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 2024 Annual Report on Form 10-K.

Net income for Global Banking decreased $417 million to $1.7 billion primarily driven by lower revenue and higher noninterest expense.

Net interest income decreased $194 million to $3.1 billion primarily due to the impact of lower interest rates, partially offset by the benefit of higher average deposit and loan balances.

Noninterest income decreased $169 million to $2.6 billion primarily due to lower leasing-related revenue and investment banking fees, valuation adjustments related to fair value option loans and net losses on economic hedges of certain commercial loans, partially offset by higher treasury service charges.

The provision for credit losses increased $42 million to $277 million primarily driven by loan growth and a dampened macroeconomic outlook, partially offset by improvement within the commercial real estate office portfolio.

Noninterest expense increased $171 million to $3.1 billion primarily due to continued investments in the business, including technology and operations.

The return on average allocated capital was 13 percent, down from 17 percent, due to lower net income and an increase in allocated capital. For information on capital allocated to the business segments, see Business Segment Operations on page 11.

Net income for Global Banking decreased $490 million to $3.6 billion driven by lower revenue and higher noninterest expense, partially offset by lower provision for credit losses.

Net interest income decreased $503 million to $6.2 billion primarily due to the same factors as described in the three-month discussion.

Noninterest income increased $137 million to $5.4 billion primarily due to sales of certain leveraged finance positions and higher treasury service charges, partially offset by lower leasing-related revenue and investment banking fees.

The provision for credit losses decreased $33 million to $431 million primarily driven by improvement within the commercial real estate office portfolio.

15 Bank of America

Noninterest expense increased $343 million to $6.3 billion primarily due to the same factors as described in the three-month discussion.

The return on average allocated capital was 14 percent, down from 17 percent, due to the same factors as described in the three-month discussion.

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 $362 million for the three months ended June 30, 2025 compared to the same period a year ago primarily driven by lower net interest income and leasing-related revenue. Business Lending revenue decreased $669 million for the six months ended June 30, 2025 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 increased $88 million for the three months ended June 30, 2025 primarily driven by the benefit of higher average deposit balances and treasury service charges, partially offset by the impact of lower interest rates. Global Transaction Services revenue increased $102 million for the six months ended June 30, 2025 primarily driven by the same factors as described in the three-month discussion.

Average loans and leases of $388 billion increased four percent for the three months ended June 30, 2025, and average loans and leases of $383 billion increased three percent for the six months ended June 30, 2025 due to client demand.

Average deposits of $603 billion increased 15 percent for the three months ended June 30, 2025, and average deposits of $589 billion increased 12 percent for the six months ended June 30, 2025 due to growth in deposit balances from new and existing clients.

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

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 $3.0 billion for the three and six months ended June 30, 2025. The three-month period decreased nine percent compared to the same period in 2024 primarily due to lower debt issuance, advisory and equity issuance fees. The six-month period decreased six percent compared to the same period in 2024 primarily due to lower equity issuance and advisory fees, partially offset by higher debt issuance fees.