BANK OF AMERICA CORP /DE/

GWIM consists of two primary businesses: Merrill Wealth Management and Bank of America Private Bank. For more information on GWIM, see Business Segment Operations in the MD&A of the Corporation’s 2024 Annual Report on Form 10-K.

Net income for GWIM decreased $33 million to $993 million primarily due to higher noninterest expense, largely offset by higher revenue. The operating margin was 22 percent compared to 25 percent a year ago.

Net interest income increased $69 million to $1.8 billion primarily driven by higher deposit spreads and loan growth.

Noninterest income, which primarily includes investment and brokerage services income, increased $294 million to $4.2 billion. The increase was primarily driven by higher asset

management fees, which increased nine percent to $3.6 billion, due to the impacts of positive AUM flows and higher average equity market valuations.

Noninterest expense increased $394 million to $4.6 billion primarily due to higher revenue-related incentives and investments in the business, including people and technology.

The return on average allocated capital was 20 percent, down from 22 percent, primarily due to an increase in allocated capital. For information on capital allocated to the business segments, see Business Segment Operations on page 11.

Average loans increased $14.6 billion to $237.4 billion primarily driven by custom lending, securities-based lending and residential mortgage. Average deposits decreased $10.9 billion to $276.8 billion primarily driven by a higher level of client tax payments as well as clients moving deposits to higher yielding

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investment cash alternatives, including offerings on our investment and brokerage platforms.

Merrill Wealth Management revenue of $4.9 billion increased seven percent primarily driven by higher asset management fees due to the impacts of positive AUM flows and higher average equity market valuations.

Bank of America Private Bank revenue of $995 million increased five percent primarily driven by higher net interest income from banking and lending balance growth, as well as higher asset management fees due to the impacts of positive AUM flows and higher average equity market valuations.

Net income for GWIM decreased $31 million to $2.0 billion primarily due to the same factors as described in the three-month discussion. The operating margin was 22 percent compared to 24 percent a year ago.

Net interest income increased $20 million to $3.5 billion primarily due to the same factors as described in the three-month discussion.

Noninterest income, which primarily includes investment and brokerage services income, increased $768 million to $8.4 billion due to the same factors as described in the three-month discussion.

Noninterest expense increased $789 million to $9.3 billion due to the same factors as described in the three-month discussion.

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

Average loans increased $14.2 billion to $234.9 billion due to the same factors as described in the three-month discussion.

Average deposits decreased $10.9 billion to $281.6 billion due to the same factors as described in the three-month discussion.

Merrill Wealth Management revenue of $10.0 billion increased seven percent, and Bank of America Private Bank revenue of $2.0 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 $383.3 billion, or 10 percent, to $4.4 trillion at June 30, 2025 compared to June 30, 2024. The increase in client balances was primarily due to the impact of higher market valuations and positive net client flows.