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 GWIMwas $1.0 billion for the three months ended March 31, 2025, largely unchanged from the same period in 2024, primarily due to higher revenue, mostly offset by higher noninterest expense. The operating margin was 22 percent compared to 24 percent a year ago.

Net interest income decreased $49 million to $1.8 billion primarily due to the impact of lower interest rates and lower average deposit balances.

Noninterest income, which primarily includes investment and brokerage services income, increased $474 million to $4.3 billion. The increase was primarily due to higher asset management fees driven by higher average equity market valuations and the impact of positive AUM flows.

Noninterest expense increased $395 million to $4.7 billion primarily due to higher revenue-related incentives and investments in the business, including people and technology.

The return on average allocated capital was 21 percent, down from 22 percent, due to an increase in allocated capital. For information on capital allocated to the business segments, see Business Segment Operations on page 8.

Average loans and leases increased $13.7 billion to $232.3 billion, primarily driven by custom lending, securities based lending and residential mortgage loans. Average deposits decreased $11.0 billion to $286.4 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 $5.0 billion increased eight percent primarily due to higher asset management fees driven by higher average equity market valuations and the impact of positive net AUM flows.

Bank of America Private Bank revenue of $997 million increased six percent primarily driven by higher asset management fees due to the impact of higher average equity market valuations and positive net client flows.

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

Client Balances

Client balances increased $183.8 billion, or five percent, to $4.2 trillion at March 31, 2025 compared to March 31, 2024. The increase in client balances was primarily due to the impact of higher market valuations and positive net client flows.

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