on average assets⁽²⁾		0.81			0.99			1.14			1.17			1.24			n/a			n/a
Return on average common shareholders’ equity ⁽¹⁾		5.44			5.91			11.00			8.48			11.62			5.67			11.52
Return on average tangible common shareholders’ equity⁽¹⁾		7.63			8.32			15.43			11.84			16.24			7.97			16.13
Return on average shareholders’ equity ⁽¹⁾		5.34			6.10			10.40			8.48			11.00			5.71			11.07
Return on average tangible shareholders’ equity⁽³⁾		7.23			8.29			14.09			11.43			14.88			7.76			14.99
Total ending equity to total ending assets		9.69			10.11			10.88			11.06			11.33			9.69			11.33
Total average equity to total average assets		9.85			10.60			10.89			11.21			11.17			10.21			11.22
Dividend payout		47.87			44.57			23.90			31.48			19.95			46.16			20.57
Per common share data
Earnings		$	0.38		$	0.40		$	0.75		$	0.57		$	0.75		$	0.78		$	1.45
Diluted earnings		0.37			0.40			0.74			0.56			0.74			0.77			1.45
Dividends paid		0.18			0.18			0.18			0.18			0.15			0.36			0.30
Book value ⁽¹⁾		27.96			27.84			27.32			26.96			26.41			27.96			26.41
Tangible book value ⁽³⁾		19.90			19.79			19.41			19.26			18.92			19.90			18.92
Market capitalization		$	205,772		$	184,181		$	311,209		$	264,842		$	270,935		$	205,772		$	270,935
Average balance sheet
Total loans and leases		$	1,031,387		$	990,283		$	973,986		$	964,733		$	950,525
Total assets		2,704,186			2,494,928			2,450,005			2,412,223			2,399,051
Total deposits		1,658,197			1,439,336			1,410,439			1,375,052			1,375,450
Long-term debt		221,167			210,816			206,026			202,620			201,007
Common shareholders’ equity		242,889			241,078			243,439			246,630			245,438
Total shareholders’ equity		266,316			264,534			266,900			270,430			267,975
Asset quality
Allowance for credit losses ⁽⁴⁾		$	21,091		$	17,126		$	10,229		$	10,242		$	10,333
Nonperforming loans, leases and foreclosed properties ⁽⁵⁾		4,611			4,331			3,837			3,723			4,452
Allowance for loan and lease losses as a percentage of total loans and leases outstanding ⁽⁵⁾		1.96		%	1.51		%	0.97		%	0.98		%	1.00		%
Allowance for loan and lease losses as a percentage of total nonperforming loans and leases ⁽⁵⁾		441			389			265			271			228
Net charge-offs		$	1,146		$	1,122		$	959		$	811		$	887
Annualized net charge-offs as a percentage of average loans and leases outstanding ⁽⁵⁾		0.45		%	0.46		%	0.39		%	0.34		%	0.38		%
Capital ratios at period end ⁽⁶⁾
Common equity tier 1 capital		11.4		%	10.8		%	11.2		%	11.4		%	11.7		%
Tier 1 capital		12.9			12.3			12.6			12.9			13.3
Total capital		14.8			14.6			14.7			15.1			15.4
Tier 1 leverage		7.4			7.9			7.9			8.2			8.4
Supplementary leverage ratio		7.1			6.4			6.4			6.6			6.8
Tangible equity⁽³⁾		7.3			7.7			8.2			8.4			8.7
Tangible common equity ⁽³⁾		6.5			6.7			7.3			7.4			7.6
Total loss-absorbing capacity and long-term debt metrics
Total loss-absorbing capacity to risk-weighted assets		26.0		%	24.6		%	24.6		%	24.8		%	25.5		%
Total loss-absorbing capacity to supplementary leverage exposure		14.2			12.8			12.5			12.7			13.0
Eligible long-term debt to risk-weighted assets		12.4			11.6			11.5			11.4			11.8
Eligible long-term debt to supplementary leverage exposure		6.7			6.1			5.8			5.8			6.0


⁽¹⁾	For definitions, see Key Metrics on page 103.


⁽²⁾	Calculated as total net income for four consecutive quarters divided by annualized average assets for four consecutive quarters.


⁽³⁾	Tangible equity ratios and tangible book value per share of common stock are non-GAAP financial measures. For more information on these ratios and corresponding reconciliations to GAAP financial measures, see Supplemental Financial Data on page 8 and Non-GAAP Reconciliations on page 51.


⁽⁴⁾	Includes the allowance for loan and lease losses and the reserve for unfunded lending commitments.

⁽⁵⁾

Balances and ratios do not include loans accounted for under the fair value option. For additional exclusions from nonperforming loans, leases and foreclosed properties, see Consumer Portfolio Credit Risk Management – Nonperforming Consumer Loans, Leases and Foreclosed Properties Activity on page 36 and corresponding Table 28 and Commercial Portfolio Credit Risk Management – Nonperforming Commercial Loans, Leases and Foreclosed Properties Activity on page 41 and corresponding Table 35.


⁽⁶⁾	For more information, including which approach is used to assess capital adequacy, see Capital Management on page 23.



9 Bank of America




Table 7	Quarterly Average Balances and Interest Rates - FTE Basis

		Average Balance		Interest Income/ Expense ⁽¹⁾			Yield/ Rate		Average Balance		Interest Income/ Expense ⁽¹⁾		Yield/ Rate
(Dollars in millions)		Second Quarter 2020							Second Quarter 2019
Earning assets
Interest-bearing deposits with the Federal Reserve, non-U.S. central banks and other banks		$	314,661	$	33		0.04	%	$	122,395	$	495	1.62	%
Time deposits placed and other short-term investments		8,644		5			0.25		9,798		61		2.51
Federal funds sold and securities borrowed or purchased under agreements to resell		312,404		26			0.03		281,085		1,309		1.87
Trading account assets		143,370		1,021			2.86		146,865		1,337		3.65
Debt securities		476,060		2,462			2.10		446,447		3,047		2.72
Loans and leases ⁽²⁾:
Residential mortgage		241,486		1,880			3.11		215,822		1,899		3.52
Home equity		39,308		308			3.15		45,944		587		5.12
Credit card		86,191		2,140			9.99		93,627		2,511		10.76
Direct/Indirect and other consumer ⁽³⁾		88,962		623			2.81		90,453		830		3.68
Total consumer		455,947		4,951			4.36		445,846		5,827		5.24
U.S. commercial		374,965		2,462			2.64		318,243		3,382		4.26
Non-U.S. commercial		116,040		642			2.22		103,844		894		3.45
Commercial real estate ⁽⁴⁾		65,515		430			2.64		61,778		720		4.67
Commercial lease financing		18,920		128			2.71		20,814		172		3.32
Total commercial		575,440		3,662			2.56		504,679		5,168		4.11
Total loans and leases		1,031,387		8,613			3.35		950,525		10,995		4.64
Other earning assets		72,256		508			2.82		66,607		1,129		6.79
Total earning assets		2,358,782		12,668			2.16		2,023,722		18,373		3.64
Cash and due from banks		31,256							25,951
Other assets, less allowance for loan and lease losses		314,148							349,378
Total assets		$	2,704,186						$	2,399,051
Interest-bearing liabilities
U.S. interest-bearing deposits:
Savings		$	56,931	$	2		0.01	%	$	52,987	$	2	0.01	%
NOW and money market deposit accounts		850,274		152			0.07		737,095		1,228		0.67
Consumer CDs and IRAs		50,882		123			0.97		45,375		105		0.93
Negotiable CDs, public funds and other deposits		81,532		56			0.29		69,966		408		2.35
Total U.S. interest-bearing deposits		1,039,619		333			0.13		905,423		1,743		0.77
Non-U.S. interest-bearing deposits:
Banks located in non-U.S. countries		1,807		—			0.04		2,033		5		0.96
Governments and official institutions		183		—			—		179		—		0.05
Time, savings and other		74,158		40			0.21		68,706		217		1.26
Total non-U.S. interest-bearing deposits		76,148		40			0.21		70,918		222		1.25
Total interest-bearing deposits		1,115,767		373			0.13		976,341		1,965		0.81
Federal funds purchased, securities loaned or sold under agreements to repurchase, short-term borrowings and other interest-bearing liabilities		295,465		(72		)	(0.10	)	278,198		1,997		2.89
Trading account liabilities		40,717		223			2.20		47,022		319		2.72
Long-term debt		221,167		1,168			2.12		201,007		1,754		3.49
Total interest-bearing liabilities		1,673,116		1,692			0.41		1,502,568		6,035		1.61
Noninterest-bearing sources:
Noninterest-bearing deposits		542,430							399,109
Other liabilities ⁽⁵⁾		222,324							229,399
Shareholders’ equity		266,316							267,975
Total liabilities and shareholders’ equity		$	2,704,186						$	2,399,051
Net interest spread							1.75	%					2.03	%
Impact of noninterest-bearing sources							0.12						0.41
Net interest income/yield on earning assets ⁽⁶⁾				$	10,976		1.87	%			$	12,338	2.44	%


⁽¹⁾	Includes the impact of interest rate risk management contracts. For more information, see Interest Rate Risk Management for the Banking Book on page 47.


⁽²⁾	Nonperforming loans are included in the respective average loan balances. Income on these nonperforming loans is generally recognized on a cost recovery basis.


⁽³⁾	Includes non-U.S. consumer loans of $2.8 billion and $2.9 billion for the second quarter of 2020 and 2019.


⁽⁴⁾	Includes U.S. commercial real estate loans of $61.8 billion and $57.0 billion, and non-U.S. commercial real estate loans of $3.7 billion and $4.8 billion for the second quarter of 2020 and 2019.


⁽⁵⁾	Includes $35.5 billion and $35.0 billion of structured notes and liabilities for the second quarter of 2020 and 2019.


⁽⁶⁾	Net interest income includes FTE adjustments of $128 million and $149 million for the second quarter of 2020 and 2019.



		Bank of America 10




Table 8	Year-to-Date Average Balances and Interest Rates - FTE Basis

		Average Balance		Interest Income/ Expense ⁽¹⁾		Yield/ Rate		Average Balance		Interest Income/ Expense⁽¹⁾		Yield/ Rate
		Six Months Ended June 30
(Dollars in millions)		2020						2019
Earning assets
Interest-bearing deposits with the Federal Reserve, non-U.S. central banks and other banks		$	222,472	$	301	0.27	%	$	128,644	$	1,001	1.57	%
Time deposits placed and other short-term investments		9,769		35		0.73		9,129		120		2.65
Federal funds sold and securities borrowed or purchased under agreements to resell		295,599		845		0.57		277,715		2,504		1.82
Trading account assets		150,028		2,287		3.06		143,565		2,678		3.76
Debt securities		470,638		5,330		2.29		444,077		6,195		2.78
Loans and leases ⁽²⁾:
Residential mortgage		240,740		3,867		3.21		213,014		3,761		3.53
Home equity		39,674		729		3.69		46,812		1,180		5.07
Credit card		90,331		4,604		10.25		94,313		5,041		10.78
Direct/Indirect and other consumer ⁽³⁾		89,958		1,369		3.06		90,442		1,651		3.68
Total consumer		460,703		10,569		4.60		444,581		11,633		5.26
U.S. commercial		352,692		5,308		3.03		317,173		6,731		4.28
Non-U.S. commercial		113,714		1,444		2.55		102,925		1,780		3.49
Commercial real estate ⁽⁴⁾		64,467		1,013		3.16		61,321		1,422		4.68
Commercial lease financing		19,259		289		3.00		21,291		368		3.46
Total commercial		550,132		8,054		2.94		502,710		10,301		4.13
Total loans and leases		1,010,835		18,623		3.70		947,291		21,934		4.66
Other earning assets		80,065		1,489		3.74		67,134		2,264		6.79
Total earning assets		2,239,406		28,910		2.59		2,017,555		36,696		3.66
Cash and due from banks		29,626						25,888
Other assets, less allowance for loan and lease losses		330,525						336,684
Total assets		$	2,599,557					$	2,380,127
Interest-bearing liabilities
U.S. interest-bearing deposits:
Savings		$	53,765	$	3	0.01	%	$	53,278	$	3	0.01	%
NOW and money market deposit accounts		810,374		805		0.20		734,077		2,385		0.66
Consumer CDs and IRAs		52,123		274		1.06		43,593		179		0.83
Negotiable CDs, public funds and other deposits		74,759		265		0.72		67,981		775		2.30
Total U.S. interest-bearing deposits		991,021		1,347		0.27		898,929		3,342		0.75
Non-U.S. interest-bearing deposits:
Banks located in non-U.S. countries		1,855		3		0.33		2,209		11		0.99
Governments and official institutions		172		—		0.02		178		—		0.08
Time, savings and other		74,891		207		0.55		66,472		407		1.23
Total non-U.S. interest-bearing deposits		76,918		210		0.55		68,859		418		1.22
Total interest-bearing deposits		1,067,939		1,557		0.29		967,788		3,760		0.78
Federal funds purchased, securities loaned or sold under agreements to repurchase, short-term borrowings and other interest-bearing liabilities		299,984		1,048		0.70		271,716		3,849		2.86
Trading account liabilities		44,430		552		2.50		46,312		664		2.89
Long-term debt		215,992		2,503		2.33		198,878		3,557		3.59
Total interest-bearing liabilities		1,628,345		5,660		0.70		1,484,694		11,830		1.61
Noninterest-bearing sources:
Noninterest-bearing deposits		480,827						399,912
Other liabilities ⁽⁵⁾		224,960						228,420
Shareholders’ equity		265,425						267,101
Total liabilities and shareholders’ equity		$	2,599,557					$	2,380,127
Net interest spread						1.89	%					2.05	%
Impact of noninterest-bearing sources						0.20						0.43
Net interest income/yield on earning assets ⁽⁶⁾				$	23,250	2.09	%			$	24,866	2.48	%


⁽¹⁾	Includes the impact of interest rate risk management contracts. For more information, see Interest Rate Risk Management for the Banking Book on page 47.


⁽²⁾	Nonperforming loans are included in the respective average loan balances. Income on these nonperforming loans is generally recognized on a cost recovery basis.


⁽³⁾	Includes non-U.S. consumer loans of $2.9 billion for both the six months ended June 30, 2020 and 2019.


⁽⁴⁾	Includes U.S. commercial real estate loans of $60.7 billion and $56.7 billion, and non-U.S. commercial real estate loans of $3.7 billion and $4.6 billion for the six months ended June 30, 2020 and 2019.


⁽⁵⁾	Includes $35.6 billion and $33.2 billion of structured notes and liabilities for the six months ended June 30, 2020 and 2019.


⁽⁶⁾	Net interest income includes FTE adjustments of $272 million and $302 million for the six months ended June 30, 2020 and 2019.



11 Bank of America

Business Segment Operations

Segment Description and Basis of Presentation

We report our results of operations through the following four business segments: Consumer Banking, GWIM, Global Banking and Global Markets, with the remaining operations recorded in All Other. We manage our segments and report their results on an FTE basis. For more information, see Business Segment Operations in the MD&A of the Corporation’s 2019 Annual Report on Form 10-K.

We periodically review capital allocated to our businesses and allocate capital annually during the strategic and capital planning processes. We utilize a methodology that considers the effect of regulatory capital requirements in addition to internal risk-based capital models. Our internal risk-based capital models use a risk-adjusted methodology incorporating each segment’s credit, market, interest rate, business and operational risk components. For more information on the nature of these risks, see Managing Risk on page 23. The capital allocated to the business segments

is referred to as allocated capital. Allocated equity in the reporting units is comprised of allocated capital plus capital for the portion of goodwill and intangibles specifically assigned to the reporting unit. For more information, see Note 7 – Goodwill and Intangible Assets to the Consolidated Financial Statements.

For more information on our presentation of financial information on an FTE basis, see Supplemental Financial Data on page 8, and for reconciliations to consolidated total revenue, net income and period-end total assets, see Note 17 – Business Segment Information to the Consolidated Financial Statements.

Key Performance Indicators

We present certain key financial and nonfinancial performance indicators that management uses when evaluating segment results. We believe they are useful to investors because they provide additional information about our segments’ operational performance, customer trends and business growth.

Consumer Banking




	Deposits						Consumer Lending						Total Consumer Banking
	Three Months Ended June 30
(Dollars in millions)	2020			2019			2020			2019			2020			2019			% Change
Net interest income	$	3,299		$	4,363		$	2,692		$	2,753		$	5,991		$	7,116		(16	)%
Noninterest income:
Card income	(4		)	(6		)	1,057			1,274			1,053			1,268			(17	)
Service charges	705			1,045			1			—			706			1,045			(32	)
All other income	62			209			39			79			101			288			(65	)
Total noninterest income	763			1,248			1,097			1,353			1,860			2,601			(28	)
Total revenue, net of interest expense	4,062			5,611			3,789			4,106			7,851			9,717			(19	)

Provision for credit losses	154			44			2,870			903			3,024			947			n/m
Noninterest expense	2,868			2,674			1,865			1,738			4,733			4,412			7
Income (loss) before income taxes	1,040			2,893			(946		)	1,465			94			4,358			(98	)
Income tax expense (benefit)	255			709			(232		)	359			23			1,068			(98	)
Net income (loss)	$	785		$	2,184		$	(714	)	$	1,106		$	71		$	3,290		(98	)

Effective tax rate ⁽¹⁾													24.5		%	24.5		%

Net interest yield	1.66		%	2.49		%	3.42		%	3.79		%	2.85			3.87
Return on average allocated capital	26			73			(11		)	18			1			36
Efficiency ratio	70.62			47.68			49.23			42.31			60.30			45.41

Balance Sheet
	Three Months Ended June 30
Average	2020			2019			2020			2019			2020			2019			% Change
Total loans and leases	$	5,314		$	5,333		$	316,244		$	291,055		$	321,558		$	296,388		8	%
Total earning assets⁽²⁾	801,391			702,698			316,622			291,492			845,236			737,714			15
Total assets ⁽²⁾	837,367			734,183			320,978			301,743			885,568			779,450			14
Total deposits	804,418			701,853			6,282			5,238			810,700			707,091			15
Allocated capital	12,000			12,000			26,500			25,000			38,500			37,000			4


⁽¹⁾	Estimated at the segment level only.


⁽²⁾	In segments and businesses where the total of liabilities and equity exceeds assets, we allocate assets from All Other to match the segments’ and businesses’ liabilities and allocated shareholders’ equity. As a result, total earning assets and total assets of the businesses may not equal total Consumer Banking.

n/m = not meaningful



		Bank of America 12




	Deposits						Consumer Lending						Total Consumer Banking
	Six Months Ended June 30
(Dollars in millions)	2020			2019			2020			2019			2020			2019			% Change
Net interest income	$	7,247		$	8,670		$	5,606		$	5,552		$	12,853		$	14,222		(10	)%
Noninterest income:
Card income	(12		)	(13		)	2,175			2,478			2,163			2,465			(12	)
Service charges	1,700			2,064			1			1			1,701			2,065			(18	)
All other income	159			442			104			155			263			597			(56	)
Total noninterest income	1,847			2,493			2,280			2,634			4,127			5,127			(20	)
Total revenue, net of interest expense	9,094			11,163			7,886			8,186			16,980			19,349			(12	)

Provision for credit losses	269			90			5,013			1,831			5,282			1,921			n/m
Noninterest expense	5,593			5,329			3,635			3,450			9,228			8,779			5
Income (loss) before income taxes	3,232			5,744			(762		)	2,905			2,470			8,649			(71	)
Income tax expense (benefit)	792			1,407			(187		)	712			605			2,119			(71	)
Net income (loss)	$	2,440		$	4,337		$	(575	)	$	2,193		$	1,865		$	6,530		(71	)

Effective tax rate ⁽¹⁾													24.5		%	24.5		%

Net interest yield	1.90		%	2.51		%	3.59		%	3.87		%	3.19			3.91
Return on average allocated capital	41			73			(4		)	18			10			36
Efficiency ratio	61.50			47.74			46.10			42.15			54.35			45.37

Balance Sheet
	Six Months Ended June 30
Average	2020			2019			2020			2019			2020			2019			% Change
Total loans and leases	$	5,374		$	5,322		$	313,878		$	289,017		$	319,252		$	294,339		8	%
Total earning assets⁽²⁾	766,660			697,921			314,375			289,387			809,436			732,580			10
Total assets ⁽²⁾	800,742			729,397			319,279			299,748			848,422			774,417			10
Total deposits	767,848			697,071			5,837			5,003			773,685			702,074			10
Allocated capital	12,000			12,000			26,500			25,000			38,500			37,000			4

Period end	June 30 2020			December 31 2019			June 30 2020			December 31 2019			June 30 2020			December 31 2019			% Change
Total loans and leases	$	5,146		$	5,467		$	319,959		$	311,942		$	325,105		$	317,409		2	%
Total earning assets ⁽²⁾	843,131			724,573			320,461			312,684			890,244			760,174			17
Total assets⁽²⁾	879,641			758,459			322,900			322,717			929,193			804,093			16
Total deposits	846,622			725,665			7,395			5,080			854,017			730,745			17

See page 12 for footnotes

n/m = not meaningful

Consumer Banking, which is comprised of Deposits and Consumer Lending, offers a diversified range of credit, banking and investment products and services to consumers and small businesses. For more information about Consumer Banking, including our Deposits and Consumer Lending businesses, see Business Segment Operations in the MD&A of the Corporation’s 2019 Annual Report on Form 10-K.

Consumer Banking Results

Three-Month Comparison

Net income for Consumer Banking decreased $3.2 billion to $71 million primarily due to higher provision for credit losses and lower revenue.

Net interest income decreased $1.1 billion to $6.0 billion primarily due to lower interest rates, partially offset by higher deposit and loan balances. Noninterest income decreased $741 million to $1.9 billion driven by a decline in service charges and card income primarily due to fewer overdrafts and lower client activity, as well as lower other income driven by the allocation of asset and liability management (ALM) results.

The provision for credit losses increased $2.1 billion to $3.0 billion primarily due to the weaker economic outlook related to COVID-19. Noninterest expense increased $321 million to $4.7 billion primarily driven by incremental expense to support customers and employees during COVID-19, as well as the cost

of increased client activity and continued investments for business growth.

The return on average allocated capital was one percent, down from 36 percent, driven by lower net income, and to a lesser extent, an increase in allocated capital. For information on capital allocated to the business segments, see Business Segment Operations on page 12.

Six-Month Comparison

Net income for Consumer Banking decreased $4.7 billion to $1.9 billion primarily due to higher provision for credit losses and lower revenue.

Net interest income decreased $1.4 billion to $12.9 billion and noninterest income decreased $1.0 billion to $4.1 billion. The declines were primarily driven by the same factors as described in the three-month discussion.

The provision for credit losses increased $3.4 billion to $5.3 billion primarily due to the weaker economic outlook related to COVID-19. Noninterest expense increased $449 million to $9.2 billion primarily driven by incremental expense to support customers and employees during COVID-19, the cost of increased client activity, and continued investments for business growth, partially offset by improved productivity.

The return on average allocated capital was 10 percent, down from 36 percent, driven by lower net income and, to a lesser extent, an increase in allocated capital.



13 Bank of America

Deposits

Three-Month Comparison

Net income for Deposits decreased $1.4 billion to $785 million driven by lower revenue. Net interest income declined $1.1 billion to $3.3 billion primarily due to lower interest rates, partially offset by growth in deposits. Noninterest income decreased $485 million to $763 million. The decline in noninterest income was primarily driven by lower service charges due to fewer overdrafts, fee waivers and lower client activity related to the impact of COVID-19 as well as lower other income due to the allocation of ALM results.

The provision for credit losses increased $110 million to $154 million primarily due to the weaker economic outlook related to COVID-19. Noninterest expense increased $194 million to $2.9 billion driven by continued investments in the business and incremental expense to support customers and employees during the COVID-19 pandemic.

Average deposits increased $102.6 billion to $804.4 billion. The increase was driven by strong organic growth of $76.1 billion in checking and time deposits and $26.5 billion in traditional savings and money market savings.

Six-Month Comparison

Net income for Deposits decreased $1.9 billion to $2.4 billion driven by lower revenue. Net interest income declined $1.4 billion to $7.2 billion primarily driven by the same factors as described in the three-month discussion. Noninterest income decreased $646 million to $1.8 billion primarily due to the same factors as described in the three-month discussion.

The provision for credit losses increased $179 million to $269 million primarily due to the weaker economic outlook related to COVID-19. Noninterest expense increased $264 million to $5.6 billion due to the same factors as described in the three-month discussion.

Average deposits increased $70.8 billion to $767.8 billion. The increase was driven by strong organic growth of $56.2 billion in checking and time deposits and $14.6 billion in traditional savings and money market savings.

The following table provides key performance indicators for Deposits. Management uses these metrics, and we believe they are useful to investors because they provide additional information to evaluate our deposit profitability and mobile/digital trends.




Key Statistics – Deposits

	Three Months Ended June 30				Six Months Ended June 30
	2020		2019		2020			2019
Total deposit spreads (excludes noninterest costs) ⁽¹⁾	1.94	%	2.40	%	2.05		%	2.39		%

Period End
Consumer investment assets (in millions) ⁽²⁾					$	246,146		$	219,732
Active digital banking users (units in thousands) ⁽³⁾					39,294			37,292
Active mobile banking users (units in thousands) ⁽⁴⁾					30,307			27,818
Financial centers					4,298			4,349
ATMs					16,862			16,561


⁽¹⁾	Includes deposits held in Consumer Lending.


⁽²⁾	Includes client brokerage assets, deposit sweep balances and AUM in Consumer Banking.


⁽³⁾	Active digital banking users represents mobile and/or online users over the last three months.


⁽⁴⁾	Active mobile banking users represents mobile users over the last three months.

Consumer investment assets increased $26.4 billion driven by client flows and market performance. Active mobile banking users increased 2.5 million reflecting continuing changes in our customers’ banking preferences. The number of financial centers declined by a net 51 reflecting changes in customer preferences to self-service options as we continue to optimize our consumer banking network and improve our cost to serve.

Consumer Lending

Three-Month Comparison

Net loss for Consumer Lending was $714 million, a decrease of $1.8 billion primarily due to higher provision for credit losses. Net interest income decreased $61 million to $2.7 billion driven by the allocation of ALM results, partially offset by loan growth. Noninterest income decreased $256 million to $1.1 billion primarily driven by lower card income due to lower client activity.

The provision for credit losses increased $2.0 billion to $2.9 billion primarily due to the weaker economic outlook related to COVID-19. Noninterest expense increased $127 million to $1.9 billion primarily driven by investments in the business and

incremental expense to support customers and employees during the COVID-19 pandemic.

Average loans increased $25.2 billion to $316.2 billion primarily driven by an increase in residential mortgages.

Six-Month Comparison

Net loss for Consumer Lending was $575 million, a decrease of $2.8 billion primarily due to higher provision for credit losses. Net interest income increased $54 million to $5.6 billion driven by loan growth, and noninterest income decreased $354 million to $2.3 billion primarily driven by the same factors as described in the three-month discussion.

The provision for credit losses increased $3.2 billion to $5.0 billion primarily due to the weaker economic outlook related to COVID-19. Noninterest expense increased $185 million to $3.6 billion primarily driven by the same factors as described in the three-month discussion.

Average loans increased $24.9 billion to $313.9 billion primarily driven by an increase in residential mortgages.



		Bank of America 14

The following table provides key performance indicators for Consumer Lending. Management uses these metrics, and we believe they are useful to investors because they provide additional information about loan growth and profitability.




Key Statistics – Consumer Lending

	Three Months Ended June 30						Six Months Ended June 30
(Dollars in millions)	2020			2019			2020			2019
Total credit card ⁽¹⁾
Gross interest yield ⁽²⁾	9.95		%	10.76		%	10.23		%	10.78		%
Risk-adjusted margin ⁽³⁾	8.49			7.93			8.20			7.98
New accounts (in thousands)	449			1,068			1,504			2,102
Purchase volumes	$	53,694		$	70,288		$	118,073		$	133,039
Debit card purchase volumes	$	89,631		$	91,232		$	178,219		$	176,262


⁽¹⁾	Includes GWIM's credit card portfolio.


⁽²⁾	Calculated as the effective annual percentage rate divided by average loans.


⁽³⁾	Calculated as the difference between total revenue less net credit losses divided by average loans.

During the three and six months ended June 30, 2020, the total credit card risk-adjusted margin increased 56 bps and 22 bps compared to the same periods in 2019 primarily due to a decrease in the proportion of customers who pay their balances in full each month. During the three and six months ended June 30, 2020, total credit card purchase volumes declined $16.6 billion to $53.7 billion, and $15.0 billion to $118.1 billion compared to the same periods in 2019. Debit card purchase volumes declined $1.6 billion to $89.6 billion during the three months ended June 30, 2020 compared to the same period in

2019. The declines in credit card and debit card purchase volumes were driven by lower levels of consumer spending due to the impact of COVID-19. Debit card purchase volumes began to improve late in the second quarter of 2020 as businesses reopened and consumers used their cards for more essential spending, as well as retail, services and restaurant spending. For the six months ended June 30, 2020, debit card purchase volumes increased $2.0 billion to $178.2 billion, driven by higher levels of consumer spending in the first quarter and again in June 2020.




Key Statistics – Loan Production ⁽¹⁾

	Three Months Ended June 30				Six Months Ended June 30
(Dollars in millions)	2020		2019		2020		2019
Consumer Banking:
First mortgage	$	15,049	$	12,757	$	27,930	$	20,912
Home equity	$	3,176	$	2,405	$	5,817	$	4,890
Total ⁽²⁾:
First mortgage	$	23,124	$	18,229	$	42,062	$	29,689
Home equity	3,683		2,768		6,707		5,593


⁽¹⁾	The loan production amounts represent the unpaid principal balance of loans and, in the case of home equity, the principal amount of the total line of credit.


⁽²⁾	In addition to loan production in Consumer Banking, there is also first mortgage and home equity loan production in GWIM.

First mortgage loan originations in Consumer Banking and for the total Corporation increased $2.3 billion and $4.9 billion for the three months ended June 30, 2020 compared to the same period in 2019 primarily due to a lower interest rate environment driving higher first-lien mortgage refinances. First mortgage loan originations in Consumer Banking and for the total Corporation increased $7.0 billion and $12.4 billion for the six months ended June 30, 2020 compared to the same period in 2019 primarily

driven by the same factor as described in the three-month discussion.

Home equity production in Consumer Banking and for the total Corporation increased $771 million and $915 million for the three months ended June 30, 2020 and $927 million and $1.1 billion for the six months ended June 30, 2020, primarily driven by higher demand.



15 Bank of America

Global Wealth & Investment Management




	Three Months Ended June 30								Six Months Ended June 30
(Dollars in millions)	2020			2019			% Change		2020			2019			% Change
Net interest income	$	1,378		$	1,624		(15	%)	$	2,949		$	3,308		(11	)%
Noninterest income:
Investment and brokerage services	2,854			2,962			(4	)	5,976			5,805			3
All other income	193			314			(39	)	436			607			(28	)
Total noninterest income	3,047			3,276			(7	)	6,412			6,412			—
Total revenue, net of interest expense	4,425			4,900			(10	)	9,361			9,720			(4	)

Provision for credit losses	136			21			n/m		325			26			n/m
Noninterest expense	3,463			3,454			—		7,063			6,887			3
Income before income taxes	826			1,425			(42	)	1,973			2,807			(30	)
Income tax expense	202			349			(42	)	483			688			(30	)
Net income	$	624		$	1,076		(42	)	$	1,490		$	2,119		(30	)

Effective tax rate	24.5		%	24.5		%			24.5		%	24.5		%

Net interest yield	1.76			2.35					1.96			2.37
Return on average allocated capital	17			30					20			30
Efficiency ratio	78.25			70.47					75.45			70.86

Balance Sheet
	Three Months Ended June 30								Six Months Ended June 30
Average	2020			2019			% Change		2020			2019			% Change
Total loans and leases	$	182,150		$	166,324		10	%	$	180,395		$	165,369		9	%
Total earning assets	315,258			277,038			14		303,089			281,025			8
Total assets	327,594			289,835			13		315,383			293,464			7
Total deposits	287,109			253,940			13		275,260			257,868			7
Allocated capital	15,000			14,500			3		15,000			14,500			3

Period end									June 30 2020			December 31 2019			% Change
Total loans and leases									$	184,293		$	176,600		4	%
Total earning assets									321,846			287,201			12
Total assets									334,190			299,770			11
Total deposits									291,740			263,113			11

n/m = not meaningful

GWIM consists of two primary businesses: Merrill Lynch Global Wealth Management (MLGWM) and Bank of America Private Bank. For more information about GWIM, see Business Segment Operations in the MD&A of the Corporation’s 2019 Annual Report on Form 10-K.

Three-Month Comparison

Net income for GWIM decreased $452 million to $624 million for the three months ended June 30, 2020 compared to the same period in 2019 due to lower revenue and higher provision for credit losses. The operating margin was 19 percent compared to 29 percent a year ago.

Net interest income decreased $246 million to $1.4 billion due to the impact of lower interest rates, partially offset by the benefit of strong deposit and loan growth.

Noninterest income, which primarily includes investment and brokerage services income, decreased $229 million to $3.0 billion. The decrease was primarily driven by lower transactional revenue, lower market valuations, and declines in AUM pricing, partially offset by the benefit of positive AUM flows.

The provision for credit losses increased $115 million to $136 million primarily due to the weaker economic outlook related to COVID-19. Noninterest expense remained relatively unchanged at $3.5 billion.

The return on average allocated capital was 17 percent, down from 30 percent, due to lower net income and, to a lesser extent, a small increase in allocated capital.

MLGWM revenue of $3.6 billion decreased ten percent primarily driven by the impact of lower interest rates, transactional

revenue and market valuations, as well as declines in AUM pricing, partially offset by the benefit of positive AUM flows.

Bank of America Private Bank revenue of $800 million decreased six percent primarily driven by the impact of lower interest rates and lower market valuations.

Six-Month Comparison

Net income for GWIM decreased $629 million to $1.5 billion for the six months ended June 30, 2020 compared to the same period in 2019 due to lower revenue, higher provision for credit losses and higher noninterest expense. The operating margin was 21 percent compared to 29 percent a year ago.

Net interest income decreased $359 million to $2.9 billion due to the same factors as described in the three-month discussion.

Noninterest income, which primarily includes investment and brokerage services income, remained relatively unchanged at $6.4 billion as the benefits of higher market valuations and positive AUM flows were offset by declines in AUM pricing and lower transactional revenue compared to the same period in 2019.

The provision for credit losses increased $299 million to $325 million primarily due to the weaker economic outlook related to COVID-19. Noninterest expense increased $176 million to $7.1 billion, primarily due to investments for business growth along with higher revenue-related incentives.

The return on average allocated capital was 20 percent, down from 30 percent, due to lower net income and, to a lesser extent, a small increase in allocated capital.



		Bank of America 16

MLGWM revenue of $7.7 billion decreased four percent primarily driven by the impact of lower interest rates and AUM pricing, partially offset by higher market valuations, positive AUM flows and increased transactional revenue.

Bank of America Private Bank revenue of $1.7 billion decreased three percent primarily driven by the impact of lower interest rates.




Key Indicators and Metrics

	Three Months Ended June 30				Six Months Ended June 30
(Dollars in millions, except as noted)	2020		2019		2020			2019
Revenue by Business
Merrill Lynch Global Wealth Management	$	3,625	$	4,047	$	7,698		$	8,012
Bank of America Private Bank	800		853		1,663			1,708
Total revenue, net of interest expense	$	4,425	$	4,900	$	9,361		$	9,720

Client Balances by Business, at period end
Merrill Lynch Global Wealth Management					$	2,449,305		$	2,440,710
Bank of America Private Bank					478,521			458,081
Total client balances					$	2,927,826		$	2,898,791

Client Balances by Type, at period end
Assets under management					$	1,219,748		$	1,203,783
Brokerage and other assets					1,282,044			1,314,457
Deposits					291,740			251,818
Loans and leases ⁽¹⁾					187,004			172,265
Less: Managed deposits in assets under management					(52,710		)	(43,532		)
Total client balances					$	2,927,826		$	2,898,791

Assets Under Management Rollforward
Assets under management, beginning of period	$	1,092,482	$	1,169,713	$	1,275,555		$	1,072,234
Net client flows	3,573		5,274		10,608			11,192
Market valuation/other	123,693		28,796		(66,415		)	120,357
Total assets under management, end of period	$	1,219,748	$	1,203,783	$	1,219,748		$	1,203,783

Associates, at period end
Number of financial advisors					17,888			17,508
Total wealth advisors, including financial advisors					19,851			19,512
Total primary sales professionals, including financial advisors and wealth advisors					21,198			20,611

Merrill Lynch Global Wealth Management Metric
Financial advisor productivity ⁽²⁾ (in thousands)	$	1,069	$	1,082	$	1,103		$	1,061

Bank of America Private Bank Metric, at period end
Primary sales professionals					1,781			1,808


⁽¹⁾	Includes margin receivables which are classified in customer and other receivables on the Consolidated Balance Sheet.


⁽²⁾	For a definition, see Key Metrics on page 103.

Client Balances

Client balances increased $29.0 billion, or one percent, to $2.9 trillion at June 30, 2020 compared to June 30, 2019. The increase in client balances was primarily driven by client flows.



17 Bank of America

Global Banking




	Three Months Ended June 30								Six Months Ended June 30
(Dollars in millions)	2020			2019			% Change		2020			2019			% Change
Net interest income	$	2,363		$	2,709		(13	%)	$	4,975		$	5,499		(10	)%
Noninterest income:
Service charges	737			749			(2	)	1,533			1,462			5
Investment banking fees	1,181			717			65		1,942			1,426			36
All other income	810			800			1		1,241			1,743			(29	)
Total noninterest income	2,728			2,266			20		4,716			4,631			2
Total revenue, net of interest expense	5,091			4,975			2		9,691			10,130			(4	)

Provision for credit losses	1,873			125			n/m		3,966			236			n/m
Noninterest expense	2,223			2,211			1		4,544			4,478			1
Income before income taxes	995			2,639			(62	)	1,181			5,416			(78	)
Income tax expense	269			713			(62	)	319			1,462			(78	)
Net income	$	726		$	1,926		(62	)	$	862		$	3,954		(78	)

Effective tax rate	27.0		%	27.0		%			27.0		%	27.0		%

Net interest yield	1.82			2.80					2.15			2.91
Return on average allocated capital	7			19					4			19
Efficiency ratio	43.68			44.45					46.89			44.20

Balance Sheet
	Three Months Ended June 30								Six Months Ended June 30
Average	2020			2019			% Change		2020			2019			% Change
Total loans and leases	$	423,625		$	372,531		14	%	$	405,054		$	371,326		9	%
Total earning assets	521,930			387,819			35		465,491			381,111			22
Total assets	578,106			442,591			31		522,016			435,803			20
Total deposits	493,918			362,619			36		438,145			355,866			23
Allocated capital	42,500			41,000			4		42,500			41,000			4

Period end									June 30 2020			December 31 2019			% Change
Total loans and leases									$	390,108		$	379,268		3	%
Total earning assets									531,649			407,180			31
Total assets									586,078			464,032			26
Total deposits									500,918			383,180			31

n/m = not meaningful

Global Banking, which includes Global Corporate Banking, Global Commercial Banking, Business Banking and Global Investment Banking, provides a wide range of lending-related products and services, integrated working capital management and treasury solutions, and underwriting and advisory services through our network of offices and client relationship teams. For more information about Global Banking, see Business Segment Operations in the MD&A of the Corporation’s 2019 Annual Report on Form 10-K.

Three-Month Comparison

Net income for Global Banking decreased $1.2 billion to $726 million primarily driven by higher provision for credit losses, partially offset by higher revenue.

Revenue increased $116 million to $5.1 billion driven by higher noninterest income, partially offset by lower net interest income. Net interest income decreased $346 million to $2.4 billion primarily due to the allocation of ALM results and spread compression, partially offset by loan and deposit growth.

Noninterest income increased $462 million to $2.7 billion primarily due to higher investment banking fees and valuation adjustments on leveraged loans and the fair value option loan portfolio.

The provision for credit losses increased $1.7 billion to $1.9 billion primarily due to the weaker economic outlook related to

COVID-19. Noninterest expense remained relatively unchanged at $2.2 billion.

The return on average allocated capital was seven percent in 2020 compared to 19 percent in 2019, due to lower net income and, to a lesser extent, an increase in allocated capital. For information on capital allocated to the business segments, see Business Segment Operations on page 12.

Six-Month Comparison

Net income for Global Banking decreased $3.1 billion to $862 million primarily driven by higher provision for credit losses as well as lower revenue.

Revenue decreased $439 million to $9.7 billion driven by lower net interest income, partially offset by higher noninterest income. Net interest income decreased $524 million to $5.0 billion primarily driven by the same factors as described in the three-month discussion.

Noninterest income increased $85 million to $4.7 billion primarily due to higher investment banking fees, partially offset by valuation adjustments on the fair value option loan portfolio, debt securities and leveraged loans and the allocation of ALM results.

The provision for credit losses increased $3.7 billion to $4.0 billion primarily due to the weaker economic outlook related to COVID-19. Noninterest expense increased $66 million primarily due to continued investments in the business, partially offset by lower revenue-related incentives.



		Bank of America 18

The return on average allocated capital was four percent in 2020 compared to 19 percent in 2019, due to lower net income and, to a lesser extent, an increase in allocated capital. For information on capital allocated to the business segments, see Business Segment Operations on page 12.

Global Corporate, Global Commercial and Business Banking

The table below and following discussion present a summary of the results, which exclude certain investment banking and PPP activities in Global Banking.




Global Corporate, Global Commercial and Business Banking

	Global Corporate Banking				Global Commercial Banking				Business Banking				Total
	Three Months Ended June 30
(Dollars in millions)	2020		2019		2020		2019		2020		2019		2020		2019
Revenue
Business Lending	$	916	$	923	$	881	$	1,046	$	66	$	90	$	1,863	$	2,059
Global Transaction Services	785		1,005		809		889		217		267		1,811		2,161
Total revenue, net of interest expense	$	1,701	$	1,928	$	1,690	$	1,935	$	283	$	357	$	3,674	$	4,220

Balance Sheet
Average
Total loans and leases	$	201,852	$	175,701	$	200,463	$	181,741	$	15,018	$	15,119	$	417,333	$	372,561
Total deposits	236,421		181,591		209,263		141,611		48,231		39,430		493,915		362,632

	Global Corporate Banking				Global Commercial Banking				Business Banking				Total
	Six Months Ended June 30
(Dollars in millions)	2020		2019		2020		2019		2020		2019		2020		2019

Revenue
Business Lending	$	1,867	$	1,968	$	1,862	$	2,080	$	148	$	184	$	3,877	$	4,232
Global Transaction Services	1,656		2,012		1,687		1,780		473		533		3,816		4,325
Total revenue, net of interest expense	$	3,523	$	3,980	$	3,549	$	3,860	$	621	$	717	$	7,693	$	8,557

Balance Sheet

Average
Total loans and leases	$	192,278	$	175,993	$	194,522	$	180,105	$	15,100	$	15,230	$	401,900	$	371,328
Total deposits	212,170		174,895		181,572		142,070		44,401		38,920		438,143		355,885

Period end
Total loans and leases	$	182,374	$	179,517	$	183,869	$	182,417	$	14,378	$	15,000	$	380,621	$	376,934
Total deposits	238,862		179,656		210,853		139,312		51,195		39,932		500,910		358,900

Business Lending revenue decreased $196 million and $355 million for the three and six months ended June 30, 2020 compared to the same periods in 2019. The decrease was primarily driven by the allocation of ALM results, partially offset by the impact of higher loan and lease balances.

Global Transaction Services revenue decreased $350 million and $509 million for the three and six months ended June 30, 2020 driven by the allocation of ALM results, partially offset by the impact of higher deposit balances.

Average loans and leases increased 12 percent and 8 percent for the three and six months ended June 30, 2020 compared to the same periods in 2019 driven by growth in the commercial and industrial loan portfolio. Average deposits increased 36 percent and 23 percent for the three and six months ended June 30, 2020 primarily due to client responses to market volatility, government stimulus and placement of credit draws.

Global Investment Banking

Client teams and product specialists underwrite and distribute debt, equity and loan products, and provide advisory services and tailored risk management solutions. The economics of certain investment banking and underwriting activities are shared primarily between Global Banking and Global Markets under an internal revenue-sharing arrangement. Global Banking originates certain deal-related transactions with our corporate and commercial clients that are executed and distributed by Global Markets. To provide a complete discussion of our consolidated investment banking fees, the following table presents total Corporation investment banking fees and the portion attributable to Global Banking.



19 Bank of America




Investment Banking Fees

	Global Banking						Total Corporation						Global Banking						Total Corporation
	Three Months Ended June 30												Six Months Ended June 30
(Dollars in millions)	2020			2019			2020			2019			2020			2019			2020			2019
Products
Advisory	$	345		$	254		$	406		$	288		$	592		$	557		$	675		$	631
Debt issuance	503			324			1,058			746			927			651			1,985			1,494
Equity issuance	333			139			740			395			423			218			1,023			629
Gross investment banking fees	1,181			717			2,204			1,429			1,942			1,426			3,683			2,754
Self-led deals	(18		)	(23		)	(45		)	(58		)	(61		)	(44		)	(136		)	(119		)
Total investment banking fees	$	1,163		$	694		$	2,159		$	1,371		$	1,881		$	1,382		$	3,547		$	2,635

Total Corporation investment banking fees, excluding self-led deals, of $2.2 billion and $3.5 billion, which are primarily included within Global Banking and Global Markets, increased 57 percent and 35 percent for the three and six months ended June 30, 2020 compared to the same periods in 2019 primarily driven by higher debt and equity issuance fees as well as advisory fees.

Global Markets




	Three Months Ended June 30								Six Months Ended June 30
(Dollars in millions)	2020			2019			% Change		2020			2019			% Change
Net interest income	$	1,297		$	811		60	%	$	2,450		$	1,764		39	%
Noninterest income:
Investment and brokerage services	481			433			11		1,048			877			19
Investment banking fees	940			585			61		1,542			1,121			38
Market making and similar activities	2,361			1,961			20		5,334			4,043			32
All other income	270			354			(24	)	201			521			(61	)
Total noninterest income	4,052			3,333			22		8,125			6,562			24
Total revenue, net of interest expense	5,349			4,144			29		10,575			8,326			27

Provision for credit losses	105			5			n/m		212			(18		)	n/m
Noninterest expense	2,682			2,675			—		5,494			5,432			1
Income before income taxes	2,562			1,464			75		4,869			2,912			67
Income tax expense	666			417			60		1,266			830			53
Net income	$	1,896		$	1,047		81		$	3,603		$	2,082		73

Effective tax rate	26.0		%	28.5		%			26.0		%	28.5		%

Return on average allocated capital	21			12					20			12
Efficiency ratio	50.15			64.55					51.96			65.23

Balance Sheet
	Three Months Ended June 30								Six Months Ended June 30
Average	2020			2019			% Change		2020			2019			% Change
Trading-related assets:
Trading account securities	$	216,157		$	251,402		(14	)%	$	236,704		$	238,399		(1	)%
Reverse repurchases	104,883			117,730			(11	)	110,291			120,228			(8	)
Securities borrowed	96,448			83,374			16		89,860			83,856			7
Derivative assets	49,502			43,700			13		48,199			42,832			13
Total trading-related assets	466,990			496,206			(6	)	485,054			485,315			—
Total loans and leases	74,131			70,587			5		72,896			70,335			4
Total earning assets	478,648			474,061			1		490,132			473,242			4
Total assets	663,072			685,413			(3	)	688,062			674,791			2
Total deposits	45,083			31,128			45		39,203			31,246			25
Allocated capital	36,000			35,000			3		36,000			35,000			3

Period end									June 30 2020			December 31 2019			% Change
Total trading-related assets									$	468,309		$	452,499		3	%
Total loans and leases									74,342			72,993			2
Total earning assets									462,184			471,701			(2	)
Total assets									652,068			641,809			2
Total deposits									52,842			34,676			52

n/m = not meaningful

Global Markets offers sales and trading services and research services to institutional clients across fixed-income, credit, currency, commodity and equity businesses. Global Markets product coverage includes securities and derivative products in

both the primary and secondary markets. For more information about Global Markets, see Business Segment Operations in the MD&A of the Corporation’s 2019 Annual Report on Form 10-K.



		Bank of America 20

The following explanations for current period-over-period changes in results for Global Markets, including those disclosed under Sales and Trading Revenue, exclude net DVA, but the explanations would be the same if net DVA were included. Revenue amounts excluding net DVA are a non-GAAP financial measure. For more information on net DVA, see Supplemental Financial Data on page 8.

Three-Month Comparison

Net income for Global Markets increased $849 million to $1.9 billion. Net DVA losses were $261 million compared to losses of $31 million. Excluding net DVA, net income increased $1.0 billion to $2.1 billion. These increases were primarily driven by higher revenue, partially offset by higher provision for credit losses.

Revenue increased $1.2 billion to $5.3 billion as sales and trading revenue increased $909 million, and excluding net DVA, increased $1.1 billion. These increases were driven by higher revenue across Fixed Income, Currencies and Commodities (FICC) and Equities. The prior-year period included a $199 million gain on the sale of an equity investment.

The provision for credit losses increased $100 million primarily due to the weaker economic outlook related to COVID-19. Noninterest expense remained relatively unchanged at $2.7 billion.

Average total assets decreased $22.3 billion to $663.1 billion driven by lower average client balances and increased balance sheet efficiency in Global Equities.

The return on average allocated capital was 21 percent, up from 12 percent, reflecting higher net income, partially offset by a small increase in allocated capital. For more information on capital allocated to the business segments, see Business Segment Operations on page 12.

Six-Month Comparison

Net income for Global Markets increased $1.5 billion to $3.6

billion. Net DVA gains were $39 million compared to losses of $121 million. Excluding net DVA, net income increased $1.4 billion to $3.6 billion. These increases were primarily driven by an increase in revenue, partially offset by higher provision for credit losses and noninterest expense.

Revenue increased $2.2 billion to $10.6 billion as sales and trading revenue increased $2.1 billion, and excluding net DVA, increased $1.9 billion. These increases were driven by higher revenue across FICC and Equities.

The provision for credit losses increased $230 million primarily due to the weaker economic outlook related to COVID-19. Noninterest expense increased $62 million to $5.5 billion primarily driven by higher revenue-related expenses.

Average total assets increased $13.3 billion to $688.1 billion primarily due to increased levels of inventory in FICC to facilitate expected client demand. Period-end total assets increased $10.3 billion since December 31, 2019 to $652.1 billion primarily driven by Equities resulting from a change in composition of equity hedges for client activity versus year end.

The return on average allocated capital was 20 percent, up from 12 percent, reflecting higher net income, partially offset by a small increase in allocated capital.

Sales and Trading Revenue

For a description of sales and trading revenue, see Business Segment Operations in the MD&A of the Corporation’s 2019 Annual Report on Form 10-K. The following table and related discussion present sales and trading revenue, substantially all of which is in Global Markets, with the remainder in Global Banking. In addition, the following table and related discussion present sales and trading revenue, excluding net DVA, which is a non-GAAP financial measure. For more information on net DVA, see Supplemental Financial Data on page 8.




Sales and Trading Revenue ^{(1, 2, 3)}

	Three Months Ended June 30				Six Months Ended June 30
(Dollars in millions)	2020		2019		2020		2019
Sales and trading revenue ⁽²⁾
Fixed income, currencies and commodities	$	2,941	$	2,098	$	5,886	$	4,379
Equities	1,210		1,144		2,900		2,326
Total sales and trading revenue	$	4,151	$	3,242	$	8,786	$	6,705

Sales and trading revenue, excluding net DVA ⁽⁴⁾
Fixed income, currencies and commodities	$	3,186	$	2,128	$	5,857	$	4,488
Equities	1,226		1,145		2,890		2,338
Total sales and trading revenue, excluding net DVA	$	4,412	$	3,273	$	8,747	$	6,826


⁽¹⁾	For more information on sales and trading revenue, see Note 3 – Derivatives to the Consolidated Financial Statements.


⁽²⁾	Includes FTE adjustments of $38 million and $100 million for the three and six months ended June 30, 2020 compared to $31 million and $79 million for the same periods in 2019.


⁽³⁾	Includes Global Banking sales and trading revenue of $67 million and $294 million for the three and six months ended June 30, 2020 compared to $130 million and $246 million for the same periods in 2019.

⁽⁴⁾

FICC and Equities sales and trading revenue, excluding net DVA, is a non-GAAP financial measure. FICC net DVA losses were $245 million and gains of $29 million for the three and six months ended June 30, 2020 compared to losses of $30 million and $109 million for the same periods in 2019. Equities net DVA losses were $16 million and gains of $10 million for the three and six months ended June 30, 2020 compared to losses of $1 million and $12 million for the same periods in 2019.

Three-Month Comparison

FICC revenue increased $1.1 billion driven by strong results across credit-related products, especially in the Americas, as prices recovered from the first quarter of 2020, combined with solid market-making conditions across macro products. Equities revenue increased $81 million driven by a strong performance in cash and client financing, partially offset by a weaker performance in derivatives.

Six-Month Comparison

FICC revenue increased $1.4 billion driven by increased client activity and improved market making-conditions across macro products, partially offset by weaker performances in credit-sensitive businesses. Equities revenue increased $552 million driven by increased client activity and a strong trading performance in a more volatile market environment.



21 Bank of America

All Other




	Three Months Ended June 30								Six Months Ended June 30
(Dollars in millions)	2020			2019			% Change		2020			2019			% Change
Net interest income	$	(53	)	$	78		n/m		$	23		$	73		(68	)%
Noninterest income (loss)	(209		)	(581		)	(64	)%	(1,265		)	(1,208		)	5
Total revenue, net of interest expense	(262		)	(503		)	(48	)	(1,242		)	(1,135		)	9

Provision for credit losses	(21		)	(241		)	(91	)	93			(295		)	(132	)
Noninterest expense	309			516			(40	)	556			916			(39	)
Loss before income taxes	(550		)	(778		)	(29	)	(1,891		)	(1,756		)	8
Income tax benefit	(766		)	(787		)	(3	)	(1,614		)	(1,730		)	(7	)
Net income (loss)	$	216		$	9		n/m		$	(277	)	$	(26	)	n/m

Balance Sheet
	Three Months Ended June 30								Six Months Ended June 30
Average	2020			2019			% Change		2020			2019			% Change
Total loans and leases	$	29,923		$	44,695		(33	)%	$	33,238		$	45,922		(28	)%
Total assets ⁽¹⁾	249,846			201,762			24		225,674			201,652			12
Total deposits	21,387			20,672			3		22,473			20,646			9

Period end									June 30 2020			December 31 2019			% Change
Total loans and leases									$	25,096		$	37,156		(32	)%
Total assets ⁽¹⁾									240,159			224,375			7
Total deposits									19,149			23,089			(17	)

⁽¹⁾

In segments where the total of liabilities and equity exceeds assets, which are generally deposit-taking segments, we allocate assets from All Other to those segments to match liabilities (i.e., deposits) and allocated shareholders’ equity. Average allocated assets were $740.7 billion and $656.5 billion for the three and six months ended June 30, 2020 compared to $549.5 billion and $543.0 billion for the same periods in 2019, and period-end allocated assets were $829.1 billion and $565.4 billion at June 30, 2020 and December 31, 2019.

n/m = not meaningful

All Other consists of ALM activities, equity investments, non-core mortgage loans and servicing activities, liquidating businesses and certain expenses not otherwise allocated to a business segment. ALM activities encompass certain residential mortgages, debt securities, and interest rate and foreign currency risk management activities. Substantially all of the results of ALM activities are allocated to our business segments. For more information on our ALM activities, see Note 17 – Business Segment Information to the Consolidated Financial Statements. Equity investments include our merchant services joint venture, as well as a portfolio of equity, real estate and other alternative investments. For information on our merchant services joint venture, see Executive Summary – Recent Developments – Merchant Services Joint Venture on page 5 and Note 10 – Commitments and Contingencies to the Consolidated Financial Statements. For more information about All Other, see Business Segment Operations in the MD&A of the Corporation’s 2019 Annual Report on Form 10-K.

Residential mortgage loans that are held for ALM purposes, including interest rate or liquidity risk management, are classified as core and are presented on the balance sheet of All Other. During the six months ended June 30, 2020, residential mortgage loans held for ALM activities decreased $10.6 billion to $11.1 billion due primarily to loan sales. Non-core residential mortgage and home equity loans, which are principally runoff portfolios, are also held in All Other. During the six months ended June 30, 2020, total non-core loans decreased $1.6 billion to $14.1 billion due primarily to payoffs and paydowns, as well as Federal Housing Administration (FHA) loan conveyances and sales, partially offset by repurchases. For more information on the composition of the core and non-core portfolios, see Consumer Portfolio Credit Risk Management on page 31.

Three-Month Comparison

Net income for All Other increased $207 million primarily driven

by higher revenue and lower noninterest expense, partially offset by a decrease in the benefit in the provision for credit losses.

Revenue increased $241 million primarily due to a $704 million gain on sales of certain mortgage loans, partially offset by lower net interest income and equity investment income.

Noninterest expense decreased $207 million to $309 million reflecting a decrease in compensation and benefits, lower non-core mortgage costs, primarily due to lower volume, and lower technology costs.

The benefit in the provision for credit losses decreased $220 million to $21 million from the prior period, which included higher recoveries from the sales of previously charged-off consumer real estate loans.

The income tax benefit decreased $21 million reflecting the impact of lower pretax losses. Both periods included income tax benefit adjustments to eliminate the FTE treatment of certain tax credits recorded in Global Banking.

Six-Month Comparison

The net loss for All Other increased $251 million, driven by higher provision for credit losses and lower revenue, partially offset by lower noninterest expense.

Revenue decreased $107 million primarily due to certain valuation adjustments on securities and derivatives and extinguishment losses on certain structured liabilities, partially offset by a gain on sales of mortgage loans.

The provision for credit losses increased $388 million to $93 million due to the same factor as described in the three-month discussion.

Noninterest expense decreased $360 million to $556 million due to the same factors as described in the three-month discussion.

The income tax benefit decreased $116 million reflecting lower discrete tax benefits. Both periods included income tax benefit adjustments to eliminate the FTE treatment of certain tax credits recorded in Global Banking.



		Bank of America 22

Off-Balance Sheet Arrangements and Contractual Obligations

We have contractual obligations to make future payments on debt and lease agreements. Additionally, in the normal course of business, we enter into contractual arrangements whereby we commit to future purchases of products or services from unaffiliated parties. For more information on obligations and commitments, see Note 10 – Commitments and Contingencies to the Consolidated Financial Statements herein, as well as Off-Balance Sheet Arrangements and Contractual Obligations in the MD&A of the Corporation’s 2019 Annual Report on Form 10-K, and Note 12 – Long-term Debt and Note 13 – Commitments and Contingencies to the Consolidated Financial Statements of the Corporation’s 2019 Annual Report on Form 10-K.

Representations and Warranties Obligations

For more information on representations and warranties obligations in connection with the sale of mortgage loans, see Note 13 – Commitments and Contingencies to the Consolidated Financial Statements of the Corporation’s 2019 Annual Report on Form 10-K.

Managing Risk

Risk is inherent in all our business activities. The seven key types of risk faced by the Corporation are strategic, credit, market, liquidity, compliance, operational and reputational. Sound risk management enables us to serve our customers and deliver for our shareholders. If not managed well, risks can result in financial loss, regulatory sanctions and penalties, and damage to our reputation, each of which may adversely impact our ability to execute our business strategies. We take a comprehensive approach to risk management with a defined Risk Framework and an articulated Risk Appetite Statement which are approved annually by the Enterprise Risk Committee and the Board.

Our Risk Framework serves as the foundation for the consistent and effective management of risks facing the Corporation. The Risk Framework sets forth clear roles, responsibilities and accountability for the management of risk and provides a blueprint for how the Board, through delegation of authority to committees and executive officers, establishes risk appetite and associated limits for our activities.

Our Risk Appetite Statement is intended to ensure that the Corporation maintains an acceptable risk profile by providing a common framework and a comparable set of measures for senior management and the Board to clearly indicate the level of risk the Corporation is willing to accept. Risk appetite is set at least annually and is aligned with the Corporation’s strategic, capital and financial operating plans. Our line of business strategies and risk appetite are also similarly aligned.

For more information about the Corporation's risks related to the COVID-19 pandemic, see Part II, Item 1A. Risk Factors on page 104. These COVID-19 related risks are being managed within our Risk Framework and supporting risk management programs.

For more information on our Risk Framework, our risk management activities and the key types of risk faced by the Corporation, see the Managing Risk through Reputational Risk sections in the MD&A of the Corporation’s 2019 Annual Report on Form 10-K.

Capital Management

The Corporation manages its capital position so that its capital is more than adequate to support its business activities and aligns with risk, risk appetite and strategic planning. For more information on capital management, including related regulatory requirements,

see Capital Management in the MD&A of the Corporation’s 2019 Annual Report on Form 10-K.

CCAR and Capital Planning

The Federal Reserve requires BHCs to submit a capital plan and planned capital actions on an annual basis, consistent with the rules governing the CCAR capital plan. In June 2020, the Federal Reserve notified BHCs of their 2020 CCAR supervisory stress test results. Based on our results, we will be subject to a preliminary 2.5 percent SCB for the period beginning October 1, 2020 and ending on September 30, 2021. Our Common equity tier 1 (CET1) capital ratio under the Standardized approach must remain above 9.5 percent during this period (the sum of our CET1 capital ratio minimum of 4.5 percent, global systemically important bank (G-SIB) surcharge of 2.5 percent and our preliminary SCB of 2.5 percent) in order to avoid restrictions on capital distributions and discretionary bonus payments. The Federal Reserve plans to finalize the SCB for all BHCs by August 31, 2020.

The Federal Reserve also announced that due to economic uncertainty resulting from the COVID-19 pandemic, all large banks will be required to suspend share repurchase programs in the third quarter of 2020, except for repurchases to offset shares issued under equity compensation plans, and limit dividends to existing rates that do not exceed the average of the last four quarters’ net income. Large banks will also be required to resubmit and update their capital plans later this year based on instructions that the Federal Reserve will provide. The Federal Reserve plans to conduct additional analysis to assess the Corporation’s capital plans and will review capital preservation measures on a quarter-by-quarter basis.

The Federal Reserve’s directive regarding share repurchases aligns with our decision to voluntarily suspend repurchases in the first quarter of 2020 from the date of the announcement on March 15, 2020 through the end of the second quarter of 2020. The suspension of our repurchases did not include repurchases to offset shares issued under our equity compensation plans, for which we repurchased $286 million of common stock during the second quarter of 2020 pursuant to the Board’s repurchase authorization under our 2019 CCAR capital plan. For more information, see Capital Management -- CCAR and Capital Planning in the MD&A of the Corporation’s 2019 Annual Report on Form 10-K.

We intend to maintain the quarterly common stock dividend at the current rate of $0.18 per share until further notice, subject to approval by the Board. We will also continue our current suspension of common stock repurchases in the third quarter of 2020, except for repurchases to offset shares issued under equity compensation plans.

Our repurchase program is subject to the Board’s approval, and at such time that we reinstate our stock repurchase program, our stock repurchases will be subject to various factors, including the Corporation’s capital position, liquidity, financial performance and alternative uses of capital, stock trading price and general market conditions, and may be suspended at any time. Such repurchases may be effected through open market purchases or privately negotiated transactions, including repurchase plans that satisfy the conditions of Rule 10b5-1 of the Securities Exchange Act of 1934, as amended (Exchange Act). For more information, see Regulatory Developments in this section.

Regulatory Capital

As a financial services holding company, we are subject to regulatory capital rules, including Basel 3, issued by U.S. banking regulators. The Corporation's depository institution subsidiaries are also subject to the Prompt Corrective Action (PCA) framework.



23 Bank of America

The Corporation and its primary affiliated banking entity, BANA, are Advanced approaches institutions under Basel 3 and are required to report regulatory risk-based capital ratios and risk-weighted assets under both the Standardized and Advanced approaches. The approach that yields the lower ratio is used to assess capital adequacy including under the PCA framework. As of June 30, 2020, the CET1, Tier 1 capital and Total Capital ratios for the Corporation were lower under the Advanced approaches.

Minimum Capital Requirements

In order to avoid restrictions on capital distributions and discretionary bonus payments, the Corporation must meet risk-based capital ratio requirements that include a capital conservation buffer greater than 2.5 percent, plus any applicable countercyclical capital buffer and a G-SIB surcharge. Beginning October 1, 2020, the capital conservation buffer will be replaced by the SCB for the Corporation’s Standardized approach ratio

requirements. The buffers and surcharge must be comprised solely of CET1 capital.

The Corporation is also required to maintain a minimum supplementary leverage ratio (SLR) of 3.0 percent plus a leverage buffer of 2.0 percent in order to avoid certain restrictions on capital distributions and discretionary bonus payments. Our insured depository institution subsidiaries are required to maintain a minimum 6.0 percent SLR to be considered well capitalized under the PCA framework.

Capital Composition and Ratios

Table 9 presents Bank of America Corporation’s capital ratios and related information in accordance with Basel 3 Standardized and Advanced approaches as measured at June 30, 2020 and December 31, 2019. For the periods presented herein, the Corporation met the definition of well capitalized under current regulatory requirements.




Table 9	Bank of America Corporation Regulatory Capital under Basel 3

		Standardized Approach ^{(1, 2)}			Advanced Approaches ⁽¹⁾			Regulatory Minimum ⁽³⁾
(Dollars in millions, except as noted)		June 30, 2020
Risk-based capital metrics:
Common equity tier 1 capital		$	171,020		$	171,020
Tier 1 capital		194,441			194,441
Total capital ⁽⁴⁾		233,764			223,225
Risk-weighted assets (in billions)		1,475			1,504
Common equity tier 1 capital ratio		11.6		%	11.4		%	9.5	%
Tier 1 capital ratio		13.2			12.9			11.0
Total capital ratio		15.8			14.8			13.0

Leverage-based metrics:
Adjusted quarterly average assets (in billions) ⁽⁵⁾		$	2,632		$	2,632
Tier 1 leverage ratio		7.4		%	7.4		%	4.0

Supplementary leverage exposure (in billions) ⁽⁶⁾					$	2,757
Supplementary leverage ratio					7.1		%	5.0

		December 31, 2019
Risk-based capital metrics:
Common equity tier 1 capital		$	166,760		$	166,760
Tier 1 capital		188,492			188,492
Total capital ⁽⁴⁾		221,230			213,098
Risk-weighted assets (in billions)		1,493			1,447
Common equity tier 1 capital ratio		11.2		%	11.5		%	9.5	%
Tier 1 capital ratio		12.6			13.0			11.0
Total capital ratio		14.8			14.7			13.0

Leverage-based metrics:
Adjusted quarterly average assets (in billions) ⁽⁵⁾		$	2,374		$	2,374
Tier 1 leverage ratio		7.9		%	7.9		%	4.0

Supplementary leverage exposure (in billions)					$	2,946
Supplementary leverage ratio					6.4		%	5.0


⁽¹⁾	As of June 30, 2020, capital ratios are calculated using the regulatory capital rule that allows a five-year transition period related to the adoption of CECL.


⁽²⁾	Derivative exposure amounts are calculated using the standardized approach for measuring counterparty credit risk at June 30, 2020 and the current exposure method at December 31, 2019.


⁽³⁾	The capital conservation buffer and G-SIB surcharge were 2.5 percent at both June 30, 2020 and December 31, 2019. The countercyclical capital buffer for both periods was zero. The SLR minimum includes a leverage buffer of 2.0 percent.


⁽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.


⁽⁵⁾	Reflects total average assets adjusted for certain Tier 1 capital deductions.


⁽⁶⁾	Supplementary leverage exposure at June 30, 2020 reflects the temporary exclusion of U.S. Treasury Securities and deposits at Federal Reserve Banks.

At June 30, 2020, CET1 capital was $171.0 billion, an increase of $4.3 billion from December 31, 2019, driven by earnings and net unrealized gains on available-for-sale (AFS) debt securities included in accumulated other comprehensive income (OCI), partially offset by common stock repurchases and dividends. Total capital under the Advanced approaches increased $10.1 billion primarily driven by the same factors as CET1 capital, increases in excess eligible credit reserves included in Tier 2 capital and the

issuance of preferred stock. Risk-weighted assets under the Advanced approaches, which yielded the lower CET1 capital ratio at June 30, 2020, increased $57.0 billion during the six months ended June 30, 2020 to $1,504 billion primarily due to changes in corporate risk ratings, increased counterparty credit risk and market risk RWA.Table 10 shows the capital composition at June 30, 2020 and December 31, 2019.



		Bank of America 24




Table 10	Capital Composition under Basel 3

(Dollars in millions)		June 30 2020			December 31 2019
Total common shareholders’ equity		$	242,210		$	241,409
CECL transitional amount ⁽¹⁾		4,302			—
Goodwill, net of related deferred tax liabilities		(68,570		)	(68,570		)
Deferred tax assets arising from net operating loss and tax credit carryforwards		(5,263		)	(5,193		)
Intangibles, other than mortgage servicing rights and goodwill, net of related deferred tax liabilities		(1,221		)	(1,328		)
Defined benefit pension plan net assets		(1,025		)	(1,003		)
Cumulative unrealized net (gain) loss related to changes in fair value of financial liabilities attributable to own creditworthiness, net-of-tax		1,108			1,278
Other		(521		)	167
Common equity tier 1 capital		171,020			166,760
Qualifying preferred stock, net of issuance cost		23,426			22,329
Other		(5		)	(597		)
Tier 1 capital		194,441			188,492
Tier 2 capital instruments		23,424			22,538
Eligible credit reserves included in Tier 2 capital ⁽²⁾		5,378			2,097
Other		(18		)	(29		)
Total capital under the Advanced approaches		$	223,225		$	213,098


⁽¹⁾	The CECL transitional amount includes 100 percent of the initial adoption impact of the new CECL accounting standard plus 25 percent of the increase in the allowance for credit losses from January 1, 2020 through June 30, 2020. For more information, see Regulatory Developments on page 27.


⁽²⁾	The balance at June 30, 2020 includes the impact of transition provisions related to the new CECL accounting standard.

Table 11 shows the components of risk-weighted assets as measured under Basel 3 at June 30, 2020 and December 31, 2019.




Table 11	Risk-weighted Assets under Basel 3

		Standardized Approach⁽¹⁾		Advanced Approaches		Standardized Approach ⁽¹⁾		Advanced Approaches
(Dollars in billions)		June 30, 2020				December 31, 2019
Credit risk		$	1,404	$	892	$	1,437	$	858
Market risk		71		71		56		55
Operational risk		n/a		500		n/a		500
Risks related to credit valuation adjustments		n/a		41		n/a		34
Total risk-weighted assets		$	1,475	$	1,504	$	1,493	$	1,447

⁽¹⁾Derivative exposure amounts are calculated using the standardized approach for measuring counterparty credit risk at June 30, 2020 and the current exposure method at December 31, 2019.

n/a = not applicable

Bank of America, N.A. Regulatory Capital

Table 12 presents regulatory capital information for BANA in accordance with Basel 3 Standardized and Advanced approaches as measured at June 30, 2020 and December 31, 2019. BANA met the definition of well capitalized under the PCA framework for both periods.



25 Bank of America




Table 12	Bank of America, N.A. Regulatory Capital under Basel 3

		Standardized Approach ^{(1, 2)}			Advanced Approaches ⁽¹⁾			Regulatory Minimum ⁽³⁾
(Dollars in millions, except as noted)		June 30, 2020
Risk-based capital metrics:
Common equity tier 1 capital		$	156,513		$	156,513
Tier 1 capital		156,513			156,513
Total capital ⁽⁴⁾		173,492			163,028
Risk-weighted assets (in billions)		1,235			1,033
Common equity tier 1 capital ratio		12.7		%	15.1		%	7.0	%
Tier 1 capital ratio		12.7			15.1			8.5
Total capital ratio		14.1			15.8			10.5

Leverage-based metrics:
Adjusted quarterly average assets (in billions) ⁽⁵⁾		$	2,057		$	2,057
Tier 1 leverage ratio		7.6		%	7.6		%	5.0

Supplementary leverage exposure (in billions)					$	2,422
Supplementary leverage ratio					6.5		%	6.0

		December 31, 2019
Risk-based capital metrics:
Common equity tier 1 capital		$	154,626		$	154,626
Tier 1 capital		154,626			154,626
Total capital ⁽⁴⁾		166,567			158,665
Risk-weighted assets (in billions)		1,241			991
Common equity tier 1 capital ratio		12.5		%	15.6		%	7.0	%
Tier 1 capital ratio		12.5			15.6			8.5
Total capital ratio		13.4			16.0			10.5

Leverage-based metrics:
Adjusted quarterly average assets (in billions) ⁽⁵⁾		$	1,780		$	1,780
Tier 1 leverage ratio		8.7		%	8.7		%	5.0

Supplementary leverage exposure (in billions)					$	2,177
Supplementary leverage ratio					7.1		%	6.0


⁽¹⁾	As of June 30, 2020, capital ratios are calculated using the regulatory capital rule that allows a five-year transition period related to the adoption of CECL.


⁽²⁾	Derivative exposure amounts are calculated using the standardized approach for measuring counterparty credit risk at June 30, 2020 and the current exposure method at December 31, 2019.


⁽³⁾	Risk-based capital regulatory minimums at June 30, 2020 and December 31, 2019 are the minimum ratios under Basel 3 including a capital conservation buffer of 2.5 percent. The regulatory minimums for the leverage ratios as of both period ends are the percent required to be considered well capitalized under the PCA framework.


⁽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.


⁽⁵⁾	Reflects total average assets adjusted for certain Tier 1 capital deductions.

Total Loss-Absorbing Capacity Requirements

Total loss-absorbing capacity (TLAC) consists of the Corporation’s Tier 1 capital and eligible long-term debt issued directly by the Corporation. Eligible long-term debt for TLAC ratios is comprised of unsecured debt that has a remaining maturity of at least one year and satisfies additional requirements as prescribed in the TLAC final rule. As with the risk-based capital ratios and SLR, the

Corporation is required to maintain TLAC ratios in excess of minimum requirements plus applicable buffers to avoid restrictions on capital distributions and discretionary bonus payments. Table 13 presents the Corporation's TLAC and long-term debt ratios and related information as of June 30, 2020 and December 31, 2019.




Table 13	Bank of America Corporation Total Loss-Absorbing Capacity and Long-Term Debt

		TLAC ⁽¹⁾			Regulatory Minimum ⁽²⁾		Long-term Debt			Regulatory Minimum ⁽³⁾
(Dollars in millions)		June 30, 2020
Total eligible balance		$	391,076				$	185,794
Percentage of risk-weighted assets ⁽⁴⁾		26.0		%	22.0	%	12.4		%	8.5	%
Percentage of supplementary leverage exposure^{(5, 6)}		14.2			9.5		6.7			4.5

		December 31, 2019
Total eligible balance		$	367,449				$	171,349
Percentage of risk-weighted assets ⁽⁴⁾		24.6		%	22.0	%	11.5		%	8.5	%
Percentage of supplementary leverage exposure ⁽⁶⁾		12.5			9.5		5.8			4.5


⁽¹⁾	As of June 30, 2020, TLAC ratios are calculated using the regulatory capital rule that allows a five-year transition period related to the adoption of CECL.

⁽²⁾

The TLAC risk-weighted assets regulatory minimum consists of 18.0 percent plus a TLAC risk-weighted assets buffer comprised of 2.5 percent plus the method 1 G-SIB surcharge of 1.5 percent. The countercyclical buffer is zero for both periods. The TLAC supplementary leverage exposure regulatory minimum consists of 7.5 percent plus a 2.0 percent TLAC leverage buffer. The TLAC risk-weighted assets and leverage buffers must be comprised solely of CET1 capital and Tier 1 capital, respectively.


⁽³⁾	The long-term debt risk-weighted assets regulatory minimum is comprised of 6.0 percent plus an additional 2.5 percent requirement based on the Corporation’s method 2 G-SIB surcharge. The long-term debt leverage exposure regulatory minimum is 4.5 percent.


⁽⁴⁾	The approach that yields the higher risk-weighted assets is used to calculate TLAC and long-term debt ratios, which were the Advanced approaches as of June 30, 2020 and the Standardized approach as of December 31, 2019.


⁽⁵⁾	Supplementary leverage exposure at June 30, 2020 reflects the temporary exclusion of U.S. Treasury Securities and deposits at Federal Reserve Banks.


⁽⁶⁾	Derivative exposure amounts are calculated using the standardized approach for measuring counterparty credit risk at June 30, 2020 and the current exposure method at December 31, 2019.



		Bank of America 26

Regulatory Developments

The following supplements the disclosure in Capital Management – Regulatory Developments in the MD&A of the Corporation’s 2019 Annual Report on Form 10-K.

Revisions to Basel 3 to Address Current Expected Credit Loss Accounting

On January 1, 2020, the Corporation adopted the new accounting standard that requires the measurement of the allowance for credit losses to be based on management’s best estimate of lifetime ECL inherent in the Corporation's relevant financial assets. For more information, see Note 1 – Summary of Significant Accounting Principles to the Consolidated Financial Statements. During the first quarter of 2020, in accordance with an interim final rule issued by U.S. banking regulators, the Corporation delayed for two years the initial adoption impact of CECL on regulatory capital, followed by a three-year transition period to phase out the aggregate amount of the capital benefit provided during 2020 and 2021 (i.e., a five-year transition period). For more information, see Capital Management – Regulatory Developments in the MD&A of the Corporation's Quarterly Report on Form 10-Q for the quarter ended March 31, 2020.

Stress Capital Buffer

On March 4, 2020, the Federal Reserve issued a final rule that integrates the annual quantitative assessment of the CCAR program with the buffer requirements in the U.S. Basel 3 Final Rule. The new approach replaces the existing static 2.5 percent capital conservation buffer for Basel 3 Standardized approach requirements with a stress capital buffer, calculated as the decline in the CET1 capital ratio under the supervisory severely adverse scenario plus four quarters of planned common stock dividends, floored at 2.5 percent. Based on the CCAR 2020 supervisory stress test results, the Corporation will be subject to a preliminary 2.5 percent SCB for the period beginning October 1, 2020 and ending on September 30, 2021. The Federal Reserve plans to finalize the SCB for all BHCs by August 31, 2020.

In conjunction with this new requirement, the Federal Reserve has removed the annual CCAR quantitative objection process beginning with CCAR 2020. While the final rule continues to require that the Corporation describe its planned capital distributions in its CCAR capital plan, the Corporation is no longer required to seek prior approval if it makes capital distributions in excess of those included in its CCAR capital plan. The Corporation is instead subject to automatic distribution limitations if its capital ratios fall below its buffer requirements, which include the stress capital buffer.

Supplementary Leverage Ratio

On April 1, 2020, in response to the economic impact of the COVID-19 pandemic, the Federal Reserve issued an interim final rule to temporarily exclude the on-balance sheet amounts of U.S. Treasury securities and deposits at Federal Reserve Banks from the calculation of supplementary leverage exposure for bank holding companies. The rule is effective for June 30, 2020 through March 31, 2021 reports. As of June 30, 2020, temporary exclusions improved the supplementary leverage ratio by 0.9 percent to 7.1 percent.

On May 15, 2020, the U.S. banking regulators issued an interim final rule that provides a similar temporary exclusion to depository institutions, effective from the beginning of the second quarter of 2020 through March 31, 2021; however, institutions must elect the relief. Beginning in the third quarter of 2020, a depository institution electing to apply the exclusion must receive approval from its primary regulator prior to making any capital distributions

as long as the exclusion is in effect. As of June 30, 2020, the Corporation’s insured depository institution subsidiaries have not elected the exclusions.

Paycheck Protection Program Loans

On April 9, 2020, in response to the economic impact of the COVID-19 pandemic, the Federal Reserve, the Office of the Comptroller of the Currency and the Federal Deposit Insurance Corporation issued an interim final rule that, among other things, stipulates PPP loans, which are guaranteed by the Small Business Administration, will receive a zero percent risk weight under the Basel 3 Advanced and Standardized approaches. For more information on the PPP, see Executive Summary - Recent Developments – COVID-19 Pandemic on page 3 and Note 1 – Summary of Significant Accounting Principles to the Consolidated Financial Statements.

Standardized Approach for Measuring Counterparty Credit Risk

As of June 30, 2020 the Corporation adopted the new standardized approach for measuring counterparty credit risk (SA-CCR), which replaces the current exposure method for calculating the exposure amount of derivative contracts for risk-weighted assets and supplementary leverage exposure. Adoption of SA-CCR resulted in a decrease of approximately $15 billion in the Corporation’s Standardized risk-weighted assets, and a $66 billion decrease in supplementary leverage exposure.

Swap Dealer Capital Requirements

On July 22, 2020, the U.S. Commodity Futures Trading Commission (CFTC) issued a final rule to establish capital requirements for swap dealers and major swap participants that are not subject to existing U.S. prudential regulation. Under the rule, applicable subsidiaries of the Corporation would be permitted to elect one of two approaches to compute their regulatory capital. The first approach is a bank-based capital approach which requires that firms maintain CET1 capital greater than or equal to 6.5 percent of the entity’s RWA as calculated under Basel 3, Total capital greater than or equal to 8.0 percent of the entity’s RWA as calculated under Basel 3 and Total capital greater than or equal to 8.0 percent of the entity’s uncleared swap margin. The second approach is based on net liquid assets and requires that a firm maintain net capital greater than or equal to 2.0 percent of uncleared swap margin. The final rule also includes reporting requirements. The impact to the Corporation is not expected to be significant.

Regulatory Capital and Securities Regulation

The Corporation’s principal U.S. broker-dealer subsidiaries are BofA Securities, Inc. (BofAS), Merrill Lynch Professional Clearing Corp. (MLPCC) and Merrill Lynch, Pierce, Fenner & Smith Incorporated (MLPF&S). The Corporation's principal European broker-dealer subsidiaries are Merrill Lynch International (MLI) and BofA Securities Europe SA (BofASE).

The U.S. broker-dealer subsidiaries are subject to the net capital requirements of Rule 15c3-1 under the Exchange Act. BofAS computes its minimum capital requirements as an alternative net capital broker-dealer under Rule 15c3-1, and MLPCC and MLPF&S compute their minimum capital requirements in accordance with the alternative standard under Rule 15c3-1. BofAS and MLPCC are also registered as futures commission merchants and are subject to CFTC Regulation 1.17. The U.S. broker-dealer subsidiaries are also registered with the Financial Industry Regulatory Authority, Inc. (FINRA). Pursuant to FINRA Rule 4110, FINRA may impose higher net capital requirements than



27 Bank of America

Rule 15c3-1 under the Exchange Act with respect to each of the broker-dealers.

BofAS provides institutional services, and in accordance with the alternative net capital requirements, is required to maintain tentative net capital in excess of $1.0 billion and net capital in excess of the greater of $500 million or a certain percentage of its reserve requirement. BofAS must also notify the Securities and Exchange Commission (SEC) in the event its tentative net capital is less than $5.0 billion. BofAS is also required to hold a certain percentage of its risk-based margin in order to meet its CFTC minimum net capital requirement. At June 30, 2020, BofAS had tentative net capital of $19.4 billion. BofAS also had regulatory net capital of $16.6 billion which exceeded the minimum requirement of $3.0 billion.

MLPCC is a fully-guaranteed subsidiary of BofAS and provides clearing and settlement services as well as prime brokerage and arranged financing services for institutional clients. At June 30, 2020, MLPCC’s regulatory net capital of $7.4 billion exceeded the minimum requirement of $1.2 billion.

MLPF&S provides retail services. At June 30, 2020, MLPF&S' regulatory net capital was $4.4 billion which exceeded the minimum requirement of $134 million.

Our European broker-dealers are regulated by non-U.S. regulators. MLI, a U.K. investment firm, is regulated by the Prudential Regulation Authority and the Financial Conduct Authority and is subject to certain regulatory capital requirements. At June 30, 2020, MLI’s capital resources were $35.0 billion, which exceeded the minimum Pillar 1 requirement of $13.8 billion. BofASE, a French investment firm, is regulated by the Autorité de Contrôle Prudentiel et de Résolution and the Autorité des Marchés Financiers, and is subject to certain regulatory capital requirements. At June 30, 2020, BofASE's capital resources were $5.5 billion which exceeded the minimum Pillar 1 requirement of $1.7 billion.

Liquidity Risk

Funding and Liquidity Risk Management

Our primary liquidity risk management objective is to meet expected or unexpected cash flow and collateral needs while continuing to support our businesses and customers under a range of economic conditions. To achieve that objective, we analyze and monitor our liquidity risk under expected and stressed conditions, maintain liquidity and access to diverse funding sources, including our stable deposit base, and seek to align liquidity-related incentives and risks. These liquidity risk management practices have allowed us to effectively manage the market stress that began in the first quarter of 2020 from the COVID-19 pandemic. For more information on the effects of the pandemic, see Executive Summary - Recent Developments – COVID-19 Pandemic on page 3.

We define liquidity as readily available assets, limited to cash and high-quality, liquid, unencumbered securities that we can use to meet our contractual and contingent financial obligations as those obligations arise. We manage our liquidity position through line of business and ALM activities, as well as through our legal entity funding strategy, on both a forward and current (including intraday) basis under both expected and stressed conditions. We believe that a centralized approach to funding and liquidity management enhances our ability to monitor liquidity requirements, maximizes access to funding sources, minimizes borrowing costs and facilitates timely responses to liquidity events. For more information regarding global funding and liquidity risk management, as well as liquidity sources, liquidity arrangements, contingency planning and credit ratings discussed

below, see Liquidity Risk in the MD&A of the Corporation’s 2019 Annual Report on Form 10-K.

NB Holdings Corporation

We have intercompany arrangements with certain key subsidiaries under which we transferred certain assets of Bank of America Corporation, as the parent company, which is a separate and distinct legal entity from our banking and nonbank subsidiaries, and agreed to transfer certain additional parent company assets not needed to satisfy anticipated near term expenditures, to NB Holdings Corporation, a wholly-owned holding company subsidiary (NB Holdings). The parent company is expected to continue to have access to the same flow of dividends, interest and other amounts of cash necessary to service its debt, pay dividends and perform other obligations as it would have had if it had not entered into these arrangements and transferred any assets. These arrangements support our preferred single point of entry resolution strategy, under which only the parent company would be resolved under the U.S. Bankruptcy Code.

Global Liquidity Sources and Other Unencumbered Assets

Table 14 presents average Global Liquidity Sources (GLS) for the three months ended June 30, 2020 and December 31, 2019.




Table 14	Average Global Liquidity Sources

		Three Months Ended June 30
(Dollars in billions)		June 30 2020		December 31 2019
Bank entities		$	637	$	454
Nonbank and other entities ⁽¹⁾		159		122
Total Average Global Liquidity Sources		$	796	$	576

⁽¹⁾ Nonbank includes Parent, NB Holdings and other regulated entities.

We maintain liquidity available to the Corporation, including the parent company and selected subsidiaries, in the form of cash and high-quality, liquid, unencumbered securities. Typically, parent company and NB Holdings liquidity is in the form of cash deposited with BANA.

Our bank subsidiaries’ liquidity is primarily driven by deposit and lending activity, as well as securities valuation and net debt activity. Liquidity at bank subsidiaries excludes the cash deposited by the parent company and NB Holdings. Our bank subsidiaries can also generate incremental liquidity by pledging a range of unencumbered loans and securities to certain Federal Home Loan Banks (FHLBs) and the Federal Reserve Discount Window. The cash we could have obtained by borrowing against this pool of specifically-identified eligible assets was $340 billion and $372 billion at June 30, 2020 and December 31, 2019. We have established operational procedures to enable us to borrow against these assets, including regularly monitoring our total pool of eligible loans and securities collateral. Eligibility is defined in guidelines from the FHLBs and the Federal Reserve and is subject to change at their discretion. Due to regulatory restrictions, liquidity generated by the bank subsidiaries can generally be used only to fund obligations within the bank subsidiaries, and transfers to the parent company or nonbank subsidiaries may be subject to prior regulatory approval.

Liquidity held in other regulated entities, comprised primarily of broker-dealer subsidiaries, is primarily available to meet the obligations of that entity and transfers to the parent company or to any other subsidiary may be subject to prior regulatory approval due to regulatory restrictions and minimum requirements. Our other regulated entities also hold unencumbered investment-grade



		Bank of America 28

securities and equities that we believe could be used to generate additional liquidity.

Table 15 presents the composition of average GLS for the three months ended June 30, 2020 and December 31, 2019.




Table 15	Average Global Liquidity Sources Composition

		Three Months Ended June 30
(Dollars in billions)		June 30 2020		December 31 2019
Cash on deposit		$	312	$	103
U.S. Treasury securities		96		98
U.S. agency securities, mortgage-backed securities, and other investment-grade securities		366		358
Non-U.S. government securities		22		17
Total Average Global Liquidity Sources		$	796	$	576

Our GLS are substantially the same in composition to what qualifies as High Quality Liquid Assets (HQLA) under the final U.S. Liquidity Coverage Ratio (LCR) rules. However, HQLA for purposes of calculating LCR is not reported at market value, but at a lower value that incorporates regulatory deductions and the exclusion of excess liquidity held at certain subsidiaries. The LCR is calculated as the amount of a financial institution’s unencumbered HQLA relative to the estimated net cash outflows the institution could encounter over a 30-day period of significant liquidity stress, expressed as a percentage. Our average consolidated HQLA, on a net basis, was $549 billion and $464 billion for the three months ended June 30, 2020 and December 31, 2019. For the same periods, the average consolidated LCR was 121 percent and 116 percent. Our LCR fluctuates due to normal business flows from customer activity.

Liquidity Stress Analysis

We utilize liquidity stress analysis to assist us in determining the appropriate amounts of liquidity to maintain at the parent company and our subsidiaries to meet contractual and contingent cash outflows under a range of scenarios. For more information on our liquidity stress analysis, see Liquidity Risk – Liquidity Stress Analysis in the MD&A of the Corporation’s 2019 Annual Report on Form 10-K.

Diversified Funding Sources

We fund our assets primarily with a mix of deposits, and secured and unsecured liabilities through a centralized, globally coordinated funding approach diversified across products, programs, markets, currencies and investor groups. We fund a substantial portion of our lending activities through our deposits, which were $1.72 trillion and $1.43 trillion at June 30, 2020 and December 31, 2019.

Our trading activities in other regulated entities are primarily funded on a secured basis through securities lending and repurchase agreements, and these amounts will vary based on customer activity and market conditions.

Long-term Debt

During the six months ended June 30, 2020, we issued $30.7 billion of long-term debt consisting of $26.2 billion of notes issued by Bank of America Corporation, substantially all of which was TLAC compliant, $817 million of notes issued by Bank of America, N.A. and $3.7 billion of other debt, substantially all of which were structured liabilities.

During the six months ended June 30, 2020, we had total long-term debt maturities and redemptions in the aggregate of $20.4 billion consisting of $6.4 billion for Bank of America Corporation, $8.6 billion for Bank of America, N.A. and $5.4 billion of other debt. Table 16 presents the carrying value of aggregate annual contractual maturities of long-term debt at June 30, 2020.




Table 16	Long-term Debt by Maturity

(Dollars in millions)		Remainder of 2020		2021		2022		2023		2024		Thereafter		Total
Bank of America Corporation
Senior notes ⁽¹⁾		$	6,027	$	15,950	$	14,905	$	23,630	$	18,656	$	108,275	$	187,443
Senior structured notes		539		410		2,008		274		371		14,474		18,076
Subordinated notes		—		337		364		—		3,383		20,278		24,362
Junior subordinated notes		—		—		—		—		—		738		738
Total Bank of America Corporation		6,566		16,697		17,277		23,904		22,410		143,765		230,619
Bank of America, N.A.
Senior notes		1,342		1,790		—		517		—		8		3,657
Subordinated notes		—		—		—		—		—		1,974		1,974
Advances from Federal Home Loan Banks		7		2		3		1		—		95		108
Securitizations and other Bank VIEs ⁽²⁾		1,100		4,024		1,249		—		—		—		6,373
Other		17		52		—		148		—		139		356
Total Bank of America, N.A.		2,466		5,868		1,252		666		—		2,216		12,468
Other debt
Structured liabilities		4,452		2,892		1,695		1,711		646		6,668		18,064
Nonbank VIEs ⁽²⁾		—		1		—		—		—		486		487
Total other debt		4,452		2,893		1,695		1,711		646		7,154		18,551
Total long-term debt		$	13,484	$	25,458	$	20,224	$	26,281	$	23,056	$	153,135	$	261,638

⁽¹⁾

Total includes $137.6 billion of outstanding notes that are both TLAC eligible and callable one year before their stated maturities, including $7.4 billion during the remainder of 2020, and $11.7 billion, $15.2 billion, $11.9 billion and $9.5 billion during each year of 2021 through 2024, respectively, and $81.9 billion thereafter. The call features provide the flexibility to retire long-term notes before their final year outstanding, when they are no longer eligible to count toward TLAC requirements, and replace them with new TLAC-eligible debt, should we choose to do so.


⁽²⁾	Represents liabilities of consolidated VIEs included in total long-term debt on the Consolidated Balance Sheet.



29 Bank of America

Table 17 presents our long-term debt by major currency at June 30, 2020 and December 31, 2019.




Table 17	Long-term Debt by Major Currency

(Dollars in millions)		June 30 2020		December 31 2019
U.S. dollar		$	209,624	$	191,284
Euro		35,219		32,781
British pound		4,877		5,067
Japanese yen		4,407		4,310
Canadian dollar		4,185		3,857
Australian dollar		1,937		1,957
Other		1,389		1,600
Total long-term debt		$	261,638	$	240,856

Total long-term debt increased $20.8 billion during the six months ended June 30, 2020 primarily due to debt issuances and valuation adjustments, partially offset by maturities and redemptions. We may, from time to time, purchase outstanding debt instruments in various transactions, depending on market conditions, liquidity and other factors. Our other regulated entities may also make markets in our debt instruments to provide liquidity for investors.

We use derivative transactions to manage the duration, interest rate and currency risks of our borrowings, considering the characteristics of the assets they are funding. For more information on our ALM activities, see Interest Rate Risk Management for the Banking Book on page 47.

We may issue unsecured debt in the form of structured notes for client purposes, certain of which qualify as TLAC-eligible debt. During the six months ended June 30, 2020, we issued $5.3 billion of structured notes, which are debt obligations that pay investors returns linked to other debt or equity securities, indices, currencies or commodities. We typically hedge the returns we are obligated to pay on these liabilities with derivatives and/or investments in the underlying instruments, so that from a funding perspective, the cost is similar to our other unsecured long-term debt. We could be required to settle certain structured note obligations for cash or other securities prior to maturity under certain circumstances, which we consider for liquidity planning purposes. We believe, however, that a portion of such borrowings will remain outstanding beyond the earliest put or redemption date.

Substantially all of our senior and subordinated debt obligations contain no provisions that could trigger a requirement for an early repayment, require additional collateral support, result in changes to terms, accelerate maturity or create additional financial obligations upon an adverse change in our credit ratings,

financial ratios, earnings, cash flows or stock price. For more information on long-term debt funding, including issuances and maturities and redemptions, see Note 12 – Long-term Debt to the Consolidated Financial Statements of the Corporation’s 2019 Annual Report on Form 10-K.

Credit Ratings

Credit ratings and outlooks are opinions expressed by rating agencies on our creditworthiness and that of our obligations or securities, including long-term debt, short-term borrowings, preferred stock and other securities, including asset securitizations. Table 18 presents the Corporation’s current long-term/short-term senior debt ratings and outlooks expressed by the rating agencies.

On April 22, 2020, Fitch Ratings (Fitch) completed its review of the large, complex securities trading and universal banks in the U.S., including Bank of America, in response to declining economic activity from the COVID-19 pandemic. The agency affirmed the long-term and short-term senior debt ratings of the Corporation and all of its rated subsidiaries, except for select issuer and instrument level ratings that had previously been placed under criteria observation (UCO) on March 4, 2020, following changes in the agency’s bank rating criteria on February 28, 2020.

Concurrently, Fitch reached a conclusion on select UCO designations for the Corporation and upgraded the long-term and short-term senior debt ratings of MLI and BofASE by one notch to AA-/F1+. The agency also upgraded the preferred stock rating of the Corporation by one notch to BBB and downgraded the subordinated debt rating of the Corporation by one notch to A-. According to Fitch, rating changes UCO are the sole result of bank rating criteria change and do not reflect a change in the underlying fundamentals of the institution. Fitch’s rating outlook for all our long-term ratings is currently Stable.

On June 9, 2020, Fitch affirmed as A the subordinated debt rating of BANA. This rating had remained UCO following Fitch’s broader rating actions.

The ratings and outlooks from Moody’s Investors Service (Moody’s) and Standard & Poor’s Global Ratings for the Corporation and its subsidiaries did not change from those disclosed in the Corporation's 2019 Annual Report on Form 10-K.

For more information on additional collateral and termination payments that could be required in connection with certain over-the-counter derivative contracts and other trading agreements in the event of a credit rating downgrade, see Note 3 – Derivatives to the Consolidated Financial Statements herein and Item 1A. Risk Factors of the Corporation’s 2019 Annual Report on Form 10-K.

Table 18

Senior Debt Ratings

Moody’s Investors Service

Standard & Poor’s Global Ratings

Fitch Ratings

Long-term

Short-term

Outlook

Long-term

Short-term

Outlook

Long-term

Short-term

Outlook

Bank of America Corporation

P-1

Stable

A-

A-2

Stable

A+

Stable

Bank of America, N.A.

Aa2

P-1

Stable

A+

A-1

Stable

AA-

F1+

Stable

Bank of America Merrill Lynch International Designated Activity Company

A+

A-1

Stable

AA-

F1+

Stable

Merrill Lynch, Pierce, Fenner & Smith Incorporated

A+

A-1

Stable

AA-

F1+

Stable

BofA Securities, Inc.

A+

A-1

Stable

AA-

F1+

Stable

Merrill Lynch International

A+

A-1

Stable

AA-

F1+

Stable

BofA Securities Europe SA

A+

A-1

Stable

AA-

F1+

Stable

NR = not rated



		Bank of America 30

Credit Risk Management

For information on our credit risk management activities, see Consumer Portfolio Credit Risk Management below, Commercial Portfolio Credit Risk Management on page 37, Non-U.S. Portfolio on page 43, Allowance for Credit Losses on page 44, and Note 5 – Outstanding Loans and Leases and Allowance for Credit Losses to the Consolidated Financial Statements.

During the six months ended June 30, 2020, the COVID-19 pandemic negatively impacted economic activity in the U.S. and around the world. While we experienced increases in Commercial nonperforming loans and reservable criticized exposures as a result of weaker economic conditions arising from COVID-19, we did not see meaningful impacts to Consumer portfolio delinquencies, nonperforming loans or charge-offs during the six months ended June 30, 2020 due to payment deferrals and government stimulus benefits. To provide relief to individuals and businesses in the U.S., in March and April 2020, the President signed into law four economic stimulus packages, including the CARES Act. U.S. bank regulatory agencies also issued interagency guidance to financial institutions that are working with borrowers affected by COVID-19.

To support our customers, we have implemented various loan modification programs and other forms of support, including offering loan payment deferrals, refunding certain fees and pausing foreclosure sales, evictions and repossessions. For a summary of the loan modification programs that we have implemented along with a summary of deferral requests that have been executed, see Executive Summary - Recent Developments – COVID-19 Pandemic on page 3.

For information on the accounting for loan modifications related to the COVID-19 pandemic, see Note 1 – Summary of Significant Accounting Principles to the Consolidated Financial Statements.

Consumer Portfolio Credit Risk Management

Credit risk management for the consumer portfolio begins with initial underwriting and continues throughout a borrower’s credit cycle. Statistical techniques in conjunction with experiential judgment are used in all aspects of portfolio management including underwriting, product pricing, risk appetite, setting credit limits, and establishing operating processes and metrics to

quantify and balance risks and returns. Statistical models are built using detailed behavioral information from external sources such as credit bureaus and/or internal historical experience and are a component of our consumer credit risk management process. These models are used in part to assist in making both new and ongoing credit decisions, as well as portfolio management strategies, including authorizations and line management, collection practices and strategies, and determination of the allowance for loan and lease losses and allocated capital for credit risk.

Consumer Credit Portfolio

Although COVID-19 is severely impacting economic activity, it did not have a meaningful impact on the consumer portfolio delinquencies, nonperforming loans or charge-offs as of and during the six months ended June 30, 2020 due to payment deferrals and government stimulus benefits but there may be adverse impacts to credit quality metrics in future periods if negative economic conditions continue. Net charge-offs increased $43 million and $80 million to $734 million and $1.6 billion for the three and six months ended June 30, 2020 driven by lower consumer real estate loan sale recoveries.

The consumer allowance for loan and lease losses increased $6.4 billion during the six months ended June 30, 2020 to $11.0 billion due to the adoption of the new CECL accounting standard and deterioration in the economic outlook resulting from the impact of COVID-19. For more information, see Allowance for Credit Losses on page 44.

For more information on our accounting policies regarding delinquencies, nonperforming status, charge-offs and TDRs for the consumer portfolio, see Note 1 – Summary of Significant Accounting Principles and Note 5 – Outstanding Loans and Leases to the Consolidated Financial Statements of the Corporation’s 2019 Annual Report on Form 10-K. For information on our interest accrual policies and delinquency status for loan modifications related to the COVID-19 pandemic, see Note 1 – Summary of Significant Accounting Principles to the Consolidated Financial Statements.

Table 19 presents our outstanding consumer loans and leases, consumer nonperforming loans and accruing consumer loans past due 90 days or more.




Table 19	Consumer Credit Quality

		Outstandings				Nonperforming						Accruing Past Due 90 Days or More
(Dollars in millions)		June 30 2020		December 31 2019		June 30 2020			December 31 2019			June 30 2020			December 31 2019
Residential mortgage⁽¹⁾		$	239,500	$	236,169	$	1,552		$	1,470		$	854		$	1,088
Home equity		38,396		40,208		594			536			—			—
Credit card		84,244		97,608		n/a			n/a			782			1,042
Direct/Indirect consumer ⁽²⁾		88,628		90,998		45			47			27			33
Other consumer		120		192		—			—			—			—
Consumer loans excluding loans accounted for under the fair value option		$	450,888	$	465,175	$	2,191		$	2,053		$	1,663		$	2,163
Loans accounted for under the fair value option ⁽³⁾		684		594
Total consumer loans and leases		$	451,572	$	465,769
Percentage of outstanding consumer loans and leases ⁽⁴⁾		n/a		n/a		0.49		%	0.44		%	0.37		%	0.47		%
Percentage of outstanding consumer loans and leases, excluding fully-insured loan portfolios ⁽⁴⁾		n/a		n/a		0.50			0.46			0.18			0.24

⁽¹⁾

Residential mortgage loans accruing past due 90 days or more are fully-insured loans. At June 30, 2020 and December 31, 2019, residential mortgage includes $590 million and $740 million of loans on which interest had been curtailed by the FHA, and therefore were no longer accruing interest, although principal was still insured, and $264 million and $348 million of loans on which interest was still accruing.


⁽²⁾	Outstandings primarily include auto and specialty lending loans and leases of $48.4 billion and $50.4 billion, U.S. securities-based lending loans of $36.6 billion and $36.7 billion and non-U.S. consumer loans of $2.8 billion and $2.8 billion at June 30, 2020 and December 31, 2019.


⁽³⁾	Consumer loans accounted for under the fair value option include residential mortgage loans of $330 million and $257 million and home equity loans of $354 million and $337 million at June 30, 2020 and December 31, 2019. For more information on the fair value option, see Note 15 – Fair Value Option to the Consolidated Financial Statements.


⁽⁴⁾	Excludes consumer loans accounted for under the fair value option. At June 30, 2020 and December 31, 2019, $7 million and $6 million of loans accounted for under the fair value option were past due 90 days or more and not accruing interest.

n/a = not applicable



31 Bank of America

Table 20 presents net charge-offs and related ratios for consumer loans and leases.




Table 20	Consumer Net Charge-offs and Related Ratios

		Net Charge-offs												Net Charge-off Ratios ⁽¹⁾
		Three Months Ended June 30						Six Months Ended June 30						Three Months Ended June 30				Six Months Ended June 30
(Dollars in millions)		2020			2019			2020			2019			2020		2019		2020		2019
Residential mortgage		$	(20	)	$	3		$	(21	)	$	(13	)	(0.03	)%	0.01	%	(0.02	)%	(0.01	)%
Home equity		(14		)	(155		)	(25		)	(144		)	(0.14	)	(1.36	)	(0.13	)	(0.62	)
Credit card		665			762			1,435			1,507			3.10		3.26		3.19		3.22
Direct/Indirect consumer		26			40			66			94			0.12		0.18		0.15		0.21
Other consumer		77			41			151			82			n/m		n/m		n/m		n/m
Total		$	734		$	691		$	1,606		$	1,526		0.65		0.62		0.70		0.69


⁽¹⁾	Net charge-off ratios are calculated as annualized net charge-offs divided by average outstanding loans and leases excluding loans accounted for under the fair value option.

n/m = not meaningful

Table 21 presents outstandings, nonperforming balances, net charge-offs, allowance for credit losses and provision for credit losses for the core and non-core portfolios within the consumer real estate portfolio. We categorize consumer real estate loans as core and non-core based on loan and customer characteristics such as origination date, product type, loan-to-value (LTV), Fair Isaac Corporation (FICO) score and delinquency status consistent with our current consumer and mortgage servicing strategy. Generally, loans that were originated after January 1, 2010, qualified under government-sponsored enterprise

underwriting guidelines, or otherwise met our underwriting guidelines in place in 2015 are characterized as core loans. All other loans are generally characterized as non-core loans and represent runoff portfolios. Core loans as reported in Table 21 include loans held in the Consumer Banking and GWIM segments, as well as loans held for ALM activities in All Other.

As shown in Table 21, outstanding core consumer real estate loans increased $3.1 billion during the six months ended June 30, 2020 driven by an increase of $4.4 billion in residential mortgage, partially offset by a $1.3 billion decrease in home equity.




Table 21	Consumer Real Estate Portfolio ⁽¹⁾

		Outstandings				Nonperforming				Net Charge-offs
		June 30 2020		December 31 2019		June 30 2020		December 31 2019		Three Months Ended June 30						Six Months Ended June 30
(Dollars in millions)										2020			2019			2020			2019
Core portfolio
Residential mortgage		$	230,140	$	225,770	$	921	$	883	$	(19	)	$	7		$	(20	)	$	4
Home equity		33,935		35,226		411		363		1			10			3			31
Total core portfolio		264,075		260,996		1,332		1,246		(18		)	17			(17		)	35
Non-core portfolio
Residential mortgage		9,360		10,399		631		587		(1		)	(4		)	(1		)	(17		)
Home equity		4,461		4,982		183		173		(15		)	(165		)	(28		)	(175		)
Total non-core portfolio		13,821		15,381		814		760		(16		)	(169		)	(29		)	(192		)
Consumer real estate portfolio
Residential mortgage		239,500		236,169		1,552		1,470		(20		)	3			(21		)	(13		)
Home equity		38,396		40,208		594		536		(14		)	(155		)	(25		)	(144		)
Total consumer real estate portfolio		$	277,896	$	276,377	$	2,146	$	2,006	$	(34	)	$	(152	)	$	(46	)	$	(157	)

						Allowance for Credit Losses				Provision for Credit Losses
						June 30 2020		December 31 2019		Three Months Ended June 30						Six Months Ended June 30
										2020			2019			2020			2019
Core portfolio

Form: 10-Q

Documents

FORM 10-Q

INDEX

Part I. Financial Information

Part II. Other Information

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

Executive Summary

Recent Developments

Financial Highlights

Supplemental Financial Data

Business Segment Operations

Consumer Banking

Global Wealth & Investment Management

Global Banking

Global Markets

All Other

Off-Balance Sheet Arrangements and Contractual Obligations

Managing Risk

Capital Management

Liquidity Risk

Credit Risk Management

Consumer Portfolio Credit Risk Management

10-Q: Quarterly report pursuant to Section 13 or 15(d)

FORM 10-Q

INDEX

Part I. Financial Information

Part II. Other Information

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

Executive Summary

Recent Developments

Financial Highlights

Supplemental Financial Data

Business Segment Operations

Consumer Banking

Global Wealth & Investment Management

Global Banking

Global Markets

All Other

Off-Balance Sheet Arrangements and Contractual Obligations

Managing Risk

Capital Management

Liquidity Risk

Credit Risk Management

Consumer Portfolio Credit Risk Management