The significant jump in Q4 2022 was driven by several factors. **Provision for credit losses** played a major role, as the reserves were built rather than released, which improved operating cash flow. In addition, there was a **positive shift in other assets** and **accrued expenses and other liabilities**, which added to the cash flow. Furthermore, the proceeds from **loans held-for-sale** exceeded the originations and purchases, contributing positively despite a substantial negative impact from the **net change in trading and derivative assets/liabilities**.  **[0000070858-23-000092_bac-20221231.htm:170]** 

What drove the significant jump in operating cash flow in Q4 2022?

The operating cash flow turned negative in Q1 2023 mainly because of several key factors. First, there was an outflow in **trading and derivative assets/liabilities** of **$(725) million** which, although smaller than in the previous period, still contributed to the negative flow.  **[0000070858-23-000142_bac-20230331.htm:74]**  In addition, the **accrued expenses and other liabilities** saw a net change of **$(7,066) million**—a reversal from a significant inflow in the previous quarter.  **[0000070858-23-000142_bac-20230331.htm:74]**  There was also a reduction in cash inflows from **loans held-for-sale** with proceeds of only **$2,378 million** compared to much higher levels previously.  **[0000070858-23-000142_bac-20230331.htm:74]**  Finally, **other assets** experienced a larger outflow of **$(16,078) million**. Together, these factors led to the net cash used in operating activities resulting in a negative figure in Q1 2023.  **[0000070858-23-000142_bac-20230331.htm:74]** 

Why did operating cash flow turn negative in Q1 2023?

The bounce back in operating cash flow in Q2 2023 was driven by **an increase in net income**, a **higher provision for credit losses**, a significant positive shift in **trading and derivative assets/liabilities**, and a **substantial decrease in accrued expenses and other liabilities**.  **[0000070858-23-000176_bac-20230630.htm:88]** 

What factors contributed to the bounce back in operating cash flow in Q2 2023?

baa40330d206d6466f38cf4bd64fccddbb1bf0d1cc9caf2d0f5de4de1fec92af

The documents indicate that while there was a significant drop in **Cash and cash equivalents** in Q3 2024 compared to the prior quarter—declining by **$25,300 million** from Q2 2024—the reasons are not explicitly stated.  **[0000070858-24-000266_bac-09302024ex993.htm:6]** **[0000070858-24-000280_bac-20240930.htm:85]**  The documents suggest potential factors such as increased allocation into **trading account assets**, slight changes in **deposits**, and growing **loans and leases** could have contributed to the decline, but they do not provide a definitive explanation for why the level was so low.  **[0000070858-24-000266_bac-09302024ex993.htm:6]** **[0000070858-24-000280_bac-20240930.htm:85]** 

Why was Cash and cash equivalents so low in Q3 2024?

The sharp increase in **Federal funds purchased** in **Q3 2024** was driven by several factors. Notably, there was an **increase in balances** from **$283,887 million** at the end of 2023 to **$397,958 million** in Q3 2024, which reflects a higher reliance on repurchase agreements. Additionally, there was **heightened activity in securities financing**, particularly in U.S. government and agency securities, as well as a **shift in the maturity composition** with a move toward longer-term funding agreements. These factors combined to result in the significant rise in this liability category.  **[0000070858-24-000280_bac-20240930.htm:85]** **[0000070858-24-000280_bac-20240930.htm:142]** 

What drove the sharp increase in Federal funds purchased in Q3 2024?

The documents do not provide specific reasons for the surge in non-U.S. interest-bearing deposits in Q4 2023, although they confirm that deposits increased from **$91,953 million in Q3 2023** to **$102,877 million in Q4 2023**.  **[0000070858-24-000011_bac-12312023ex993.htm:6]** 

What caused the surge in non-U.S. interest-bearing deposits in Q4 2023?

Bank of America’s fair value jump in Q4 2023 was primarily driven by a **significant increase** in available-for-sale debt securities. In particular, the holdings of **U.S. Treasury and government agency securities** rose sharply from **$104,828 million in Q3 2023** to **$179,108 million in Q4 2023**, and **mortgage-backed securities (Agency)** rose from **$22,435 million to $39,195 million**, substantially boosting the overall fair value. In addition, a **reduction in unrealized losses**—from **$4,557 million** to **$3,983 million**—also contributed to the rise. These factors together explain the jump from **$175,540 million in Q3 2023** to **$276,852 million in Q4 2023**.  **[0000070858-24-000011_bac-12312023ex993.htm:10]** **[0000070858-24-000122_bac-20231231.htm:211]** 

Why did the fair value of debt securities jump so high in Q4 2023?

11aad585984c7c647574d5c8b49feb63f91b2d7a1074af73323972e8d9756650

In Q4 2023, Bank of America’s net income was significantly impacted by several factors. **Notable items** played a major role, as the reported EPS of **$0.35** included factors that, when adjusted, resulted in a different net income figure ( **[BAC_3370240_1]** ). Additionally, the bank recorded a **provision for credit losses of $1,104 million** and significantly higher **noninterest expenses of $17,731 million**, both of which weighed on profitability ( **[0000070858-24-000011_bac-12312023ex993.htm:2]** ). There was also a modest tax benefit, where tax credits from tax-advantaged investment deals exceeded taxes on the reported earnings affected by these notable items ( **[BAC_3370240_10]** ).

Why was Net income so low in Q4 2023?

The significant drop in Q4 2023 EPS was primarily driven by two notable items—a **$1.6 billion charge** from ceasing the Bloomberg Short-Term Bank Yield Index and a **$2.1 billion FDIC special assessment**—which together reduced net income and EPS by **$0.35**. This impact was further exacerbated by **higher noninterest expenses** (rising to **$17.7 billion** from **$15.8 billion** in Q3 2023) alongside **lower revenue** (declining to **$22.0 billion** from **$25.2 billion** in Q3 2023) and adjustments in the provision for credit losses.  **[0000070858-24-000011_bac12312023ex991.htm:3]** **[BAC_3370240_10]** 

What caused the significant drop in EPS in Q4 2023?

The income tax expense turned negative primarily due to **tax-advantaged investments** and **recurring tax preference benefits**, such as tax credits from investments in affordable housing and renewable energy, which significantly lowered the tax expense. Additionally, **notable charges** in Q4 2023—specifically related to the FDIC special assessment and the impact of BSBY’s future cessation—combined with a **lower pre-tax income** (with pre-tax income at **$3,124 million** compared to **$7,897 million** in Q4 2022) to yield a negative tax figure, shifting from a prior tax expense of **$765 million** in Q4 2022 to a **$20 million benefit** in Q4 2023.  **[0000070858-24-000122_bac-20231231.htm:69]** **[0000070858-24-000122_bac-20231231.htm:278]** **[0000070858-24-000011_bac-12312023ex993.htm:3]** **[0000070858-24-000011_bac12312023ex991.htm:18]** **[BAC_3370240_5]** 

Why did Income tax expense turn negative in Q4 2023?

The drop in **total revenue in Q4 2023** was primarily driven by two factors. First, there was a **decline in net interest income** of about **$441 million**, which impacted the overall revenue base. Second, a significant decrease in **noninterest income**—a reduction of roughly **$2,775 million**—played a major role. This decrease was largely due to **lower market-making revenues** and a downturn in other income items. Additionally, **segment-specific declines** in global markets, global banking, and consumer banking contributed to the overall drop in revenue.  **[0000070858-24-000011_bac-12312023ex993.htm:12]** **[0000070858-24-000011_bac-12312023ex993.htm:22]** **[0000070858-24-000011_bac-12312023ex993.htm:11]** **[0000070858-24-000011_bac-12312023ex993.htm:15]** **[0000070858-24-000011_bac12312023ex991.htm:20]** 

What drove the drop in total revenue in Q4 2023?

03ab0f45b37ef385f0a1b50a1b1882498250196d416daced6352db731a5fff75

f6f565081e71e9695d48147e1fa0d9214ecf6bc4532524894ff1c82ecedc4a06

Net interest income (USD, millions)

Total noninterest income (USD, millions)

Total revenue, net of interest expense (USD, millions)

Provision for credit losses (USD, millions)

Total noninterest expense (USD, millions)

Income before income taxes (USD, millions)

Income tax expense (USD, millions)

Net income (USD, millions)

Preferred stock dividends (USD, millions)

Net income applicable to common shareholders (USD, millions)

Diluted earnings per common share (USD)

31693257f7da75101e7dc34111774146cb1a241407add838c1dd3fe40ea42ff0

1356510b490f62620c6796483222a8422d5d516dc3260bb9d7876fcc85e50881

Adjustments for Non-Cash Items (USD, millions)

Stock-Based Compensation (USD, millions)

Changes in Working Capital (USD, millions)

Capital Expenditures (CapEx) (USD, millions)

Proceeds from / Repayments of Debt (USD, millions)

Share Repurchases (USD, millions)

Dividend Payments (USD, millions)

Net Change in Cash (USD, millions)

a3358071bf8223cafa73363f70101f2368e7aaadee4fd7704e323dc58452215e

Total Revenue (USD, millions)

Cost of Goods Sold (COGS) (USD, millions)

Selling, General, and Administrative Expenses (SG&A) (USD, millions)

Research and Development (R&D) (USD, millions)

Depreciation and Amortization (D&A) (USD, millions)

Interest Expense (USD, millions)

Operating Income (EBIT) (USD, millions)

Net Income (USD, millions)

Earnings Per Share (EPS) - Basic (USD)

Earnings Per Share (EPS) - Diluted (USD)

b34c8346a537261f5f8d8820ad0e014e472292cc79ca2b47a96df3d96e5b3a7f

f7adfb4e692f52d0b3c91fea3dfbda13cc112f320215b008fbc03103ae0fac2c

593bb05d7f5344cf9fe75efb826d64bff6b07d66045cbece073badbd1f1f33c0

United States

Non-U.S.

- Asia

- Europe, Middle East, Africa

- Latin America, Caribbean

Total Revenue

d49313ddc378c5134431637928202a2bbd1b587068f4fa69785df09d59f618f9

Consumer Banking

- Net Interest Income

- Noninterest Income

Global Wealth & Investment Management

Global Banking

Global Markets

All Other

a309040ecc4c6c67620c34adbe7ecdd761f1b27b6d80410b544dfe016b4e59f0

BANK OF AMERICA CORP /DE/ (BAC)

Financials