Bank of America Corp 6.45 % Notes 2018-15.12.66 Income Capital Obligations

Solid quarter led by “Main Street” strength; markets weaker - Net income: $6.9B (EPS $0.91) reported; includes $1.2B regulatory settlement (non-tax deductible), -$0.17 EPS impact. - Core operating picture (excluding settlement): Net income $8.1B, EPS ~$1.08, up vs. last year. - Revenue: ~$30B, +3% YoY. - NII: $16.6B FTE, +8% YoY and + $450M vs Q2; net interest yield 2.16%, +15 bps YoY and +8 bps QoQ, nearing 2.3% medium-term target. - Positives: Consumer + wealth + commercial credit drove momentum; credit quality improved modestly. - Negatives: Investment banking and sales/trading lower; FICC micro businesses (e.g., mortgages/munis/credit) hit by reduced client activity and interest-rate shifts. Equities were a record quarter, partially offsetting weakness.

Client/volume “flywheel” remained strong (good demand and activity signal) - Consumers: Year-to-date money movement +5% (2025); spending resilience cited. - Deposit + account growth: Added ~200k net new core consumer checking accounts in the quarter; total ~39M checking customers (~8 straight years of quarterly growth). Opened >1M new card accounts; card balances +~5%. - Wealth: ~$41B flows in the quarter; client balances > $5.7T; wealth client balances up ~9% to $5T+ (first time above $5T). - Commercial lending: Loans grew 8% YoY; commercial loans increased in every segment, including global corporate and international growth.

Credit quality: stable-to-improving (a key investor comfort item) - Provision: ~$1.3B, lower than Q2. - Net charge-off ratio: improved to ~44 bps. - Cards: loss rate ~3.22%, improved from Q2; delinquencies declined for the 6th consecutive quarter YoY. - Commercial criticized assets: declined to the lowest on a rate basis since 4Q 2019; non-performing loans fell vs Q2.