BANK OF AMERICA CORP DE

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 global offices and client relationship teams. For more information about Global Banking, see Business Segment Operations in the MD&A of the Corporation’s 2023 Annual Report on Form 10-K.

Net income for Global Banking decreased $537 million to $2.1 billion primarily driven by lower revenue and higher provision for credit losses.

Net interest income decreased $415 million to $3.3 billion primarily due to the impact of interest rates, partially offset by the benefit of higher average deposit balances.

Noninterest income was $2.8 billion, relatively unchanged from the same period a year ago.

The provision for credit losses increased $226 million to $235 million primarily driven by the commercial real estate office portfolio.

Noninterest expense increased $80 million to $2.9 billion due to higher regulatory costs and continued investments in the business, including technology.

The return on average allocated capital was 17 percent, down from 22 percent, due to lower net income. For information on capital allocated to the business segments, see Business Segment Operations on page 10.

Net income for Global Banking decreased $1.1 billion to $4.1 billion driven by higher provision for credit losses, lower revenue and higher noninterest expense.

Net interest income decreased $862 million to $6.7 billion primarily due to the same factors as described in the three-month discussion.

Noninterest income increased $230 million to $5.3 billion due to higher investment banking fees and treasury service charges, partially offset by lower leasing-related revenue.

The provision for credit losses increased $692 million to $464 million primarily driven by the commercial real estate office portfolio compared to a benefit in the prior year due to certain improved macroeconomic conditions.

Noninterest expense increased $152 million to $5.9 billion primarily due to the same factors as described in the three-month discussion.

The return on average allocated capital was 17 percent, down from 21 percent, due to lower net income.

Global Corporate, Global Commercial and Business Banking

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

Business Lending revenue decreased $127 million for the three months ended June 30, 2024 compared to the same period a year ago primarily driven by lower leasing-related revenue and the impact of lower average loan balances. Business lending revenue decreased $57 million for the six months ended June 30, 2024 compared to the same period a year ago primarily driven by the same factors as described in the three-month discussion.

Global Transaction Services revenue decreased $362 million for the three months ended June 30, 2024 primarily driven by the impact of interest rates, partially offset by the benefit of higher average deposit balances and treasury service charges. Global Transaction Services revenue decreased $761 million for the six months ended June 30, 2024 primarily driven by the same factors as described in the three-month discussion.

Average loans and leases of $372.6 billion decreased three percent for the three months ended June 30, 2024, and average loans and leases of $373.0 billion decreased two percent for the six months ended June 30, 2024 due to lower client demand.

Average deposits of $525.4 billion and $522.5 billion for the three and six months ended June 30, 2024 increased six percent for both periods. The increases were due to growth in both domestic and international balances.

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 Bankingand 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 table below presents total Corporation investment banking fees and the portion attributable to Global Banking.

17 Bank of America

Total Corporation investment banking fees, which exclude self-led deals and are primarily included within Global Banking and Global Markets, were $1.6 billion and $3.1 billion for the three and six months ended June 30, 2024. The three-month period increased 29 percent compared to the same period in 2023, and the six-month period increased 32 percent compared to the same period in 2023. The increases in both periods were primarily due to higher debt and equity issuance fees.