Bank of America Corporation

Strong core “Main Street” momentum; markets weaker - Management highlighted continued client activity and organic growth: consumers spending (YTD money movement +5%; similar in Q3 and early October), business-client lending/deposits/payment activity healthy, and wealth flows strong. - Net income: $6.9B after tax; EPS $0.91. - Markets/IB down: sales & trading and investment banking revenue were lower (with some offsetting growth in other areas). Equities was a record quarter, but fixed-income trading was pressured by client activity changes and interest-rate shifts (notably in FICC credit/micro businesses).

Non-tax-deductible regulatory settlement was the big negative swing - Reported results included a $1.2B regulatory settlement charge (non-tax deductible) = about $0.17/share hit. - Adjusted (excluding settlement): Net income $8.1B (~$1.08/share), implying the underlying performance was materially better than headline numbers.

Earnings power improved: NII strength + credit quality stabilizing - Revenue: ~$30B (~+3% YoY). - NII: $16.6B (FTE), +8% YoY and + $450M QoQ; NII yield 2.16%, up 15 bps YoY and 8 bps QoQ, moving closer to 2.3% medium-term target. - Credit quality improved modestly: provision ~$1.3B (lower than Q2), net charge-off ratio 44 bps, consumer card loss rate 3.22% improving QoQ and delinquency trends improving (six straight quarters of YoY improvement); commercial criticized/non-performing trends improved.