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 July 16, 2020, announcing financial results for the second quarter ended June 30, 2020, reporting second quarter net income of $3.5 billion, or $0.37 per diluted share.

Q2-20 Financial Highlights¹

• Net income of $3.5 billion, or $0.37 per diluted share, includes the impact of a $4.0 billion reserve build primarily associated with a weaker economic outlook related to COVID-19
  • Pretax income declined 58% to $3.8 billion
  • Pretax, pre-provision income down 9% to $8.9 billion²
• Provision for credit losses increased to $51 billion, driven by $4.0 billion reserve build
• Revenue, net of interest expense, decreased 3% to $22.3 billion
  • Net interest income (NII) declined 11% to $10.8 billion, driven by lower interest rates, partially offset by loan and deposit growth
  • Noninterest income rose 5% to $11.5 billion, led by strong capital markets results
• Noninterest expense increased 1% to $13.4 billion; efficiency ratio of 60%
• Loan and lease balances in business segments rose $96 billion, or 11%, to $1.0 trillion
• Common equity tier 1 (CET1) ratio increased from the prior quarter to 11.4% (Advanced approaches), versus 9.5% required minimum
• Book value per common share rose 6% to $27.96; tangible book value per common share rose 5% to $19.90

Q2-20 Business Segment Highlights ^1,3

Consumer Banking

• Net income of $71 million, impacted by a reserve build and lower NII
• Loans up 8% to $322 billion; deposits up 15% to $811 billion
• Consumer investment assets up 12% to $246 billion, driven by flows of $23 billion since Q2-19 and market performance
• Client Support Actions:
  • Completed ~ 334,000 Paycheck Protection Program (PPP) loans YTD to deliver $25 billion in funding to small business owners
  • Processed ~ 1.8 million payment deferrals YTD, of which ~ 1.7 million were still in place as of July 9

Global Wealth and Investment Management

• Net income of $624 million
• Client balances increased 1% to $2.9 trillion, driven by client flows
  • AUM flows of $4 billion in Q2-20
• Loans up 10% to $182 billion; deposits up 13% to $287 billion
• Merrill added nearly 6,000 net new households, and Private Bank added nearly 500 net new relationships
• Client Support Actions:
  • 77% of Wealth Management clients used online or mobile platform
  • WebEx meetings hosted by Merrill Lynch Wealth Management Financial Advisors up 419%
  • Private Bank teams averaged 1,900 client interactions/day

Global Banking

• Net income of $726 million
• Record firmwide investment banking fees (excludes self-led) up 57% to $2.2 billion; No. 3 ranking in investment banking fees
• Loans up 14% to $424 billion; deposits up 36% to $494 billion
• Client Support Actions:
  • Approved nearly $160 billion in new or expanded commercial commitments across business segments in the first half of 2020
  • Raised $461 billion in capital in first-half 2020 on behalf of clients
  • Issued $1 billion social bond; first bond issued by a U.S. commercial bank entirely focused on fighting COVID-19

Global Markets

• Net income of $1.9 billion
• Sales and trading revenue of $4.2 billion, including net debit valuation adjustment (DVA) losses of $261 million
• Excluding net DVA, sales and trading revenue increased 35% to $4.4 billion
  • FICC increased 50% to $3.2 billion
  • Equities increased 7% to $1.2 billion

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 Pretax, pre-provision income (PTPI) represents a non-GAAP financial measure.
³ The Corporation reports the results of operations of its four business segments and All Other on a fully taxable-equivalent (FTE) basis.