BANK OF AMERICA CORP /DE/

17 Bank of America

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 2024 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 7.

Net income for Global Markets increased $118 million to $1.5 billion for the three months ended June 30, 2025 compared to the same period in 2024. Net DVA losses totaled $51 million compared to losses of $1 million in 2024. Excluding net DVA, net income increased $156 million to $1.6 billion. These increases were primarily driven by higher revenue, partially offset by higher noninterest expense.

Revenue increased $521 million to $6.0 billion primarily due to higher sales and trading revenue. Sales and trading revenue increased $647 million, and excluding net DVA, increased $697 million. These increases were primarily driven by higher revenue in FICC and Equities. For more information, see Sales and Trading Revenue in this section.

Noninterest expense increased $320 million to $3.8 billion primarily driven by higher revenue-related expenses and continued investments in the business, including people and technology.

Average total assets increased $114.5 billion to $1.0 trillion for the three months ended June 30, 2025 compared to the same period in 2024 driven by loan growth, higher levels of inventory and increased financing activity.

The return on average allocated capital was 13 percent, unchanged from the same period a year ago. For information on capital allocated to the business segments, see Business Segment Operations on page 11.

Net income for Global Markets increased $344 million to $3.5 billion for the six months ended June 30, 2025 compared to the same period in 2024. Net DVA losses were $32 million compared to losses of $86 million in 2024. Excluding net DVA, net income increased $303 million to $3.5 billion. These increases were primarily driven by higher revenue, partially offset by higher noninterest expense.

Revenue increased $1.2 billion to $12.6 billion primarily due to higher sales and trading revenue and sales of certain leveraged finance positions. Sales and trading revenue, including and excluding net DVA, increased $1.2 billion. These increases were driven by higher revenue in FICC and Equities. For more information, see Sales and Trading Revenue in this section.

Noninterest expense increased $639 million to $7.6 billion primarily driven by the same factors as described in the three-month discussion.

Average total assets increased $94.4 billion to $996.3 billion for the six months ended June 30, 2025 compared to the same period in 2024 driven by loan growth, higher levels of inventory and increased financing activity. Period-end total assets increased $141.0 billion from December 31, 2024 to $1.0 trillion driven by the same factors as average total assets.

The return on average allocated capital was 14 percent, unchanged from the same period a year ago.

Sales and Trading Revenue

For a description of sales and trading revenue, see Business Segment Operations in the MD&A of the Corporation’s 2024 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 Data on page 7.

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

(2)Includes FTE adjustments of $214 million and $291 million for the three and six months ended June 30, 2025 compared to $142 million and $291 million for the same periods in 2024.

(3)Includes Global Banking sales and trading revenue of $212 million and $175 million for the three and six months ended June 30, 2025 compared to $186 million and $330 million for the same periods in 2024.

(4)FICC and Equities sales and trading revenue, excluding net DVA, is a non-GAAP financial measure. FICC net DVA gains (losses) were $(54) million and $(39) million for the three and six months ended June 30, 2025 compared to $5 million and $(71) million for the same periods in 2024. Equities net DVA gains (losses) were $3 million and $7 million for the three and six months ended June 30, 2025 compared $(6) million and $(15) million for the same periods in 2024.

Including and excluding net DVA, FICC revenue increased $451 million and $510 million for the three months ended June 30, 2025 compared to the same period in 2024. These increases were driven by improved trading performance in macro products. Including and excluding net DVA, Equities revenue increased $196 million and $187 million driven by improved trading performance and increased client activity.

Including and excluding net DVA, FICC revenue increased $698 million and $666 million for the six months ended June 30, 2025 compared to the same period in 2024 due to the same factor as described in the three-month discussion. Including and excluding net DVA, Equities revenue increased $521 million and $499 million due to the same factors as described in the three-month discussion.