On this page of StockholderLetter.com we present the 3/7/2023 shareholder letter from BANK OF AMERICA CORP /DE/ — ticker symbol BAC. Reading current and past BAC letters to shareholders can bring important insights into the investment thesis.

 •  3/7/2023 Letter Continued (Full PDF)
 •  3/11/2024 BAC Stockholder Letter
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 •  BAC Benford's Law Stock Score = 100

BAC 3/7/2023 Shareholder/Stockholder Letter Transcript:

ANNUAL RE PO
POR
RT
T 2022
20 22

annual report 2022
14
Eight Lines of
Business
Our eight lines of
business
14
Retail Banking
16
Preferred Banking
18
Merrill
20
Privat
ivate Bank
22
Business Banking
24
Global Commercial
Banking
26
Global Corporate &
Investment Banking
28
Global Markets
30
02
Company
Performance
A letter from Chair
and CEO Brian
Moynihan
02
Letter from Lead
Independent Director
11
Board of Directors
and Executive
Management Team
eam
12
32
Local & Digital
Spotlights
Local Markets
Organization
32
Digital capabilities
34

36
Community Impact
Diverse entrepreneurs
36
Sustainable    nance
38
Jobs initiatives
39
Other highlights
40
42
58
Human Capital
Management Update
A letter from
Sheri Bronstein
42
Bene   ts overview
44
Talent & development
48
Diversity & inclusion
50
Employee
engagement &
workforce metrics
54
Miscellaneous &
Appendix
Financial highlights
58
Recognition
59
Stakeholder
Capitalism Metrics
60
2022 Financial
Review
71
BANK OF AMERICA 2022
| 1

Company
Performance
A letter from
Chair and CEO
Brian Moynihan
To our shareholders,
Our company adopted Responsible Growth in 2014,
and fully discussed its core tenets in our Annual Report
the following year. These tenets have served as the
foundation for our strong performance and progress.
We have seen Responsible Growth work in the relative
calm of 2015 to 2019, the pandemic tumult of 2020
and 2021, and the in   ationary period of 2022. In each
of these periods, our company bene   ted from our
long-term consistency and adherence to the tenets
of Responsible Growth.
Responsible Growth has served us well under
varied conditions
The core tenets of Responsible Growth have served our
company and you, our shareholders, well during good
times and stress.
Responsible Growth served us well through the period
from 2015 to 2019, when the economies of the
world settled into normalized growth rates and interest
rates rose in the U.S. with the Federal Reserve   s
tightening cycle.
As the pandemic hit in early 2020, a major economic
crisis ensued and your company performed well once
again, even as we met our clients    borrowing demands,
built reserves, traded through uncertain markets, and
helped our employees, clients and our communities deal
with the pandemic and its a ermath. Again, Responsible
Growth served us well.
During 2022, the U.S. and the world continued to face
civil tensions from the pandemic and lockdowns, social
and racial con   icts, a war in Europe and energy supply
disruptions, and in   ation.
Responsible Growth
1. Win in the market, no excuses.
2. Grow with a customer-focused strategy.
3. Grow with the right risk principles.
2 | BANK OF AMERICA 2022
4. Grow in a sustainable manner: Be the best
place to work, share our success with our
communities and drive Operational Excellence.

The strength of our balance sheet, risk management, organic
growth, and expense management became a catalyst that drove
our    nancial performance.
Let   s take a look at highlights of our performance in each of these
periods, beginning with 2015 to 2019 as the U.S. economy set
a record for one of the longest periods of economic growth. The
Federal Reserve started a tightening cycle in 2016, raising interest
rates re   ecting the strength of the U.S. economy. Here   s how we did:
Loans
Deposits
Net interest income
Expenses
Net charge-o   s
Earnings
Headcount
Number of shares
Book value per share
Active digital customers
Customer satisfaction
Employee satisfaction
YE 2015
$897 B
$1.2 T
$39.0 B
$57.6 B
$ 4.3 B
$15.9 B
216 K
10.4 B
$22.53
32 MM
74%
76%*
YE 2019
$983 B
$1.4 T
$49.0 B
$54.9 B
$ 3.6 B
$27.4 B
208 K
8.8 B
$27.32
38 MM
85%
85%
% change
10%
20%
25%
-5%
-16%
72%
-4%
-15%
21%
21%
15%
12%
Then came the pandemic, which brought with it 15% U.S.
unemployment, a 30% drop in U.S. GDP annualized growth rate,
huge    scal stimuli, supply chain disruptions, and an instantaneous
drop to 0% rates. A er the recovery was assured by early 2021,
a period of in   ation set in resulting in the steepest interest
rate increase path we have seen in the U.S. in the past 40 years.
Here is how the company performed from 2019 to 2022:
Loans
Deposits
Net interest income
Expenses
Net charge-o   s
Earnings
Headcount
Number of shares
Book value per share
Active digital customers
Customer satisfaction
Employee satisfaction
YE 2019
$983 B
$1.4 T
$49.0 B
$54.9 B
$3.6 B
$27.4 B
208 K
8.8 B
$27.32
38 MM
85%
85%
YE 2022
$1.0 T
$1.9 T
$52.5 B
$61.4 B
$2.2 B
$27.5 B
217 K
8.0 B
$30.61
44 MM
87%
85%
% change
6%
35%
7%
12%
-40%
0%
4%
-9%
12%
15%
2%
0%
As a side note, the total cumulative charge-o   s at Bank of
America from 2015 to 2022, re   ecting Responsible Growth,
were less than the charge-o   s recorded in the single year
2010 despite a recession, a pandemic, unprecedented monetary
policy changes, and war occurring in these years.
We are positioned well for the
future. In the post-pandemic period
we have reestablished our organic
growth engine.
For the entirety of the period from 2015 to 2022, we have seen
the stock price double; we have produced $185 billion in a er-tax
earnings; and we have invested heavily in our franchise to better
serve our customers and clients. Responsible Growth worked
in all those environments and produced strong results on an
enormous scale.
A simple way to think about this is only four U.S. companies have
earned more than $15 billion in GAAP a er-tax income in each of
these eight years. Your company is one of them.
More importantly, we are positioned well for the future. In the
post-pandemic period we have reestablished our organic growth
engine. We have delivered revenue growth, while controlling
expense, in a highly volatile environment. You will note increased
costs for 2019 to 2022 above. First, we had cost increases for
special pandemic programs and to take care of our team. Then,
in   ation added to costs. But in the end, we have just delivered
our sixth straight quarter of operating leverage in the fourth
quarter of 2022.
We have strong credit quality, capital ratios in excess of
constantly increased regulatory minimums, a highly-respected
brand, high employee satisfaction and loyalty, and incredible
customers we are honored to serve. We have built and improved
upon digital capabilities across every line of business to serve
these customers, which embed the most e   ective capabilities
of a    ntech into the strength and stability of a well-regulated
company.
While we review and learn from the past, we don   t live there.
What we are excited about is how our proven operating model
sets us up for the future. Our team relishes the work ahead to
continue to deliver for you. So, as we look forward to the years
ahead, we are poised to continue to drive Responsible Growth,
no matter what comes at us.
8 consecutive years of more than $15B in net income
($ Billions)
$28.1
$15.9
$17.8
$18.2
2015
2016
2017
$32.0
$27.4
$27.5
$17.9
2018
2019
2020
2021
2022
*2014 Employee Engagement Index Score; survey was not conducted in 2015
Source: FactSet and SNL Financial. Reflects calendar year net income.
BANK OF AMERICA 2022
| 3



 3/7/2023 Letter Continued (Full PDF)