BANK OF AMERICA CORP DE

(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 directly comparable financial measures defined by accounting principles generally accepted in the United States of America (GAAP), see Non-GAAP Reconciliations on page 48.

Net income was $6.9 billion and $13.6 billion, or $0.83 and $1.59 per diluted share, for the three and six months ended June 30, 2024 compared to $7.4 billion and $15.6 billion, or $0.88 and $1.82 per diluted share, for the same periods in 2023. The decrease in net income was primarily due to higher noninterest expense and provision for credit losses.

Total assets increased $77.8 billion from December 31, 2023 to $3.3 trillion primarily driven by higher securities borrowed or purchased under agreements to resell and trading account assets to support Global Markets client activity.

Total liabilities increased $75.6 billion from December 31, 2023 to $3.0 trillion primarily driven by higher securities loaned or sold under agreements to repurchase to support Global Markets client activity.

Shareholders’ equity increased $2.2 billion from December 31, 2023 primarily due to net income, partially offset by returns of capital to shareholders through common stock repurchases, common and preferred stock dividends, and preferred stock redemptions.

Net Interest Income

Net interest income decreased $456 million to $13.7 billion, and $872 million to $27.7 billion for the three and six months ended June 30, 2024 compared to the same periods in 2023. Net interest yield on a fully taxable-equivalent (FTE) basis decreased 13 basis points (bps) to 1.93 percent and 17 bps to 1.96 percent for the same periods. The decreases were primarily driven by higher deposit costs, partially offset by higher asset yields and higher net interest income related to Global Markets activity. For more information on net interest yield and FTE basis, see Supplemental Financial Data on page 6, and for more information on interest rate risk management, see Interest Rate Risk Management for the Banking Book on page 44.

Noninterest Income

Noninterest income increased $636 million to $11.7 billion and $612 million to $23.5 billion for the three and six months ended June 30, 2024 compared to the same periods in 2023. The following highlights the significant changes.

●Service charges increased $143 million and $175 million primarily driven by higher treasury service charges.

● Investment and brokerage services increased $481 million and $816 million primarily driven by higher asset management fees due to higher average equity market valuations and positive assets under management (AUM) flows, partially offset by the impact of lower AUM pricing.

● Investment banking fees increased $349 million and $754 million primarily due to higher debt and equity issuance fees.

● Market making and similar activities decreased $399 million and $1.2 billion primarily driven by lower trading revenue from macro products in Fixed Income, Currencies and Commodities (FICC). The decreases were partially offset by higher trading revenue in Equities.

Provision for Credit Losses

The provision for credit losses increased $383 million to $1.5 billion and $771 million to $2.8 billion for the three and six months ended June 30, 2024 compared to the same periods in 2023. The provision for credit losses for the current-year periods was primarily driven by credit card loans and the commercial real estate office portfolio, partially offset by an improved macroeconomic outlook. For more information on the provision for credit losses, see Allowance for Credit Losses on page 40.

Noninterest Expense

Noninterest expense increased $271 million to $16.3 billion and $1.3 billion to $33.5 billion for the three and six months ended June 30, 2024 compared to the same periods in 2023. The increases in both periods were primarily driven by higher investments in people and revenue-related compensation,

partially offset by lower litigation expense. The increase in the six-month period also included the additional accrual of $700 million for the Federal Deposit Insurance Corporation (FDIC) special assessment recorded in the first quarter of 2024, as well as higher investments in technology.

5 Bank of America

Income Tax Expense

The effective tax rates for the three and six months ended June 30, 2024 and 2023 were primarily driven by our recurring tax preference benefits that mainly consist of tax credits from investments in affordable housing and renewable energy. Also included in the effective tax rate for the six months ended June 30, 2024 was the discrete benefit from the $700 million charge recorded in the first quarter for the FDIC special assessment. Absent the tax credits and discrete tax benefits, the effective tax rates would have been approximately 25 percent and 26 percent for the three months ended June 30, 2024 and 2023 and 26 percent for both the six months ended June 30, 2024 and 2023.