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 October 14, 2020, announcing financial results for the third quarter ended September 30, 2020, reporting third quarter net income of $4.9 billion, or $0.51 per diluted share.

Q3-20 Financial Highlights¹

• Net income of $4.9 billion, or $0.51 per diluted share
• Provision for credit losses increased to $1.4 billion, driven by COVID-19 impacts in commercial
• Revenue, net of interest expense, decreased 11% to $20.3 billion
  • Net interest income (NII) down 17% to $10.1 billion, driven by lower interest rates
  • Noninterest income declined 4% to $10.2 billion, primarily reflecting lower consumer fees as well as improved trading and investment banking results
• Noninterest expense decreased 5% to $14.4 billion as higher net costs related to COVID-19 and higher litigation expense were more than offset by the absence of a $2.1 billion Merchant Services impairment charge recorded in the year-ago quarter
• Loan and lease balances in the business segments rose $27 billion, or 3%, to $950 billion
• Deposits rose $320 billion, or 23%, to $1.7 trillion
• Common equity tier 1 (CET1) ratio increased 50 basis points to 11.9% (Standardized approach), versus 9.5% required minimum
• Book value per common share rose 5% to $28.33; tangible book value per common share rose 5% to $20.23²

Q3-20 Business Segment Highlights^1,3

Consumer Banking

• Net income of $2.1 billion
• Loans up 5% to $319 billion; deposits up 21% to $861 billion
• Consumer investment assets up 20% to $267 billion, driven by flows of $24 billion since Q3-19
• Client Support Actions:
  • ~ 343,000 Paycheck Protection Program loans to small business owners YTD; ~$25 billion in outstanding balances
  • Processed ~ 1.8 million payment deferrals YTD, of which ~100,000 were still in place as of September 30

Global Wealth and Investment Management

• Net income of $749 million
• Record client balances of $3.1 trillion, up 6%, driven by higher market valuations and client flows
• Loans up 9% to $186 billion; deposits up 15% to $292 billion
• Merrill added ~ 17,000 net new households YTD, and Private Bank added more than 1,400 net new relationships YTD
• Client Support Actions:
  • 77% of Wealth Management clients used online or mobile platform
  • Record 100,000+ WebEx meetings hosted by Merrill Lynch Wealth Management Financial Advisors, up nearly 7 times vs. Q3-19
  • Private Bank teams averaged 1,850 client interactions/day YTD

Global Banking

• Net income of $926 million
• Firmwide investment banking fees (excl. self-led) up 15% to $1.8 billion; second-best quarter in firm's history
• No. 3 ranking in investment banking fees YTD
• Loans down 1% to $373 billion; deposits up 31% to $471 billion
• Client Support Actions:
  • Raised $617 billion in capital YTD on behalf of clients
  • Issued $2 billion Equality Progress Sustainability Bond to help reduce inequalities in Black and Hispanic/Latino communities

Global Markets

• Net income of $857 million
• Sales and trading revenue of $3.2 billion, including net debit valuation adjustments (DVA) losses of $116 million
• Excluding net DVA, sales and trading revenue increased 4% to $3.3 billion
  • FICC increased 3% to $2.1 billion
  • Equities increased 6% to $1.2 billion
• Client Support Actions:
  • Supported clients by providing liquidity and a strong and resilient trading platform

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.

¹ Financial Highlights and Business Segment Highlights are compared to the year-ago quarter unless noted. Loan and deposit balances are shown on an average basis unless noted.
² Tangible book value per common share 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.