Bank of America Corporation Q1 FY2026 earnings call

• There is an organic growth engine with a competitive position and serious moats that are hard to discern in daily operations. The company had EPS up 30% in the previous quarter, operating leverage of 600 basis points, revenue growth 10%, and expense growth 4%. - Showed competitive moats by highlighting technology spend and the complexity of running a global markets business with 50 regulators. - Mentioned unique programs for growth such as the employee banking investments program, local markets capabilities, international capabilities, and business banking for 50 million revenue companies and under. - Discussed efficiency initiatives with the aim to get the efficiency ratio back below 60% near - term into the high 50s and sustained operating leverage of 200 - 300 basis points, with headcount redeployment and AI impact on process improvement

Consumer: In November, money movement across the platform was up 4.3% compared to November last year. The bottom tercile grew at a slower rate but still, the top tercile grew faster, and the middle one moved more. Credit quality improved. Commercial: Organic growth was 8% year over year. Wealth management: Recruiting experienced advisors, creating capacity for advisors, and having a training program. Markets: Expected 10% year - over - year growth in the fourth quarter, which would be the 15th - 16th consecutive quarter of linked quarter growth

• Plans to get ROTC to the lower end in two years and the higher end in three years, with a progression year over year. - Fourth quarter investment banking fees are expected to be up about 4%, and markets are expected to be up 10% year over year. - Expense growth from 2024 to 2025 is expected to be around 4 - 4.5%

• Existential issues like derailments, kinetic wars, uncertain rate structure, hyperinflation, and debt. - Regulatory changes such as Basel III endgame G - SIB recalibration impact. - Competitive environment with peers' actions and regional bank consolidation risks

Q: Anything of note in terms of early delinquencies and consumer asset quality divergence?

A: Spending rate is different from credit payment. There is no indication of consumer stress. Charge - offs in the consumer business are plugging along. Prime credit books are performing well.

Q: On loan growth in commercial and commercial real estate and OCC rescinded levered lending rules impact?

A: Commercial loan growth is 8% year over year. Commercial real estate is seeing the start of life in well - structured deals. OCC rescinded rules help in making credits and competing in the market.

Q: Key differentiator in growing card business?

A: Combined rewards program in preferred customers, where 1/3 of customers have 80% deposits and deep card penetration.

Q: What's different in growing wealth business?

A: Recruiting experienced advisors, creating capacity for advisors, having a training program, and having products like Merrill edge and robo - advisors like Maggie.

Q: Path to 10.5% CT1 target and inorganic growth?

A: Path involves growing into capital, possible step change with G - SIB recalibration. Inorganic growth is mainly in line of business oriented like payments firms, with no legal acquisition of deposit - holding franchises