Bank of America Corporation Filed a Form 8-K

CHARLOTTE, N.C.--(BUSINESS WIRE)--Bank of America Corporation (the "Corporation") informed its securities holders that it has filed a Current Report on Form 8-K with the U.S. Securities and Exchange Commission ("SEC") on April 15, 2020, announcing financial results for the first quarter ended March 31, 2020, reporting first quarter net income of $4.0 billion, or $0.40 per diluted share.

Q1-20 Financial Highlights¹

• Net income of $4.0 billion, or $0.40 per diluted share, includes higher provision expense for COVID-19 related reserve build
  • Pretax income declined 48% to $4.5 billion
  • Pretax, pre-provision income down 5% to $9.3 billion²

• Provision for credit losses increased $4.8 billion, driven by a $3.6 billion reserve build²
• Revenue, net of interest expense, decreased 1% to $22.8 billion
  • Net interest income (NII) declined 2% to $12.1 billion, driven by lower interest rates, partially offset by loan and deposit growth
  • Noninterest income rose slightly to $10.6 billion

• Noninterest expense increased 2% to $13.5 billion, reflecting investments in the franchise; efficiency ratio of 59%
• Average loan and lease balances in the business segments rose $57 billion, or 6%, year-over-year to $954 billion
  • Ending loan balances rose $68 billion, or 7%, since Q4-19 to $1.0 trillion

• Average deposit balances rose $79.5 billion, or 6%, year-over-year to $1.4 trillion
  • Ending deposit balances rose $149 billion, or 10%, since Q4-19 to $1.6 trillion

• Common equity tier 1 (CET1) ratio declined slightly but remained strong at 10.8%

Q1-20 Business Segment Highlights^1,3

Consumer Banking

• Net income of $1.8 billion
• Loans up 8% to $317 billion; deposits up 6% to $737 billion
• Consumer investment assets up 1% to $212 billion, driven by flows of $22 billion since Q1-19, largely offset by market performance
• Extended $2.4 billion in credit to small business clients, up 11%
• Client Support Actions:
  • Received 279,000 small business loan applications through April 8 under the Paycheck Protection Program, totaling $43 billion
  • Nearly 1 million payment deferral through April 8

Global Wealth and Investment Management

• Net income of $866 million
• Client balances of $2.7 trillion, reflecting market declines partially offset by higher loan/deposit balances; AUM flows of $26 billion since Q1-19
• Merrill added more than 7,500 net new households and Private Bank added more than 600 net new relationships
• Client Support Actions:
  • Double-digit increase in wealth management client outreach
  • Merrill shifting ~ 700 advisors to support CARES Act inquiries; Private Bank aligning advisor trainees and wealth management analysts to support CARES Act application processing

Global Banking

• Net income of $136 million
• Firmwide investment banking fees (excl. self-led) up 10% to $1.4 billion; No. 3 ranking in investment banking fees
• Loans up 4% to $386 billion; deposits up 10% to $382 billion
• Client Support Actions:
  • Extended $67 billion in net funding to commercial and corporate clients since year-end 2019 across all business segments
  • Raised $224 billion in capital on behalf of clients
  • Over 13,000 hours of training completed by employees to ensure readiness to support clients impacted by COVID-19

 Global Markets

• Net income of $1.7 billion
• Sales and trading revenue of $4.6 billion, including net debit valuation adjustments (DVA) gains of $300 million
• Excluding net DVA, sales and trading revenue increased 22% to $4.3 billion
  • FICC increased 13% to $2.7 billion
  • Equities increased 39% to $1.7 billion

• Client Support Actions:
  • Seamlessly supported clients by providing liquidity and a strong and resilient trading platform during period of record-breaking market activity

Bank of America Corporation makes available all of its SEC filings on its website: http://investor.bankofamerica.com/phoenix.zhtml?c=71595&p=irol-irhome.

The SEC maintains a website that contains reports, proxy statements and other information regarding issuers that file electronically with the SEC. These materials may be obtained electronically by accessing the SEC’s website at http://www.sec.gov. A copy of the document will also be available on the National Storage Mechanism's website at: https://data.fca.org.uk/#/nsm/nationalstoragemechanism.

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¹ Financial Highlights and Business Segment Highlights compare to the year-ago quarter unless noted. Loan and deposit balances are shown on an average basis unless noted.
² Reserve build and pretax, pre-provision income (PTPI) represent non-GAAP financial measures.
³ The Corporation reports the results of operations of its four business segments and All Other on a fully-taxable equivalent (FTE) basis