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1、UNITED STATESSECURITIES AND EXCHANGE COMMISSIONWashington,D.C.20549FORM 10-Q(Mark One)QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)OF THE SECURITIESEXCHANGE ACT OF 1934For the Quarterly Period Ended June 30,2023or TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)OF THE SECURITIESEXCHANGE ACT OF 1
2、934For the transition period from toCommission file number:1-6523Exact name of registrant as specified in its charter:Bank of America CorporationState or other jurisdiction of incorporation or organization:DelawareIRS Employer Identification No.:56-0906609Address of principal executive offices:Bank
3、of America Corporate Center100 N.Tryon StreetCharlotte,North Carolina 28255Registrants telephone number,including area code:(704)386-5681Former name,former address and former fiscal year,if changed since last report:Securities registered pursuant to Section 12(b)of the Act:Title of each classTrading
4、 Symbol(s)Name of each exchange on which registeredCommon Stock,par value$0.01 per shareBACNew York Stock ExchangeDepositary Shares,each representing a 1/1,000th interest in a shareBAC PrENew York Stock Exchange of Floating Rate Non-Cumulative Preferred Stock,Series EDepositary Shares,each represent
5、ing a 1/1,000th interest in a shareBAC PrBNew York Stock Exchange of 6.000%Non-Cumulative Preferred Stock,Series GGDepositary Shares,each representing a 1/1,000th interest in a shareBAC PrKNew York Stock Exchange of 5.875%Non-Cumulative Preferred Stock,Series HH7.25%Non-Cumulative Perpetual Converti
6、ble Preferred Stock,Series LBAC PrLNew York Stock ExchangeDepositary Shares,each representing a 1/1,200th interest in a shareBML PrGNew York Stock Exchangeof Bank of America Corporation Floating RateNon-Cumulative Preferred Stock,Series 1Title of each classTrading Symbol(s)Name of each exchange on w
7、hich registeredDepositary Shares,each representing a 1/1,200th interest in a shareBML PrHNew York Stock Exchange of Bank of America Corporation Floating RateNon-Cumulative Preferred Stock,Series 2Depositary Shares,each representing a 1/1,200th interest in a shareBML PrJNew York Stock Exchange of Ban
8、k of America Corporation Floating RateNon-Cumulative Preferred Stock,Series 4Depositary Shares,each representing a 1/1,200th interest in a shareBML PrLNew York Stock Exchange of Bank of America Corporation Floating RateNon-Cumulative Preferred Stock,Series 5Floating Rate Preferred Hybrid Income Term
9、 Securities of BAC CapitalBAC/PFNew York Stock Exchange Trust XIII(and the guarantee related thereto)5.63%Fixed to Floating Rate Preferred Hybrid Income Term SecuritiesBAC/PGNew York Stock Exchange of BAC Capital Trust XIV(and the guarantee related thereto)Income Capital Obligation Notes initially d
10、ue December 15,2066 ofMER PrKNew York Stock ExchangeBank of America CorporationSenior Medium-Term Notes,Series A,Step Up Callable Notes,dueBAC/31BNew York Stock Exchange November 28,2031 of BofA Finance LLC(and the guaranteeof the Registrant with respect thereto)Depositary Shares,each representing a
11、 1/1,000th interest in a share ofBAC PrMNew York Stock Exchange 5.375%Non-Cumulative Preferred Stock,Series KKDepositary Shares,each representing a 1/1,000th interest in a shareBAC PrNNew York Stock Exchangeof 5.000%Non-Cumulative Preferred Stock,Series LLDepositary Shares,each representing a 1/1,00
12、0th interest in a share ofBAC PrONew York Stock Exchange4.375%Non-Cumulative Preferred Stock,Series NNDepositary Shares,each representing a 1/1,000th interest in a share ofBAC PrPNew York Stock Exchange4.125%Non-Cumulative Preferred Stock,Series PPDepositary Shares,each representing a 1/1,000th inte
13、rest in a share ofBAC PrQNew York Stock Exchange4.250%Non-Cumulative Preferred Stock,Series QQDepositary Shares,each representing a 1/1,000th interest in a shareBAC PrSNew York Stock Exchangeof 4.750%Non-Cumulative Preferred Stock,Series SSIndicate by check mark whether the registrant(1)has filed al
14、l reports required to be filed by Section 13 or 15(d)of the Securities Exchange Act of 1934 during the preceding12 months(or for such shorter period that the registrant was required to file such reports),and(2)has been subject to such filing requirements for the past 90 days.Yes No Indicate by check
15、 mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T(232.405 of this chapter)during the preceding 12 months(or for such shorter period that the registrant was required to submit such files).Yes No Indica
16、te by check mark whether the registrant is a large accelerated filer,an accelerated filer,a non-accelerated filer,a smaller reporting company,or an emerging growthcompany.See the definitions of“large accelerated filer,”“accelerated filer,”“smaller reporting company,”and“emerging growth company”in Ru
17、le 12b-2 of the Exchange Act.Large accelerated filerAccelerated filerNon-accelerated filerSmaller reporting company Emerging growth company If an emerging growth company,indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revis
18、ed financialaccounting standards provided pursuant to Section 13(a)of the Exchange Act.Indicate by check mark whether the registrant is a shell company(as defined in Exchange Act Rule 12b-2).Yes No On July 28,2023,there were 7,946,371,758 shares of Bank of America Corporation Common Stock outstandin
19、g.Bank of America Corporation and SubsidiariesJune 30,2023Form 10-QINDEXPart I.Financial InformationItem 1.Financial StatementsPageConsolidated Statement of Income49Consolidated Statement of Comprehensive Income49Consolidated Balance Sheet50Consolidated Statement of Changes in Shareholders Equity51C
20、onsolidated Statement of Cash Flows52Notes to Consolidated Financial Statements53Note 1 Summary of Significant Accounting Principles53Note 2 Net Interest Income and Noninterest Income54Note 3 Derivatives55Note 4 Securities63Note 5 Outstanding Loans and Leases and Allowance for Credit Losses66Note 6
21、Securitizations and Other Variable Interest Entities78Note 7 Goodwill and Intangible Assets83Note 8 Leases83Note 9 Securities Financing Agreements,Collateral and Restricted Cash84Note 10 Commitments and Contingencies85Note 11 Shareholders Equity88Note 12 Accumulated Other Comprehensive Income(Loss)8
22、9Note 13 Earnings Per Common Share90Note 14 Fair Value Measurements90Note 15 Fair Value Option97Note 16 Fair Value of Financial Instruments99Note 17 Business Segment Information99Glossary104Acronyms106Item 2.Managements Discussion and Analysis of Financial Condition and Results of OperationsExecutiv
23、e Summary3Recent Developments3Financial Highlights4Supplemental Financial Data7Business Segment Operations11Consumer Banking11Global Wealth&Investment Management15Global Banking17Global Markets19All Other21Managing Risk21Capital Management22Liquidity Risk26Credit Risk Management30Consumer Portfolio
24、Credit Risk Management30Commercial Portfolio Credit Risk Management34Non-U.S.Portfolio40Allowance for Credit Losses41Market Risk Management43Trading Risk Management43Interest Rate Risk Management for the Banking Book45Mortgage Banking Risk Management46Climate Risk Management46Complex Accounting Esti
25、mates47Non-GAAP Reconciliations48Item 3.Quantitative and Qualitative Disclosures about Market Risk48Item 4.Controls and Procedures481 Bank of AmericaPart II.Other InformationItem 1.Legal Proceedings107Item 1A.Risk Factors107Item 2.Unregistered Sales of Equity Securities and Use of Proceeds107Item 5.
26、Other Information107Item 6.Exhibits108Signature108Item 2.Managements Discussion and Analysis of Financial Condition and Results of OperationsBank of America Corporation(the“Corporation”)and its management may makecertain statements that constitute“forward-looking statements”within the meaningof the
27、Private Securities Litigation Reform Act of 1995.These statements can beidentified by the fact that they do not relate strictly to historical or current facts.Forward-looking statements often use words such as“anticipates,”“targets,”“expects,”“hopes,”“estimates,”“intends,”“plans,”“goals,”“believes,”
28、“continue”and other similar expressions or future or conditional verbs such as“will,”“may,”“might,”“should,”“would”and“could.”Forward-looking statements represent theCorporations current expectations,plans or forecasts of its future results,revenues,liquidity,net interest income,provision for credit
29、 losses,expenses,efficiency ratio,capital measures,strategy,deposits,assets,and future businessand economic conditions more generally,and other future matters.Thesestatements are not guarantees of future results or performance and involve certainknown and unknown risks,uncertainties and assumptions
30、that are difficult to predictand are often beyond the Corporations control.Actual outcomes and results maydiffer materially from those expressed in,or implied by,any of these forward-looking statements.You should not place undue reliance on any forward-looking statement andshould consider the follow
31、ing uncertainties and risks,as well as the risks anduncertainties more fully discussed under Item 1A.Risk Factors of the Corporations2022 Annual Report on Form 10-K and in any of the Corporations subsequentSecurities and Exchange Commission filings:the Corporations potentialjudgments,orders,settleme
32、nts,penalties,fines and reputational damage resultingfrom pending or future litigation and regulatory investigations,proceedings andenforcement actions,including as a result of our participation in and execution ofgovernment programs related to the Coronavirus Disease 2019(COVID-19)pandemic,such as
33、the processing of unemployment benefits for California andcertain other states;the possibility that the Corporations future liabilities may be inexcess of its recorded liability and estimated range of possible loss for litigation,and regulatory and government actions;the possibility that the Corpora
34、tion couldface increased claims from one or more parties involved in mortgagesecuritizations;the Corporations ability to resolve representations and warrantiesrepurchase and related claims;the risks related to the discontinuation of theLondon Interbank Offered Rate and other reference rates,includin
35、g increasedexpenses and litigation and the effectiveness of hedging strategies;uncertaintiesabout the financial stability and growth rates of non-U.S.jurisdictions,the risk thatthose jurisdictions may face difficulties servicing their sovereign debt,and relatedstresses on financial markets,currencie
36、s and trade,and the Corporationsexposures to such risks,including direct,indirect and operational;the impact ofU.S.and global interest rates,inflation,currency exchange rates,economicconditions,trade policies and tensions,including tariffs,and potential geopoliticalinstability;the impact of the inte
37、rest rate,inflationary,macroeconomic,banking andregulatoryenvironment on the Corporations assets,business,financial condition and resultsof operations;the impact of adverse developments affecting the U.S.or globalbanking industry,including bank failures and liquidity concerns,resulting inworsening e
38、conomic and market volatility,and regulatory responses thereto;thepossibility that future credit losses may be higher than currently expected due tochanges in economic assumptions,customer behavior,adverse developments withrespect to U.S.or global economic conditions and other uncertainties,includin
39、g theimpact of supply chain disruptions,inflationary pressures and labor shortages oneconomic conditions and our business;potential losses related to the Corporationsconcentration of credit risk;the Corporations ability to achieve its expense targetsand expectations regarding revenue,net interest in
40、come,provision for creditlosses,net charge-offs,effective tax rate,loan growth or other projections;adversechanges to the Corporations credit ratings from the major credit rating agencies;an inability to access capital markets or maintain deposits or borrowing costs;estimates of the fair value and o
41、ther accounting values,subject to impairmentassessments,of certain of the Corporations assets and liabilities;the estimated oractual impact of changes in accounting standards or assumptions in applying thosestandards;uncertainty regarding the content,timing and impact of regulatorycapital and liquid
42、ity requirements;the impact of adverse changes to total loss-absorbing capacity requirements,stress capital buffer requirements and/or globalsystemically important bank surcharges;the potential impact of actions of theBoard of Governors of the Federal Reserve System on the Corporations capitalplans;
43、the effect of changes in or interpretations of income tax laws and regulations;the impact of implementation and compliance with U.S.and international laws,regulations and regulatory interpretations,including,but not limited to,recoveryand resolution planning requirements,Federal Deposit Insurance Co
44、rporationassessments,the Volcker Rule,fiduciary standards,derivatives regulations andpotential changes to loss allocations between financial institutions and customers,including for losses incurred from the use of our products and services,includingZelle,that were authorized by the customer but indu
45、ced by fraud;a failure ordisruption in or breach of the Corporations operational or security systems,data orinfrastructure,or those of third parties,including as a result of cyberattacks orcampaigns;the risks related to the transition and physical impacts of climatechange;our ability to achieve envi
46、ronmental,social and governance goals andcommitments or the impact of any changes in the Corporations sustainabilitystrategy or commitments generally;the impact of any future federal governmentshutdown and uncertainty regarding the federal governments debt limit or changesin fiscal,monetary or regul
47、atory policy;the emergence or continuation ofwidespread health emergencies or pandemics;the impact of natural disasters,extreme weather events,military conflict(including the Russia/Ukraine conflict,thepossible expansion of such conflictBank of America 2and potential geopolitical consequences),terro
48、rism or other geopolitical events;and other matters.Forward-looking statements speak only as of the date they are made,and theCorporation undertakes no obligation to update any forward-looking statement toreflect the impact of circumstances or events that arise after the date the forward-looking sta
49、tement was made.Notes to the Consolidated Financial Statements referred to in ManagementsDiscussion and Analysis of Financial Condition and Results of Operations(MD&A)are incorporated by reference into the MD&A.Certain prior-period amounts havebeen reclassified to conform to current-period presentat
50、ion.Throughout the MD&A,the Corporation uses certain acronyms and abbreviations which are defined in theGlossary.Executive SummaryBusiness OverviewThe Corporation is a Delaware corporation,a bank holding company(BHC)and afinancial holding company.When used in this report,“Bank of America,”“theCorpor
51、ation,”“we,”“us”and“our”may refer to Bank of America Corporationindividually,Bank of America Corporation and its subsidiaries,or certain of Bank ofAmerica Corporations subsidiaries or affiliates.Our principal executive offices arelocated in Charlotte,North Carolina.Through our various bank and nonba
52、nksubsidiaries throughout the U.S.and in international markets,we provide adiversified range of banking and nonbank financial services and products throughfour business segments:Consumer Banking,Global Wealth&InvestmentManagement(GWIM),Global Banking and Global Markets,with the remainingoperations r
53、ecorded in All Other.We operate our banking activities primarily underthe Bank of America,National Association(Bank of America,N.A.or BANA)charter.At June 30,2023,the Corporation had$3.1 trillion in assets and aheadcount of approximately 216,000 employees.As of June 30,2023,we served clients through
54、 operations across the U.S.,itsterritories and more than 35 countries.Our retail banking footprint covers all majormarkets in the U.S.,and we serve approximately 68 million consumer and smallbusiness clients with approximately 3,900 retail financial centers,approximately15,000 ATMs,and leading digit
55、al banking platforms()with approximately 46 million active users,including approximately 37 million activemobile users.We offer industry-leading support to approximately four million smallbusiness households.Our GWIM businesses,with client balances of$3.6 trillion,provide tailored solutions to meet
56、client needs through a full set of investmentmanagement,brokerage,banking,trust and retirement products.We are a globalleader in corporate and investment banking and trading across a broad range ofasset classes serving corporations,governments,institutions and individualsaround the world.The Corpora
57、tions website is ,and the InvestorRelations portion of our website is https:/.We use ourwebsite to distribute company information,including as a means of disclosingmaterial,non-public information and for complying with our disclosure obligationsunder Regulation FD.We routinely post and make accessib
58、le financial and otherinformation,including environmental,social and governance(ESG)information,regarding the Corporation on our website.Investors should monitor our website,including the Investor Relations portion,in addition to our press releases,U.S.Securities and Exchange Commission(SEC)filings,
59、public conference calls andwebcasts.Notwithstanding the foregoing,the information contained on our website asreferenced in this paragraph is not incorporated by reference into this QuarterlyReport on Form 10-Q.Recent DevelopmentsCapital ManagementThe Board of Governors of the Federal Reserve System(
60、Federal Reserve)requires BHCs to submit a capital plan and planned capital actions on an annualbasis,consistent with the rules governing the Comprehensive Capital Analysis andReview(CCAR)capital plan.On July 27,2023,the Federal Reserve released final2023 CCAR supervisory stress test results for Bank
61、 of America.Based on theresults,our stress capital buffer(SCB)will be 2.5 percent,90 basis points(bps)lower than the current level of 3.4 percent,and our Common equity tier 1(CET1)minimum requirement will decline to 9.5 percent effective October 1,2023.Beginning January 1,2024,we expect our minimum
62、CET1 requirement to increase50 bps,aligned with planned growth in the global systemically important bank(G-SIB)surcharge.On July 27,2023,U.S.banking regulators issued proposed rules that wouldupdate future U.S.regulatory capital requirements,including the calculation of risk-weighted assets and the
63、G-SIB surcharge.Under the capital proposal,therequirements would be phased in over three years beginning July 1,2025.TheCorporation is evaluating the impact of the proposed rules on its regulatory capital.On July 19,2023,the Corporations Board of Directors(the Board)declared aquarterly common stock
64、dividend of$0.24 per share,an increase of nine percentcompared to the prior dividend rate,payable on September 29,2023 toshareholders of record as of September 1,2023.For more information on our capital resources,see Capital Management onpage 22.FDIC Special AssessmentOn May 11,2023,the Federal Depo
65、sit Insurance Corporation(FDIC)issued aproposed rule that would impose a special assessment to recover the loss to theDeposit Insurance Fund arising from the protection of uninsured depositors ofSilicon Valley Bank and Signature Bank associated with their closures,and thesystemic risk determination
66、announced by the FDIC on March 12,2023.While thetiming and amount of any expense recognition are unknown until the proposed ruleis finalized,if the final rule is issued as proposed,the estimated impact of thespecial assessment on the Corporation would be a noninterest expense ofapproximately$1.9 bil
67、lion that would be recognized upon finalization of the rule.For more information,see Note 10 Commitments and Contingencies to theConsolidated Financial Statements.LIBOR and Other Benchmark RatesImmediately after June 30,2023,the remaining U.S.dollar(USD)LondonInterbank Offered Rate(LIBOR)settings(i.
68、e.,overnight,one month,three month,six month and 12 month)ceased or became non-representative(LIBORCessation),although the Financial Conduct Authority(FCA)is requiring LIBORsadministrator,ICE Benchmark Administration Limited,to continue publication of theone-month,three-month and six-month USD LIBOR
69、 settings on a“synthetic”basis(calculated using the relevant CME Term SOFR Reference Rate plus therespective International Swaps and Derivatives Association fixed spreadadjustment)for use in legacy contracts,which publication the FCA intends willcontinue until September 30,3 Bank of America2024.The
70、Corporation will continue to monitor developments related to ongoingbenchmark reform and the transition to alternative reference rates(ARRs)forexpected impact on the Corporation and financial markets more broadly.In connection with LIBOR Cessation,the Corporation has substantiallycompleted the trans
71、ition process for its products and contracts referencing USDLIBOR to ARRs,subject to certain remaining notional contractual exposures notsignificant to the Corporation.For the insignificant amount of products and contractsthat have temporarily transitioned to synthetic USD LIBOR,the Corporationexpec
72、ts to transition these exposures to ARRs consistent with the temporary natureof synthetic USD LIBOR.Additionally,in connection with LIBOR Cessation,certain centralcounterparties completed processes to convert outstanding USD LIBOR-clearedderivatives to ARR positions.In March 2023 and June 2023,the C
73、orporation madeannouncements regarding the transition paths away from either USD LIBOR or theUSD LIBOR ICE Swap Rate,as applicable,for certain outstanding securities issuedby the Corporation,BofAFinance LLC and certain other affiliated issuers.For more information on thoseannouncements,see the Corpo
74、rations Current Reports on Form 8-K filed with theSEC on March 31,2023 and June 26,2023.As previously disclosed,as a result of the transition of Interbank Offered Rate-based products and contracts to various ARRs,including the Secured OvernightFinancing Rate(SOFR),the Corporation has begun using ARR
75、s in its baselineforecast of net interest income.For more information,see Interest Rate RiskManagement for the Banking Book on page 45.For more information on the replacement of LIBOR and other benchmarkrates,including the Corporations efforts in connection with the replacement ofLIBOR and other ben
76、chmark rates,see Executive Summary RecentDevelopments LIBOR and Other Benchmark Rates in the MD&A and Item 1A.Risk Factors Other of the Corporations 2022 Annual Report on Form 10-K,whichdiscusses the Corporations risks related to the replacement of LIBOR and otherbenchmark rates,including risks rela
77、ted to litigation claims or other disputes withrespect to the transition path for a particular product or contract.Financial HighlightsTable 1Summary Income Statement and Selected Financial DataThree Months Ended June 30Six Months Ended June 30(Dollars in millions,except per share information)202320
78、2220232022Income statement Net interest income$14,158$12,444$28,606$24,016 Noninterest income11,039 10,244 22,849 21,900 Total revenue,net of interest expense25,197 22,688 51,455 45,916 Provision for credit losses1,125 523 2,056 553 Noninterest expense16,038 15,273 32,276 30,592 Income before income
79、 taxes8,034 6,892 17,123 14,771 Income tax expense626 645 1,554 1,457 Net income7,408 6,247 15,569 13,314 Preferred stock dividends306 315 811 782 Net income applicable to common shareholders$7,102$5,932$14,758$12,532 Per common share information Earnings$0.88$0.73$1.83$1.54 Diluted earnings0.88 0.7
80、3 1.82 1.53 Dividends paid0.22 0.21 0.44 0.42 Performance ratios Return on average assets 0.94%0.79%1.00%0.84%Return on average common shareholders equity 11.21 9.93 11.84 10.48 Return on average tangible common shareholders equity 15.49 14.05 16.42 14.78 Efficiency ratio63.65 67.32 62.73 66.63 June
81、 302023December 31 2022Balance sheet Total loans and leases$1,051,224$1,045,747 Total assets3,123,198 3,051,375 Total deposits1,877,209 1,930,341 Total liabilities2,839,879 2,778,178 Total common shareholders equity254,922 244,800 Total shareholders equity283,319 273,197 For definitions,see Key Metr
82、ics on page 105.Return on average tangible common shareholders equity is a non-GAAP financial measure.For more information and a corresponding reconciliation to the most closely related financial measures defined by accounting principles generally accepted in theUnited States of America(GAAP),see No
83、n-GAAP Reconciliations on page 48.(1)(1)(2)(1)(1)(2)Bank of America 4Net income was$7.4 billion and$15.6 billion,or$0.88 and$1.82 per diluted share,for the three and six months ended June 30,2023 compared to$6.2 billion and$13.3 billion,or$0.73 and$1.53 per diluted share,for the same periods in 2022
84、.The increase in net income was primarily due to higher net interest income andnoninterest income,partially offset by higher noninterest expense and provision forcredit losses.Total assets increased$71.8 billion from December 31,2022 to$3.1 trillionprimarily driven by higher cash and cash equivalent
85、s due to sales and paydowns ofdebt securities to support balance sheet and liquidity positioning and higher tradingaccount assets in Global Markets.Total liabilities increased$61.7 billion from December 31,2022 to$2.8 trillionprimarily driven by higher securities financing activity and short-term bo
86、rrowings tosupport balance sheet and liquidity positioning,partially offset by lower depositsprimarily due to an increase in customer debt payments,customers movement ofbalances to higher yielding investment alternatives and seasonal outflows.Shareholders equity increased$10.1 billion from December
87、31,2022 primarilydue to an increase in net income,partially offset by returns of capital toshareholders through common and preferred stock dividends and common stockrepurchases.Net Interest IncomeNet interest income increased$1.7 billion to$14.2 billion,and$4.6 billion to$28.6billion for the three a
88、nd six months ended June 30,2023 compared to the sameperiods in 2022.Net interest yield on a fully taxable-equivalent(FTE)basisincreased 20 bps to 2.06 percent and 36 bps to 2.13 percent for the three and sixmonths ended June 30,2023.The increases were primarily driven by benefits fromhigher interes
89、t rates,including lower premium amortization expense and loangrowth,partially offset by higher funding costs,including increased rates paid ondeposits,and lower net interest income related to Global Markets activity.For moreinformation on net interest yield and FTE basis,see Supplemental Financial D
90、ataon page 7,and for more information on interest rate risk management,see InterestRate Risk Management for the Banking Book on page 45.Noninterest IncomeTable 2Noninterest IncomeThree Months Ended June 30Six Months Ended June 30(Dollars in millions)2023202220232022Fees and commissions:Card income$1
91、,546$1,555$3,015$2,958 Service charges1,364 1,717 2,774 3,550 Investment and brokerage services3,839 4,091 7,691 8,383 Investment banking fees1,212 1,128 2,375 2,585 Total fees and commissions7,961 8,491 15,855 17,476 Market making and similar activities3,697 2,717 8,409 5,955 Other income(619)(964)
92、(1,415)(1,531)Total noninterest income$11,039$10,244$22,849$21,900 Noninterest income increased$795 million to$11.0 billion and$949 million to$22.8billion for the three and six months ended June 30,2023 compared to the sameperiods in 2022.The following highlights the significant changes.Service char
93、ges decreased$353 million and$776 million primarily driven by theimpact of non-sufficient funds and overdraft policy changes as well as lowertreasury service charges.Investment and brokerage services decreased$252 million and$692 millionprimarily driven by lower asset management fees and brokerage f
94、ees due tolower average equity and fixed income market levels and transactional volumes,partially offset by the impact of positive assets under management(AUM)flows.Investment banking fees increased$84 million for the three-month periodprimarily due to higher equity issuance fees,partially offset by
95、 lower debtissuance and advisory fees.The six-month period decreased$210 millionprimarily due to lower debt issuance and advisory fees,partially offset by higherequity issuance fees.Market making and similar activities increased$980 million and$2.5 billionprimarily driven by improved trading in cred
96、it and macro products in fixedincome,currencies and commodities(FICC)and by the impact of higher interestrates on client financing activities in Equities.Other income increased$345 million and$116 million primarily due to certainnegative valuation adjustments in the prior-year periods,partially offs
97、et by losseson sales of available-for-sale(AFS)debt securities in the current-year periods.Provision for Credit LossesThe provision for credit losses increased$602 million to$1.1 billion and$1.5 billionto$2.1 billion for the three and six months ended June 30,2023 compared to thesame periods in 2022
98、.The provision for credit losses for the current-year periodswas driven by our consumer portfolio primarily due to credit card loan growth andasset quality,partially offset by certain improved macroeconomic conditions thatprimarily benefited our commercial portfolio.For the same periods in the prior
99、 year,the provision for credit losses was primarily driven by loan growth and a dampenedmacroeconomic outlook,partially offset by asset quality improvement and reducedCOVID-19 pandemic uncertainties.In addition,the six-month period in the prioryear was also driven by a reserve build related to Russi
100、an exposure.For moreinformation on the provision for credit losses,see Allowance for Credit Losses onpage 41.5 Bank of AmericaNoninterest ExpenseTable 3Noninterest ExpenseThree Months Ended June 30Six Months Ended June 30(Dollars in millions)2023202220232022Compensation and benefits$9,401$8,917$19,3
101、19$18,399 Occupancy and equipment1,776 1,748 3,575 3,508 Information processing and communications1,644 1,535 3,341 3,075 Product delivery and transaction related956 924 1,846 1,857 Marketing513 463 971 860 Professional fees527 518 1,064 968 Other general operating1,221 1,168 2,160 1,925 Total nonin
102、terest expense$16,038$15,273$32,276$30,592 Noninterest expense increased$765 million to$16.0 billion and$1.7 billion to$32.3billion for the three and six months ended June 30,2023 compared to the sameperiods in 2022.The increases were primarily due to higher investments in people and technology,FDIC
103、 expense and certain taxes,partially offset by lower revenue-relatedcompensation.Income Tax ExpenseTable 4Income Tax ExpenseThree Months Ended June 30Six Months Ended June 30(Dollars in millions)2023202220232022Income before income taxes$8,034$6,892$17,123$14,771 Income tax expense626 645 1,554 1,45
104、7 Effective tax rate7.8%9.4%9.1%9.9%The effective tax rates for the three and six months ended June 30,2023 and 2022were primarily driven by our recurring tax preference benefits that mainly consist oftax credits from ESG investments in affordable housing and renewable energy.Absent the ESG tax cred
105、its and discrete tax benefits,the effective tax rates wouldhave been 26 percent for the three months ended June 30,2023 and 2022,and 26percent and 25 percent for the six months ended June 30,2023 and 2022.Bank of America 6Supplemental Financial DataNon-GAAP Financial MeasuresIn this Form 10-Q,we pre
106、sent certain non-GAAP financial measures.Non-GAAPfinancial measures exclude certain items or otherwise include components thatdiffer from the most directly comparable measures calculated in accordance withGAAP.Non-GAAP financial measures are provided as additional useful informationto assess our fin
107、ancial condition,results of operations(including period-to-periodoperating performance)or compliance with prospective regulatory requirements.These non-GAAP financial measures are not intended as a substitute for GAAPfinancial measures and may not be defined or calculated the same way as non-GAAP fi
108、nancial measures used by other companies.When presented on a consolidated basis,we view net interest income on anFTE basis as a non-GAAP financial measure.To derive the FTE basis,net interestincome is adjusted to reflect tax-exempt income on an equivalent before-tax basiswith a corresponding increas
109、e in income tax expense.For purposes of thiscalculation,we use the federal statutory tax rate of 21 percent and a representativestate tax rate.Net interest yield,which measures the basis points we earn over thecost of funds,utilizes net interest income on an FTE basis.We believe thatpresentation of
110、these items on an FTE basis allows for comparison of amountsfrom both taxable and tax-exempt sources and is consistent with industry practices.We may present certain key performance indicators and ratios excluding certainitems(e.g.,debit valuation adjustment(DVA)gains(losses),which result in non-GAA
111、P financial measures.We believe that the presentation of measures thatexclude these items is useful because such measures provide additionalinformation to assess the underlying operational performance and trends of ourbusinesses and to allow better comparison of period-to-period operatingperformance
112、.We also evaluate our business based on certain ratios that utilize tangibleequity,a non-GAAP financial measure.Tangible equity represents shareholdersequity or common shareholders equity reduced by goodwill and intangible assets(excluding mortgage servicing rights(MSRs),net of related deferred tax
113、liabilities(“adjusted”shareholders equity or common shareholders equity).These measuresare used to evaluate our use of equity.In addition,profitability,relationship andinvestment models use both return on average tangible common shareholdersequity and return on average tangibleshareholders equity as
114、 key measures to support our overall growth objectives.These ratios are:Return on average tangible common shareholders equity measures our netincome applicable to common shareholders as a percentage of adjusted averagecommon shareholders equity.The tangible common equity ratio representsadjusted end
115、ing common shareholders equity divided by total tangible assets.Return on average tangible shareholders equity measures our net income as apercentage of adjusted average total shareholders equity.The tangible equityratio represents adjusted ending shareholders equity divided by total tangibleassets.
116、Tangible book value per common share represents adjusted ending commonshareholders equity divided by ending common shares outstanding.We believe ratios utilizing tangible equity provide additional useful informationbecause they present measures of those assets that can generate income.Tangible book
117、value per common share provides additional useful informationabout the level of tangible assets in relation to outstanding shares of commonstock.The aforementioned supplemental data and performance measures arepresented in Table 5 on page 8.For more information on the reconciliation of these non-GAA
118、P financialmeasures to the corresponding GAAP financial measures,see Non-GAAPReconciliations on page 48.Key Performance IndicatorsWe present certain key financial and nonfinancial performance indicators(keyperformance indicators)that management uses when assessing our consolidatedand/or segment resu
119、lts.We believe they are useful to investors because theyprovide additional information about our underlying operational performance andtrends.These key performance indicators(KPIs)may not be defined or calculatedin the same way as similar KPIs used by other companies.For information on howthese metr
120、ics are defined,see Key Metrics on page 105.Our consolidated key performance indicators,which include various equity andcredit metrics,are presented in Table 1 on page 4 and Table 5 on page 8.For information on key segment performance metrics,see Business SegmentOperations on page 11.7 Bank of Ameri
121、caTable 5Selected Financial DataSix Months Ended2023 Quarters2022 QuartersJune 30(In millions,except per share information)SecondFirstFourthThirdSecond20232022Income statement Net interest income$14,158$14,448$14,681$13,765$12,444$28,606$24,016 Noninterest income11,039 11,810 9,851 10,737 10,244 22,
122、849 21,900 Total revenue,net of interest expense25,197 26,258 24,532 24,502 22,688 51,455 45,916 Provision for credit losses1,125 931 1,092 898 523 2,056 553 Noninterest expense16,038 16,238 15,543 15,303 15,273 32,276 30,592 Income before income taxes8,034 9,089 7,897 8,301 6,892 17,123 14,771 Inco
123、me tax expense626 928 765 1,219 645 1,554 1,457 Net income7,408 8,161 7,132 7,082 6,247 15,569 13,314 Net income applicable to common shareholders7,102 7,656 6,904 6,579 5,932 14,758 12,532 Average common shares issued and outstanding8,040.9 8,065.9 8,088.3 8,107.7 8,121.6 8,053.5 8,129.3 Average di
124、luted common shares issued and outstanding8,080.7 8,182.3 8,155.7 8,160.8 8,163.1 8,162.6 8,182.2 Performance ratios Return on average assets 0.94%1.07%0.92%0.90%0.79%1.00%0.84%Four-quarter trailing return on average assets0.96 0.92 0.88 0.87 0.89 n/an/aReturn on average common shareholders equity 1
125、1.21 12.48 11.24 10.79 9.93 11.84 10.48 Return on average tangible common shareholders equity15.49 17.38 15.79 15.21 14.05 16.42 14.78 Return on average shareholders equity 10.52 11.94 10.38 10.37 9.34 11.22 9.99 Return on average tangible shareholders equity14.00 15.98 13.98 13.99 12.66 14.97 13.52
126、 Total ending equity to total ending assets9.07 8.77 8.95 8.77 8.65 9.07 8.65 Common equity ratio 8.16 7.88 8.02 7.82 7.71 8.16 7.71 Total average equity to total average assets8.89 8.95 8.87 8.73 8.49 8.92 8.44 Dividend payout 24.88 23.17 25.71 27.06 28.68 23.99 27.20 Per common share data Earnings
127、$0.88$0.95$0.85$0.81$0.73$1.83$1.54 Diluted earnings0.88 0.94 0.85 0.81 0.73 1.82 1.53 Dividends paid0.22 0.22 0.22 0.22 0.21 0.44 0.42 Book value 32.05 31.58 30.61 29.96 29.87 32.05 29.87 Tangible book value 23.23 22.78 21.83 21.21 21.13 23.23 21.13 Market capitalization$228,188$228,012$264,853$242
128、,338$250,136$228,188$250,136 Average balance sheet Total loans and leases$1,046,608$1,041,352$1,039,247$1,034,334$1,014,886 Total assets3,175,358 3,096,058 3,074,289 3,105,546 3,157,855 Total deposits1,875,353 1,893,649 1,925,544 1,962,775 2,012,079 Long-term debt248,480 244,759 243,871 250,204 245,
129、781 Common shareholders equity254,028 248,855 243,647 241,882 239,523 Total shareholders equity282,425 277,252 272,629 271,017 268,197 Asset quality Allowance for credit losses$14,338$13,951$14,222$13,817$13,434 Nonperforming loans,leases and foreclosed properties 4,274 4,083 3,978 4,156 4,326 Allow
130、ance for loan and lease losses as a percentage of total loans and leases outstanding 1.24%1.20%1.22%1.20%1.17%Allowance for loan and lease losses as a percentage of total nonperforming loans and leases 314 319 333 309 288 Net charge-offs$869$807$689$520$571 Annualized net charge-offs as a percentage
131、 of average loans and leases outstanding 0.33%0.32%0.26%0.20%0.23%Capital ratios at period end Common equity tier 1 capital11.6%11.4%11.2%11.0%10.5%Tier 1 capital13.3 13.1 13.0 12.8 12.3 Total capital15.1 15.0 14.9 14.7 14.2 Tier 1 leverage7.1 7.1 7.0 6.8 6.5 Supplementary leverage ratio6.0 6.0 5.9
132、5.8 5.5 Tangible equity7.0 6.7 6.8 6.6 6.5 Tangible common equity 6.1 5.8 5.9 5.7 5.6 Total loss-absorbing capacity and long-term debt metricsTotal loss-absorbing capacity to risk-weighted assets28.8%28.8%29.0%28.9%27.8%Total loss-absorbing capacity to supplementary leverage exposure13.0 13.1 13.2 1
133、3.0 12.6 Eligible long-term debt to risk-weighted assets14.6 14.8 15.2 15.2 14.7 Eligible long-term debt to supplementary leverage exposure6.6 6.7 6.9 6.8 6.6 For definitions,see Key Metrics on page 105.Calculated as total net income for four consecutive quarters divided by annualized average assets
134、 for four consecutive quarters.Tangible equity ratios and tangible book value per share of common stock are non-GAAP financial measures.For more information on these ratios and corresponding reconciliations to GAAP financial measures,see Supplemental Financial Data on page 7 andNon-GAAP Reconciliati
135、ons on page 48.Includes the allowance for loan and lease losses and the reserve for unfunded lending commitments.Balances and ratios do not include loans accounted for under the fair value option.For additional exclusions from nonperforming loans,leases and foreclosed properties,see Consumer Portfol
136、io Credit Risk Management Nonperforming Consumer Loans,Leases and Foreclosed Properties Activity on page 34 and corresponding Table 25 and Commercial Portfolio Credit Risk Management Nonperforming Commercial Loans,Leases and Foreclosed Properties Activity on page 38 and corresponding Table 31.For mo
137、re information,including which approach is used to assess capital adequacy,see Capital Management on page 22.n/a=not applicable(1)(2)(1)(3)(1)(3)(1)(1)(1)(3)(4)(5)(5)(5)(5)(6)(3)(3)(1)(2)(3)(4)(5)(6)Bank of America 8Table 6Quarterly Average Balances and Interest Rates-FTE BasisAverageBalanceInterest
138、Income/Expense Yield/RateAverageBalanceInterestIncome/Expense Yield/Rate(Dollars in millions)Second Quarter 2023Second Quarter 2022Earning assets Interest-bearing deposits with the Federal Reserve,non-U.S.central banks and other banks$359,042$4,303 4.81%$178,313$282 0.63%Time deposits placed and oth
139、er short-term investments11,271 129 4.56 7,658 12 0.62 Federal funds sold and securities borrowed or purchased under agreements to resell294,535 4,955 6.75 304,684 396 0.52 Trading account assets187,420 2,091 4.47 147,442 1,241 3.37 Debt securities771,355 4,717 2.44 945,927 4,067 1.72 Loans and leas
140、es Residential mortgage228,758 1,704 2.98 228,529 1,571 2.75 Home equity25,957 353 5.45 27,415 235 3.44 Credit card94,431 2,505 10.64 81,024 1,954 9.68 Direct/Indirect and other consumer104,915 1,274 4.87 108,639 696 2.57 Total consumer454,061 5,836 5.15 445,607 4,456 4.01 U.S.commercial379,027 4,78
141、6 5.06 363,978 2,525 2.78 Non-U.S.commercial125,827 1,949 6.21 128,237 696 2.18 Commercial real estate 74,065 1,303 7.06 63,072 476 3.02 Commercial lease financing13,628 149 4.38 13,992 104 2.95 Total commercial592,547 8,187 5.54 569,279 3,801 2.68 Total loans and leases1,046,608 14,023 5.37 1,014,8
142、86 8,257 3.26 Other earning assets102,712 2,271 8.88 108,180 823 3.06 Total earning assets2,772,943 32,489 4.70 2,707,090 15,078 2.23 Cash and due from banks26,098 29,025 Other assets,less allowance for loan and lease losses376,317 421,740 Total assets$3,175,358$3,157,855 Interest-bearing liabilitie
143、s U.S.interest-bearing deposits Demand and money market deposits$951,403$3,565 1.50%$985,983$189 0.08%Time and savings deposits230,008 1,452 2.53 156,824 42 0.11 Total U.S.interest-bearing deposits1,181,411 5,017 1.70 1,142,807 231 0.08 Non-U.S.interest-bearing deposits96,802 768 3.18 79,471 89 0.45
144、 Total interest-bearing deposits1,278,213 5,785 1.82 1,222,278 320 0.11 Federal funds purchased and securities loaned or sold under agreements to repurchase322,728 5,807 7.22 214,777 454 0.85 Short-term borrowings and other interest-bearing liabilities163,739 2,548 6.24 134,790 99 0.30 Trading accou
145、nt liabilities44,944 472 4.22 54,005 370 2.74 Long-term debt248,480 3,584 5.78 245,781 1,288 2.10 Total interest-bearing liabilities2,058,104 18,196 3.55 1,871,631 2,531 0.54 Noninterest-bearing sourcesNoninterest-bearing deposits597,140 789,801 Other liabilities 237,689 228,226 Shareholders equity2
146、82,425 268,197 Total liabilities and shareholders equity$3,175,358$3,157,855 Net interest spread1.15%1.69%Impact of noninterest-bearing sources0.91 0.17 Net interest income/yield on earning assets$14,293 2.06%$12,547 1.86%Includes the impact of interest rate risk management contracts.For more inform
147、ation,see Interest Rate Risk Management for the Banking Book on page 45.Nonperforming loans are included in the respective average loan balances.Income on these nonperforming loans is generally recognized on a cost recovery basis.Includes U.S.commercial real estate loans of$68.0 billion and$58.9 bil
148、lion,and non-U.S.commercial real estate loans of$6.0 billion and$4.1 billion for the second quarter of 2023 and 2022.Includes$39.9 billion and$29.7 billion of structured notes and liabilities for the second quarter of 2023 and 2022.Net interest income includes FTE adjustments of$135 million and$103
149、million for the second quarter of 2023 and 2022.(1)(1)(2)(3)(4)(5)(1)(2)(3)(4)(5)9 Bank of AmericaTable 7Year-to-Date Average Balances and Interest Rates-FTE BasisAverageBalanceInterestIncome/Expense Yield/RateAverageBalanceInterestIncome/ExpenseYield/RateSix Months Ended June 30(Dollars in millions
150、)20232022Earning assets Interest-bearing deposits with the Federal Reserve,non-U.S.central banks and other banks$281,303$6,302 4.52%$211,458$368 0.35%Time deposits placed and other short-term investments10,928 237 4.37 8,451 24 0.57 Federal funds sold and securities borrowed or purchased under agree
151、ments to resell291,053 8,667 6.01 302,059 389 0.26 Trading account assets185,549 4,131 4.49 149,693 2,337 3.14 Debt securities811,046 10,202 2.51 960,709 7,905 1.65 Loans and leases Residential mortgage229,015 3,388 2.96 226,267 3,096 2.74 Home equity26,234 670 5.15 27,599 455 3.33 Credit card93,110
152、 4,931 10.68 79,724 3,894 9.85 Direct/Indirect and other consumer105,284 2,460 4.71 106,645 1,275 2.41 Total consumer453,643 11,449 5.08 440,235 8,720 3.98 U.S.commercial377,945 9,257 4.94 355,293 4,652 2.64 Non-U.S.commercial126,412 3,727 5.95 123,528 1,200 1.96 Commercial real estate 72,337 2,447
153、6.82 63,069 863 2.76 Commercial lease financing13,657 296 4.35 14,317 210 2.94 Total commercial590,351 15,727 5.37 556,207 6,925 2.51 Total loans and leases1,043,994 27,176 5.24 996,442 15,645 3.16 Other earning assets98,592 4,563 9.33 114,454 1,410 2.48 Total earning assets2,722,465 61,278 4.53 2,7
154、43,266 28,078 2.06 Cash and due from banks26,936 28,556 Other assets,less allowance for loan and lease losses386,478 410,818 Total assets$3,135,879$3,182,640 Interest-bearing liabilities U.S.interest-bearing deposits Demand and money market deposits$963,178$6,355 1.33%$993,542$269 0.05%Time and savi
155、ngs deposits213,587 2,371 2.24 160,382 82 0.10 Total U.S.interest-bearing deposits1,176,765 8,726 1.50 1,153,924 351 0.06 Non-U.S.interest-bearing deposits94,218 1,373 2.94 80,669 133 0.33 Total interest-bearing deposits1,270,983 10,099 1.60 1,234,593 484 0.08 Federal funds purchased and securities
156、loaned or sold under agreements to repurchase289,556 9,358 6.52 215,958 533 0.50 Short-term borrowings and other interest-bearing liabilities 160,331 5,177 6.51 130,645(92)(0.14)Trading account liabilities44,451 976 4.43 59,094 734 2.50 Long-term debt246,630 6,793 5.53 245,911 2,194 1.80 Total inter
157、est-bearing liabilities2,011,951 32,403 3.24 1,886,201 3,853 0.41 Noninterest-bearing sources Noninterest-bearing deposits613,468 794,259 Other liabilities 230,607 233,430 Shareholders equity279,853 268,750 Total liabilities and shareholders equity$3,135,879$3,182,640 Net interest spread 1.29%1.65%I
158、mpact of noninterest-bearing sources 0.84 0.12 Net interest income/yield on earning assets$28,875 2.13%$24,225 1.77%Includes the impact of interest rate risk management contracts.For more information,see Interest Rate Risk Management for the Banking Book on page 45.Nonperforming loans are included i
159、n the respective average loan balances.Income on these nonperforming loans is generally recognized on a cost recovery basis.Includes U.S.commercial real estate loans of$66.8 billion and$58.7 billion and non-U.S.commercial real estate loans of$5.5 billion and$4.3 billion for the six months ended June
160、 30,2023 and 2022.For more information on negative interest,see Note 1 Summary of Significant Accounting Principles to the Consolidated Financial Statements of the Corporations 2022 Annual Report on Form 10-K.Includes$38.6 billion and$29.9 billion of structured notes and liabilities for the six mont
161、hs ended June 30,2023 and 2022.Net interest income includes FTE adjustments of$269 million and$209 million for the six months ended June 30,2023 and 2022.(1)(1)(2)(3)(4)(5)(6)(1)(2)(3)(4)(5)(6)Bank of America 10Business Segment OperationsSegment Description and Basis of PresentationWe report our res
162、ults of operations through four business segments:ConsumerBanking,GWIM,Global Banking a n d Global Markets,with the remainingoperations recorded in All Other.We manage our segments and report their resultson an FTE basis.For more information,see Business Segment Operations in theMD&A of the Corporat
163、ions 2022 Annual Report on Form 10-K.We periodically review capital allocated to our businesses and allocate capitalannually during the strategic and capital planning processes.We utilize amethodology that considers the effect of regulatory capital requirements in additionto internal risk-based capi
164、tal models.The capital allocated to the businesssegments is referred to as allocated capital.Allocated equity in the reporting unitsis comprised of allocated capitalplus capital for the portion of goodwill and intangibles specifically assigned to thereporting unit.For more information,including the
165、definition of a reporting unit,seeNote 7 Goodwill and Intangible Assets to the Consolidated Financial Statements.For more information on our presentation of financial information on an FTEbasis,see Supplemental Financial Data on page 7,and for reconciliations toconsolidated total revenue,net income
166、and period-end total assets,see Note 17 Business Segment Information to the Consolidated Financial Statements.Key Performance IndicatorsWe present certain key financial and nonfinancial performance indicators thatmanagement uses when evaluating segment results.We believe they are useful toinvestors
167、because they provide additional information about our segmentsoperational performance,customer trends and business growth.Consumer BankingDepositsConsumer LendingTotal Consumer BankingThree Months Ended June 30(Dollars in millions)202320222023202220232022%ChangeNet interest income$5,733$4,477$2,704$
168、2,610$8,437$7,087 19%Noninterest income:Card income(10)(9)1,351 1,329 1,341 1,320 2 Service charges524 678 1 1 525 679(23)All other income177 55 44(5)221 50 n/mTotal noninterest income691 724 1,396 1,325 2,087 2,049 2 Total revenue,net of interest expense6,424 5,201 4,100 3,935 10,524 9,136 15 Provi
169、sion for credit losses103 142 1,164 208 1,267 350 n/mNoninterest expense3,428 3,055 2,025 1,904 5,453 4,959 10 Income before income taxes2,893 2,004 911 1,823 3,804 3,827(1)Income tax expense723 491 228 447 951 938 1 Net income$2,170$1,513$683$1,376$2,853$2,889(1)Effective tax rate 25.0%24.5%Net int
170、erest yield2.29%1.67%3.58%3.64%3.24%2.55%Return on average allocated capital64 47 10 20 27 29 Efficiency ratio53.33 58.74 49.43 48.38 51.81 54.28 Balance SheetThree Months Ended June 30Average202320222023202220232022%ChangeTotal loans and leases$4,078$4,147$302,584$285,448$306,662$289,595 6%Total ea
171、rning assets1,002,528 1,072,773 302,944 287,512 1,045,743 1,114,552(6)Total assets 1,035,969 1,106,098 309,228 294,407 1,085,469 1,154,773(6)Total deposits1,001,307 1,072,166 5,030 5,854 1,006,337 1,078,020(7)Allocated capital13,700 13,000 28,300 27,000 42,000 40,000 5 Estimated at the segment level
172、 only.In segments and businesses where the total of liabilities and equity exceeds assets,we allocate assets from All Other to match the segments and businesses liabilities and allocated shareholders equity.As a result,total earning assets and total assets of thebusinesses may not equal total Consum
173、er Banking.n/m=not meaningful(1)(2)(2)(1)(2)11 Bank of AmericaDepositsConsumer LendingTotal Consumer BankingSix Months Ended June 30(Dollars in millions)202320222023202220232022%ChangeNet interest income$11,549$8,529$5,481$5,238$17,030$13,767 24%Noninterest income:Card income(20)(17)2,635 2,522 2,61
174、5 2,505 4 Service charges1,122 1,521 2 2 1,124 1,523(26)All other income374 123 87 31 461 154 n/mTotal noninterest income1,476 1,627 2,724 2,555 4,200 4,182 Total revenue,net of interest expense13,025 10,156 8,205 7,793 21,230 17,949 18 Provision for credit losses286 215 2,070 83 2,356 298 n/mNonint
175、erest expense6,843 6,063 4,083 3,817 10,926 9,880 11 Income before income taxes5,896 3,878 2,052 3,893 7,948 7,771 2 Income tax expense1,474 950 513 954 1,987 1,904 4 Net income$4,422$2,928$1,539$2,939$5,961$5,867 2 Effective tax rate 25.0%24.5%Net interest yield2.30%1.62%3.67%3.71%3.25 2.52 Return
176、on average allocated capital65 45 11 22 29 30 Efficiency ratio52.53 59.70 49.77 48.97 51.46 55.04 Balance SheetSix Months Ended June 30Average202320222023202220232022%ChangeTotal loans and leases$4,099$4,180$301,126$282,666$305,225$286,846 6%Total earning assets1,012,432 1,061,693 301,378 284,400 1,
177、055,419 1,103,707(4)Total assets 1,045,933 1,095,281 307,760 291,052 1,095,302 1,143,947(4)Total deposits1,011,285 1,061,267 4,949 5,853 1,016,234 1,067,120(5)Allocated capital13,700 13,000 28,300 27,000 42,000 40,000 5 Period endJune 302023December 312022June 302023December 312022June 302023Decembe
178、r 312022%ChangeTotal loans and leases$4,122$4,148$305,613$300,613$309,735$304,761 2%Total earning assets 999,281 1,043,049 306,121 300,787 1,043,228 1,085,079(4)Total assets1,034,405 1,077,203 312,281 308,007 1,084,512 1,126,453(4)Total deposits999,262 1,043,194 5,220 5,605 1,004,482 1,048,799(4)See
179、 page 11 for footnotes.Consumer Banking,comprised of Deposits and Consumer Lending,offers adiversified range of credit,banking and investment products and services toconsumers and small businesses.For more information about Consumer Banking,see Business Segment Operations in the MD&A of the Corporat
180、ions 2022 AnnualReport on Form 10-K.Consumer Banking ResultsThree-Month ComparisonNet income for Consumer Banking decreased$36 million to$2.9 billion due to anincrease in provision for credit losses and higher noninterest expense,largelyoffset by higher revenue.Net interest income increased$1.4 bill
181、ion to$8.4 billionprimarily driven by higher interest rates and loan balances.Noninterest incomeincreased$38 million to$2.1 billion,relatively unchanged from the same period ayear ago.The provision for credit losses increased$917 million to$1.3 billion primarilydriven by credit card loan growth and
182、asset quality in the current-year period,whereas the prior-year period benefitted from reduced COVID-19 pandemicuncertainties.Noninterest expense increased$494 million to$5.5 billion primarilydriven by continued investments in employees and higher litigation expense,including consumer regulatory mat
183、ters.The return on average allocated capital was 27 percent,down from 29 percent,primarily due to an increase in allocated capital.For more information on capitalallocated to the business segments,see Business Segment Operations on page11.Six-Month ComparisonNet income for Consumer Banking increased
184、$94 million to$6.0 billion due tohigher revenue,largely offset by an increase in provision for credit losses andhigher noninterest expense.Net interest income increased$3.3 billion to$17.0billion primarily due to the same factors as described in the three-monthdiscussion.Noninterest income increased
185、$18 million to$4.2 billion,relativelyunchanged from the same period a year ago.The provision for credit losses increased$2.1 billion to$2.4 billion primarily dueto the same factors as described in the three-month discussion.Noninterestexpense increased$1.0 billion to$10.9 billion primarily due to th
186、e same factors asdescribed in the three-month discussion.The return on average allocated capital was 29 percent,down from 30 percent,primarily due to the same factor as described in the three-month discussion.(1)(2)(2)(2)(2)Bank of America 12DepositsThree-Month ComparisonNet income for Deposits incr
187、eased$657 million to$2.2 billion primarily due tohigher revenue,partially offset by higher noninterest expense.Net interest incomeincreased$1.3 billion to$5.7 billion primarily due to higher interest rates.Noninterest income decreased$33 million to$691 million primarily driven by theimpact of non-su
188、fficient funds and overdraft policy changes.Noninterest expense increased$373 million to$3.4 billion primarily driven bycontinued investments in employees and higher litigation expense,includingconsumer regulatory matters.Average deposits decreased$70.9 billion to$1.0 trillion primarily due to netou
189、tflows of$44.8 billion in money market savings and$29.7 billion in checkingprimarily due to higher interest rates and client activity.Six-Month ComparisonNet income for Deposits increased$1.5 billion to$4.4 billion primarily due to higherrevenue,partially offset by higher noninterest expense.Net int
190、erest incomeincreased$3.0 billion to$11.5 billion primarily due to the same factor as describedin the three-month discussion.Noninterest income decreased$151 million to$1.5billion primarily due to the same factor as described in the three-month discussion.Average deposits decreased$50.0 billion to$1
191、.0 trillion primarily due to netoutflows of$30.0 billion in money market savings and$20.7 billion in checkingprimarily driven by the same factors as described in the three-month discussion.The table below provides key performance indicators for Deposits.Management uses these metrics,and we believe t
192、hey are useful to investorsbecause they provide additional information to evaluate our deposit profitability anddigital/mobile trends.Key Statistics DepositsThree Months Ended June 30Six Months Ended June 302023202220232022Total deposit spreads(excludes noninterest costs)2.67%1.70%2.60%1.68%Period e
193、ndConsumer investment assets(in millions)$386,761$315,243Active digital banking users(in thousands)45,71342,690Active mobile banking users(in thousands)37,32934,167Financial centers3,8873,984ATMs15,33515,730Includes deposits held in Consumer Lending.Includes client brokerage assets,deposit sweep bal
194、ances,Bank of America,N.A.brokered CDs and AUM in Consumer Banking.Represents mobile and/or online active users over the past 90 days.Represents mobile active users over the past 90 days.Consumer investment assets increased$71.5 billion to$386.8 billion driven byclient flows and market performance.A
195、ctive mobile banking users increasedapproximately three million,reflecting continuing changes in our clients bankingpreferences.We had a net decrease of 97 financial centers and 395 ATMs as wecontinue to optimize our consumer banking network.Consumer LendingThree-Month ComparisonNet income for Consu
196、mer Lending decreased$693 million to$683 million primarilydue to an increase in provision for credit losses.Net interest income increased$94million to$2.7 billion primarily due to higher loan balances.Noninterest incomeincreased$71 million to$1.4 billion primarily driven by higher mortgage bankingin
197、come and card income.The provision for credit losses increased$956 million to$1.2 billion primarilydriven by credit card loan growth and asset quality in the current-year period,whereas the prior-year period benefitted from reduced COVID-19 pandemicuncertainties.Noninterest expense increased$121 mil
198、lion to$2.0 billion largelydriven by continued investments for business growth and client activity.Average loans increased$17.1 billion to$302.6 billion primarily driven by anincrease in credit card loans.Six-Month ComparisonNet income for Consumer Lending decreased$1.4 billion to$1.5 billion primar
199、ilydue to an increase in provision for credit losses.Net interest income increased$243 million to$5.5 billion primarily due to the same factor as described in thethree-month discussion.Noninterest income increased$169 million to$2.7 billionprimarily due to higher card income.The provision for credit
200、 losses increased$2.0 billion to$2.1 billion primarily dueto the same factors as described in the three-month discussion.Noninterestexpense increased$266 million to$4.1 billion primarily driven by the same factorsas described in the three-month discussion.Average loans increased$18.5 billion to$301.
201、1 billion primarily driven by thesame factor as described in the three-month discussion.The table below provides key performance indicators for Consumer Lending.Management uses these metrics,and we believe they are useful to investorsbecause they provide additional information about loan growth and
202、profitability.(1)(2)(3)(4)(1)(2)(3)(4)13 Bank of AmericaKey Statistics Consumer LendingThree Months Ended June 30Six Months Ended June 30(Dollars in millions)2023202220232022Total credit card Gross interest yield 11.66%9.76%11.75%9.83%Risk-adjusted margin 7.83 9.95 8.25 10.17 New accounts(in thousan
203、ds)1,137 1,068 2,324 2,045 Purchase volumes$93,103$91,810$178,647$172,724 Debit card purchase volumes$132,962$128,707$257,338$246,291 Includes GWIMs credit card portfolio.Calculated as the effective annual percentage rate divided by average loans.Calculated as the difference between total revenue,ne
204、t of interest expense,and net credit losses divided by average loans.During the three and six months ended June 30,2023,the total risk-adjustedmargin decreased 212 bps and 192 bps primarily driven by higher net creditlosses,lower net interest margin and lower fee income.During the three and sixmonth
205、sended June 30,2023 total credit card purchase volumes increased$1.3 billion and$5.9 billion,and debit card purchase volumes increased$4.3 billion and$11.0billion,reflecting higher levels of consumer spending.Key Statistics Loan Production Three Months Ended June 30Six Months Ended June 30(Dollars i
206、n millions)2023202220232022Consumer Banking:First mortgage$2,889$6,551$4,845$14,667 Home equity2,171 2,151 4,354 3,876 Total:First mortgage$5,940$14,471$9,877$30,824 Home equity2,542 2,535 5,138 4,575 The loan production amounts represent the unpaid principal balance of loans and,in the case of home
207、 equity,the principal amount of the total line of credit.In addition to loan production in Consumer Banking,there is also first mortgage and home equity loan production in GWIM.First mortgage loan originations for Consumer Banking and the totalCorporation decreased$3.7 billion and$8.5 billion during
208、 the three months endedJune 30,2023 primarily driven by higher interest rates,resulting in lower customerdemand.During the six months ended June 30,2023,first mortgage loanoriginations for Consumer Banking and the total Corporation decreased$9.8 billionand$20.9 billion primarily driven by changes in
209、 demand.Home equity production in Consumer Banking and the total Corporationremained relatively unchanged during the three months ended June 30,2023compared to the same period a year ago.During the six months ended June 30,2023,home equity production in Consumer Banking and the total Corporationincr
210、eased$478 million and$563 million primarily driven by higher demand.(1)(2)(3)(1)(2)(3)(1)(2)(1)(2)Bank of America 14Global Wealth&Investment ManagementThree Months Ended June 30Six Months Ended June 30(Dollars in millions)20232022%Change20232022%ChangeNet interest income$1,805$1,802%$3,681$3,470 6%N
211、oninterest income:Investment and brokerage services3,251 3,486(7)6,489 7,140(9)All other income186 145 28 387 299 29 Total noninterest income3,437 3,631(5)6,876 7,439(8)Total revenue,net of interest expense5,242 5,433(4)10,557 10,909(3)Provision for credit losses13 33(61)38(8)n/mNoninterest expense3
212、,925 3,875 1 7,992 7,890 1 Income before income taxes1,304 1,525(14)2,527 3,027(17)Income tax expense326 374(13)632 742(15)Net income$978$1,151(15)$1,895$2,285(17)Effective tax rate25.0%24.5%25.0%24.5%Net interest yield2.21 1.82 2.20 1.72 Return on average allocated capital21 26 21 26 Efficiency rat
213、io74.86 71.34 75.70 72.33 Balance SheetThree Months Ended June 30Six Months Ended June 30Average20232022%Change20232022%ChangeTotal loans and leases$218,604$219,277%$220,018$215,130 2%Total earning assets327,066 396,611(18)336,671 407,369(17)Total assets340,105 409,472(17)349,582 420,196(17)Total de
214、posits295,380 363,943(19)304,648 374,365(19)Allocated capital18,500 17,500 6 18,500 17,500 6 Period endJune 302023December 312022%ChangeTotal loans and leases$219,208$223,910(2)%Total earning assets324,820 355,461(9)Total assets338,184 368,893(8)Total deposits292,526 323,899(10)n/m=not meaningfulGWI
215、M consists of two primary businesses:Merrill Wealth Management and Bank ofAmerica Private Bank.For more information about GWIM,see Business SegmentOperations in the MD&A of the Corporations 2022 Annual Report on Form 10-K.Three-Month ComparisonNet income for GWIM decreased$173 million to$978 million
216、 primarily due to lowerrevenue and higher noninterest expense.The operating margin was 25 percentcompared to 28 percent a year ago.Net interest income was$1.8 billion,relatively unchanged from the same perioda year ago.Noninterest income,which primarily includes investment and brokerage servicesinco
217、me,decreased$194 million to$3.4 billion.The decline was primarily driven bylower asset management fees and brokerage fees due to lower average equity andfixed income market levels and transactional volumes,partially offset by the impactof positive AUM flows.Noninterest expense increased$50 million t
218、o$3.9 billion primarily due tocontinued investments in the business,including strategic hiring,largely offset bylower revenue-related incentives.The return on average allocated capital was 21 percent,down from 26 percent,due to lower net income and,to a lesser extent,a small increase in allocatedcap
219、ital.Average loans decreased$673 million to$218.6 billion primarily driven bysecurities based lending,partially offset by residential mortgage and customlending.Average depositsdecreased$68.6 billion to$295.4 billion primarily driven by clients moving depositsto higher yielding investment alternativ
220、es,including offerings on our investment andbrokerage platforms.Merrill Wealth Management revenue of$4.3 billion decreased four percentprimarily driven by lower average equity and fixed income market levels andtransactional volumes,partially offset by the impact of positive AUM flows.Bank of America
221、 Private Bank revenue of$902 million increased one percentprimarily driven by the benefits of higher interest rates and the impact of positiveAUM flows,partially offset by the impact of lower average market valuations.Six-Month ComparisonNet income for GWIM decreased$390 million to$1.9 billion prima
222、rily due to lowerrevenue and higher noninterest expense.The operating margin was 24 percentcompared to 28 percent a year ago.Net interest income increased$211 million to$3.7 billion primarily due to theimpact of higher interest rates,partially offset by the impact of lower depositbalances.Noninteres
223、t income,which primarily includes investment and brokerage servicesincome,decreased$563 million to$6.9 billion due to the same factors as describedin the three-month discussion.Noninterest expense increased$102 million to$8.0 billion due to the samefactors as described in the three-month discussion.
224、15 Bank of AmericaThe return on average allocated capital was 21 percent,down from 26 percent,due to lower net income and,to a lesser extent,a small increase in allocatedcapital.Average loans increased$4.9 billion to$220.0 billion primarily driven byresidential mortgage and custom lending,partially
225、offset by securities basedlending.Average deposits decreased$69.7 billion to$304.6 billion due to the samefactors as described in the three-month discussion.Merrill Wealth Management revenue of$8.7 billion decreased four percentprimarily driven by the same factors as described in the three-month dis
226、cussion,partially offset by the impact of higher interest rates.Bank of America Private Bank revenue of$1.8 billion increased two percentprimarily driven by the same factors as described in the three-month discussion.Key Indicators and MetricsThree Months Ended June 30Six Months Ended June 30(Dollar
227、s in millions)2023202220232022Revenue by BusinessMerrill Wealth Management$4,340$4,536$8,737$9,125 Bank of America Private Bank902 897 1,820 1,784 Total revenue,net of interest expense$5,242$5,433$10,557$10,909 Client Balances by Business,at period endMerrill Wealth Management$3,057,680$2,819,998 Ba
228、nk of America Private Bank577,514 547,116 Total client balances$3,635,194$3,367,114 Client Balances by Type,at period endAssets under management$1,531,042$1,411,344 Brokerage and other assets1,628,294 1,437,562 Deposits292,526 347,991 Loans and leases 222,280 224,847 Less:Managed deposits in assets
229、under management(38,948)(54,630)Total client balances$3,635,194$3,367,114 Assets Under Management RollforwardAssets under management,beginning of period$1,467,242$1,571,605$1,401,474$1,638,782 Net client flows14,296 1,033 29,558 16,570 Market valuation/other49,504(161,294)100,010(244,008)Total asset
230、s under management,end of period$1,531,042$1,411,344$1,531,042$1,411,344 Total wealth advisors,at period end 19,099 18,449 Includes margin receivables which are classified in customer and other receivables on the Consolidated Balance Sheet.Includes advisors across all wealth management businesses in
231、 GWIM and Consumer Banking.Client BalancesClient balances increased$268.1 billion,or eight percent,to$3.6 trillion at June 30,2023 compared to June 30,2022.The increase in client balances was primarily due tothe impact of higher end-of-period market valuations and positive client flows.(1)(2)(1)(2)B
232、ank of America 16Global BankingThree Months Ended June 30Six Months Ended June 30(Dollars in millions)20232022%Change20232022%ChangeNet interest income$3,690$2,634 40%$7,597$4,978 53%Noninterest income:Service charges735 933(21)1,449 1,819(20)Investment banking fees718 692 4 1,386 1,572(12)All other
233、 income1,319 747 77 2,233 1,831 22 Total noninterest income2,772 2,372 17 5,068 5,222(3)Total revenue,net of interest expense6,462 5,006 29 12,665 10,200 24 Provision for credit losses9 157(94)%(228)322 n/mNoninterest expense2,819 2,799 1 5,759 5,482 5 Income before income taxes3,634 2,050 77 7,134
234、4,396 62 Income tax expense981 543 81 1,926 1,165 65 Net income$2,653$1,507 76$5,208$3,231 61 Effective tax rate27.0%26.5%27.0%26.5%Net interest yield2.80 1.97 2.92 1.82 Return on average allocated capital22 14 21 15 Efficiency ratio43.59 55.90 45.46 53.74 Balance SheetThree Months Ended June 30Six
235、Months Ended June 30Average20232022%Change20232022%ChangeTotal loans and leases$383,058$377,248 2%$382,039$368,078 4%Total earning assets527,959 537,660(2)525,181 551,894(5)Total assets595,585 601,945(1)592,254 616,156(4)Total deposits497,533 509,261(2)495,069 524,502(6)Allocated capital49,250 44,50
236、0 11 49,250 44,500 11 Period endJune 30 2023December 31 2022%ChangeTotal loans and leases$381,609$379,107 1%Total earning assets518,547 522,539(1)Total assets586,397 588,466 Total deposits492,734 498,661(1)n/m=not meaningfulGlobal Banking,which includes Global Corporate Banking,Global CommercialBank
237、ing,Business Banking and Global Investment Banking,provides a wide rangeof lending-related products and services,integrated working capital managementand treasury solutions,and underwriting and advisory services through our networkof offices and client relationship teams.For more information about G
238、lobal Banking,see Business Segment Operations in the MD&A of the Corporations 2022 AnnualReport on Form 10-K.Three-Month ComparisonNet income for Global Banking increased$1.1 billion to$2.7 billion primarily drivenby higher revenue and lower provision for credit losses.Net interest income increased$
239、1.1 billion to$3.7 billion predominantly due tothe benefit of higher interest rates.Noninterest income increased$400 million to$2.8 billion driven by higherrevenue from ESG investment activities and negative valuation adjustments onleveraged loans in the prior-year period,partially offset by lower t
240、reasury servicecharges due to higher earnings credit rates.The provision for credit losses decreased$148 million to$9 million as the prior-year period was impacted by reserve builds for a dampened macroeconomicoutlook and loan growth.Noninterest expense increased$20 million to$2.8 billion,primarily
241、due tocontinued investments in the business,including technology and strategic hiring inthe prior year,largely offset by expenses recognized for certain regulatory mattersin the prior-year period.The return on average allocated capital was 22 percent,up from 14 percent,due to higher net income,parti
242、ally offset by higher allocated capital.For moreinformation on capital allocated to the business segments,see Business SegmentOperations on page 11.Six-Month ComparisonNet income for Global Banking increased$2.0 billion to$5.2 billion driven by higherrevenue and lower provision for credit losses,par
243、tially offset by higher noninterestexpense.Net interest income increased$2.6 billion to$7.6 billion due to the same factoras described in the three-month discussion.Noninterest income decreased$154 million to$5.1 billion driven by lowertreasury service charges and lower investment banking fees,parti
244、ally offset bynegative valuation adjustments on leveraged loans in the prior-year period andhigher revenue from ESG investment activities.The provision for credit losses improved$550 million to a benefit of$228 millionprimarily due to the same factors as described in the three-month discussion andce
245、rtain improved macroeconomic conditions in the current-year period compared toa reserve build related to Russian exposure in the prior-year period.Noninterest expense increased$277 million to$5.8 billion,primarily due to thesame factors as described in the three-month discussion.17 Bank of AmericaTh
246、e return on average allocated capital was 21 percent,up from 15 percent,due to higher net income,partially offset by higher allocated capital.Global Corporate,Global Commercial and Business BankingThe following table and discussion present a summary of the results,which excludecertain investment ban
247、king and Paycheck Protection Program(PPP)activities inGlobal Banking.Global Corporate,Global Commercial and Business Banking Global Corporate BankingGlobal Commercial BankingBusiness BankingTotalThree Months Ended June 30(Dollars in millions)20232022202320222023202220232022RevenueBusiness Lending$1,
248、359$946$1,270$1,024$63$62$2,692$2,032 Global Transaction Services1,483 1,138 1,045 973 395 270 2,923 2,381 Total revenue,net of interest expense$2,842$2,084$2,315$1,997$458$332$5,615$4,413 Balance SheetAverageTotal loans and leases$174,280$176,949$196,069$186,452$12,508$12,865$382,857$376,266 Total
249、deposits267,949 244,763 177,901 206,805 51,682 57,697 497,532 509,265 Global Corporate BankingGlobal Commercial BankingBusiness BankingTotalSix Months Ended June 30(Dollars in millions)20232022202320222023202220232022RevenueBusiness Lending$2,393$2,006$2,503$2,017$130$120$5,026$4,143 Global Transact
250、ion Services3,032 2,087 2,174 1,869 782 513 5,988 4,469 Total revenue,net of interest expense$5,425$4,093$4,677$3,886$912$633$11,014$8,612 Balance SheetAverageTotal loans and leases$174,783$171,999$194,442$181,992$12,563$12,851$381,788$366,842 Total deposits263,587 251,297 180,245 215,226 51,241 57,
251、980 495,073 524,503 Period endTotal loans and leases$173,248$179,638$195,899$191,983$12,324$12,996$381,471$384,617 Total deposits265,104 239,113 177,235 203,934 50,391 56,666 492,730 499,713 Business Lending revenue increased$660 million for the three months endedJune 30,2023 compared to the same pe
252、riod in 2022 primarily due to the benefit ofhigher interest rates and higher ESG investment activities.Business Lendingrevenue increased$883 million for the six months ended June 30,2023 comparedto the same period in 2022 primarily due to the benefits of higher interest rates,loan balances and highe
253、r ESG investment activities.Global Transaction Services revenue increased$542 million for the threemonths ended June 30,2023 driven by the benefit of higher interest rates,partiallyoffset by lower treasury service charges.Global Transaction Services revenueincreased$1.5 billion for the six months en
254、ded June 30,2023 driven by the benefitof higher interest rates,partially offset by lower treasury service charges and theimpact of lower deposit balances.Average loans and leases increased two percent and four percent for the threeand six months ended June 30,2023 due to client demand.Average deposi
255、tsdecreased two percent and six percent for the three and six months ended June30,2023 due to declines in domestic balances.Global Investment BankingClient teams and product specialists underwrite and distribute debt,equity and loanproducts,and provide advisory services and tailored risk management
256、solutions.The economics of certain investment banking and underwriting activities are sharedprimarily between Global Banking and Global Markets under an internal revenue-sharing arrangement.Global Banking originates certain deal-related transactionswith our corporate and commercial clients that are
257、executed and distributed byGlobal Markets.To provide a complete discussion of our consolidated investmentbanking fees,the following table presents total Corporation investment bankingfees and the portion attributable to Global Banking.Bank of America 18Investment Banking FeesGlobal BankingTotal Corp
258、orationGlobal BankingTotal CorporationThree Months Ended June 30Six Months Ended June 30(Dollars in millions)20232022202320222023202220232022ProductsAdvisory$333$361$375$392$646$800$738$865 Debt issuance263 283 600 662 553 642 1,244 1,493 Equity issuance122 48 287 139 187 130 455 364 Gross investmen
259、t banking fees718 692 1,262 1,193 1,386 1,572 2,437 2,722 Self-led deals(16)(28)(50)(65)(20)(58)(62)(137)Total investment banking fees$702$664$1,212$1,128$1,366$1,514$2,375$2,585 Total Corporation investment banking fees,which exclude self-led deals and are primarily included within Global Banking a
260、nd Global Markets,were$1.2 billion and$2.4billion for the three and six months ended June 30,2023.The three-month period increased seven percent compared to the same period in 2022 primarily due to higherequity issuance fees,partially offset by lower debt issuance and advisory fees.The six-month per
261、iod decreased eight percent compared to the same period in 2022 primarilydue to lower debt issuance and advisory fees,partially offset by higher equity issuance fees.Global MarketsThree Months Ended June 30Six Months Ended June 30(Dollars in millions)20232022%Change20232022%ChangeNet interest income
262、$297$981(70)%$406$1,974(79)%Noninterest income:Investment and brokerage services499 518(4)1,032 1,063(3)Investment banking fees503 461 9 972 1,043(7)Market making and similar activities3,409 2,657 28 7,807 5,847 34 All other income163(115)n/m280(133)n/mTotal noninterest income4,574 3,521 30 10,091 7
263、,820 29 Total revenue,net of interest expense4,871 4,502 8 10,497 9,794 7 Provision for credit losses(4)8(150)(57)13 n/mNoninterest expense3,349 3,109 8 6,700 6,226 8 Income before income taxes1,526 1,385 10 3,854 3,555 8 Income tax expense420 367 14 1,060 942 13 Net income$1,106$1,018 9$2,794$2,613
264、 7 Effective tax rate27.5%26.5%27.5%26.5%Return on average allocated capital10 10 12 12 Efficiency ratio68.74 69.07 63.82 63.57 Balance SheetThree Months Ended June 30Six Months Ended June 3020232022%Change20232022%ChangeAverageTrading-related assets:Trading account securities$317,928$295,190 8%$328
265、,529$298,220 10%Reverse repurchases139,480 131,456 6 133,155 134,999(1)Securities borrowed120,481 119,200 1 118,392 116,847 1 Derivative assets43,236 60,289(28)43,490 51,106(15)Total trading-related assets621,125 606,135 2 623,566 601,172 4 Total loans and leases128,539 114,375 12 126,802 111,492 14
266、 Total earning assets657,947 598,832 10 643,024 604,846 6 Total assets877,471 866,742 1 873,727 862,753 1 Total deposits33,222 41,192(19)34,658 42,784(19)Allocated capital45,500 42,500 7 45,500 42,500 7 Period end%ChangeJune 30 2023December 31 2022%ChangeTotal trading-related assets6%$599,787$564,76
267、9 6%Total loans and leases3 131,128 127,735 3 Total earning assets9 640,712 587,772 9 Total assets5 851,771 812,489 5 Total deposits(15)33,049 39,077(15)n/m=not meaningful19 Bank of AmericaGlobal Markets offers sales and trading services and research services toinstitutional clients across fixed-inc
268、ome,credit,currency,commodity and equitybusinesses.Global Markets product coverage includes securities and derivativeproducts in both the primary and secondary markets.For more information aboutGlobal Markets,see Business Segment Operations in the MD&A of theCorporations 2022 Annual Report on Form 1
269、0-K.The following explanations for current period-over-period changes for GlobalMarkets,including those disclosed under Sales and Trading Revenue,are thesame for amounts including and excluding net DVA.Amounts excluding net DVAare a non-GAAP financial measure.For more information on net DVA,seeSuppl
270、emental Financial Data on page 7.Three-Month ComparisonNet income for Global Markets increased$88 million to$1.1 billion.Net DVA losseswere$102 million in the current-year period compared to gains of$158 million inthe prior-year period.Excluding net DVA,net income increased$286 million to$1.2billion
271、.These increases were primarily driven by higher revenue,partially offset byhigher noninterest expense.Revenue increased$369 million to$4.9 billion primarily due to higher sales andtrading revenue and negative valuation adjustments on leveraged loans in theprior-year period.Sales and trading revenue
272、 increased$132 million,and excludingnet DVA,sales and trading revenue increased$392 million.These increases weredriven by a strong performance in FICC.Noninterest expense increased$240 million to$3.3 billion primarily driven bycontinued investments in the business,including people and technology,and
273、activity-related expenses,partially offset by expenses recognized for certainregulatory matters in the prior-year period.Average total assets increased$10.7 billion to$877.5 billion driven by higherlevels of inventory and loan growth in FICC,partially offset by lower levels ofinventory in Equities.T
274、he return on average allocated capital was 10 percent,unchanged from thesame period a year ago.For more information on capital allocated to the businesssegments,see Business Segment Operations on page 11.Six-Month ComparisonNet income for Global Markets increased$181 million to$2.8 billion.Net DVAlo
275、sses were$88 million compared to gains of$227 million in the prior-year period.Excluding net DVA,net income increased$421 million to$2.9 billion.Theseincreases were primarily driven by higher revenue,partially offset by highernoninterest expense.Revenue increased$703 million to$10.5 billion primaril
276、y due to the samefactors as described in the three-month discussion.Sales and trading revenueincreased$480 million,and excluding net DVA,sales and trading revenueincreased$795 million.These increases were driven by higher revenue in FICC,partially offset by lower revenue in Equities.Noninterest expe
277、nse increased$474 million to$6.7 billion primarily driven bythe same factors as described in the three-month discussion.Average total assets increased$11.0 billion to$873.7 billion driven by higherlevels of inventory and loan growth in FICC,partially offset by lower levels ofinventory in Equities.Pe
278、riod-end total assets increased$39.3 billion fromDecember 31,2022 to$851.8 billion driven by increased securities financingactivity and higher levels of inventory in FICC.The return on average allocated capital was 12 percent,unchanged from thesame period a year ago.Sales and Trading RevenueFor a de
279、scription of sales and trading revenue,see Business Segment Operationsin the MD&A of the Corporations 2022 Annual Report on Form 10-K.The followingtable and related discussion present sales and trading revenue,substantially all ofwhich is in Global Markets,with the remainder in Global Banking.In add
280、ition,thefollowing table and related discussion also present sales and trading revenue,excluding net DVA,which is a non-GAAP financial measure.For more informationon net DVA,see Supplemental Financial Data on page 7.Sales and Trading Revenue Three Months Ended June 30Six Months Ended June 30(Dollars
281、 in millions)2023202220232022Sales and trading revenueFixed income,currencies and commodities$2,667$2,500$6,107$5,208 Equities1,618 1,653 3,245 3,664 Total sales and trading revenue$4,285$4,153$9,352$8,872 Sales and trading revenue,excluding net DVA Fixed income,currencies and commodities$2,764$2,34
282、0$6,193$4,988 Equities1,623 1,655 3,247 3,657 Total sales and trading revenue,excluding net DVA$4,387$3,995$9,440$8,645 For more information on sales and trading revenue,see Note 3 Derivatives to the Consolidated Financial Statements.Includes FTE adjustments of$85 million and$175 million for the thr
283、ee and six months ended June 30,2023 compared to$102 million and$195 million for the same periods in 2022.Includes Global Banking sales and trading revenue of$154 million and$331 million for the three and six months ended June 30,2023 compared to$319 million and$498 million for the same periods in 2
284、022.FICC and Equities sales and trading revenue,excluding net DVA,is a non-GAAP financial measure.FICC net DVA gains(losses)were$(97)million and$(86)million for the three and six months ended June 30,2023 compared to$160 million and$220million for the same periods in 2022.Equities net DVA gains(loss
285、es)were$(5)million and$(2)million for the three and six months ended June 30,2023 compared to$(2)million and$7 million for the same periods in 2022.Three-Month ComparisonIncluding and excluding net DVA,FICC revenue increased$167 million and$424million primarily driven by strong trading performance i
286、n currencies,emergingmarkets interest rates,and secured financing,as well as improved trading in creditand mortgage products,partially offset by weaker performance in commodities.Including and excluding net DVA,Equities revenuedecreased$35 million and$32 million driven by weaker trading performance
287、inderivatives,partially offset by an increase in client financing activities.Six-Month ComparisonIncluding and excluding net DVA,FICC revenue increased$899 million and$1.2billion primarily due to the same factors as(1,2,3)(4)(1)(2)(3)(4)Bank of America 20described in the three-month discussion.Inclu
288、ding and excluding net DVA,Equitiesrevenue decreased$419 millionand$410 million driven by weaker trading performance in derivatives.All OtherThree Months Ended June 30Six Months Ended June 30(Dollars in millions)20232022%Change20232022%ChangeNet interest income$64$43 49%$161$36 n/mNoninterest income
289、(loss)(1,831)(1,329)38(3,386)(2,763)23%Total revenue,net of interest expense(1,767)(1,286)37(3,225)(2,727)18 Provision for credit losses(160)(25)n/m(53)(72)(26)Noninterest expense492 531(7)899 1,114(19)Loss before income taxes(2,099)(1,792)17(4,071)(3,769)8 Income tax benefit(1,917)(1,474)30(3,782)(
290、3,087)23 Net loss$(182)$(318)(43)$(289)$(682)(58)Balance SheetThree Months Ended June 30Six Months Ended June 30Average20232022%Change20232022%ChangeTotal loans and leases$9,745$14,391(32)%$9,910$14,896(33)%Total assets 276,728 124,923 122 225,014 139,588 61 Total deposits42,881 19,663 118 33,842 20
291、,081 69 Period endJune 302023December 312022%ChangeTotal loans and leases$9,544$10,234(7)%Total assets 262,334 155,074 69 Total deposits54,418 19,905 n/mIn segments where the total of liabilities and equity exceeds assets,which are generally deposit-taking segments,we allocate assets from All Other
292、to those segments to match liabilities(i.e.,deposits)and allocated shareholders equity.Average allocatedassets were$977.8 billion and$995.1 billion for the three and six months ended June 30,2023 compared to$1.1 trillion and$1.2 trillion for the same periods in 2022,and period-end allocated assets w
293、ere$963.6 billion and$1.0 trillion at June 30,2023 andDecember 31 2022.n/m=not meaningfulAll Other primarily consists of asset and liability management(ALM)activities,liquidating businesses and certain expenses not otherwise allocated to a businesssegment.ALM activities encompass interest rate and f
294、oreign currency riskmanagement activities for which substantially all of the results are allocated to ourbusiness segments.For more information on our ALM activities,see Note 17 Business Segment Information to the Consolidated Financial Statements.Three-Month ComparisonThe net loss in All Other decr
295、eased$136 million to$182 million primarily due to ahigher income tax benefit,mostly offset by lower noninterest income.Noninterest income decreased$502 million primarily due to higher partnershiplosses for ESG investments and$197 million of losses on sales of AFS debtsecurities.The income tax benefi
296、t increased$443 million reflecting an increase in taxpreference benefits primarily driven from income tax credits related to ESGinvestment activity.Both periods included income tax benefit adjustments toeliminate the FTE treatment of certain tax credits recorded in Global Banking andGlobal Markets.S
297、ix-Month ComparisonThe net loss in All Other decreased$393 million to$289 million primarily due to ahigher income tax benefit and lower noninterest expense,mostly offset by lowernoninterest income.Noninterest income decreased$623 million primarily due to losses on sales ofAFS debt securities and hig
298、her partnership losses for ESG investments,partiallyoffset by derivative gains related to risk management activities.Noninterest expense decreased$215 million primarily due to expensesrecognized for certain regulatory matters in the prior-year period.The income tax benefit increased$695 million refl
299、ecting the impact described inthe three-month discussion.Both periods included income tax benefit adjustmentsto eliminate the FTE treatment of certain tax credits recorded in Global Bankingand Global Markets.Managing RiskRisk is inherent in all our business activities.The seven key types of risk fac
300、ed bythe Corporation are strategic,credit,market,liquidity,compliance,operational andreputational.Sound risk management enables us to serve our customers anddeliver for our shareholders.If not managed well,risk can result in financial loss,regulatory sanctions and penalties,and damage to our reputat
301、ion,each of whichmay adversely impact our ability to execute our business strategies.We take acomprehensive approach to risk management with a defined Risk Framework andan articulated Risk Appetite Statement,which are approved annually by theEnterprise Risk Committee and the Board.Our Risk Framework
302、 serves as the foundation for the consistent and effectivemanagement of risks facing the Corporation.The Risk Framework sets forth rolesand responsibilities for the management of risk and provides a blueprint for how theBoard,through delegation of authority to committees and executive officers,estab
303、lishes risk appetite and associated limits for our activities.Our risk appetite provides a common framework that includes a set of measuresto assist senior management and the Board in assessing the Corporations riskprofile against our risk appetite and risk capacity.Our risk appetite is formallyarti
304、culated in the Risk Appetite Statement,which includes both qualitativestatements and quantitative limits.For more information on the Corporations risks,see Item 1A.Risk Factors ofthe Corporations 2022 Annual Report on Form 10-K.These risks are beingmanaged within our Risk(1)(1)(1)21 Bank of AmericaF
305、ramework and supporting risk management programs.For more information onour Risk Framework,risk management activities and the key types of risk faced bythe Corporation,see the Managing Risk section in the MD&A of the Corporations2022 Annual Report on Form 10-K.Capital ManagementThe Corporation manag
306、es its capital position so that its capital is more thanadequate to support its business activities and aligns with risk,risk appetite andstrategic planning.For more information,including related regulatory requirements,see Capital Management in the MD&A of the Corporations 2022 Annual Report onForm
307、 10-K.CCAR and Capital PlanningThe Federal Reserve requires BHCs to submit a capital plan and planned capitalactions on an annual basis,consistent with the rules governing the CCAR capitalplan.We submitted our 2023 CCAR capital plan and related supervisory stresstests in April 2023.On July 27,2023,t
308、he Federal Reserve released final 2023CCAR supervisory stress test results for Bank of America.Based on the results,our SCB will be 2.5 percent.For more information,see Executive Summary Recent Developments Capital Management on page 3.In October 2021,the Board authorized the Corporations$25 billion
309、 commonstock repurchase program.Additionally,the Board authorized common stockrepurchases to offset shares awarded under the Corporations equity-basedcompensation plans.Pursuant to the Boards authorizations,during the secondquarter of 2023,we repurchased$550 million of common stock,predominantlyoffs
310、etting shares awarded under equity-based compensation plans.The timing and amount of common stock repurchases are subject to variousfactors,including the Corporations capital position,liquidity,financial performanceand alternative uses of capital,stock trading price,regulatory requirements andgenera
311、l market conditions,and may be suspended at any time.Such repurchasesmay be effected through open market purchases or privately negotiatedtransactions,including repurchase plans that satisfy the conditions of Rule 10b5-1of the Securities Exchange Act of 1934,as amended(Exchange Act).Regulatory Capit
312、alAs a bank holding company,we are subject to regulatory capital rules,includingBasel 3,issued by U.S.banking regulators.The Corporations depository institutionsubsidiaries are also subject to the Prompt Corrective Action(PCA)framework.The Corporation and its primary affiliated banking entity,BANA,a
313、re Advancedapproaches institutions under Basel 3 and are required to report regulatory risk-based capital ratios and risk-weighted assets(RWA)under both the Standardizedand Advanced approaches.The lower of the capital ratios underStandardized or Advanced approaches compared to their respective regul
314、atorycapital ratio requirements is used to assess capital adequacy,including under thePCA framework.As of June 30,2023,the CET1 capital,Tier 1 capital and Totalcapital ratios under the Standardized approach were the binding ratios.Minimum Capital RequirementsIn order to avoid restrictions on capital
315、 distributions and discretionary bonuspayments,the Corporation must meet risk-based capital ratio requirements thatinclude a capital conservation buffer of 2.5 percent(under the Advancedapproaches only),an SCB(under the Standardized approach only),plus anyapplicable countercyclical capital buffer an
316、d a G-SIB surcharge.The buffers andsurcharge must be comprised solely of CET1 capital.For the period from October1,2022 through September 30,2023,the Corporations minimum CET1 capitalratio requirements are 10.4 percent under the Standardized approach and 9.5percent under the Advanced approaches.The
317、Corporation is required to calculate its G-SIB surcharge on an annual basisunder two methods and is subject to the higher of the resulting two surcharges.Method 1 is consistent with the approach prescribed by the Basel Committeesassessment methodology and is calculated using specified indicators of
318、systemicimportance.Method 2 modifies the Method 1 approach by,among other factors,including a measure of the Corporations reliance on short-term wholesale funding.The Corporations G-SIB surcharge,which is higher under Method 2,is expected toincrease 50 bps on January 1,2024,which would increase our
319、minimum CET1capital ratio requirement.At June 30,2023,the Corporations CET1 capital ratio of11.6 percent under the Standardized approach exceeded its current CET1 capitalratio requirement as well as the minimum requirement expected to be in place as ofJanuary 1,2024 due to the anticipated increase i
320、n our G-SIB surcharge.The Corporation is also required to maintain a minimum supplementaryleverage ratio(SLR)of 3.0 percent plus a leverage buffer of 2.0 percent in order toavoid certain restrictions on capital distributions and discretionary bonus payments.Our insured depository institution subsidi
321、aries are required to maintain a minimum6.0 percent SLR to be considered well capitalized under the PCA framework.Capital Composition and RatiosTable 8 presents Bank of America Corporations capital ratios and relatedinformation in accordance with Basel 3 Standardized and Advanced approaches asmeasur
322、ed at June 30,2023 and December 31,2022.For the periods presentedherein,the Corporation met the definition of well capitalized under currentregulatory requirements.Bank of America 22Table 8Bank of America Corporation Regulatory Capital under Basel 3StandardizedApproach AdvancedApproaches RegulatoryM
323、inimum(Dollars in millions,except as noted)June 30,2023Risk-based capital metrics:Common equity tier 1 capital$190,113$190,113 Tier 1 capital218,503 218,503 Total capital 248,023 239,279 Risk-weighted assets(in billions)1,639 1,436 Common equity tier 1 capital ratio11.6%13.2%10.4%Tier 1 capital rati
324、o13.3 15.2 11.9 Total capital ratio15.1 16.7 13.9 Leverage-based metrics:Adjusted quarterly average assets(in billions)$3,098$3,098 Tier 1 leverage ratio7.1%7.1%4.0 Supplementary leverage exposure(in billions)$3,642 Supplementary leverage ratio6.0%5.0 December 31,2022Risk-based capital metrics:Commo
325、n equity tier 1 capital$180,060$180,060 Tier 1 capital208,446 208,446 Total capital 238,773 230,916 Risk-weighted assets(in billions)1,605 1,411 Common equity tier 1 capital ratio11.2%12.8%10.4%Tier 1 capital ratio13.0 14.8 11.9 Total capital ratio14.9 16.4 13.9 Leverage-based metrics:Adjusted quart
326、erly average assets(in billions)$2,997$2,997 Tier 1 leverage ratio7.0%7.0%4.0 Supplementary leverage exposure(in billions)$3,523 Supplementary leverage ratio5.9%5.0 Capital ratios as of June 30,2023 and December 31,2022 are calculated using the regulatory capital rule that allows a five-year transit
327、ion period related to the adoption of the current expected credit losses(CECL)accounting standard on January 1,2020.The CET1 capital regulatory minimum is the sum of the CET1 capital ratio minimum of 4.5 percent,our G-SIB surcharge of 2.5 percent and our capital conservation buffer of 2.5 percent(un
328、der the Advanced approaches)or the SCB of 3.4 percent(under theStandardized approach),as applicable,at both June 30,2023 and December 31,2022.The countercyclical capital buffer was zero for both periods.The SLR regulatory minimum includes a leverage buffer of 2.0 percent.Total capital under the Adva
329、nced approaches differs from the Standardized approach due to differences in the amount permitted in Tier 2 capital related to the qualifying allowance for credit losses.Reflects total average assets adjusted for certain Tier 1 capital deductions.At June 30,2023,CET1 capital was$190.1 billion,an inc
330、rease of$10.1 billionfrom December 31,2022,primarily due to earnings,partially offset by dividendsand common stock repurchases.Tier 1 capital increased$10.1 billion primarilydriven by the same factors as CET1 capital.Total capital under the Standardizedapproach increased$9.3 billion primarily due to
331、 the same factors driving theincrease in Tier 1 capital and an increase in the adjusted allowance for creditlosses included in Tier 2 capital,partially offset by a decrease in subordinateddebt.RWA under the Standardized approach,which yielded the lower CET1 capitalratio at June 30,2023,increased$34.
332、2 billion during the six months ended June30,2023 to$1,639 billion primarily due to higher counterparty exposures in GlobalMarkets and loan growth.Supplementary leverage exposure at June 30,2023increased$118.2 billion primarily due to higher cash held at central banks,partiallyoffset by lower debt s
333、ecurities balances.(1)(1)(2)(3)(4)(3)(4)(1)(2)(3)(4)23 Bank of AmericaTable 9 shows the capital composition at June 30,2023 and December 31,2022.Table 9Capital Composition under Basel 3(Dollars in millions)June 302023December 31 2022Total common shareholders equity$254,922$244,800 CECL transitional amount 1,254 1,881 Goodwill,net of related deferred tax liabilities(68,644)(68,644)Deferred tax asse