On this page of StockholderLetter.com we present the 3/11/2024 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.
ANNUAL REPO REP OR RT T 2023
annual report 2023 16 Table of Contents 02 Company Performance A letter from Chair and CEO Brian Moynihan 2 A letter from 13 Lead Independent Director Lionel Nowell Board of Directors & Executive Management Team 14 Eight Lines of Business 34 Our eight lines of business 16 Local, International & Digital Spotlights Retail Banking 18 Preferred Banking 20 Merrill 22 Private Bank 24 Business Banking 26 Global Commercial Banking 28 Global Corporate & Investment Banking 30 Global Markets 32 Local Markets Organization 34 International presence 36 Digital capabilities 38
40 Community Impact Support for entrepreneurs 40 Sustainable nance 42 46 Workforce development 43 Human Capital Management Update Other highlights 44 A letter from Sheri Bronstein 46 Bene ts overview 48 Talent & development 54 Diversity & inclusion 56 Employee engagement & workforce metrics 60 64 Additional Company Information Financial Highlights 64 Recognition 65 Stakeholder Capitalism Metrics 66 2023 Financial Review 77 BANK OF AMERICA 2023 | 1
Company Performance A letter from Chair and CEO Brian Moynihan To our shareholders, On behalf of the Board of Directors, the Management Team, and my Bank of America teammates, I m pleased to share your company s 2023 Annual Report. In it, you ll nd information about our continued delivery of Responsible Growth, and the success we had with clients, teammates, communities, and shareholders. During 2023, our company made $26.5 billion in net income. This included pretax charges of $2.1 billion for the Federal Deposit Insurance Corporation (FDIC) Special Assessment and net $1.6 billion for the impact of the future cessation of the Bloomberg Short-term Bank Yield Index (BSBY), which combined to total $3.7 billion pretax, or $2.8 billion a er-tax. Excluding these charges, we made $29.3 billion. We earned strong, double-digit adjusted return on equity,1 and we delivered capital back to our shareholders, and increased our dividend. As we think about 2023, we have to put it into context of the last few years. We saw COVID impacts to economies around the world in 2020 and beyond, and we saw high in ation due to the excessive government scal and monetary stimulus. We had the Federal Reserve monetary response to the in ation, which, in its own view, was delayed too long, resulting in one of the fastest rate-rising scenarios in absolute terms (500 bps plus), relative terms (from 25 bps to 550 bps, or 20+ times the interest rate), and the time elapsed from rst hike to pause. We saw major regional wars start in Europe and the Middle East, requiring funding support from Europe and the U.S. We saw trade disruptions, sanctions, and other reactions to the wars and other geopolitical turbulence. We saw bank failures and disruptions the costs of which were sent to the larger banks (note the $2.1 billion FDIC charge that your company accrued in the fourth quarter). We have seen regulator reactions to those failures. So how did your company do in light of all that? We earned more than $100 billion a er tax (an annual average of $26 billion in a er-tax earnings) for 2020 2023, bringing us to more than $200 billion in the last 10 years. How did we do that? We drove Responsible Growth and its core tenets: Grow and win in the market, no excuses; Grow with our customer focus; Grow within our risk framework; and Grow in a sustainable manner. 2 | BANK OF AMERICA 2023
Simply put, we stood strong for shareholders, clients, teammates, and communities in 2023, during another year of change and volatility across the nancial services sector and beyond. Our ongoing commitment to Responsible Growth helped us deliver for all our stakeholders. One of Bank of America s core values is our focus on teamwork and delivering together. With that in mind, I want to thank our Board of Directors for their guidance and our Management Team for helping to lead our work this year. More information about these leaders is available on pages 14 and 15, along with perspective from our Lead Independent Director Lionel Nowell on page 13. Lionel also shares a tribute to our friend Frank Bramble, a 17-year member of the Board who passed away last year. We miss Frank and his guidance. I also want to recognize my 213,000 teammates who drive Responsible Growth by living our purpose and values. Every day, they come to work ready to win for clients, communities, shareholders and for one another. I am honored to lead this extraordinary team. Together, this year we continued to deliver on the strength of our franchise as we drove organic growth across our eight lines of business, carefully managed risk, and maintained our disciplined focus on Operational Excellence, which helped enable us to control expenses as we continued to invest in the future. DELIVERING CONSISTENT, LONG-TERM RETURNS We believe that a long-term view of our stock performance is helpful in times of near-term volatility and that ultimately our consistent performance for stakeholders will drive our share price. Over the course of the last decade, our stock price has shown strong performance against the KBW Bank Index, which tracks the performance of the leading publicly traded banks in the U.S. At the same time, bank stocks have faced challenges when compared to broader indexes: for example, the S&P 500 index 10-year stock performance vs. key indexes 158.1% 116.2% 38.6% S&P 500 BAC has performed well, but was heavily driven by a narrow group of technology companies in 2023, in uencing both long- and shortterm comparative performance. Your company also remains well-positioned for the future. Our credit quality is strong; we have capital ratios in excess of current and expected potential regulatory minimums; our brand is highly respected; our employee satisfaction and loyalty rates remain at best-in-class highs, and turnover is near an all-time low; and clients continue to bring us more business across our entire company. Most importantly, we are also well-positioned to drive growth further no matter what the market or the world sends our way. This is outlined in greater detail in the remainder of this letter and throughout the pages of this report. Your company remains well-positioned for the future. Most importantly, we are well-positioned to drive growth further no matter what the market or the world sends our way. $32.0 We have generated more than $200B in earnings over the past 10 years Earned >$100B since pandemic $28.1 BKX Index $29.32 $27.5 $27.4 $2.8 ($ in billions) $26.5 $17.8 $18.2 $17.9 $15.9 $5.5 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 1 Represents return on average tangible common equity calculated using net income applicable to common shareholders adjusted for the FDIC special assessment and BSBY cessation charges, as described above. See Supplemental Financial Data on page 83 and Non-GAAP Reconciliations on page 139. 2 Represents a non-GAAP financial measure. Adjusted 2023 net income excludes the FDIC special assessment and BSBY cessation charges. BANK OF AMERICA 2023 | 3
 • shareholder letter icon 3/11/2024 Letter Continued (Full PDF)
 • stockholder letter icon 3/7/2023 BAC Stockholder Letter
 • stockholder letter icon 3/10/2025 BAC Stockholder Letter
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 • Benford's Law Stocks icon BAC Benford's Law Stock Score = 100


BAC 3/11/2024 Shareholder/Stockholder Letter Transcript:

ANNUAL REPO
REP OR
RT
T 2023

annual
report 2023
16
Table of
Contents
02
Company
Performance
A letter from
Chair and CEO
Brian Moynihan
2
A letter from
13
Lead Independent
Director Lionel Nowell
Board of Directors
& Executive
Management Team
14
Eight Lines of Business
34
Our eight lines
of business
16
Local, International
& Digital Spotlights
Retail Banking
18
Preferred Banking
20
Merrill
22
Private Bank
24
Business Banking
26
Global Commercial
Banking
28
Global Corporate &
Investment Banking
30
Global Markets
32
Local Markets
Organization
34
International
presence
36
Digital capabilities
38

40
Community Impact
Support for
entrepreneurs
40
Sustainable
   nance
42
46
Workforce
development
43
Human Capital
Management Update
Other highlights
44
A letter from
Sheri Bronstein
46
Bene   ts overview
48
Talent & development
54
Diversity & inclusion
56
Employee engagement
& workforce metrics
60
64
Additional Company
Information
Financial Highlights
64
Recognition
65
Stakeholder
Capitalism Metrics
66
2023 Financial Review
77
BANK OF AMERICA 2023
| 1

Company
Performance
A letter from
Chair and CEO
Brian Moynihan
To our shareholders,
On behalf of the Board of Directors, the Management Team,
and my Bank of America teammates, I   m pleased to share your
company   s 2023 Annual Report. In it, you   ll    nd information about
our continued delivery of Responsible Growth, and the success we
had with clients, teammates, communities, and shareholders.
During 2023, our company made $26.5 billion in net income. This
included pretax charges of $2.1 billion for the Federal Deposit
Insurance Corporation (FDIC) Special Assessment and net
$1.6 billion for the impact of the future cessation of the
Bloomberg Short-term Bank Yield Index (BSBY), which combined
to total $3.7 billion pretax, or $2.8 billion a er-tax. Excluding these
charges, we made $29.3 billion. We earned strong, double-digit
adjusted return on equity,1 and we delivered capital back to our
shareholders, and increased our dividend.
As we think about 2023, we have to put it into context of the
last few years. We saw COVID impacts to economies around the
world in 2020 and beyond, and we saw high in   ation due to the
excessive government    scal and monetary stimulus. We had
the Federal Reserve monetary response to the in   ation,
which, in its own view, was delayed too long, resulting in
one of the fastest rate-rising scenarios in absolute terms
(500 bps plus), relative terms (from 25 bps to 550
bps, or 20+ times the interest rate), and the time
elapsed from    rst hike to pause. We saw major
regional wars start in Europe and the Middle
East, requiring funding support from Europe and
the U.S. We saw trade disruptions, sanctions,
and other reactions to the wars and other
geopolitical turbulence. We saw bank failures
and disruptions     the costs of which were
sent to the larger banks (note the $2.1 billion
FDIC charge that your company accrued in
the fourth quarter). We have seen regulator
reactions to those failures.
So how did your company do in light of
all that?
We earned more than $100 billion a er tax
(an annual average of $26 billion in a er-tax
earnings) for 2020   2023, bringing us to more
than $200 billion in the last 10 years.
How did we do that? We drove Responsible Growth
and its core tenets: Grow and win in the market, no
excuses; Grow with our customer focus; Grow within
our risk framework; and Grow in a sustainable manner.
2 | BANK OF AMERICA 2023

Simply put, we stood strong for shareholders, clients, teammates,
and communities in 2023, during another year of change and
volatility across the    nancial services sector and beyond. Our
ongoing commitment to Responsible Growth helped us
deliver for all our stakeholders.
One of Bank of America   s core values is our focus on teamwork
and delivering together. With that in mind, I want to thank our
Board of Directors for their guidance and our Management
Team for helping to lead our work this year. More information
about these leaders is available on pages 14 and 15, along with
perspective from our Lead Independent Director Lionel Nowell on
page 13. Lionel also shares a tribute to our friend Frank Bramble, a
17-year member of the Board who passed away last year. We miss
Frank and his guidance.
I also want to recognize my 213,000 teammates who drive
Responsible Growth by living our purpose and values. Every
day, they come to work ready to win for clients, communities,
shareholders     and for one another. I am honored to lead this
extraordinary team.
Together, this year we continued to deliver on the strength of our
franchise as we drove organic growth across our eight lines of
business, carefully managed risk, and maintained our disciplined
focus on Operational Excellence, which helped enable us to control
expenses as we continued to invest in the future.
DELIVERING CONSISTENT, LONG-TERM RETURNS
We believe that a long-term view of our stock performance is
helpful in times of near-term volatility and that ultimately our
consistent performance for stakeholders will drive our share price.
Over the course of the last decade, our stock price has shown
strong performance against the KBW Bank Index, which tracks
the performance of the leading publicly traded banks in the
U.S. At the same time, bank stocks have faced challenges when
compared to broader indexes: for example, the S&P 500 index
10-year stock performance vs. key indexes
158.1%
116.2%
38.6%
S&P 500
BAC
has performed well, but was heavily driven by a narrow group of
technology companies in 2023, in   uencing both long- and shortterm comparative performance.
Your company also remains well-positioned for the future. Our
credit quality is strong; we have capital ratios in excess of current
and expected potential regulatory minimums; our brand is highly
respected; our employee satisfaction and loyalty rates remain at
best-in-class highs, and turnover is near an all-time low; and clients
continue to bring us more business across our entire company.
Most importantly, we are also well-positioned to drive growth
further     no matter what the market or the world sends our way.
This is outlined in greater detail in the remainder of this letter and
throughout the pages of this report.
Your company remains
well-positioned for the future.
Most importantly, we are
well-positioned to drive growth
further     no matter what the
market or the world sends our way.
$32.0
We have generated more than $200B in earnings over the past 10 years
Earned >$100B since pandemic
$28.1
BKX Index
$29.32
$27.5
$27.4
$2.8
($ in billions)
$26.5
$17.8
$18.2
$17.9
$15.9
$5.5
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
1
Represents return on average tangible common equity calculated using net income applicable to common shareholders adjusted for the FDIC special
assessment and BSBY cessation charges, as described above. See Supplemental Financial Data on page 83 and Non-GAAP Reconciliations on page 139.
2
Represents a non-GAAP financial measure. Adjusted 2023 net income excludes the FDIC special assessment and BSBY cessation charges.
BANK OF AMERICA 2023
| 3



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