EX-99.1 2 bac-12312015ex991.htm THE PRESS RELEASE Exhibit

Bank of America Reports Q4-15 Net Income of $3.3B, EPS of $0.28
Full-Year 2015 Net Income of $15.9B, EPS of $1.31(1)
Financial Highlights2
Business Highlights2

•    Revenue, net of interest expense, (FTE basis) up 4% to $19.8B(A)
•    Net interest income (NII) (FTE basis) up 2% to $10.0B(A)
    Excluding market-related NII and other adjustments(A), NII was $10.5B, compared to $10.3B in Q3-15 and $10.4B in Q4-14
•    Noninterest income up 7% to $9.7B
•    Provision for credit losses $0.8B, compared to $0.8B in Q3-15 and $0.2B in Q4-14
•    Noninterest expense declined 2% to $13.9B; excluding litigation, noninterest expense declined 3% to $13.4B(B) 
•    Net income up 9% to $3.3B; earnings per diluted share $0.28, compared to $0.25

Previously Disclosed Q4-15 Items

•    ($0.03) per share for reduction to NII for certain trust preferred securities

•    ($0.03) per share for negative impact of U.K. tax law changes

Balance Sheet, Capital and Liquidity

•    Common equity tier 1 capital (transition) of $163.0B; Common equity tier 1 capital (fully phased-in) of $154.1B(C)
•    Global Excess Liquidity Sources increased $65B to record $504B; time to required funding at 39 months(D) 
•    Total deposit balances up $78B to $1.2T
•    Return on average assets 0.61%; return on average common equity 5.1%; return on average tangible common equity 7.3%(E) 
•    Tangible book value per share(F) increased 8% to $15.62; book value per share increased 6% to $22.54
•    Returned $4.5B in capital to shareholders in 2015 through common stock repurchases and dividends
Consumer Banking
•    Loans up $12B, deposits up $48B2
•    Brokerage assets up 8%
•    Total mortgage production up 13%
•    Total U.S. credit card spending up 5%
Global Wealth and Investment Management
•    Total client balances of nearly $2.5T
•    Long-term assets under management flows of $7B in Q4-15
•    Loans up $12B, deposits up $16B2
Global Banking
    Loans up $37B, deposits up $16B2
    No. 3 in Global Investment Banking fees(G)
    Participated in 8 of top 10 debt deals and 7 of top 10 equity deals(G)
Global Markets
•    Excluding net DVA, sales and trading revenue up 11%(H)
–    Fixed income up 20%(H)
–    Equities down 3%(H)
Legacy Assets and Servicing
•    Noninterest expense down 16% to $1.1B; noninterest expense, excluding litigation, down 28% to $795MM(I)
•    Number of 60+ days delinquent first mortgage loans down 46% to 103,000 units
CEO Commentary
Highest Annual Net Income in Nearly a Decade

"The 2015 results were our highest earnings in nearly a decade, reflecting the work we’ve done to develop a straightforward operating model focused on responsible growth and doing more business with each customer and client. We saw solid customer activity in loan growth, deposits, and wealth management asset flows, and we returned more capital to our shareholders. As we build on this progress, we will continue to invest in the future and manage expenses."


– Brian Moynihan, Chief Executive Officer
1 
2015 results include early adoption of new accounting guidance on the recognition and measurement of financial instruments. See endnote H for more information.
2 
Financial Highlights and Business Highlights comparison to year-ago quarter unless noted. Loan and deposit balances are shown on an end-of-period basis. Fully taxable-equivalent (FTE) basis for the corporation is a non-GAAP financial measure. See endnote A for more information. Total revenue, net of interest expense, on a GAAP basis was $19.5B for Q4-15, and net interest income on a GAAP basis was $9.8B for Q4-15. Earnings per share on a fully diluted basis.

1



CFO Commentary

"Our results this quarter reflect our ongoing efforts to improve operating leverage while continuing to invest in our business. We increased net interest income, managed expenses tightly, and returned $1.3 billion in capital to our shareholders this quarter through common stock repurchases and dividends."

– Paul Donofrio, Chief Financial Officer

Consumer Banking
 
 
 
Three months ended
Financial Results1
($ in millions)
12/31/2015
9/30/2015
12/31/2014
•    Revenue up $33MM to $7.8B

–    NII benefited from higher deposits and loans

–    Noninterest income down, due primarily to lower mortgage banking income

•    Noninterest expense down $76MM, due primarily to lower operating expenses; efficiency ratio improved to 56% from 57%

•    Net income up 9% to $1.8B

Net interest income (FTE)
$
5,059

$
5,004

$
4,967

Noninterest income
2,733

2,828

2,792

Total revenue (FTE)2
7,792

7,832

7,759

Provision for credit losses
654

648

653

Noninterest expense
4,343

4,435

4,419

Net income
$
1,799

$
1,759

$
1,654

1    Comparisons are to the year-ago quarter unless noted. Revenue and net interest income are on an FTE basis.
2    Revenue, net of interest expense.
 
 
Three months ended
Business Highlights1,2
($ in billions)
12/31/2015
9/30/2015
12/31/2014
•    No. 1 retail deposit market share3

•    Average deposit balances grew $40B, or 8%

•    Average loan balances grew $12B, or 6%

•    Total mortgage and home equity production4 grew $2B, or 13%, to $17B

•    Client brokerage assets grew $9B, or 8% to $123B

•    Approximately 1.3MM new U.S. consumer credit cards issued

•    18.7MM mobile banking active users, up 13%

•    4,726 financial centers, including 9 new openings during the quarter

•    Combined credit/debit spending up $4B to $130B
Average deposits
$
557.3

$
548.9

$
517.6

Average loans and leases
211.1

206.3

199.2

Brokerage assets (EOP)
122.7

117.2

113.8

Total mortgage production4
17.0

16.9

15.0

Mobile banking users (MM)
18.7

18.4

16.5

Number of financial centers
4,726

4,741

4,855

Efficiency ratio (FTE)1
56
%
57
%
57
%
Return on average allocated capital(J)
25
%
24
%
22
%
Total U.S. Consumer Credit Card
New card accounts (MM)2
1.3

1.3

1.2

Risk-adjusted margin2
9.81
%
9.54
%
9.96
%
1    Comparisons are to the year-ago quarter unless noted. Efficiency ratio is on an FTE basis.
2    The U.S. card portfolio includes Consumer Banking and GWIM.
3    Source: SNL branch data, U.S. retail deposit market share based on June 2015 FDIC deposit data, adjusted to remove commercial balances.
4    Total mortgage production includes first mortgage and home equity originations in Consumer Banking and GWIM. Amounts represent the unpaid principal balance of loans and in the case of home equity, the principal amount of the total line of credit.



2



Global Wealth and Investment Management
 
 
 
Three months ended
Financial Results1
($ in millions)
12/31/2015
9/30/2015
12/31/2014
•    Revenue down $160MM to $4.4B

–    NII relatively flat, as the benefits from loan and deposit growth were mostly offset by the impact of the firm's allocation of asset liability management (ALM) activities

–    Noninterest income down, due to lower transactional activity and lower market valuations

•    Noninterest expense up $36MM, due primarily to higher amortization of previously issued stock awards and investments in client-facing professionals, partially offset by lower revenue-related incentives

•    Net income down 13% to $614MM
Net interest income (FTE)
$
1,412

$
1,377

$
1,406

Noninterest income
3,031

3,091

3,197

Total revenue (FTE)2
4,443

4,468

4,603

Provision for credit losses
15

(2
)
14

Noninterest expense
3,478

3,446

3,442

Net income
$
614

$
656

$
705

1    Comparisons are to the year-ago quarter unless noted. Revenue and net interest income are on an FTE basis.
2    Revenue, net of interest expense.
 
 
Three months ended
Business Highlights1
($ in billions)
12/31/2015
9/30/2015
12/31/2014
•    Average deposit balances grew $12.5B, or 5%

•    Average loans and leases grew $12.3B, or 10%

•    Total client balances relatively unchanged at nearly $2.5T

•    Long-term assets under management (AUM) flows of $7B were the 26th consecutive quarter of positive flows

•    Number of wealth advisors increased 5% to 18,167

Average deposits
$
251.3

$
244.0

$
238.8

Average loans and leases
135.8

133.2

123.5

Long-term AUM flows
6.7

4.4

9.4

Liquidity AUM flows
4.8

(3.2
)
(0.3
)
Pretax margin
21
%
23
%
25
%
Efficiency ratio (FTE)1
78
%
77
%
75
%
Return on average allocated capital(J)
20
%
22
%
23
%
1    Comparisons are to the year-ago quarter unless noted. Efficiency ratio is on an FTE basis.



3



Global Banking
 
 
 
Three months ended
Financial Results1
($ in millions)
12/31/2015
9/30/2015
12/31/2014
•    Revenue up $39MM to $4.4B

–    NII benefited from increased loan and deposit balances, partially offset by the impact of the firm’s allocation of ALM activities, including liquidity costs, as well as loan spread compression

–    Noninterest income increased, driven by improvements in leasing and treasury services, as well as a gain on the sale of a foreclosed property, partially offset by lower investment banking fees

•    Provision for credit losses increased $264MM, driven by higher energy-related charge-offs, as well as reserve builds for loan growth and energy exposure

•    Noninterest expense decreased, driven by lower litigation and incentive compensation costs, partially offset by investments in client-facing professionals

•    Net income down 9% to $1.4B, driven mostly by higher provision for credit losses
Net interest income (FTE)
$
2,435

$
2,346

$
2,415

Noninterest income2
1,918

1,844

1,899

Total revenue (FTE)2,3
4,353

4,190

4,314

Provision for credit losses
233

179

(31
)
Noninterest expense
1,938

2,018

1,969

Net income
$
1,378

$
1,277

$
1,520

1    Comparisons are to the year-ago quarter unless noted. Revenue and net interest income are on an FTE basis.
2    Global Banking shares with Global Markets in certain deal economics from investment banking and loan origination activities.
3    Revenue, net of interest expense.
 
 
Three months ended
Business Highlights1
($ in billions)
12/31/2015
9/30/2015
12/31/2014
•    Average deposit balances grew $15.7B, or 5%

•    Average loans and leases grew $33.3B, or 12%

•    Corporation-wide investment banking fees of $1.3B (excluding self-led deals) declined 17%, driven by lower leveraged finance and equity issuance, partly offset by higher advisory fees

    Ranked No. 3 globally in net investment banking fees(G)

    Second-highest quarter in advisory fees since merger

    Participated in 8 of top 10 debt deals and 7 of top 10 equity deals(G)
Average deposits
$
307.8

$
296.3

$
292.1

Average loans and leases
320.3

310.0

287.0

Total Corp. IB fees (excl. self-led)2
1.3

1.3

1.5

Global Banking IB fees2
0.7

0.8

0.8

Business Lending revenue
2.0

1.9

1.9

Global Transaction Services revenue
1.6

1.6

1.6

Efficiency ratio (FTE)1
44
%
48
%
46
%
Return on average allocated capital(J)
16
%
14
%
18
%
1    Comparisons are to the year-ago quarter unless noted. Efficiency ratio is on an FTE basis.
2    Global Banking shares with Global Markets in certain deal economics from investment banking and loan origination activities.



4



Global Markets
 
 
 
Three months ended
Financial Results1
($ in millions)
12/31/2015
9/30/2015
12/31/2014
•    Revenue up $741MM to $3.1B; excluding net DVA4, revenue up $313MM to $3.3B, driven primarily by improved sales and trading results and a gain on an equity investment, partially offset by lower investment banking fees

•    Noninterest expense increased $232MM, due primarily to higher revenue-related expenses

•    Net income of $185MM, compared to a loss of $75MM; excluding DVA, net income was $308MM, compared to $316MM4
Net interest income (FTE)
$
1,166

$
1,135

$
1,036

Noninterest income2
1,962

2,635

1,351

Total revenue2,3
3,128

3,770

2,387

Net DVA4
(198
)
12

(626
)
Total revenue
(excl. net DVA) (FTE)2,3,4(H)
3,326

3,758

3,013

Provision for credit losses
30

42

26

Noninterest expense
2,754

2,683

2,522

Net income (loss)
$
185

$
821

$
(75
)
1    Comparisons are to the year-ago quarter unless noted. Revenue and net interest income are on an FTE basis.
2    Global Banking shares with Global Markets in certain deal economics from investment banking and loan origination activities.
3    Revenue, net of interest expense.
4    Revenue excluding net DVA is a non-GAAP financial measure. In Q4-14, a funding valuation adjustment (FVA) charge of $497MM was recorded and included in net DVA. In Q4-15, the Corporation early adopted new accounting guidance on recognition and measurement of financial instruments. See endnote H for additional information.
 
 
Three months ended
Business Highlights1
($ in billions)
12/31/2015
9/30/2015
12/31/2014
•    Sales and trading revenue up $0.7B to $2.4B

•    Excluding net DVA, sales and trading revenue up 11% to $2.6B(H)

    FICC increased 20%, reflecting improvement across most products, notably in rates and credit-related products(H)

    Equities down 3%, due to lower levels of client activity(H)

•    No. 1 global research firm for 5th consecutive year2
Average trading-related assets
$
416.1

$
431.5

$
455.5

Average loans and leases
68.8

66.4

58.1

Sales and trading revenue
2.4

3.2

1.7

Sales and trading revenue(excl. net DVA)(H)
2.6

3.2

2.4

Global Markets IB fees
0.5

0.5

0.7

Efficiency ratio (FTE)1
88
%
71
%
106
%
Return on average allocated capital(J)
2
%
9
%
n/m

n/m = not meaningful
1    Comparisons are to the year-ago quarter unless noted. Efficiency ratio is on an FTE basis.
2    Source: Institutional Investor magazine.


5



Legacy Assets and Servicing
 
 
 
Three months ended
Financial Results1
($ in millions)
12/31/2015
9/30/2015
12/31/2014
•    Revenue down $50MM, driven by a decrease in NII on lower loan balances, as well as a modest decline in noninterest income, as lower servicing fees and mortgage servicing rights performance, net of hedge results, were partially offset by lower representations and warranties provision

•    The benefit in the provision for credit losses was $103MM lower, driven primarily by a slower pace of portfolio improvement

•    Noninterest expense down 16% to $1.1B; excluding litigation, noninterest expense down 28% to $795MM, due mostly to lower servicing costs(I)

•    Number of 60+ days delinquent first mortgage loans serviced down 46% to 103,000 units

•    Number of LAS employees3 declined 35% to 11,200

•    Net loss declined to $351MM from $379MM
Net interest income (FTE)
$
347

$
382

$
390

Noninterest income
241

458

248

Total revenue (FTE)2
588

840

638

Provision for credit losses
(10
)
6

(113
)
Noninterest expense
1,148

1,142

1,360

Litigation expense
353

228

256

Noninterest expense (excl. litigation)
795

914

1,104

Net loss
$
(351
)
$
(196
)
$
(379
)
1    Comparisons are to the year-ago quarter unless noted. Revenue and net interest income are on an FTE basis.
2    Revenue, net of interest expense.
3    Includes other FTEs supporting LAS (contractors).

All Other
 
 
 
Three months ended
Financial Results1
($ in millions)
12/31/2015
9/30/2015
12/31/2014
•    Revenue improved $201MM to ($545MM)

–    NII impacted by $0.6B reduction for certain trust preferred securities, as well as $0.1B positive market-related adjustments on debt securities
–    Noninterest income improved, driven primarily by the absence of a provision for U.K. payment protection insurance as well as higher gains on sale of debt securities

•    The benefit in the provision for credit losses of $112MM declined, driven by lower recoveries including those on the sale of nonperforming loans

    Noninterest expense down $274MM, due primarily to lower personnel and litigation costs, partially offset by higher professional fees

•    Income tax includes the $290MM negative impact from U.K. tax law changes

•    Net loss declined to $289MM from $375MM
Net interest income (FTE)
$
(387
)
$
(502
)
$
(349
)
Noninterest income
(158
)
14

(397
)
Total revenue (FTE)2
(545
)
(488
)
(746
)
Provision for credit losses
(112
)
(67
)
(330
)
Noninterest expense
210

84

484

Net income (loss)
$
(289
)
$
4

$
(375
)
1     Comparisons are to the year-ago quarter unless noted. Revenue and net interest income are on an FTE basis.
2    Revenue, net of interest expense.

Note: All Other consists of ALM activities, equity investments, the international consumer card business, liquidating businesses, residual expense allocations and other. ALM activities encompass certain residential mortgages, debt securities, interest rate and foreign currency risk management activities including the residual net interest income allocation, the impact of certain allocation methodologies and accounting hedge ineffectiveness. Beginning with new originations in 2014, we retain certain residential mortgages in Consumer Banking, consistent with where the overall relationship is managed; previously such mortgages were in All Other. Additionally, certain residential mortgage loans that are managed by Legacy Assets and Servicing are held in All Other. The results of certain ALM activities are allocated to our business segments. Equity investments include our merchant services joint venture as well as Global Principal Investments, which is comprised of a portfolio of equity, real estate and other alternative investments.


6



Credit Quality
 
 
 
Three months ended
Highlights1
($ in millions)
12/31/2015
9/30/2015
12/31/2014
    Credit quality remained strong, improving across all consumer portfolios, while the energy sector of the commercial portfolio experienced elevated charge-offs and criticized levels

    Net charge-offs were $1.1B, compared to $0.9B

    Excluding losses associated with the August 2014 DoJ settlement, collateral valuation adjustments, and nonperforming loan sale and other recoveries, net charge-offs were $1B in both Q4-15 and the year-ago quarter

    The net charge-off ratio increased to 0.51% from 0.40%. Excluding the items noted above, the net charge-off ratio was 0.45% in Q4-15, compared to 0.47%

    Provision for credit losses of $810MM was relatively stable compared to the third quarter of 2015 and up from the year-ago quarter due to lower consumer recoveries, a slower pace of improvement in the consumer portfolio, and higher reserve builds in the commercial portfolio, due to loan growth and energy sector exposure

    Net reserve release was $334MM, compared to $660MM; after adjusting for certain items reserved for in prior quarters, the net reserve release was $195MM, compared to $509MM

    Criticized commercial exposures increased to $16.5B from $13.6B in the prior quarter and $11.6B in Q4-14, primarily due to increases in the energy sector
Provision for credit losses
$
810

$
806

$
219

Net charge-offs
1,144

932

879

Net charge-off ratio2
0.51
%
0.42
%
0.40
%
At period-end
Nonperforming loans, leases and foreclosed properties
$
9,836

$
10,336

$
12,629

Nonperforming loans, leases and foreclosed properties ratio3
1.10
%
1.17
%
1.45
%
Allowance for loan and lease losses
$
12,234

$
12,657

$
14,419

Allowance for loan and lease losses ratio4
1.37
%
1.44
%
1.65
%
1    Comparisons are to the year-ago quarter unless noted.
2    Net charge-off ratio is calculated as annualized net charge-offs divided by average outstanding loans and leases during the period.
3    Nonperforming loans, leases and foreclosed properties ratio is calculated as nonperforming loans, leases and foreclosed properties divided by outstanding loans, leases and foreclosed properties at the end of the period.
4    Allowance for loan and lease losses ratio is calculated as allowance for loan and lease losses divided by loans and leases outstanding at the end of the period.

Note: Ratios do not include loans accounted for under the fair value option.



7



Balance Sheet, Liquidity and Capital Highlights ($ in billions unless noted)
Balance Sheet (end of period)
Three months ended
 
12/31/2015
9/30/2015
12/31/2014
Total assets
$
2,144.3

$
2,153.0

$
2,104.5

Total loans and leases
903.0

887.7

881.4

Total deposits
1,197.3

1,162.0

1,118.9

Funding and Liquidity
Long-term debt
$
236.8

$
237.3

$
243.1

Global Excess Liquidity Sources(D)
504

499

439

Time to required funding (months)(D)
39

42

39

Equity
Tangible common shareholders’ equity1
$
162,118

$
161,659

$
151,732

Tangible common equity ratio1
7.8
%
7.8
%
7.5
%
Common shareholders’ equity
$
233,932

$
233,632

$
224,162

Common equity ratio
10.9
%
10.9
%
10.7
%
Per Share Data
Tangible book value per common share (F)
$
15.62

$
15.50

$
14.43

Book value per common share
22.54

22.41

21.32

Common shares outstanding (in billions)
10.38

10.43

10.52

Regulatory Capital
Basel 3 Transition (as reported)2,3
 
 
 
Common equity tier 1 (CET1) capital
$
163.0

$
161.6

$
155.4

Risk-weighted assets
1,602

1,392

1,262

Common equity tier 1 ratio
10.2
%
11.6
%
12.3
%
Basel 3 Fully Phased-in2,4
Common equity tier 1 capital
$
154.1

$
153.1

$
141.2

Standardized approach
 
 
 
Risk-weighted assets
$
1,426

$
1,415

$
1,415

CET1 ratio
10.8
%
10.8
%
10.0
%
Advanced approaches5
 
 
 
Risk-weighted assets
$
1,574

$
1,398

$
1,465

CET1 ratio
9.8
%
11.0
%
9.6
%
Proforma risk-weighted assets
n/a

$
1,570

n/a

Proforma CET1 ratio
n/a

9.7
%
n/a

Supplementary leverage(K)
 
 
 
Tier 1 capital
$
175.8

$
174.6

$
160.5

Bank holding company SLR
6.4
%
6.4
%
5.9
%
Bank SLR
6.9
%
7.0
%
7.0
%
Notes:
1 
Represents a non-GAAP financial measure. For reconciliation, see pages 17-19 of this press release.
2 
Regulatory capital ratios are preliminary. Common equity tier 1 (CET1) capital, Tier 1 capital, risk-weighted assets (RWA), CET1 ratio and bank holding company supplementary leverage ratio (SLR) as shown on a fully phased-in basis are non-GAAP financial measures. For a reconciliation of CET1 to fully phased-in, see page 13 of this press release.
3 
As previously disclosed, Bank of America received approval to begin using the Advanced approaches capital framework to determine risk-based capital and is now required to report regulatory capital under both the Standardized and Advanced approaches. The approach that yields the lower ratio is to be used to assess capital adequacy and was the Advanced approaches in the fourth quarter of 2015. Prior to exiting the parallel run, we were required to report regulatory capital under the Standardized approach only.
4 
With the approval to exit parallel run, U.S. banking regulators requested modifications to certain internal analytical models including the wholesale (e.g., commercial) credit models, which increased our risk-weighted assets in the fourth quarter of 2015. Proforma information for Q3-15 includes the impact of these modifications as if effective at September 30, 2015.
5 
Basel 3 fully phased-in Advanced approaches estimates assume approval by U.S. banking regulators of our internal analytical models, including approval of the internal models methodology (IMM). As of December 31, 2015, BAC had not received IMM approval.

8



Endnotes
A
Fully taxable-equivalent (FTE) basis for the Corporation is a non-GAAP financial measure. For reconciliation to GAAP financial measures, refer to pages 17-19 of this press release. Net interest income on a GAAP basis was $9.8 billion, $9.5 billion and $9.6 billion for the three months ended December 31, 2015, September 30, 2015 and December 31, 2014, respectively. Net interest income on an FTE basis, excluding market-related and other adjustments, represents a non-GAAP financial measure. Market-related adjustments of premium amortization expense and hedge ineffectiveness were $0.1 billion, ($0.6) billion and ($0.6) billion for the three months ended December 31, 2015, September 30, 2015 and December 31, 2014, respectively. Other adjustments for the quarter ended December 31, 2015 include $0.6 billion in negative adjustments on certain trust preferred securities. Total revenue, net of interest expense, on a GAAP basis was $19.5 billion, $20.4 billion and $18.7 billion for the three months ended December 31, 2015, September 30, 2015 and December 31, 2014, respectively. Net DVA gains (losses) were ($198) million, $12 million and ($626) million for the three months ended December 31, 2015, September 30, 2015 and December 31, 2014, respectively.
B
Noninterest expense, excluding litigation expense, is a non-GAAP financial measure. Noninterest expense on a GAAP basis was $13.9 billion, $13.8 billion and $14.2 billion for the three months ended December 31, 2015, September 30, 2015 and December 31, 2014, respectively. Litigation expense was $428 million, $231 million and $393 million for the three months ended December 31, 2015, September 30, 2015 and December 31, 2014, respectively.
C
Fully phased-in estimates are non-GAAP financial measures. For reconciliation to GAAP financial measures, refer to pages 17-19 of this press release. On January 1, 2014, the Basel 3 rules became effective, subject to transition provisions primarily related to regulatory deductions and adjustments impacting Common equity tier 1 (CET1) capital and Tier 1 capital. Bank of America received approval to begin using the Advanced approaches capital framework to determine risk-based capital requirements beginning in the fourth quarter of 2015. As previously disclosed, with the approval to exit parallel run, U.S. banking regulators requested modifications to certain internal analytical models including the wholesale (e.g., commercial) credit models, which increased our risk-weighted assets in the fourth quarter of 2015. Proforma information for Q3-15 includes the impact of these modifications as if effective at September 30, 2015. Basel 3 Advanced approaches estimates on a fully phased-in basis assume approval by U.S. banking regulators of our internal analytical models, including approval of the internal models methodology (IMM). As of December 31, 2015, BAC had not received IMM approval.
D
Global Excess Liquidity Sources include cash and high-quality, liquid, unencumbered securities, limited to U.S. government securities, U.S. agency securities, U.S. agency MBS, and a select group of non-U.S. government and supranational securities, and are readily available to meet funding requirements as they arise. It does not include Federal Reserve Discount Window or Federal Home Loan Bank borrowing capacity. Transfers of liquidity from the bank or other regulated entities are subject to certain regulatory restrictions. Time to required funding is a debt coverage measure and is expressed as the number of months unsecured holding company obligations of Bank of America Corporation can be met using only the parent company’s Global Excess Liquidity Sources without issuing debt or sourcing additional liquidity. We define unsecured contractual obligations for purposes of this metric as maturities of senior or subordinated debt issued or guaranteed by Bank of America Corporation. For all periods shown, we have included in the amount of unsecured contractual obligations the liability, including estimated costs, for the previously announced BNY Mellon private-label securitization settlement. As of December 31, 2015, this amount was $8.5B.
E
Return on average tangible common equity is a non-GAAP financial measure. For more information, refer to pages 17-19 of this press release.
F
Tangible book value per share of common stock is a non-GAAP financial measure. For more information, refer to pages 17-19 of this press release.
G
Rankings per Dealogic as of January 5, 2016 for the quarter ended December 31, 2015.
H
In January 2016, the FASB issued new accounting guidance on recognition and measurement of financial instruments. The Corporation has early adopted, retrospective to January 1, 2015, the provision that requires the Corporation to present unrealized gains/losses resulting from changes in the Corporation's own credit spreads on liabilities accounted for under the fair value option (referred to as debit valuation adjustments, or DVA) in accumulated OCI. The impact of the adoption was to reclassify, as of January 1, 2015, unrealized DVA losses of $2.0B pretax ($1.2B after tax) from January 1, 2015 retained earnings to accumulated OCI. Further, pretax unrealized DVA gains of $301 million, $301 million and $420 million were reclassified from other income to accumulated OCI for Q3-15, Q2-15 and Q1-15, respectively. This had the effect of reducing net income as previously reported for the aforementioned quarters by $187 million, $186 million and $260 million, or approximately $0.02 per quarter. This change is reflected in consolidated results and the Global Markets segment results. Results for 2014 were not subject to restatement under the provisions of the new accounting guidance.


Revenue for all periods included net DVA on derivatives, as well as amortization of own credit portion of purchase discount and realized DVA on structured liabilities; periods prior to 2015 also included unrealized DVA on structured liabilities.

Global Markets revenue, excluding net DVA, and sales and trading revenue, excluding net DVA, are non-GAAP financial measures. Net DVA losses were $198 million and $626 million for the three months ended December 31, 2015 and 2014, respectively. FICC net DVA losses were $190 million and $577 million for the three months ended December 31, 2015 and 2014, respectively. Equities net DVA losses were $8 million and $49 million for the three months ended December 31, 2015 and 2014.
I
Legacy Assets and Servicing (LAS) noninterest expense, excluding litigation, is a non-GAAP financial measure. LAS noninterest expense was $1.1 billion, $1.1 billion and $1.4 billion for the three months ended December 31, 2015, September 30, 2015 and December 31, 2014, respectively. LAS litigation expense was $353 million, $228 million and $256 million in the three months ended December 31, 2015, September 30, 2015 and December 31, 2014, respectively.
J
Return on average allocated capital is a non-GAAP financial measure. The company believes the use of this non-GAAP financial measure provides additional clarity in assessing the results of the segments. Other companies may define or calculate this measure differently. For reconciliation to GAAP financial measures, refer to pages 17-19 of this press release.
K
The estimated supplementary leverage ratio is measured using quarter-end Tier 1 capital as the numerator, calculated under Basel 3 on a fully phased-in basis. The denominator is supplementary leverage exposure based on the daily average of the sum of on-balance sheet exposures less permitted Tier 1 deductions, as well as the simple average of certain off-balance sheet exposures, as of the end of each month in a quarter. Off-balance sheet exposures primarily include undrawn lending commitments, letters of credit, potential future derivative exposures and repo-style transactions. At December 31, 2015, the estimated SLR for the Bank Holding Company on a fully phased-in basis was 6.4 percent. Differences between fully phased-in and transitional supplementary leverage exposures are immaterial.

9



Contact Information and Investor Conference Call Invitation


Note: Chief Executive Officer Brian Moynihan and Chief Financial Officer Paul Donofrio will discuss fourth-quarter 2015 results in a conference call at 8:30 a.m. ET today. The presentation and supporting materials can be accessed on the Bank of America Investor Relations website at
http://investor.bankofamerica.com.

For a listen-only connection to the conference call, dial 1.877.200.4456 (U.S.) or 1.785.424.1732 (international), and the conference ID is: 79795. Please dial in 10 minutes prior to the start of the call. A replay will also be available beginning at noon ET on January 19 through midnight, January 27 by telephone at 1.800.753.8546 (U.S.) or 1.402.220.0685 (international).

Investor Call Information
Investors May Contact:

Lee McEntire, Bank of America, 1.980.388.6780
Jonathan Blum, Bank of America (Fixed Income), 1.212.449.3112
Reporters May Contact:

Jerry Dubrowski, Bank of America, 1.980.388.2840
jerome.f.dubrowski@bankofamerica.com

 
About Bank of America

Bank of America is one of the world's leading financial institutions, serving individual consumers, small and middle-market businesses and large corporations with a full range of banking, investing, asset management and other financial and risk management products and services. The company provides unmatched convenience in the United States, serving approximately 47 million consumer and small business relationships with approximately 4,700 retail financial centers, approximately 16,000 ATMs, and award-winning online banking with approximately 32 million active users and approximately 19 million mobile users. Bank of America is a global leader in wealth management, corporate and investment banking and trading across a broad range of asset classes, serving corporations, governments, institutions and individuals around the world. Bank of America offers industry-leading support to approximately 3 million small business owners through a suite of innovative, easy-to-use online products and services. The company serves clients through operations in all 50 states, the District of Columbia, the U.S. Virgin Islands, Puerto Rico and more than 35 countries. Bank of America Corporation stock (NYSE: BAC) is listed on the New York Stock Exchange.

Forward-Looking Statements

Bank of America and its management may make certain statements that constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These statements can be identified 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,” “continue” and other similar expressions or future or conditional verbs such as “will,” “may,” “might,” “should,” “would” and “could.” Forward-looking statements represent Bank of America's current expectations, plans or forecasts of its future results and revenues, and future business and economic conditions more generally, and other future matters. These statements are not guarantees of future results or performance and involve certain known and unknown risks, uncertainties and assumptions that are difficult to predict and are often beyond Bank of America's control. Actual outcomes and results may differ 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 and should consider the following uncertainties and risks, as well as the risks and uncertainties more fully discussed under Item 1A. Risk Factors of Bank of America's 2014 Annual Report on Form 10-K, and in any of Bank of America's subsequent Securities and Exchange Commission filings: the Company's ability to resolve representations and warranties repurchase and related claims, including claims brought by investors or trustees seeking to distinguish certain aspects of the ACE Securities Corp. v. DB Structured Products, Inc. (ACE) ruling or to assert other claims seeking to avoid the impact of the ACE ruling; the possibility that the Company could face related servicing, securities, fraud, indemnity, contribution or other claims from one or more counterparties, including trustees,

10



purchasers of loans, underwriters, issuers, other parties involved in securitizations, monolines or private-label and other investors; the possibility that future representations and warranties losses may occur in excess of the Company's recorded liability and estimated range of possible loss for its representations and warranties exposures; the possibility that the Company may not collect mortgage insurance claims; potential claims, damages, penalties, fines and reputational damage resulting from pending or future litigation and regulatory proceedings, including the possibility that amounts may be in excess of the Company’s recorded liability and estimated range of possible losses for litigation exposures; the possibility that the European Commission will impose remedial measures in relation to its investigation of the Company's competitive practices; the possible outcome of LIBOR, other reference rate and foreign exchange inquiries and investigations; uncertainties about the financial stability and growth rates of non-U.S. jurisdictions, the risk that those jurisdictions may face difficulties servicing their sovereign debt, and related stresses on financial markets, currencies and trade, and the Company's exposures to such risks, including direct, indirect and operational; the impact of U.S. and global interest rates, currency exchange rates and economic conditions; the impact on the Company's business, financial condition and results of operations of a potential higher interest rate environment; the impact on the Company’s business, financial condition and results of operations from a protracted period of lower energy prices; adverse changes to the Company's credit ratings from the major credit rating agencies; estimates of the fair value of certain of the Company's assets and liabilities; uncertainty regarding the content, timing and impact of regulatory capital and liquidity requirements, including the potential adoption of total loss-absorbing capacity requirements; the potential for payment protection insurance exposure to increase as a result of Financial Conduct Authority actions; the possible impact of Federal Reserve actions on the Company’s capital plans; the impact of implementation and compliance with new and evolving U.S. and international regulations, including but not limited to recovery and resolution planning requirements, the Volcker Rule, and derivatives regulations; a failure in or breach of the Company’s operational or security systems or infrastructure, or those of third parties, including as a result of cyber attacks; and other similar matters.
Forward-looking statements speak only as of the date they are made, and Bank of America undertakes no obligation to update any forward-looking statement to reflect the impact of circumstances or events that arise after the date the forward-looking statement was made.

BofA Global Capital Management Group, LLC (BofA Global Capital Management) is an asset management division of Bank of America Corporation. BofA Global Capital Management entities furnish investment management services and products for institutional and individual investors.

Bank of America Merrill Lynch is the marketing name for the Global Banking and Global Markets businesses of Bank of America Corporation. Lending, derivatives and other commercial banking activities are performed by banking affiliates of Bank of America Corporation, including Bank of America, N.A., member FDIC. Securities, financial advisory and other investment banking activities are performed by investment banking affiliates of Bank of America Corporation (Investment Banking Affiliates), including Merrill Lynch, Pierce, Fenner & Smith Incorporated, which are registered broker-dealers and members of FINRA and SIPC. Investment products offered by Investment Banking Affiliates: Are Not FDIC Insured * May Lose Value * Are Not Bank Guaranteed. Bank of America Corporation's broker-dealers are not banks and are separate legal entities from their bank affiliates. The obligations of the broker-dealers are not obligations of their bank affiliates (unless explicitly stated otherwise), and these bank affiliates are not responsible for securities sold, offered or recommended by the broker-dealers. The foregoing also applies to other non-bank affiliates.

For more Bank of America news, visit the Bank of America newsroom at http://newsroom.bankofamerica.com.
www.bankofamerica.com

11


Page 12



Bank of America Corporation and Subsidiaries
 
 
 
 
 
 
Selected Financial Data
 
 
(Dollars in millions, except per share data; shares in thousands)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Summary Income Statement
 
Year Ended
December 31
 
Fourth
Quarter
2015
 
Third
Quarter
2015
 
Fourth
Quarter
2014
 
 
2015
 
2014
 
 
Net interest income
 
$
39,251

 
$
39,952

 
$
9,801

 
$
9,511

 
$
9,635

Noninterest income
 
43,256

 
44,295

 
9,727

 
10,870

 
9,090

Total revenue, net of interest expense (1)
 
82,507

 
84,247

 
19,528

 
20,381

 
18,725

Provision for credit losses
 
3,161

 
2,275

 
810

 
806

 
219

Noninterest expense
 
57,192

 
75,117

 
13,871

 
13,808

 
14,196

Income before income taxes
 
22,154

 
6,855

 
4,847

 
5,767

 
4,310

Income tax expense
 
6,266

 
2,022

 
1,511

 
1,446

 
1,260

Net income (1)
 
$
15,888

 
$
4,833

 
$
3,336

 
$
4,321

 
$
3,050

Preferred stock dividends
 
1,483

 
1,044

 
330

 
441

 
312

Net income applicable to common shareholders (1)
 
$
14,405

 
$
3,789

 
$
3,006

 
$
3,880

 
$
2,738

 
 
 
 
 
 
 
 
 
 
 
Common shares issued
 
4,054

 
25,866

 
71

 
36

 
648

Average common shares issued and outstanding
 
10,462,282

 
10,527,818

 
10,399,422

 
10,444,291

 
10,516,334

Average diluted common shares issued and outstanding
 
11,213,992

 
10,584,535

 
11,153,169

 
11,197,203

 
11,273,773

 
 
 
 
 
 
 
 
 
 
 
Summary Average Balance Sheet
 
 
 
 
 
 
 
 
Total debt securities
 
$
390,884

 
$
351,702

 
$
399,423

 
$
394,420

 
$
371,014

Total loans and leases
 
882,183

 
903,901

 
891,861

 
882,841

 
884,733

Total earning assets
 
1,830,342

 
1,814,930

 
1,852,958

 
1,847,396

 
1,802,121

Total assets
 
2,160,141

 
2,145,590

 
2,180,472

 
2,168,993

 
2,137,551

Total deposits
 
1,155,860

 
1,124,207

 
1,186,051

 
1,159,231

 
1,122,514

Common shareholders’ equity
 
230,182

 
223,072

 
234,851

 
231,620

 
224,479

Total shareholders’ equity
 
251,990

 
238,482

 
257,125

 
253,893

 
243,454

 
 
 
 
 
 
 
 
 
Performance Ratios
 
 
 
 
 
 
 
 
Return on average assets (1)
 
0.74
%
 
0.23
%
 
0.61
%
 
0.79
%
 
0.57
%
Return on average tangible common shareholders’ equity (1, 2)
 
9.11

 
2.52

 
7.32

 
9.65

 
7.15

 
 
 
 
 
 
 
 
 
Per common share information
 
 
 
 
 
 
 
 
 
 
Earnings (1)
 
$
1.38

 
$
0.36

 
$
0.29

 
$
0.37

 
$
0.26

Diluted earnings (1)
 
1.31

 
0.36

 
0.28

 
0.35

 
0.25

Dividends paid
 
0.20

 
0.12

 
0.05

 
0.05

 
0.05

Book value
 
22.54

 
21.32

 
22.54

 
22.41

 
21.32

Tangible book value (2)
 
15.62

 
14.43

 
15.62

 
15.50

 
14.43

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
December 31
2015
 
September 30
2015
 
December 31
2014
Summary Period-End Balance Sheet
 
 
 
 
 
 
 
 
 
 
Total debt securities
 
 
 
 
 
$
407,005

 
$
391,651

 
$
380,461

Total loans and leases
 
 
 
 
 
903,001

 
887,689

 
881,391

Total earning assets
 
 
 
 
 
1,811,998

 
1,826,310

 
1,768,431

Total assets
 
 
 
 
 
2,144,316

 
2,153,006

 
2,104,534

Total deposits
 
 
 
 
 
1,197,259

 
1,162,009

 
1,118,936

Common shareholders’ equity
 
 
 
 
 
233,932

 
233,632

 
224,162

Total shareholders’ equity
 
 
 
 
 
256,205

 
255,905

 
243,471

Common shares issued and outstanding
 
 
 
 
 
10,380,265

 
10,427,305

 
10,516,542

 
 
 
 
 
 
 
 
 
 
 
Credit Quality
 
Year Ended
December 31
 
Fourth
Quarter
2015
 
Third
Quarter
2015
 
Fourth
Quarter
2014
 
 
2015
 
2014
 
 
Total net charge-offs
 
$
4,338

 
$
4,383

 
$
1,144

 
$
932

 
$
879

Net charge-offs as a percentage of average loans and leases outstanding (3)
 
0.50
%
 
0.49
%
 
0.51
%
 
0.42
%
 
0.40
%
Provision for credit losses
 
$
3,161

 
$
2,275

 
$
810

 
$
806

 
$
219

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
December 31
2015
 
September 30
2015
 
December 31
2014
 
 
 
 
 
 
 
 
Total nonperforming loans, leases and foreclosed properties (4)
 
 
 
 
 
$
9,836

 
$
10,336

 
$
12,629

Nonperforming loans, leases and foreclosed properties as a percentage of total loans, leases and foreclosed properties (3)
 
 
 
 
 
1.10
%
 
1.17
%
 
1.45
%
Allowance for loan and lease losses
 
 
 
 
 
$
12,234

 
$
12,657

 
$
14,419

Allowance for loan and lease losses as a percentage of total loans and leases outstanding (3)
 
 
 
 
 
1.37
%
 
1.44
%
 
1.65
%
 
 
 
 
 
 
 
 
 
 
 
For footnotes see page 13.
 
 
 
 
 
 
 
 
 
 

More
This information is preliminary and based on company data available at the time of the presentation.

Page 13



Bank of America Corporation and Subsidiaries
 
 
Selected Financial Data (continued)
 
 
(Dollars in millions)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Basel 3 Transition
Capital Management
 
 
 
 
 
December 31
2015
 
September 30
2015
 
December 31
2014
 
 
 
 
 
Risk-based capital metrics (5, 6, 7):
 
 
 
 
 
 
 
 
 
 
Common equity tier 1 capital
 
 
 
 
 
$
163,026

 
$
161,649

 
$
155,361

Common equity tier 1 capital ratio
 
 
 
 
 
10.2
%
 
11.6
%
 
12.3
%
Tier 1 leverage ratio
 
 
 
 
 
8.6

 
8.5

 
8.2

 
 
 
 
 
 
 
 
 
 
 
Tangible equity ratio (8)
 
 
 
 
 
8.9

 
8.8

 
8.4

Tangible common equity ratio (8)
 
 
 
 
 
7.8

 
7.8

 
7.5

 
 
 
 
 
 
 
 
 
 
 
Regulatory Capital Reconciliations (5, 7, 9)
 
 
 
 
 
December 31
2015
 
September 30
2015
 
December 31
2014
 
 
 
 
 
 
Regulatory capital – Basel 3 transition to fully phased-in
 
 
 
 
 
 
 
 
 
 
Common equity tier 1 capital (transition) (6)
 
 
 
 
 
$
163,026

 
$
161,649

 
$
155,361

Deferred tax assets arising from net operating loss and tax credit carryforwards phased in during transition
 
 
 
 
 
(5,151
)
 
(5,554
)
 
(8,905
)
Accumulated OCI phased in during transition
 
 
 
 
 
(1,917
)
 
(1,018
)
 
(1,592
)
Intangibles phased in during transition
 
 
 
 
 
(1,559
)
 
(1,654
)
 
(2,556
)
Defined benefit pension fund assets phased in during transition
 
 
 
 
 
(568
)
 
(470
)
 
(599
)
DVA related to liabilities and derivatives phased in during transition
 
 
 
 
 
307

 
228

 
925

Other adjustments and deductions phased in during transition
 
 
 
 
 
(54
)
 
(92
)
 
(1,417
)
Common equity tier 1 capital (fully phased-in)
 
 
 
 
 
$
154,084

 
$
153,089

 
$
141,217

 
 
 
 
 
 
 
 
 
 
 
Risk-weighted assets – As reported to Basel 3 (fully phased-in)
 
 
 
 
 
 
 
 
 
 
Basel 3 Standardized approach risk-weighted assets as reported (6)
 
 
 
 
 
$
1,401,849

 
$
1,391,672

 
$
1,261,544

Changes in risk-weighted assets from reported to fully phased-in
 
 
 
 
 
24,088

 
22,989

 
153,722

Basel 3 Standardized approach risk-weighted assets (fully phased-in)
 
 
 
 
 
$
1,425,937

 
$
1,414,661

 
1,415,266

 
 
 
 
 
 
 
 
 
 
 
Basel 3 Advanced approaches risk-weighted assets as reported
 
 
 
 
 
$
1,602,070

 
n/a

 
n/a

Changes in risk-weighted assets from reported to fully phased-in
 
 
 
 
 
(27,690
)
 
n/a

 
n/a

Basel 3 Advanced approaches risk-weighted assets (fully phased-in) (10)
 
 
 
 
 
$
1,574,380

 
$
1,397,504

 
1,465,479

 
 
 
 
 
 
 
 
 
 
 
Regulatory capital ratios
 
 
 
 
 
 
 
 
 
 
Basel 3 Standardized approach common equity tier 1 (transition) (6)
 
 
 
 
 
11.6
%
 
11.6
%
 
12.3
%
Basel 3 Advanced approaches common equity tier 1 (transition)
 
 
 
 
 
10.2

 
n/a

 
n/a

Basel 3 Standardized approach common equity tier 1 (fully phased-in)
 
 
 
 
 
10.8

 
10.8

 
10.0

Basel 3 Advanced approaches common equity tier 1 (fully phased-in) (10)
 
 
 
 
 
9.8

 
11.0

 
9.6

 
 
 
 
 
 
 
 
 
 
 
(1) 
For information on the impact of early adoption of new accounting guidance on recognition and measurement of financial instruments, see page 9.
(2) 
Return on average tangible common shareholders' equity and tangible book value per share of common stock are non-GAAP financial measures. We believe the use of these non-GAAP financial measures provides additional clarity in assessing the results of the Corporation. Other companies may define or calculate non-GAAP financial measures differently. See Reconciliations to GAAP Financial Measures on pages 17-19.
(3) 
Ratios do not include loans accounted for under the fair value option during the period. Charge-off ratios are annualized for the quarterly presentation.
(4) 
Balances do not include past due consumer credit card, consumer loans secured by real estate where repayments are insured by the Federal Housing Administration and individually insured long-term stand-by agreements (fully-insured home loans), and in general, other consumer and commercial loans not secured by real estate; purchased credit-impaired loans even though the customer may be contractually past due; nonperforming loans held-for-sale; nonperforming loans accounted for under the fair value option; and nonaccruing troubled debt restructured loans removed from the purchased credit-impaired portfolio prior to January 1, 2010.
(5) 
Regulatory capital ratios are preliminary.
(6) 
Common equity tier 1 capital ratio at September 30, 2015 reflects the migration of the risk-weighted assets calculation from the general risk-based approach to the Basel 3 Standardized approach, and Common equity tier 1 capital includes the 2015 phase-in of regulatory capital transition provisions.
(7) 
Bank of America received approval to begin using the Advanced approaches capital framework to determine risk-based capital requirements beginning in the fourth quarter of 2015. With the approval to exit parallel run, Bank of America is now required to report regulatory capital under both the Standardized and Advanced approaches. The approach that yields the lower ratio is to be used to assess capital adequacy and was the Advanced approaches in the fourth quarter of 2015. Prior to exiting parallel run, we were required to report regulatory capital under the Standardized approach only.
(8) 
Tangible equity ratio equals period-end tangible shareholders' equity divided by period-end tangible assets. Tangible common equity ratio equals period-end tangible common shareholders' equity divided by period-end tangible assets. Tangible shareholders' equity and tangible assets are non-GAAP financial measures. We believe the use of these non-GAAP financial measures provides additional clarity in assessing the results of the Corporation. Other companies may define or calculate non-GAAP financial measures differently. See Reconciliations to GAAP Financial Measures on pages 17-19.
(9) 
Fully phased-in estimates are non-GAAP financial measures. For reconciliations to GAAP financial measures, see above.
(10) 
Basel 3 fully phased-in Advanced approaches estimates assume approval by U.S. banking regulators of our internal analytical models, including approval of the internal models methodology (IMM). As of December 31, 2015, the Corporation had not received IMM approval.

n/a = not applicable


Certain prior period amounts have been reclassified to conform to current period presentation.


More
This information is preliminary and based on company data available at the time of the presentation.

Page 14



Bank of America Corporation and Subsidiaries
Quarterly Results by Business Segment
(Dollars in millions)
 
 
Fourth Quarter 2015
 
 
Consumer Banking
 
GWIM
 
Global Banking
 
Global Markets
 
Legacy Assets & Servicing
 
All
Other
Total revenue, net of interest expense (FTE basis) (1)
 
$
7,792

 
$
4,443

 
$
4,353

 
$
3,128

 
$
588

 
$
(545
)
Provision for credit losses
 
654

 
15

 
233

 
30

 
(10
)
 
(112
)
Noninterest expense
 
4,343

 
3,478

 
1,938

 
2,754

 
1,148

 
210

Net income (loss)
 
1,799

 
614

 
1,378

 
185

 
(351
)
 
(289
)
Return on average allocated capital (2)
 
25
%
 
20
%
 
16
%
 
2
%
 
n/m

 
n/m

Balance Sheet
 
 
 
 
 
 
 
 
 
 
 
 
Average
 
 
 
 
 
 
 
 
 
 
 
 
Total loans and leases
 
$
211,126

 
$
135,839

 
$
320,290

 
$
68,835

 
$
27,223

 
$
128,548

Total deposits
 
557,319

 
251,306

 
307,806

 
37,454

 
n/m

 
22,916

Allocated capital (2)
 
29,000

 
12,000

 
35,000

 
35,000

 
24,000

 
n/m

Period end
 
 
 
 
 
 
 
 
 
 
 
 
Total loans and leases
 
$
214,405

 
$
137,847

 
$
325,677

 
$
73,208

 
$
26,521

 
$
125,343

Total deposits
 
572,739

 
260,893

 
296,162

 
37,276

 
n/m

 
22,898

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Third Quarter 2015
 
 
Consumer Banking
 
GWIM
 
Global Banking
 
Global Markets
 
Legacy Assets & Servicing
 
All
Other
Total revenue, net of interest expense (FTE basis) (1, 3)
 
$
7,832

 
$
4,468

 
$
4,190

 
$
3,770

 
$
840

 
$
(488
)
Provision for credit losses
 
648

 
(2
)
 
179

 
42

 
6

 
(67
)
Noninterest expense
 
4,435

 
3,446

 
2,018

 
2,683

 
1,142

 
84

Net income (loss) (3)
 
1,759

 
656

 
1,277

 
821

 
(196
)
 
4

Return on average allocated capital (2)
 
24
%
 
22
%
 
14
%
 
9
%
 
n/m

 
n/m

Balance Sheet
 
 
 
 
 
 
 
 
 
 
 
 
Average
 
 
 
 
 
 
 
 
 
 
 
 
Total loans and leases
 
$
206,337

 
$
133,168

 
$
310,043

 
$
66,392

 
$
29,074

 
$
137,827

Total deposits
 
548,897

 
243,980

 
296,321

 
37,050

 
n/m

 
22,603

Allocated capital (2)
 
29,000

 
12,000

 
35,000

 
35,000

 
24,000

 
n/m

Period end
 
 
 
 
 
 
 
 
 
 
 
 
Total loans and leases
 
$
208,981

 
$
134,630

 
$
315,224

 
$
70,159

 
$
27,982

 
$
130,713

Total deposits
 
551,541

 
246,172

 
297,644

 
36,019

 
n/m

 
21,769

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Fourth Quarter 2014
 
 
Consumer Banking
 
GWIM
 
Global Banking
 
Global Markets
 
Legacy Assets & Servicing
 
All
Other
Total revenue, net of interest expense (FTE basis) (1)
 
$
7,759

 
$
4,603

 
$
4,314

 
$
2,387

 
$
638

 
$
(746
)
Provision for credit losses
 
653

 
14

 
(31
)
 
26

 
(113
)
 
(330
)
Noninterest expense
 
4,419

 
3,442

 
1,969

 
2,522

 
1,360

 
484

Net income (loss)
 
1,654

 
705

 
1,520

 
(75
)
 
(379
)
 
(375
)
Return on average allocated capital (2)
 
22
%
 
23
%
 
18
%
 
n/m

 
n/m

 
n/m

Balance Sheet
 
 
 
 
 
 
 
 
 
 
 
 
Average
 
 
 
 
 
 
 
 
 
 
 
 
Total loans and leases
 
$
199,215

 
$
123,544

 
$
287,003

 
$
58,108

 
$
33,772

 
$
183,091

Total deposits
 
517,581

 
238,835

 
292,096

 
40,941

 
n/m

 
22,162

Allocated capital (2)
 
30,000

 
12,000

 
33,500

 
34,000

 
17,000

 
n/m

Period end
 
 
 
 
 
 
 
 
 
 
 
 
Total loans and leases
 
$
202,000

 
$
125,431

 
$
288,905

 
$
59,388

 
$
33,055

 
$
172,612

Total deposits
 
524,415

 
245,391

 
279,792

 
40,746

 
n/m

 
19,240

 
 
 
 
 
 
 
 
 
 
 
 
 
(1) 
Fully taxable-equivalent (FTE) basis is a performance measure used by management in operating the business that management believes provides investors with a more accurate picture of the interest margin for comparative purposes.
(2) 
Return on average allocated capital is calculated as net income, adjusted for cost of funds and earnings credits and certain expenses related to intangibles, divided by average allocated capital. Allocated capital and the related return are non-GAAP financial measures. The Corporation believes the use of these non-GAAP financial measures provides additional clarity in assessing the results of the segments. Other companies may define or calculate these measures differently. (See Exhibit A: Non-GAAP Reconciliations - Reconciliations to GAAP Financial Measures on pages 17-19.)
(3) 
For information on the impact of early adoption of new accounting guidance on recognition and measurement of financial instruments, see page 9.

n/m = not meaningful


Certain prior period amounts have been reclassified among the segments to conform to current period presentation.


More
This information is preliminary and based on company data available at the time of the presentation.

Page 15



Bank of America Corporation and Subsidiaries
Annual Results by Business Segment
(Dollars in millions)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Year Ended December 31, 2015
 
 
Consumer
Banking
 
GWIM
 
Global Banking
 
Global Markets
 
Legacy Assets & Servicing
 
All
Other
Total revenue, net of interest expense (FTE basis) (1, 2)
 
$
30,618

 
$
18,001

 
$
16,919

 
$
15,067

 
$
3,430

 
$
(619
)
Provision for credit losses
 
2,524

 
51

 
685

 
99

 
144

 
(342
)
Noninterest expense
 
17,485

 
13,843

 
7,888

 
11,310

 
4,451

 
2,215

Net income (loss) (1)
 
6,739

 
2,609

 
5,273

 
2,496

 
(740
)
 
(489
)
Return on average allocated capital (3)
 
23
%
 
22
%
 
15
%
 
7
%
 
n/m

 
n/m

Balance Sheet
 
 
 
 
 
 
 
 
 
 
 
 
Average
 
 
 
 
 
 
 
 
 
 
 
 
Total loans and leases
 
$
204,723

 
$
131,383

 
$
305,220

 
$
63,572

 
$
29,885

 
$
147,400

Total deposits
 
545,839

 
244,725

 
294,733

 
38,470

 
n/m

 
21,862

Allocated capital (3)
 
29,000

 
12,000

 
35,000

 
35,000

 
24,000

 
n/m

Period end
 
 
 
 
 
 
 
 
 
 
 
 
Total loans and leases
 
$
214,405

 
$
137,847

 
$
325,677

 
$
73,208

 
$
26,521

 
$
125,343

Total deposits
 
572,739

 
260,893

 
296,162

 
37,276

 
n/m

 
22,898

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Year Ended December 31, 2014
 
 
Consumer
Banking
 
GWIM
 
Global Banking
 
Global Markets
 
Legacy Assets & Servicing
 
All
Other
Total revenue, net of interest expense (FTE basis) (2)
 
$
30,809

 
$
18,404

 
$
17,607

 
$
16,188

 
$
2,676

 
$
(568
)
Provision for credit losses
 
2,680

 
14

 
322

 
110

 
127

 
(978
)
Noninterest expense
 
17,865

 
13,654

 
8,170

 
11,862

 
20,633

 
2,933

Net income (loss)
 
6,436

 
2,969

 
5,769

 
2,705

 
(13,110
)
 
64

Return on average allocated capital (3)
 
21
%
 
25
%
 
17
%
 
8
%
 
n/m

 
n/m

Balance Sheet
 
 
 
 
 
 
 
 
 
 
 
 
Average
 
 
 
 
 
 
 
 
 
 
 
 
Total loans and leases
 
$
197,115

 
$
119,775

 
$
286,484

 
$
62,073

 
$
35,941

 
$
202,513

Total deposits
 
512,820

 
240,242

 
288,010

 
40,813

 
n/m

 
30,834

Allocated capital (3)
 
30,000

 
12,000

 
33,500

 
34,000

 
17,000

 
n/m

Period end
 
 
 
 
 
 
 
 
 
 
 
 
Total loans and leases
 
$
202,000

 
$
125,431

 
$
288,905

 
$
59,388

 
$
33,055

 
$
172,612

Total deposits
 
524,415

 
245,391

 
279,792

 
40,746

 
n/m

 
19,240

 
 
 
 
 
 
 
 
 
 
 
 
 
(1) 
For information on the impact of early adoption of new accounting guidance on recognition and measurement of financial instruments, see page 9.
(2) 
Fully taxable-equivalent (FTE) basis is a performance measure used by management in operating the business that management believes provides investors with a more accurate picture of the interest margin for comparative purposes.
(3) 
Return on average allocated capital is calculated as net income, adjusted for cost of funds and earnings credits and certain expenses related to intangibles, divided by average allocated capital. Allocated capital and the related return are non-GAAP financial measures. The Corporation believes the use of these non-GAAP financial measures provides additional clarity in assessing the results of the segments. Other companies may define or calculate these measures differently. (See Exhibit A: Non-GAAP Reconciliations - Reconciliations to GAAP Financial Measures on pages 17-19.)

n/m = not meaningful


Certain prior period amounts have been reclassified among the segments to conform to current period presentation.


More
This information is preliminary and based on company data available at the time of the presentation.

Page 16



Bank of America Corporation and Subsidiaries
Supplemental Financial Data
 
 
 
 
 
 
 
 
 
 
(Dollars in millions)
 
 
 
 
 
 
 
 
 
 
Fully taxable-equivalent (FTE) basis data (1)
Year Ended
December 31
 
 
Fourth
Quarter
2015
 
Third
Quarter
2015
 
Fourth
Quarter
2014
 
2015
 
2014
 
 
 
Net interest income
$
40,160

 
$
40,821

 
 
$
10,032

 
$
9,742

 
$
9,865

Total revenue, net of interest expense (2)
83,416

 
85,116

 
 
19,759

 
20,612

 
18,955

Net interest yield
2.20
%
 
2.25
%
 
 
2.16
%
 
2.10
%
 
2.18
%
Efficiency ratio (2)
68.56

 
88.25