BANK OF AMERICA CORP DE

(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.

Consumer Banking, 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, see Business Segment Operations in the MD&A of the Corporation’s 2023 Annual Report on Form 10-K.

Consumer Banking Results

Net income for Consumer Banking decreased $452 million to $2.7 billion for the three months ended March 31, 2024 compared to the same period in 2023 largelydue to lower revenue. Net interest income decreased $396 million to $8.2 billion primarily driven by lower deposit balances, partially offset by higher loan balances. Noninterest income decreased $144 million to $2.0 billion primarily driven by lower other income driven by the allocation of asset and liability management (ALM) results.

The provision for credit losses increased $61 million to $1.2 billion primarily driven by credit card asset quality. Noninterest expense was $5.5 billion, unchanged from the same period a year ago.

The return on average allocated capital was 25 percent, down from 30 percent, due to an increase in allocated capital and lower net income. For more information on capital allocated to the business segments, see Business Segment Operations on page 8.

Deposits

Net income for Deposits decreased $389 million to$1.9 billion primarily due to lower revenue. Net interest income decreased$547 million to$5.3 billion primarily driven by lower deposit balances. Noninterest income decreased$116 million to$669 million primarily due to lower other income driven by the allocation of ALM results.

Noninterest expense decreased$37 million to$3.4 billion, relatively unchanged from the same period a year ago.

Average deposits decreased $73.5 billion to $947.8 billion primarily due to net outflows of $73.7 billion in money market savings and $32.1 billion in checking, partially offset by growth in time deposits of $43.5 billion.

The table below 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 digital/ mobile trends.

(1)Includes deposits held in Consumer Lending.

(2)Includes client brokerage assets, deposit sweep balances, Bank of America, N.A. brokered CDs and AUM in Consumer Banking.

(3)Represents mobile and/or online active users over the past 90 days.

(4)Represents mobile active users over the past 90 days.

Consumer investment assets increased $101.5 billion to $456.4 billion driven by market performance and positive net client flows. Active mobile banking users increased approximately two million, reflecting continuing changes in our clients’ banking preferences. We had a net decrease of 88 financial centers and 379 ATMs as we continue to optimize our consumer banking network.

Consumer Lending

Net income for Consumer Lending decreased$63 million to$793 million primarily due to an increase in provision for credit losses, partially offset by higher revenue. Net interest income

increased $151 million to $2.9 billion primarily due to higher loan balances. Noninterest income decreased$28 million to$1.3 billion, relatively unchanged from the same period a year ago.

The provision for credit losses increased$168 million to$1.1 billion primarily driven by credit card asset quality. Noninterest expense increased$39 millionto$2.1 billion, relatively unchanged from the same period a year ago.

Average loans increased$9.1 billion to$308.8 billion primarily driven by an increase in credit card loans.

The table below 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.

(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, net of interest expense, and net credit losses divided by average loans.

During the three months ended March 31, 2024, the total risk-adjusted margin decreased 188 bps compared to the same period in 2023 primarily driven by higher net credit losses, lower net fee income and lower interest margin. Total credit card purchase volumes increased $1.5 billion to $87.0 billion and debit card purchase volumes increased $8.0 billion to $132.4 billion, reflecting higher levels of consumer spending.

(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 for Consumer Banking and the total Corporation decreased $268 million and $494 million during the three months ended March 31, 2024 compared to the same period in 2023 primarily driven by lower demand.

Home equity production in Consumer Bankingand the total Corporation decreased $583 million and $705 million during the three months ended March 31, 2024 primarily driven by lower demand.

9 Bank of America