BANK OF AMERICA CORP DE

GWIM consists of two primary businesses: Merrill Wealth Management and Bank of America Private Bank. For additional information on GWIM, see Business Segment Operations in the MD&Aof the Corporation’s 2023 Annual Report on Form 10-K.

Net income for GWIM increased $28 million to $1.1 billion primarily due to higher revenue, largely offset by higher noninterest expense. The operating margin was 25 percent compared to 26 percent a year ago.

Net interest income decreased $46 million to $1.7 billion, relatively unchanged from the same period a year ago.

Noninterest income, which primarily includes investment and brokerage services income, increased $487 million to $4.1 billion. The increase was primarily driven by higher asset management fees due to higher average equity market valuations and positive AUM flows, as well as higher brokerage fees due to increased transactional volume, partially offset by the impact of lower AUM pricing.

Noninterest expense increased $390 million to $4.3 billion primarily due to higher revenue-related incentives.

The return on average allocated capital was 23 percent, up from 22 percent, due to higher net income. For information on capital allocated to the business segments, see Business Segment Operations on page 10.

Average loans increased $6.8 billion to $225.4 billion primarily driven by custom lending and residential mortgage. Average deposits decreased $11.8 billion to $280.0 billion primarily driven by clients moving deposits to higher yielding investment cash alternatives, including offerings on our investment and brokerage platforms.

Merrill Wealth Management revenue of $4.8 billion increased nine percent primarily driven by higher asset management fees due to the impact of higher average equity market valuations and positive AUM flows, as well as higher brokerage fees due to increased transactional volume.

Bank of America Private Bank revenue of $973 million increased five percent primarily driven by higher asset management fees due to the impact of higher average equity market valuations and the impact of positive AUM flows.

Net income for GWIM increased $164 million to $3.1 billion primarily due to higher revenue, partially offset by higher noninterest expense. The operating margin was 24 percent compared to 25 percent a year ago.

Net interest income decreased $220 million to $5.2 billion primarily due to lower average deposit balances.

Noninterest income, which primarily includes investment and brokerage services income, increased $1.3 billion to $11.7 billion due to the same factors as described in the three-month discussion.

Noninterest expense increased $861 million to $12.8 billion due to the same factor as described in the three-month discussion.

The return on average allocated capital was 22 percent, up from 21 percent, due to the same factor as described in the three-month discussion.

Average loans increased $2.7 billion to $222.3 billion primarily due to the same factors as described in the three-month discussion. Average deposits decreased $12.0 billion to

$288.3 billion due to the same factors as described in the three-month discussion.

Merrill Wealth Management revenue of $14.1 billion increased seven percent primarily driven by the same factors as described in the three-month discussion.

Bank of America Private Bank revenue of $2.9 billion increased five percent primarily driven by the same factors as described in the three-month discussion.

(1)Includes margin receivables, which are classified in customer and other receivables on the Consolidated Balance Sheet.

Client Balances

Client balances increased $643.1 billion, or 18 percent, to $4.2 trillion at September 30, 2024 compared to September 30, 2023. The increase in client balances was primarily due to the impact of higher market valuations and positive net client flows.

15 Bank of America