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 6.

Net income for Global Markets increased $304 million to $1.4 billion for the three months ended June 30, 2024 compared to the same period in 2023. Net DVA losses totaled $1 million compared to $102 million in 2023. Excluding net DVA, net income increased $227 million to $1.4 billion. These increases were primarily driven by higher revenue, partially offset by higher noninterest expense.

Revenue increased $588 million to $5.5 billion primarily due to higher sales and trading revenue and investment banking fees. Sales and trading revenue increased $394 million, and excluding net DVA, increased $293 million. These increases were primarily driven by higher revenue in Equities.

Noninterest expense increased $137 million to $3.5 billion, primarily driven by revenue-related expenses and continued investments in the business, including technology.

Average total assets increased $31.1 billion to $908.5 billion for the three months ended June 30, 2024 compared to the same period in 2023 driven by increased securities financing activity, higher levels of inventory and loan growth in FICC.

The return on average allocated capital was 13 percent, up from 10 percent in the same period a year ago, reflecting higher net income. For information on capital allocated to the business segments, see Business Segment Operations on page 10.

Net income for Global Markets increased $339 million to $3.1 billion for the six months ended June 30, 2024 compared to the same period in 2023. Net DVA losses were $86 million compared to $88 million in 2023. Excluding net DVA, net income increased $337 million to $3.2 billion. These increases were primarily driven by higher revenue, partially offset by higher noninterest expense.

Revenue increased $845 million to $11.3 billion primarily due to the same factors as described in the three-month discussion. Sales and trading revenue increased $419 million, and excluding net DVA, sales and trading revenue increased $417 million. These increases were driven by higher revenue in Equities, partially offset by lower revenue in FICC.

Noninterest expense increased $278 million to $7.0 billion, driven by the same factors as described in the three-month discussion.

Average total assets increased $28.2 billion to $902.0 billion, and period-end total assets increased $69.6 billion from December 31, 2023 to $887.2 billion. The increases were driven by higher securities financing activity and higher levels of inventory in FICC.

The return on average allocated capital was 14 percent, up from 12 percent in the same period a year ago, reflecting higher net income.

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 6.

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

(2)Includes FTE adjustments of $142 million and $291 million for the three and six months ended June 30, 2024 compared to $85 million and $175 million for the same periods in 2023.

(3)Includes Global Banking sales and trading revenue of $186 million and $330 million for the three and six months ended June 30, 2024 compared to $154 million and $331 million for the same periods in 2023.

(4)FICC and Equities sales and trading revenue, excluding net DVA, is a non-GAAP financial measure. FICC net DVA gains (losses) were $5 million and $(71) million for the three and six months ended June 30, 2024 compared to $(97) million and $(86) million for the same periods in 2023. Equities net DVA gains (losses) were $(6) million and $(15) million for the three and six months ended June 30, 2024 compared to $(5) million and $(2) million for the same periods in 2023.

Including net DVA, FICC revenue increased $75 million for the three months ended June 30, 2024 compared to the same period in 2023. Excluding net DVA, FICC revenue decreased $27 million. FICC revenue, including and excluding net DVA, was driven by a weaker trading environment for foreign exchange and rates products, largely offset by improved client activity in mortgages, credit and commodities. Including and excluding net DVA, Equities revenue increased $319 million and $320 million driven by a strong trading performance in cash and derivatives.

Including and excluding net DVA, FICC revenue decreased $134 million and $149 million for the six months ended June 30, 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 $553 million and $566 million driven by the same factors as described in the three-month discussion.

19 Bank of America