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BANK OF AMERICA CORP DE

For the period ended Dec 31, 2023. Filed Feb 20, 2024.

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A company's yearly report to the SEC, with audited financial statements. It is the fullest account a company gives of its business, its finances and the risks it sees.

FY2023 · Filed Feb 20, 2024

BAC$50.68+0.3%Stored close · as of Nov 10, 2026

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Contents

Global Wealth & Investment Management

(Dollars in millions)20232022% Change
Net interest income$7,147$7,466(4)%
Noninterest income:
Investment and brokerage services13,21313,561(3)
All other income7457213
Total noninterest income13,95814,282(2)
Total revenue, net of interest expense21,10521,748(3)
Provision for credit losses666(91)
Noninterest expense15,83615,4902
Income before income taxes5,2636,192(15)
Income tax expense1,3161,517(13)
Net income$3,947$4,675(16)
Effective tax rate25.0%24.5%
Net interest yield2.171.95
Return on average allocated capital2127
Efficiency ratio75.0471.23
Balance Sheet
Average
Total loans and leases$219,503$219,810—%
Total earning assets329,493383,352(14)
Total assets342,531396,167(14)
Total deposits298,335351,329(15)
Allocated capital18,50017,5006
Year end
Total loans and leases$219,657$223,910(2)%
Total earning assets330,653355,461(7)
Total assets344,626368,893(7)
Total deposits299,657323,899(7)

GWIM consists of two primary businesses: Merrill Wealth Management and Bank of America Private Bank.

Merrill Wealth Management’s advisory business provides a high-touch client experience through a network of financial advisors focused on clients with over $250,000 in total investable assets. Merrill Wealth Management provides tailored solutions to meet clients’ needs through a full set of investment management, brokerage, banking and retirement products.

Bank of America Private Bank, together with Merrill Wealth Management’s Private Wealth Management business, provides comprehensive wealth management solutions targeted to high net worth and ultra high net worth clients, as well as customized solutions to meet clients’ wealth structuring, investment management, trust and banking needs, including specialty asset management services.

Net income for GWIM decreased $728 million to $3.9 billion primarily due to lower revenue and higher noninterest expense. The operating margin was 25 percent compared to 28 percent a year ago.

Net interest income decreased $319 million to $7.1 billion primarily driven by lower average deposit balances and a portfolio mix shift to higher yielding deposit products.

Noninterest income, which primarily includes investment and brokerage services income, decreased $324 million to $14.0 billion. The decrease was primarily driven by lower transactional revenue and asset management fees driven by declines in AUM

pricing as well as lower average market valuations, partially offset by the impact of positive AUM flows.

Noninterest expense increased $346 million to $15.8 billion primarily due to continued investments in the business, including strategic hiring and technology, as well as higher FDIC expense, partially offset by lower revenue-related incentives.

The return on average allocated capital was 21 percent, down from 27 percent, due to lower net income and, to a lesser extent, a small increase in allocated capital.

Average loans totaled $219.5 billion, relatively unchanged from the same period a year ago. Average deposits decreased $53.0 billion to $298.3 billion primarily driven by clients moving deposits to higher yielding investment cash alternatives, including offerings on our investment and brokerage platforms.

Merrill Wealth Management revenue of $17.5 billion decreased four percent primarily driven by lower net interest income, lower transactional revenue and asset management fees driven by declines in AUM pricing as well as lower average market valuations, partially offset by the impact of positive AUM flows.

Bank of America Private Bank revenue of $3.6 billion increased one percent primarily driven by higher net interest income as well as higher asset management fees driven by the impact of positive AUM flows.

37 Bank of America

Key Indicators and Metrics
(Dollars in millions)20232022
Revenue by Business
Merrill Wealth Management$17,461$18,135
Bank of America Private Bank3,6443,613
Total revenue, net of interest expense$21,105$21,748
Client Balances by Business, at year end
Merrill Wealth Management$3,182,735$2,822,910
Bank of America Private Bank606,639563,931
Total client balances$3,789,374$3,386,841
Client Balances by Type, at year end
Assets under management$1,617,740$1,401,474
Brokerage and other assets1,688,9231,482,025
Deposits299,657323,899
Loans and leases (1)222,287226,973
Less: Managed deposits in assets under management(39,233)(47,530)
Total client balances$3,789,374$3,386,841
Assets Under Management Rollforward
Assets under management, beginning of year$1,401,474$1,638,782
Net client flows52,22720,785
Market valuation/other164,039(258,093)
Total assets under management, end of year$1,617,740$1,401,474
Total wealth advisors, at year end (2)18,91619,273

(1)Includes margin receivables which are classified in customer and other receivables on the Consolidated Balance Sheet.

(2)Includes advisors across all wealth management businesses in GWIM and Consumer Banking.

Client Balances

Client balances managed under advisory and/or discretion of GWIM are AUM and are typically held in diversified portfolios. Fees earned on AUM are calculated as a percentage of clients’ AUM balances. The asset management fees charged to clients per year depend on various factors but are commonly driven by the breadth of the client’s relationship. The net client AUM flows represent the net change in clients’ AUM balances over a

specified period of time, excluding market appreciation/depreciation and other adjustments.

Client balances increased $402.5 billion, or 12 percent, to $3.8 trillion at December 31, 2023 compared to December 31, 2022. The increase in client balances was primarily due to the impact of higher end-of-period market valuations and positive net client flows.

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