BANK OF AMERICA CORP DE

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 2023 Annual Report on Form 10-K.

The following explanations for period-over-period changes in results for Global Markets, including those disclosed under Sales and Trading Revenue, are the same for amounts including and excluding net DVA. Amounts excluding net DVA are a non-GAAP financial measure. For more information on net DVA, see Supplemental Financial Data on page 5.

Net income for Global Markets increased $35 million to $1.7 billion for the three months ended March 31, 2024 compared to the same period in 2023. Net DVA losses were $85 million compared to gains of $14 million in 2023. Excluding net DVA, net income increased $111 million to $1.8 billion. These increases were primarily driven by higher revenue, partially offset by higher noninterest expense.

Revenue increased $257 million to $5.9 billion primarily due to higher investment banking fees and sales and trading revenue. Sales and trading revenue increased $25 million, and

excluding net DVA, increased $124 million. These increases were primarily driven by higher revenue in Equities, partially offset by lower revenue in FICC.

Noninterest expense increased $141 million to $3.5 billion, primarily driven by continued investments in the business, including technology.

Average total assets increased $25.3 billion to $895.4 billion for the three months ended March 31, 2024 compared to the same period in 2023 driven by higher levels of inventory, increased secured financing activity and loan growth in FICC, partially offset by lower levels of inventory in Equities. Period-end total assets increased $85.2 billion from December 31, 2023 to $902.7 billion driven by seasonally higher levels of client activity across both Equities and FICC.

The return on average allocated capital was 15 percent, unchanged from the same period a year ago. For information on capital allocated to the business segments, see Business Segment Operations on page 8.

Sales and Trading Revenue

For a description of sales and trading revenue, see Business Segment Operations in the MD&A of the Corporation’s 2023 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

also present sales and trading revenue, excluding net DVA, which is a non-GAAP financial measure. For more information on net DVA, see Supplemental Financial Dataon page 5.

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

(2)Includes FTE adjustments of $149 million and $90 million for the three months ended March 31, 2024 and 2023.

(3)Includes Global Banking sales and trading revenue of $144 million and $177 million for the three months ended March 31, 2024 and 2023.

(4)FICC and Equities sales and trading revenue, excluding net DVA, is a non-GAAP financial measure. FICC net DVA gains (losses) were $(76) million and $11 million for the three months ended March 31, 2024 and 2023. Equities net DVA gains (losses) were $(9) million and $3 million for the three months ended March 31, 2024 and 2023.

Including and excluding net DVA, FICC revenue decreased $209 million and $122 million for the three months ended March 31, 2024 compared to the same period in 2023 driven by a weaker trading environment for macro products, partially offset by improved trading in mortgages. Including and excluding net DVA, Equities revenue increased $234 million and $246 million driven by a strong trading performance in derivatives.