Bank of America Corp at Barclays Global Financial Services Conference Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Jason Goldberg - Barclays Bank PLC - Analyst : Maybe the best place to start is big picture and maybe focus on the consumer Bank of America serve over 70, -- almost $70 million, -- 70 million consumer small business clients obviously are very robust wealth management practice. Maybe kind of dig deeper into the health of the consumer, kind of any recent changes in behavior of observations I want to make in light of a potentially deteriorating unemployment picture. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. SEPTEMBER 10, 2024 / 5:05PM, BAC.N - Bank of America Corp at Barclays Global Financial Services Conference

Question: Jason Goldberg - Barclays Bank PLC - Analyst : Interesting observation. I guess maybe sticking kind of bigger picture turning to the corporate side of the house, I mean, what are you seeing there?

Question: Jason Goldberg - Barclays Bank PLC - Analyst : One of the things we like about Bank of America, just how balanced you are across businesses. If you look at kind of the first half of the year results, income almost evenly split between kind of servicing people with the Consumer Bank and Wealth Management and then kind of companies institutions with the Global Banking and Markets unit. Maybe just talk about the importance of this diversity and how you just manage this balance so far as capital allocation and investments?

Question: Jason Goldberg - Barclays Bank PLC - Analyst : And then maybe when you kind of you touched on a lot of different areas. I mean, where do you see the biggest growth opportunities for Bank of America over time? And just how are you investing today to drive that growth?

Question: Jason Goldberg - Barclays Bank PLC - Analyst : Just because my pictures on the screen. That anything while they.

Question: Jason Goldberg - Barclays Bank PLC - Analyst : You mentioned outside the United States at our London conference this year. We have Bernie Monash present on just -- those are in the audience, he's President of International for Bank of America. Any kind of just talked about the international growth opportunities, it does seem to be an area of maybe increased investments of late. Maybe just talk about kind of what distinguishes your international model from others and just you live how we talk about responsible growth, how does that kind of play into this international opportunity?

Question: Jason Goldberg - Barclays Bank PLC - Analyst : One of the things that we've heard, I guess a lot of companies talk about and you have as well is just kind of the importance of the integration and whether it's across the different business lines across kind of distribution channels, whether it's physical or digital. Just maybe talk to how Bank America's approaching this notices provide a competitive advantage and is there kind of more you could do on that front?

Question: Jason Goldberg - Barclays Bank PLC - Analyst : I never get, maybe shift gears and turn to the financials, starting with loan growth, it's clearly been kind of sluggish across the industry in BofA up kind of 1% year-over-year in the second quarter despite card up 5%, which seems to be the kind of lone bright spot of those loan spreads appear to have widened. Can you just talk to what you're currently seeing? And then what do you think borrowers need to see to get reengaged, whether it's railcars, games, the election, getting confirmation, we unpack and engineer a soft landing. So any perspective you have? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. SEPTEMBER 10, 2024 / 5:05PM, BAC.N - Bank of America Corp at Barclays Global Financial Services Conference

Question: Jason Goldberg - Barclays Bank PLC - Analyst : And then on the deposit front, average deposits were modestly higher in the second quarter, slowing in the increase in rate paid. We have seen some pressure on wealth deposit rates. Maybe just talk to how balances are progressing this quarter in kind of maybe segment out non-wealth and wealth.

Question: Jason Goldberg - Barclays Bank PLC - Analyst : Well, maybe tying loans and deposits together, you previously talked to this 2Q net interest income trough with growth in 3Q, then growth again in 4Q with maybe a 4Q number in the $14.5 billion area. Another great environment has certainly shifted since you've said that. So maybe just talk to how you feel about that, what kind of the impact of an evolving rate environment is and it will cause you to do better or worse than those figures.

Question: Jason Goldberg - Barclays Bank PLC - Analyst : Got it. That's helpful. And then on the maybe capital markets, we're seeing or anything come in general, what we've seen pretty strong fee income performance, Wealth Management, Investment Banking, Trading Global Payments. Maybe kind of talk about what you're seeing feature of these key drivers, and I've got to ask you about the liberatory, third quarter trading and investment banking fee update.

Question: Jason Goldberg - Barclays Bank PLC - Analyst : And then maybe every other areas, it's kind of the income you'd want to highlight.

Question: Jason Goldberg - Barclays Bank PLC - Analyst : I guess with a company earlier today kind of talked down kind of auto lots or cross talk up auto, lots of expectations, that's not something you're seeing flow through.

Question: Jason Goldberg - Barclays Bank PLC - Analyst : Got it. And then we kind of skipped over expenses. You kind of maybe touched on some comp pressure potentially just given, seeing year over year growth in trading revenues and investment banking fees maybe flattish, but sure you kind of talked to maybe some near term expectations and then there's how you think about this potential return to operating leverage?

Question: Jason Goldberg - Barclays Bank PLC - Analyst : And I guess giving your kind of commentary with the kind of net interest income dropping in the second quarter growing in 3Q into 4Q and kind of touched on potential next year and it feels like we should expect this return of positive operating leverage. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. SEPTEMBER 10, 2024 / 5:05PM, BAC.N - Bank of America Corp at Barclays Global Financial Services Conference

Question: Jason Goldberg - Barclays Bank PLC - Analyst : And you touched on AI and we kind of view Bank of America is you've kind of been kind of leading I think the industry in terms of technology and investments and products and. Services for your. Customers, we just expand upon in terms of how you see that?

Question: Jason Goldberg - Barclays Bank PLC - Analyst : Helpful. Maybe shift gears to capital and I'm not going to quiz you on Barr's speech today because I'm sure you were busy during it and I'm sure get like, think 450 pages next week. But at the headlines, looks like what was the close to be a 20%, increase the capital on the original proposal is now maybe a 10% increase to capital. I know the industry was told before all this that there be. No increase to capital. I guess kind of what are your thoughts on this whole process?

Question: Jason Goldberg - Barclays Bank PLC - Analyst : Helpful. One of the questions I've gotten a lot lately is. Berkshire Hathaway selling stock. I did call last week.

Question: Jason Goldberg - Barclays Bank PLC - Analyst : I did.

Question: Jason Goldberg - Barclays Bank PLC - Analyst : You didn't call me back.

Question: Jason Goldberg - Barclays Bank PLC - Analyst : Hey, Mel, Debbie's assistant still waiting, but, I mean, yeah. Largest shareholders been selling stock. It seems like every time it's above $39.00. Just any have you maybe returned your call? But any thoughts you have around that? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. SEPTEMBER 10, 2024 / 5:05PM, BAC.N - Bank of America Corp at Barclays Global Financial Services Conference

Question: Jason Goldberg - Barclays Bank PLC - Analyst : Maybe we can bring together a lot of the stuff we've talked about. But you talked to 15% ROTC, for the company as a whole, just given kind of all the progress you made under your tender under your tenure. And we talked about NII normalising the return of positive earning leverage. Bob if we ultimately getting finalised as something less than initially feared is that the right number and just how do you kind of think about overall returns?

Question: Jason Goldberg - Barclays Bank PLC - Analyst : Helpful. We were about three minutes on the clock. I'm not sure if there's any quick questions from the audience. That they may have. UnidentifiedParticipant I guess, Brian, you mentioned ship surcharge not being recalibrated. I think this goes back over a decade. You talked to regulators, any kind of acceptance. Or do you think that's something? Eventually they will revisit? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. SEPTEMBER 10, 2024 / 5:05PM, BAC.N - Bank of America Corp at Barclays Global Financial Services Conference