BANK OF AMERICA CORP DE
For the period ended Sep 30, 2024. Filed Oct 29, 2024.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2024 · Filed Oct 29, 2024
Extracted filing text, with the paragraph anchors used by the comparison.
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Global Banking
| Three Months Ended September 30 · Nine Months Ended September 30 | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| (Dollars in millions) · 2024 · 2023 · % Change · 2024 · 2023 · % Change | ||||||||||||
| Net interest income | $3,230 | $3,613 | (11)% | $9,965 | $11,210 | (11)% | ||||||
| Noninterest income: | ||||||||||||
| Service charges | 802 | 754 | 6 | 2,327 | 2,203 | 6 | ||||||
| Investment banking fees | 783 | 743 | 5 | 2,468 | 2,129 | 16 | ||||||
| All other income | 1,019 | 1,093 | (7) | 3,107 | 3,326 | (7) | ||||||
| Total noninterest income | 2,604 | 2,590 | 1 | 7,902 | 7,658 | 3 | ||||||
| Total revenue, net of interest expense | 5,834 | 6,203 | (6) | 17,867 | 18,868 | (5) | ||||||
| Provision for credit losses | 229 | (119) | n/m | 693 | (347) | n/m | ||||||
| Noninterest expense | 2,991 | 2,804 | 7 | 8,902 | 8,563 | 4 | ||||||
| Income before income taxes | 2,614 | 3,518 | (26) | 8,272 | 10,652 | (22) | ||||||
| Income tax expense | 719 | 950 | (24) | 2,275 | 2,876 | (21) | ||||||
| Net income | $1,895 | $2,568 | (26) | $5,997 | $7,776 | (23) | ||||||
| Effective tax rate | 27.5% | 27.0% | 27.5% | 27.0% | ||||||||
| Net interest yield | 2.22 | 2.68 | 2.36 | 2.84 | ||||||||
| Return on average allocated capital | 15 | 21 | 16 | 21 | ||||||||
| Efficiency ratio | 51.27 | 45.22 | 49.82 | 45.38 | ||||||||
| Balance Sheet | ||||||||||||
| Three Months Ended September 30 · Nine Months Ended September 30 | ||||||||||||
| Average | 2024 | 2023 | % Change | 2024 | 2023 | % Change | ||||||
| Total loans and leases | $371,216 | $376,214 | (1)% | $372,516 | $380,076 | (2)% | ||||||
| Total earning assets | 578,988 | 534,153 | 8 | 563,649 | 528,205 | 7 | ||||||
| Total assets | 647,541 | 601,378 | 8 | 631,659 | 595,329 | 6 | ||||||
| Total deposits | 549,629 | 504,432 | 9 | 533,620 | 498,224 | 7 | ||||||
| Allocated capital | 49,250 | 49,250 | — | 49,250 | 49,250 | — | ||||||
| Period end | September 302024 | December 31 2023 | % Change | |||||||||
| Total loans and leases | $375,159 | $373,891 | —% | |||||||||
| Total earning assets | 583,742 | 552,453 | 6 | |||||||||
| Total assets | 650,936 | 621,751 | 5 | |||||||||
| Total deposits | 556,953 | 527,060 | 6 | |||||||||
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 $673 million to $1.9 billion driven by lower revenue, higher provision for credit losses and higher noninterest expense.
Net interest income decreased $383 million to $3.2 billion primarily due to the impact of interest rates, partially offset by the benefit of higher average deposit balances.
Noninterest income was $2.6 billion, relatively unchanged from the same period a year ago.
The provision for credit losses increased $348 million to $229 million primarily driven by the commercial and industrial portfolio, as well as the commercial real estate office portfolio.
Noninterest expense increased $187 million to $3.0 billion due to continued investments in the business, including people and technology.
The return on average allocated capital was 15 percent, down from 21 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 $1.8 billion to $6.0 billion driven by higher provision for credit losses, lower revenue and higher noninterest expense.
Net interest income decreased $1.2 billion to $10.0 billion primarily due to the same factors as described in the three-month discussion.
Noninterest income increased $244 million to $7.9 billion due to higher investment banking fees and treasury service charges, partially offset by lower leasing-related revenue.
The provision for credit losses increased $1.0 billion to $693 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 $339 million to $8.9 billion primarily due to continued investment in the business, including people and technology, and higher regulatory costs.
The return on average allocated capital was 16 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.
| Global Corporate, Global Commercial and Business Banking | ||||||||
|---|---|---|---|---|---|---|---|---|
| Global Corporate Banking | Global Commercial Banking | Business Banking | Total | |||||
| (Dollars in millions) | 2024 | 2023 | 2024 | 2023 | 2024 | 2023 | 2024 | 2023 |
| Revenue | ||||||||
| Business Lending | $1,102 | $1,300 | $1,246 | $1,262 | $57 | $61 | $2,405 | $2,623 |
| Global Transaction Services | 1,243 | 1,392 | 968 | 998 | 369 | 379 | 2,580 | 2,769 |
| Total revenue, net of interest expense | $2,345 | $2,692 | $2,214 | $2,260 | $426 | $440 | $4,985 | $5,392 |
| Balance Sheet | ||||||||
| Average | ||||||||
| Total loans and leases | $162,053 | $169,384 | $196,681 | $194,604 | $12,373 | $12,071 | $371,107 | $376,059 |
| Total deposits | 301,070 | 272,007 | 195,475 | 182,040 | 53,084 | 50,381 | 549,629 | 504,428 |
| Global Corporate Banking · Global Commercial Banking · Business Banking · Total | ||||||||
| (Dollars in millions) | 2024 | 2023 | 2024 | 2023 | 2024 | 2023 | 2024 | 2023 |
| Revenue | ||||||||
| Business Lending | $3,427 | $3,693 | $3,773 | $3,765 | $174 | $191 | $7,374 | $7,649 |
| Global Transaction Services | 3,839 | 4,424 | 2,876 | 3,172 | 1,092 | 1,161 | 7,807 | 8,757 |
| Total revenue, net of interest expense | $7,266 | $8,117 | $6,649 | $6,937 | $1,266 | $1,352 | $15,181 | $16,406 |
| Balance Sheet | ||||||||
| Average | ||||||||
| Total loans and leases | $163,122 | $172,964 | $196,953 | $194,496 | $12,315 | $12,397 | $372,390 | $379,857 |
| Total deposits | 292,967 | 266,425 | 189,415 | 180,850 | 51,238 | 50,951 | 533,620 | 498,226 |
| Period end | ||||||||
| Total loans and leases | $165,142 | $166,974 | $197,583 | $194,318 | $12,333 | $11,932 | $375,058 | $373,224 |
| Total deposits | 305,000 | 266,481 | 198,482 | 179,914 | 53,471 | 48,537 | 556,953 | 494,932 |
Business Lending revenue decreased $218 million for the three months ended September 30, 2024 compared to the same period a year ago primarily driven by the impact of interest rates and lower leasing-related revenue. Business lending revenue decreased $275 million for the nine months ended September 30, 2024 compared to the same period a year ago primarily driven by same factors as described in the three-month discussion.
Global Transaction Services revenue decreased $189 million for the three months ended September 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 $950 million for the nine months ended September 30, 2024 primarily driven by the same factors as described in the three-month discussion.
Average loans and leases of $371.1 billion decreased one percent for the three months ended September 30, 2024, and average loans and leases of $372.4 billion decreased two percent for the nine months ended September 30, 2024 due to lower client demand.
Average deposits of $549.6 billion increased nine percent for the three months ended September 30, 2024, and average deposits of $533.6 billion increased seven percent for the nine months ended September 30, 2024 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
| Investment Banking Fees | ||||||||
|---|---|---|---|---|---|---|---|---|
| Global Banking · Total Corporation · Global Banking · Total Corporation | ||||||||
| Three Months Ended September 30 | Nine Months Ended September 30 | |||||||
| (Dollars in millions) | 2024 | 2023 | 2024 | 2023 | 2024 | 2023 | 2024 | 2023 |
| Products | ||||||||
| Advisory | $351 | $396 | $387 | $448 | $990 | $1,042 | $1,134 | $1,186 |
| Debt issuance | 332 | 255 | 780 | 570 | 1,078 | 808 | 2,545 | 1,814 |
| Equity issuance | 100 | 92 | 270 | 232 | 400 | 279 | 990 | 687 |
| Gross investment banking fees | 783 | 743 | 1,437 | 1,250 | 2,468 | 2,129 | 4,669 | 3,687 |
| Self-led deals | (6) | (19) | (34) | (62) | (24) | (39) | (137) | (124) |
| Total investment banking fees | $777 | $724 | $1,403 | $1,188 | $2,444 | $2,090 | $4,532 | $3,563 |
Total Corporation investment banking fees, which exclude self-led deals and are primarily included within Global Banking and Global Markets, were $1.4 billion and $4.5 billion for the three and nine months ended September 30, 2024. The three-month period increased 18 percent compared to the same period in 2023 primarily due to higher debt issuance fees. The nine-month period increased 27 percent compared to the same period in 2023 primarily due to higher debt and equity issuance fees.
The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.