Bank of America - Annual Report PDF

What would you like
the power to do?
2018 Annual Report

CONTENTS
A letter from Financing a sustainable world:
Chairman and CEO A message from Vice Chairman
Brian Moynihan Anne Finucane
1–9 22–23
A message from Improving lives
Lead Independent Director through community
Jack Bovender development
8 24–25
What would you like Driving economic mobility
the power to do? and social progress
10–11 26–27
Transforming financial services with Sharing our success —
high-tech and high-touch solutions ESG highlights
12–13 28
Q&A with Dean Athanasia, President Being a great place to work —
of Consumer and Small Business 2018 highlights
14–15 29
Delivering tailored We ask our teammates, too:
wealth management A message from
solutions for every Chief Human Resources Officer
stage in life Sheri Bronstein
16–18 30–31
Supporting companies as Financial
they grow, innovate and lead highlights
19–21 32
A letter from Chairman and CEO Brian Moynihan
Dear shareholders,
I am pleased to report to you that by adhering to Responsible Growth, the
200,000-strong team at Bank of America produced record earnings in 2018 of
$28.1 billion, or $2.61 per share. We did this by living our purpose, which is to
help make our clients’ financial lives better through the power of every connection
we can make — both for them and with them. Even as we continue to provide
capital to our customers and clients, invest heavily in our company, and deploy
capital to address some of the world’s toughest priorities, we were able to return
nearly $26 billion in capital to our shareholders, including more than $5 billion in
dividends and more than $20 billion in share repurchases. We continue to make
progress to undo the dilution from the shares we issued due to the economic crisis
of 2008-2009 and subsequent regulatory changes. Our capital, liquidity and capa-
city to serve clients are at record levels, and we have reduced the total number of
fully diluted shares outstanding to below 10 billion. Over a three-year period, total
shareholder return increased by more than 50 percent, outpacing the S&P 500
and exceeding the average of our U.S. large cap peers by more than three times.
Our culture of careful expense management has resulted 53.8%

in a $30 billion reduction in our expense base since 2010.
We achieved this even as we generated greater customer
activity and revenue, addressed industrywide inflation Total Shareholder Return¹
and cost challenges, and invested consistently. Positive oper-
ating leverage — meaning the change in revenue outpacing
the change in expenses — has resulted in an efficiency ratio 30.4%
of 58.5 percent for 2018, transforming Bank of America
into one of the most efficient firms in our industry.
Rolling 3-year
Backdrop for 2019 17.4%
The U.S. economy remains resilient and is growing. We are Bank of America
U.S. Large Cap Peer Avg.
proud of our Bank of America Research team, which has been S&P 500
ranked as the best in the world for six of the last eight years.
As I write this letter in late February 2019, those experts see 1
Total shareholder return includes stock price appreciation and dividends paid.
the U.S. GDP growing 2.2 percent this year, and the world Peer bank average includes C, JPM, MS, GS and WFC.
economy growing 3.4 percent. The U.S. consumer is solid:
We observed 9 percent growth in 2018 over 2017 in our U.S. to be a great place to work for our teammates, and we have
customer spending and money movement through Bank of to drive operational excellence. This creates the ability to
America channels. Business and consumer confidence also reinvest the savings back into our team, our capabilities, our
remain solid. We see good opportunities ahead as we deepen client experience, and our communities and shareholders.
our relationships, and add new ones, in each of our businesses.
I’ll review our company’s performance in 2018 by discussing
Driving Responsible Growth each of these tenets of Responsible Growth in more detail.
Our commitment to Responsible Growth is resolute. In By following them, we have kept credit costs at decade-lows
previous letters, we have discussed this framework. and have driven positive operating leverage each consecu-
Responsible Growth has four tenets: We have to grow — no tive quarter for four years running. For the year, we were
excuses. We have to grow by delivering more for our the world’s third most valuable financial services company
customers and clients. We have to grow by managing risk well. (as measured by market capitalization) and among the world’s
And, our growth must be sustainable. Sustainable means top 10 most profitable companies. Our fourth-quarter 2018
we have to share our success with our communities, we have earnings were the most among all U.S. global banks.
BANK OF AMERICA 2018 | 1

BRIAN MOYNIHAN
Chairman and CEO
External recognition What would you like the power to do?

Being one of the most profitable and efficient banks Listening to how customers, our employees and our share-
makes it possible for us to invest in award-winning capa- holders answer the question “What would you like the power
bilities, people and products to serve our customers and to do?” is how we learn what matters most to them. By asking,
clients well. In 2018, we received top recognition as a we start a conversation centered on our commitment to serve
company, including being named “World’s Best Bank” by by bringing our capabilities to help clients be successful.
Euromoney, an authoritative industry publication. We
also were recognized for our employment practices and We ask this question of our customers, in the communities
commitment to being a great place to work, our customer we serve, and of our employees. Responsible Growth guides
service, our mobile and digital capabilities, and for other us in living our purpose to help make financial lives better,
products and services in every major category. In February and to achieve strong operating results the right way. The
2019, we were ranked as one of the “100 Best Companies three-year company strategy that our board of directors
to Work For” by Fortune magazine and the global research reviews and approves each fall is based on continuing to
and consulting firm Great Place to Work®. Bank of America adhere to this approach.
also was recognized as the only financial services company
on Fortune’s inaugural “Best Big Companies to Work For” What are we asking our clients with our straightforward
list, which comprises seven companies with more than question? It’s your financial life; it’s your decision. We will bring
100,000 U.S.-based employees. capabilities that are second to none to help you be successful.
2 | BANK OF AMERICA 2018

We will connect our capabilities for clients as no other finan- Consumer Banking business held $684 billion in average
cial services company can. Simply put: We are here to serve. deposits during 2018, representing year-over-year growth
of 5 percent. Average loans in that business grew by 7 percent.
In 2018, we refined our company’s brand and logo to better We have grown consumer checking balances for 40 consec-
reflect our work and progress over many years. Over time, utive quarters, producing an additional $200 billion in
these will continue to evolve to better visualize the way core checking deposits in our consumer business alone.
we run our company today. We’ll continue to serve by In addition, average small business loans in Consumer
deepening our relationships, helping each individual, each Banking have grown 13 percent over the last three years.
business and each investor through the power of every
connection we can help them make. That is our purpose, and Through 2018, we also continued to see rapid growth in our
it is how we want everyone — employees, the communities digital and mobile channels due to decades of investment.
we serve, clients and investors — to see us. In 2018, our customers registered nearly 6 billion consumer
banking app logins, allowing us to maintain regular connec-
Grow. No excuses. tivity with them, and provide unparalleled convenience.
The first tenet of Responsible Growth is that we have to grow, We have nearly 37 million digital banking users; nearly
no excuses. As you can see on page 4, each of our businesses 27 million are active mobile banking customers. We now
grew, thereby contributing to our record earnings in 2018. process more deposit transactions through mobile devices
than in our financial centers. And 25 percent of our consumer
Over the last four years, deposits have grown 4 percent sales, including credit cards and auto loans, were completed
and loans across all our business segments have grown through a digital channel in 2018.
6 percent on average. For 2018, deposit and loan growth
within our business segments exceeded the net U.S. GDP While we are seeing digital and mobile growth, we are
rate. That is our core growth goal: to grow somewhat investing heavily in our facilities and in the teammates who
faster than the economy. Throughout 2018, our client base serve there, as well. We have retooled many of our ATMs, our
expanded and our market positions continued to improve in financial centers, and our technology in the branches and call
most of our businesses. centers. And we have invested in skills for our teammates to
have more opportunity in our consumer businesses.
Rising interest rates helped us deliver earnings growth, but
we don’t depend on them. Our growth in client deposits These efforts have led to our strongest customer scores
funds our loan growth across all of our businesses and in our history. Our ability to deepen customer and client rela-
enables us to continue to grow net interest income, even if tionships is driven in part by the investments we are making
further interest rate rises fail to materialize. to provide the best client care in the industry. For example,
overall, our company was certified or recognized as having
Our eight lines of business grew as a result of deepening industry-leading capabilities six times by J.D. Power in 2018.
client relationships and developing new relationships. Specifically, J.D. Power recognized our Digital Mortgage
Experience and Home Loan Navigator for making the home-
Growing by focusing on the customer buying experience simpler than ever, and identified Bank
We are pleased to serve more than one in three U.S. house- of America as a top performer in several areas. We are the
holds and more than 9 million business-owner clients. Our first financial services company to be both mobile app-
Recognition Highlights Fortune

100 Best Companies
Fortune
Top global bank
Working Mother
Among the 100 Best
2018 and 1Q 2019 to Work For (2019) on 2018 “Change the
World” list
Companies for
30 consecutive years
Euromoney Military Times Investing in Greenwich Associates Barron’s

• World’s Best Bank One of the Best Women Initiative Recognized for excellence #1 wealth management
• World’s Best Bank Employers for Vets 2019 Catalyst in digital design, digital firm on Top 100 Women
for Diversity and Award Winner product capabilities and Financial Advisors list
Inclusion security for U.S. corporate for 13 consecutive years
cash management
J.D. Power J.D. Power Kiplinger The Banker Forbes

“Outstanding Website #1 in Retail Banking A Best Rewards 2018 U.S. Bank of the #1 wealth management
Experience” — Merrill Advice Credit Card Year, Top Transaction firm on America’s
Edge Call Centers for Services Bank in N.A. Top Next-Generation
7 consecutive years Wealth Advisors list

Consumer Banking Global Wealth & Investment Management
Net income Average loans

and leases up
and leases increased
of $12B, up 7% to $284 billion of $4.1B, up 6% to $161 billion
47% over 2017 Average deposits up

5% to $684 billion
32% over 2017 Pretax margin
increased to 28%*
Global Banking Global Markets

and leases increased
Net income Sales and Trading
revenue of $13.1 billion*
of $8.2B, up 2% to $354 billion of $4B, up Return on average
18% over 2017 Average deposits
increased 8% to
21% over 2017 allocated capital of 11%,
up from 9% in 2017
$336 billion
*Presented on a fully taxable-equivalent basis.
and online banking-certified by J.D. Power for providing Growing within our Risk Framework
“An Outstanding Customer Experience.” Our auto finance, Another core tenet of Responsible Growth is that we
digital, mobile and credit card banking capabilities all were grow within our Risk Framework, and we had solid results
recognized as best-in-class, as were our small business in 2018. Total net charge-offs remained at decade-lows,
offerings. while the net charge-off ratio declined 3 basis points to
41 basis points. All key asset quality metrics are solid. We
We saw similar growth in our Global Wealth and Investment are committed to being in a strong position to support
Management business, where net new household growth clients throughout economic cycles. We have also managed
was up four times from 2017, and overall client balances market risk well during the turbulent markets in 2018, and
exceeded $2.6 trillion. We have added digital capabilities, our market risk indicators remain low. Through operational
more advisors and new products. excellence we have also kept operational risk in check.
Our Global Banking business continues to do a great job serving Delivering sustainable Responsible Growth
up to the largest multinational companies. We also are As I mentioned earlier, we ensure Responsible Growth is
deepening relationships with those clients, and adding new sustainable. This requires relentless progress across three
clients. As a result of investments we have made in rela- dimensions: sharing our success with our communities;
tionship bankers, we have seen a 28 percent and 32 percent striving to be a great place to work for our employees;
increase in net new relationships, respectively, in Business and driving operational excellence. We continued to make
Banking serving smaller companies, and Global Commercial progress in each area in the past year.
Banking serving middle-market companies. This is accom-
panied by solid deposit growth in Global Banking overall, up Sharing success with the communities we serve
9 percent at the end of 2018. Our teams earned top awards There are many ways we share our success. Our teammates
for providing the best client care in the industry, including volunteered 2 million hours supporting local organiza-
Euromoney naming us the best bank in North America for tions in 2018, and we introduced enhancements to our
small- and medium-sized enterprises. We received further employee giving and matching gift programs. For 2019, we
recognition as the top Transaction Services bank in North are increasing total annual philanthropic giving across the
America and best brand for cash management. company to $250 million from $200 million. Since 2010,
we have extended nearly $2 billion in philanthropic giving
Our customer-centered growth extends into our institu- across the markets we serve in the U.S. and abroad.
tional investor segment. Through our investments in our
Global Markets business, and increased balance sheet Also in 2018, we provided $4.7 billion in loans, tax credit
commitment to our clients, we have seen an expansion in equity investments and real estate development solutions
our prime brokerage business. Over the last several years, through our Community Development Banking business. We
we have invested heavily in new systems and expanded financed affordable housing for seniors, veterans and the
products and electronic trading for investor clients. This formerly homeless, charter schools and economic develop-
contributed to record revenues in our equities business and ment. Through our Capital Deployment Group, we have been
solid fixed income business performance. developing innovative financing approaches to address

global challenges outlined in the United Nations Sustainable Our work in this area also includes employee development
Development Goals, including affordable housing, clean water and opportunities for growth. We foster our client-centric
and sanitation, education, health care and renewable energy. culture through strategic workforce planning, anticipating
the future of work and creating a culture of lifelong learning.
In recognition of the attention we pay to addressing these In 2018, nearly 40,000 of our Consumer and Small Business
important priorities, I’m pleased that Bank of America was employees completed a learning curriculum, giving them
named the top global bank on Fortune magazine’s 2018 more skills for broader success. We hired more than
“Change the World” list. Fortune recognized our work mobi- 27,000 new teammates to the company last year (including
lizing and deploying capital to address global challenges 3,500 plus from colleges and universities); we helped more
through our core business strategy. than 17,000 employees find new roles in the bank; and
86 percent of eligible managers voluntarily participated in
We know if we continue to align our work to serve manager development courses to improve their skills. The
shareholder interests and address the priorities of our implications are global; we also moved more than 5,000 jobs
communities at the same time, the progress can be sustain- from non-U.S. markets to the U.S. over the last four years.
able. I’ll discuss that in further detail below, and you can
find an extended review of our work in these areas later Another area of focus has been sharing the benefits of
in this report, including a letter from Vice Chairman the 2017 U.S. tax reform. Since the passage of the Tax Cuts
Anne Finucane on page 22. and Jobs Act in December 2017, we have extended two
special compensation awards, impacting approximately
Being a great place to work 90 percent (in 2017) and 95 percent (in 2018) of our team-
Another tenet of sustainability is ensuring we remain mates globally. These awards included cash bonuses and
a great place to work for our teammates; the record stock, totaling more than $1 billion, and were in addition to
employee satisfaction scores in our 2018 annual employee the compensation these teammates otherwise received.
survey demonstrate this commitment. Our teammates
especially value how we provide for employee health and Please look for more details in this report, and in our proxy
wellness. Between current U.S.-based employees and their statement, about all we do to be a great place to work,
families, and retirees, we are responsible for providing including a letter from Chief Human Resources Officer
comprehensive health and wellness benefits to nearly Sheri Bronstein on page 30.
400,000 people. For the ninth consecutive year, we have held
the cost of this benefit flat for the lowest-compensated Driving operational excellence
employees, even as we continue to improve the coverage. We also ensure that Responsible Growth is sustainable
For all employees, we have managed to keep increases though our focus on operational excellence — continuous
below national averages. improvement in our internal and external processes to make
it easier for our employees to work with each other and to
We also continue to make regular adjustments to starting- serve clients and customers. By pursuing operational excel-
level compensation at our company. We have been a lence, we are becoming more efficient, so we can continue
leader in establishing an internal minimum rate of pay for to invest while providing you good returns. This makes all
our U.S. hourly paid employees and have made regular the other progress that I’ve discussed possible.
increases over many years. Two years ago, we raised our
minimum wage to $15 per hour, and our minimum wage Focusing on operational excellence allows us to continue
is higher today. Our average rate for all U.S. hourly paid to invest in our capabilities and in our team, even as we
employees is significantly above this level. maintain expense discipline. While we face the same
Responsible Growth has four tenets
Grow Grow Grow Grow

and win with our within in a
in the market, customer-focused our Risk sustainable
no excuses strategy Framework manner

inflation and cost challenges all employers do (e.g., benefit
increases, wage increases, real estate cost increases, more
investment), we managed through them. We achieved our
2018 expense target of approximately $53 billion. We set
that goal in mid-2016, when our annual expense run rate
was $57 billion. Managing expenses well has contributed to
four straight years of positive operative leverage and allowed
us to grow pretax earnings at 18 percent in 2018 — all while
investing in the company.
I have mentioned some of the areas in which we are

investing: adding relationship managers for our Global
Banking clients, continuing to improve on our leading digital
and mobile capabilities for all client segments and for our
teammates, investing in health and wellness benefits for
employees, our philanthropy increase, and the shared success
bonuses we paid to 95 percent of our teammates in 2018.
Since 2010, we have invested roughly $25 billion in new 800,000 customers come each day to talk with a relation-
technology initiatives. This includes reworking effectively ship or product specialist for the financial advice, products
all of our major systems and adding innovative capabilities, and services they need.
while also building an internal cloud and software architec-
ture for maximum efficiency and speed to market. In 2016, we announced our plans to renovate our financial
centers and upgrade our ATMs nationwide to better serve
Technology investments are directed at innovation across our clients, expand our consumer and small business services
our company. Perhaps that is most apparent in the invest- into new markets, and grow our presence in existing markets.
ments we continue to make in our industry-leading online I provided an update last year, including our intention to
consumer platform and state-of-the-art branch network. expand our financial center presence in nine new markets to
Erica™ is one example. Our virtual banking assistant that offer retail banking, lending, small business and investment
combines interactive communications and artificial intelli- services. Today, we cover more than 80 percent of the U.S.
gence (AI) to learn and anticipate client needs is unique in population with our retail branch footprint. With the sched-
the industry. Since we introduced Erica in spring 2018, more uled investments, we will cover more than 90 percent.
than 5 million customers have used the capability and the
adoption rate is growing fast. We continued to execute this plan in 2018. We expanded
our presence in 25 markets, including our newest —
Another innovation in which we’ve invested is Zelle™, our Denver, Minneapolis, and Indianapolis. We also entered the
peer-to-peer transfer capability enabled by our mobile app. Pittsburgh market in 2018, and will be opening our first
Bank of America, along with other large banks, developed financial center in Salt Lake City in early 2019. In addition
Zelle and we have extended full access to the capability to to opening 81 new financial centers last year, we completed
a growing network of participating financial institutions. renovations on 567 others. We are redesigning more than
Customers of virtually any bank of any size can now send 2,500 financial centers by 2021 to make it easier for clients
money to one another through the safety of their bank to access our banking and investing professionals for advice
account in real time. Zelle transactions by our clients are on their life priorities and financial goals. Adding financial
growing over 100 percent a year, and we had nearly 5 million centers also helps drive local employment, as we have
users at the end of 2018. And we’re just getting started. added teammates across the new centers.
Another investment we’ve made is in our digital auto Look for a more detailed discussion of our high-tech,
shopping experience, enabling customers to search, select high-touch capabilities with Dean Athanasia, president of
a car, and get underwritten in real time. Customers can Consumer and Small Business, on page 15 of this report.
use our mobile app to search online for a car with access
to thousands of dealers’ inventories, with over 1 million While our investments may be most apparent in the
cars available. We have seen a seven-fold jump in financing Consumer and Small Business segment, we are investing
applications in this area since launch in May 2017. and innovating to better serve all of our clients. We
have extended our mobile consumer experience into
Our investments in digital and mobile preferences for the our commercial banking digital platform, with capabili-
customer have resulted in higher customer satisfaction ties that enable treasurers of companies, both large and
scores and more deposits, while allowing us to reduce our small, to transact with the same mobile convenience.
branch count by more than 1,300 since 2012. This innovation benefits the clients whom we assist with
markets-related services and activities, such as electronic
And we continue to invest in improving our customer branch trading, algorithms, analytical capabilities, systems and
experience. Our 4,300 current centers are places where data management, and counterparty risk management and
Nations Sustainable Development Goals (SDGs). The way I
think of this is that, in effect, we asked the world through
the efforts of the United Nations, “What would you like the
Focusing on operational power to do?” And the world spoke. Society would like to
see timely progress in addressing these priorities.
excellence allows us to
The issues are, of course, a concern to policymakers and
continue to invest in our elected officials at every level of government. But they
are also a concern to our teammates, our customers and
capabilities and in our clients, the communities we serve, and our shareholders.
team, even as we maintain At Bank of America, we realize there is a significant gap

between the capital that must be applied to these global
expense discipline. challenges and the amount that is currently being spent.
Credible estimates of what is needed to address the U.N.
SDGs is about $6 trillion per year; the current annual funding
gap is as much as half that.
underwriting systems. For wealth management and invest- Government alone can’t solve these challenges. The U.S.
ment clients, we have automated investing tools, enhanced government, with the largest economy in the world, will spend
document scanning and client texting. more than $4 trillion this year. But almost two-thirds of those
total expenditures are committed to non-discretionary needs:
Across our company, upgraded, integrated systems allow faster funding the social safety net, servicing U.S. debt and other
execution for customers with our enhanced reporting, robotics commitments. The discretionary elements of the budget
and automation. The application of advanced technology, include national security, education, health care and other
coupled with our focus on client relationship management, priorities. The same is true for other governments and econ-
creates a competitive advantage. And our universal, enter- omies around the world. The government budgets are fully
prisewide platform increases our efficiency and helps us committed, and in many cases in difficult shape, so counting
better serve clients and customers. All this, combined with on governments to spend more is not a likely solution.
our global reach, creates a tremendous capability for you.
Charitable giving alone also cannot fill the need. Annual giving
Remember, all this investment is driven by operational from individuals, foundations, and corporations is spread
excellence — creating efficiency and investment in the across many worthy causes and, even in the aggregate, falls
future. The investments made in 2018 were extensive but short. The U.S. is the largest philanthropic giver in the world
we were able to reduce expenses through operational excel- as a percentage of GDP. Total giving to charitable organiza-
lence. For 2019 and 2020, we expect expenses to remain tions overall in the world was around $800 billion in 2017 and
flat even while we are making these investments. That $410 billion in the U.S., primarily from individuals. Assets by
makes our growth sustainable so we won’t have to pull back foundations in the world are estimated at about $1.5 trillion;
in times of slower economic growth. nearly half of that is held by foundations in the U.S. at
$890 billion. Again, even if we spent all that money in a single
Committed to strong governance year, it would be insufficient to close the gap.
Please read the letter from Jack Bovender, our lead inde-
pendent director, for a description of how the board of We operate in nearly 300 cities, towns, and communities,
directors supports and oversees our strategy. Jack and our consolidated into 92 distinct markets in the United States,
directors continue their practice of systematic investor and in three dozen countries around the world. We are
engagement. In 2018, we met with shareholders holding part of the fabric of those communities, where our 200,000
more than 30 percent of our shares. Jack discusses this teammates live, work, and raise their families.
in further detail in his letter on the next page.
Public companies that employ and invest at the scale that
We were pleased to welcome back to the board last year we and others do are well-positioned to address income
Dr. Clayton S. Rose, who served as a director of our company inequality, clean energy, health care, and affordable housing
from 2013 until 2015. Clayton was named president of Bowdoin through thought leadership, investment, innovation, mobili-
College in Brunswick, Maine in 2015. He was able to rejoin zation of capital and in other ways. Private-sector leadership
our board last year and offers terrific perspective. We benefit is necessary because solutions involving capitalism are inher-
from his insight on a range of issues. ently sustainable, and the returns will bring continued and
increasing investment.
Operating at scale to address
important societal priorities But, as the great student of business and author Jim Collins
Earlier, I referenced challenges related to affordable housing, has said, we have to embrace “the genius of the AND.” We
clean water, education, health care, renewable energy, energy have to do our part to achieve strong and timely progress on
efficiency and other critical areas outlined in the United the sustainable development goals AND we have to deliver
A message from
Lead Independent Director
Jack Bovender
our board meeting agendas and contributes to governance
enhancements. We seek input and exchange views on matters
ranging from executive compensation to capital deployment
and environmental, social, and governance initiatives.
The board comprises diverse individuals representing a
spectrum of informed viewpoints. Fifteen of the 16 directors
are independent; 63 percent have CEO-level experience; and
38 percent have senior executive experience at financial
institutions. As Brian outlines in his letter, the board in 2018
welcomed the return of Dr. Clayton S. Rose as a director.
Clayton’s expertise includes strategy, ethics, moral leadership
Dear fellow shareholders,
and corporate responsibility. He and all the directors provide
On behalf of the independent directors of the company, valuable perspective as the company continues to pursue
I join Brian and the management team in thanking you for responsible growth.
choosing to invest in Bank of America. We remain committed to providing you all the material
Our board continues to focus on its responsibility to and information you need to understand and appreciate both
oversee the company’s execution of the strategy that the opportunities and the challenges ahead as the company
we review and approve each fall. To do that, the board continues to execute its strategy. Please take the time to
engages in a year-round strategic assessment and carefully review this annual report, as well as our proxy state-
planning process. That includes regular discussions with ment, and the other materials the company makes available
the company’s management about the current operating to shareholders.
environment, industry trends and global and geopolitical Thank you again for your investment and for your
developments. We also engage in regular and systematic continued engagement.
dialogue with our shareholders. Throughout 2018 and
Sincerely,
into this year, we have provided updates to, and solicited
input from, shareholders representing more than a third
of our shares outstanding. Shareholder feedback informs
strong returns to you, our shareholders, as we do so. This these priorities. We also see this in our wealth manage-
enables us to keep addressing these important priorities. We ment businesses, where we are meeting client demands
are doing this, and we are committed to doing more. to construct portfolios focused on companies that meet
standards consistent with progress toward the sustainable
How does Bank of America do this? development goals. The practice is growing. By harnessing
First, we continue to align our expense base and our balance private capital in this manner, the alignment we create can
sheet to find every business opportunity to provide good help fill the gap left by limitations in government and phil-
returns and to make progress toward our goals. We do this anthropic spending by bringing more resources, capital, and
by financing new energy sources, by financing affordable expense to the task. In addition, we can be a catalyst for
housing, and by financing other types of development. These others to act. Our expertise, credibility, and ability to assess
financing opportunities provide a return for investors while the opportunities can help others who have the desire but
making progress on the goals. may lack the expertise to deploy capital.
Second, we bring thought leadership to the discussion. Our Third, we contribute in the ways we manage our own
Research team has demonstrated that companies adhering to activities. We are more than halfway through our 10-year,
sound environment, social, and governance (ESG) practices $125 billion Environmental Business Initiative, supporting
will avoid serious issues. In fact, their research shows that clients and others who are helping create a sustainable
investors could have avoided almost all of the bankruptcies energy future. We also focus on our own sustainable facilities
of the last several years by avoiding companies that do not management and improved energy efficiency. For instance,
have good metrics on ESG. Increasingly, investors are looking we have set a goal to be carbon neutral by the end of 2020.
for that kind of adherence in making investment decisions.
This is driving more private-sector investment capital from We also run your company to provide great opportunities
institutional investors toward companies that are addressing for teammates. We hire from a diverse range of locations and

backgrounds, and provide opportunities for teammates to pursue their own path
and excel. That kind of opportunity for success allows a teammate to join us, for
REVENUE ($B)
instance, from a low- or moderate- income neighborhood (as did more than
30 percent of our Consumer and Small Business external hires last year) and move
into future openings throughout our company based on their own merit and desire.
Fourth, our own ESG work makes a direct impact. The direct investments we
make, the volunteer efforts of our teammates, our philanthropic works — all of
this helps address the challenges. While our own ESG work through giving and
volunteerism cannot solve the challenges as we have relayed, we are proud of
what our teammates directly do to help make progress on these priorities.
$91.2
$87.4
Let me give some examples of the different types of activities set forth above: $85.9
$83.0 $83.7
Bank of America committed more than $50 billion last year in lending, investing
and philanthropy to deploy capital toward the SDGs. In fall 2018, we created
a special $60 million Blended Finance Catalyst Pool to encourage more compa-
nies to participate in addressing those priorities. Our blended finance initiative
combines different sources of capital for a targeted objective, in order to accom-
modate different risk tolerances and rates of return. As this approach expands
over time, we can create the capacity to mobilize vast amounts of capital and
achieve the scale necessary to fundamentally address global challenges driven by
the force of private-sector capital returns.
In one of the first commitments of our catalyst pool, we joined with two other
financial services companies in our headquarter city of Charlotte, North Carolina,
to extend more than $70 million to fund low-income housing developments.
Most of that amount will be low-interest loans to private developers building 2014 2015 2016 2017 2018
income-restricted housing.
We believe it is not only possible, but it is the desired outcome for Bank of
America as a public company to simultaneously serve our clients, deliver for
our shareholders AND address these local, national, and global social priorities. NET INCOME ($B)
Delivering on both aspects of the “AND” is the way to ensure that we can continue
to channel the capital from others and from our company that is needed to fund
societal needs. We all have to provide great returns, while delivering on the goals.
Our teammates are called upon in every community where they live and work to
lead efforts that promote economic and social development, and I am proud of
how they step in to help. We welcome the continued interest of elected officials
in these efforts and engage them across the cities, towns and communities we
serve. Our commitment is a core element of Responsible Growth. $28.1
Thank you for being a shareholder

I hope you find it informative and enjoyable to read more about Bank of America
in the following pages, where you’ll see more examples of how we’re helping
to make financial lives better through every connection. You can read how we’re
connecting with clients every day to help them achieve their goals, simply by asking: $17.8 $18.2
$15.9
“What would you like the power to do?”
I am proud to work with my 200,000-plus teammates who are listening for

your answer.
Thank you for your support and investment in Bank of America. $5.5
2014 2015 2016 2017 2018
Brian Moynihan
March 1, 2019
We work every day to finance progress
and spur entrepreneurship — to help you
build financial know-how and strengthen
communities. Meet people who are
making a difference and the partners
who are championing them.
What would you like

the power to do? ™

With Bank of America, you
have the power to manage
your financial life here...
Exceptional client service is

high-tech and high-touch.
Technology is transforming financial services and
changing the way clients and banks interact. Yet,
when it comes to making major financial plans, our
clients also want to be able to work directly with
our team of experts who can provide the advice
and counsel they need. It’s the combination of both
of these that makes our offering really powerful.
We’re building relationships based on how clients’
needs evolve throughout their financial lives,
combining digital access for everyday banking —
at any time, from anywhere — with expert advice
for life’s big financial decisions.

...and here.

Q&A with Dean Athanasia,
President of Consumer and
Small Business

Q: WHAT DO TODAY’S CONSUMERS LOOK FOR IN A BANK,
AND WHAT IS BANK OF AMERICA’S STRATEGY FOR EXCEEDING
THOSE EXPECTATIONS?
A: Clients want a bank that is committed to helping improve their financial

lives, so they have the power to do the things that matter most to them, like
open their first banking account, make payments with ease, buy a home, invest,
grow a business and leave a legacy. We’re working continuously — on both high-
tech and high-touch solutions — to earn our clients’ trust and to give them
more reasons to bank with us. Whether it’s investing in digital banking and new
solutions, redesigning our financial centers, or offering learning and development
programs to help our teammates expand their skills — these actions help us
provide better service, while growing responsibly and sustainably with our clients.
More importantly, client care is how we build and expand rewarding relationships
with our clients and help them at every stage of their financial lives. We put clients’
needs at the heart of every decision we make to ensure they have the best products
and solutions, serving all of their financial needs, delivered with a consistently great
experience that recognizes and rewards them for their relationship with us.
Q: WHICH CURRENT INNOVATIONS BEST DEMONSTRATE

BANK OF AMERICA’S LEADERSHIP IN DIGITAL BANKING?
A: We continue to invest and innovate because clients expect us to be at the

forefront of the technological advances that are transforming banking — and their
financial lives. We have created a best-in-class, innovative digital experience that
gives clients the power to manage their banking and investing activities from their
mobile phone, including checking an account balance, applying for a mortgage,
paying a friend, or even shopping for a car.
Our digital leadership is reflected in our award-winning mobile app, the first to
receive J.D. Power’s certification for “An Outstanding Mobile Banking Customer
Experience.” Erica, our artificial intelligence (AI)-driven virtual financial assistant,
is helping more clients stay on top of their banking every day. Zelle, the person-
to-person payment platform, had nearly 5 million users at the end of 2018. Small
Business clients can now manage more of their banking through mobile devices.
Our Digital Mortgage Experience™ now offers clients the ability to request a
preapproval. And, we’re continuing to expand our digital resources so clients can
bank and invest however, wherever and whenever they choose.
Q: WILL THE FUTURE OF BANKING LEAN MORE TOWARD

DIGITAL OR BRICK-AND-MORTAR CAPABILITIES?
A: Clients want to be able to accomplish their everyday banking conveniently

through their mobile devices, and connect with client representatives in our
financial centers when they have more complex needs. The power of our integrated
high-tech and high-touch approach means they have the best of both worlds;
for example, clients can make an appointment to speak with a specialist on their
mobile device, and Erica can even help them set it up! When clients come to
our financial centers for help, knowledgeable professionals provide advice in a
private setting. We’re on track to redesign more than 2,500 financial centers by
2021 to make them welcoming destinations where clients can have personal,
in-depth conversations with our professionals about their financial goals, including
retirement, purchasing a home, investing or saving for their children’s education.
Our financial centers will always be a welcoming and professional setting
for clients who need to speak with us about their financial priorities and goals.
And with 9.5 million Hispanic and Latino consumer clients, we’re investing in
talent, upgraded financial centers and community outreach, beginning with 300
centers in Los Angeles, New York, Miami, Chicago, Dallas and San Francisco.
We’re expanding into local markets across the U.S. where we see opportunities
to better serve existing clients, grow our business responsibly and help local
communities thrive.
Delivering tailored wealth management
solutions for every stage in life
Our unmatched wealth management businesses serve clients of every age, at every stage of their financial lives, across the
wealth continuum. Our top-ranked advisors provide objective, conflict-free advice and clear, actionable financial plans based
upon our clients’ goals and aspirations. We offer rewards when clients deepen their relationship with us, and access to seamless
integration with the rest of our global firm to help meet every banking need, whether business, commercial, corporate and
investment, or retail.
“I like to show my clients, many of whom “What our clients are looking for is a “One of the advantages we provide to
are new to investing, how easy the process partner who helps them navigate their our clients is our team-based approach
can be when they focus on their life priori- financial and family plans. They value and high level of client service. Our teams
ties to help define their investing goals. I’m working with someone they trust who can spend a lot of time up-front with clients
proud of what we offer investors through advise them on all aspects of their financial to understand their needs and goals.
our online investing platform. Clients can affairs — investments, banking, credit, When combined with access to all of
put their own ideas into action or get finan- philanthropy and planning for the next Bank of America’s capabilities, our teams
cial guidance — either through our digital generation. The combination of Merrill Lynch are able to provide solutions to address
capabilities or with the help of an advisor — investments and Bank of America banking the opportunities and challenges our
and access investing insights supported by allows us to provide clients the solutions to clients face.”
our award-winning research and tools.” realize their goals throughout their lifetime.”
Ja n e t R ya n
Mia Ziring Debbie Jorgensen Managing Director, Private Client
Financial Solutions Advisor, Merrill Edge Managing Director, Wealth Management Advisor, U.S. Trust, Bank of America
Advisor, Merrill Lynch Wealth Management Private Wealth Management
When Fidelia retired from her successful career as

a retail executive, she turned to Bank of America
for help planning her financial future. With goals
that included caring for her mother, continuing
her education and launching a second career, she
consolidated her accounts to Merrill Edge and rolled
over her pension and 401 (k). She also set up a new
Merrill Guided Investing account to help her retire-
ment savings stay on track with a professionally
managed portfolio. “I’m able to direct my own
investing, but I always have an advisor to turn to,”
she said. According to Fidelia, putting her Bank
I would like the power of America and Merrill Edge accounts together and
to have a second act having advisors who understand her goals make
FIDELIA her feel more in control of her future. “I feel
like Bank of America is invested in
my success. They know where I want
to go and how to help me get there.”

I would like the power
to be my own boss
LISA
When faced with any of life’s sizable decisions, business, she clearly understood my financial
one of Lisa Young’s initial calls inevitably is risks and helped me plan for them. She even
to her Merrill Lynch financial advisor, Sammie connected me with one of her clients who
Kothari Peng. “I literally asked her for advice was in the same industry, which led to my
about how I should most strategically allocate first contract.”
my very first paycheck,” Lisa said with
a chuckle. Lisa added, “I want to be a role model for my
kids — especially my daughter — to show her
That forethought and attention to detail that you can work hard and be successful
explain how Lisa enjoyed a successful corpo- and also do it on your terms. To achieve that
rate career before making the complicated success, we all need people we can trust,
transition to start her own business. “Within who have the most reliable and sound advice.
just a few years, my life underwent a series Sammie knows and understands
of significant changes: marriage, children, us so well — our family’s needs,
buying a home, starting my own business, our dreams and our approach
needing to save for retirement and colleges,” to finances. She is always there
said Lisa, who, like her parents, is a longtime when significant decisions need
Merrill Lynch client. to be made.”
“These life events raised questions that “Lisa and I never lose focus on the big picture,”
required proactive solutions: ‘What are my Sammie said. “That can involve a conversation
long-term and short-term needs? What type about the equity and fixed-income markets,
of budgets should I establish, and which 529 plans, 401(k)s, or even the ability to say
accounts and investments will that involve? no to a particular work contract if it does not
How much should I put away for a house, and align with her ultimate work-life balance goals.
for our children’s education?’ Sammie not only I am so proud of all that she has accomplished,
answered our questions — she anticipated and will always be available to her as she
those that my husband and I didn’t even know continues her journey. She knows I’m just a
to ask. And when it came to launching my own phone call away.”

We would like the power
to create a legacy
RAFAT AND ZOREEN
“If I have a financial issue, or almost any Haggerty prepared multiple options and
issue, the first person I would call is my carefully explained how different gift
Merrill Lynch advisor,” said Rafat Ansari. levels may affect their financial future over
That level of trust was established in the time, as well as options for structuring the
first meeting Rafat and his wife, Zoreen, gift. “We had to think, how is it going to
had with Merrill Lynch financial advisor affect us? There were a lot of parts,” said
Matt Kahn, who hit on a series of questions Rafat. Over the course of several months,
that proved invaluable. Their daughter, who Matt and Jennifer worked closely with
has autism, was about to gain access to a the Ansaris and their children, their CPA
trust in her name that had been established and the university to make their vision
by a previous firm. But the trust didn’t a reality, creating the Rafat and Zoreen
incorporate her need for certain services Ansari Institute for Global Engagement with
she would have lost if she had gained Religion, which was established to foster a
access. “We had no idea she was close to better understanding of religion by studying
losing what mattered most, benefits that the similarities and roles of religions and
you cannot buy,” said Zoreen. their impact on the public sphere around
the world.
To ensure her medical and financial needs
could both be met, Matt brought in exper- “This institute is a legacy for us,” Rafat said.
tise from another Merrill Lynch team with “Merrill Lynch was quite helpful
unique experience serving families with through the entire process.
special needs. After much hard work and Our relationship with them has
collaboration on a new trust, they retained been great, and it’s on multiple
her benefits and strengthened her financial levels, including investments,
future. “Since that day, Merrill Lynch has estate planning, lending, and
been an integral part of her care plan, advice. It’s a complete service
and in all aspects of our family’s financial line for us. Whatever we need, it’s just
planning,” said Zoreen. one call away from being taken care of. Our
team is easily accessible at any time, and I
With their daughter’s stability secured, feel very comfortable knowing that,” said
the Ansaris began to focus more on their Rafat. The couple agrees that working with
legacy. “We want to give something back Merrill Lynch has helped them meet their
to humanity,” said Rafat. The family, which most important life goals. Zoreen added,
is passionate about philanthropy, brought “We’ve gained in our financial strength.
the idea of making a significant gift to the We’ve established estate planning for our
University of Notre Dame to their advisory children and the program at Notre Dame.
team with a common question: What can We feel taken care of, as a whole.”
we afford to give? Financial Advisor Jennifer

Supporting companies as
they grow, innovate and lead
Clients down the street and around the world look to our teams to
help power their growth. Small business owners get the support
they need to open their first business accounts, including access
to solutions for cash management, paying suppliers and meeting
liquidity requirements. Larger companies may need currency risk
management, sophisticated treasury solutions, and ongoing capital
and liquidity financing. Companies and institutional investors alike
rely on our talented teams and leading research for ideas and
opportunities to grow and innovate.
$8.6 billion A leading Rated #1

in new credit extended to commercial global research
small business owners in 2018
lender firm 6 of last
One of the
with nearly $500 billion in 8 years
commercial loans and leases by Institutional Investor
top small at the end of 2018 magazine (ranked second
business lenders in 2017 and 2018)
with approximately Relationships with
79 percent of the 2018
$35 billion total outstanding 650+
small business loan balances1 Global analysts
Fortune 500 covering
A top and 94 percent of the 2018
3,000+ companies,
SBA lender U.S. Fortune 1,000
1,100+ corporate bond
with more than $275 million issuers across
Leading dealer in
in combined SBA 504 and 7(a) 54 economies and
FX cash, derivatives,
loan volume in 20182 25 industries
electronic trading and
payment services in
$1.5 billion+ 151 currencies
in loans and investments to
community development
financial institutions #1
global green bond
underwriter 3
1
Source: FDIC, as of Q3 2018.
2
Based on 2018 gross loan approval as provided by the SBA for fiscal year ending 9/30/2018.
3
Source: Environmental Finance.

Skookum would like the
power to change the world
Skookum Contract Services operates with a mission to “Skookum is a best-in-class organization that lives its
change the world through its diverse workforce of more exceptional mission every day,” said Jeremy Bolles,
than 1,100 employees, including over 400 U.S. veterans. Bank of America’s senior relationship manager. “While
The Bremerton, Washington-based nonprofit began over they are focused on helping job seekers overcome
30 years ago with just a dozen employees; today, it has barriers and find long-term success in the workplace,
grown its presence to 11 states and Washington, D.C. by we are working to help the company operate efficiently,
providing world-class logistics, aerospace manufacturing, act on growth opportunities, and continue to plan for
and facilities management services to government and the long term. We’re proud to support their efforts,
commercial customers. whether that’s providing a new line of credit, custom-
izing payroll solutions, joining the board for strategic
“We’re here to change the world,” said Skookum President planning sessions, or even flipping burgers at the
and CEO Jeff Dolven. “Each of us brings abilities to work company picnic.”
that can drive performance and create value. Think about
the engagement you get in the workforce when you help “Jeremy and the team at Bank of America
people realize their dreams.” That Bank of America has have taken the time to know us so well, to
been with Skookum through each stage of its continuing become so embedded in our planning and
evolution is no accident. our strategies, that they’re always out in
front of us,” Jeff said. “Whenever we are ready to
“Years ago, we were smaller and focused on our finan- take a step, every aspect of every financial instrument
cial health and our balance sheet, but we had a very already is in place. We have never had to slow down, not
clear agenda to expand the scope of our impact,” Jeff once. How many banks can you say that about? Our goal
said. “We wanted to be associated with a bank that is to make a lasting impact on communities around the
had a brand that was clearly recognized as a symbol of world. And we take tremendous comfort in knowing that
strength. To us, there was no question that was Bank no matter where we go, Bank of America will have been
of America. So we made it a goal to become a client of there first.”
the bank. Every step we took financially was to achieve
that goal. And we did it.”
For more than 15 years, Bank of America has provided

financial and strategic guidance to Skookum — providing
liquidity for new client contracts, financing their head- Photos above (left to right): Skookum employee Maurice Correia
quarters purchase, and even introducing a series of pursues his passion for fishing. Skookum employee and U.S. veteran
wealth management seminars to Skookum employees. Bonnie White puts her skills as a mechanic to work.

IPG would like the power
to lead an industry
Intertape Polymer Group Inc. (IPG), a a world of financial solutions to IPG. A local Bank of America relation-
manufacturer of a variety of tapes, At the outset, when IPG faced challenges ship management team, led by Greg
films, protective packaging and woven from an unsuccessful takeover attempt Banach and based near IPG’s Sarasota
products, had ambitious aspirations. and economic recession in 2007, Bank headquarters, ensures an attentive,
Already the second-largest tape manu- of America provided an asset-based loan personalized approach to service while
facturer in North America, the Montreal, facility. Once IPG was on strong footing providing connections to resources around
Quebec- and Sarasota, Florida-based and ready to progress to a different the world. “We’ve earned our strong
company several years ago was driving capital structure, Bank of America relationship with IPG by understanding
to become a global leader through multi- provided a revolving credit facility and where they want to go, and bringing
national acquisitions, investments in term loan. Over time, IPG has expanded ideas and solutions to help them get
manufacturing capacity, and additions to through joint ventures and acquisitions — there,” Greg said. As IPG’s business has
its product bundle. What IPG needed was including operations in India — while evolved, teams from Global Commercial
the power to grow on an international bolstering its world-class manufacturing Banking, Investment Banking and other
scale — and a financial partner to help. capacity. Bank of America supported Bank of America units have worked
those initiatives, leading a $250 million together to deliver tailor-made solutions
“Bank of America has been a key high-yield bond financing with a flexible to advance the company’s strategic plans.
relationship for us,” said IPG Chief leverage covenant, providing IPG the
Financial Officer Jeffrey Crystal. capacity for future growth while removing “Bank of America stuck with us through
“They put their heart and soul into risk from its balance sheet. On a daily a tough time early on, and consistently
creating solutions that work.” basis, services such as foreign exchange comes to the plate with unique ideas,”
and interest rate hedging enable the Jeffrey said. “They’re a great partner,
During the course of a relationship of global business to manage its finances whether in North America or around
10-plus years, Bank of America delivered effectively. the world.”
Caviar & Caviar USA

would like the power to
grow with confidence
associated with launching, nurturing issue at one site. “Michael is the client
and growing Caviar & Caviar USA into every banker wishes to have,” Marc said.
the top domestic supplier of caviar and “Knowledgeable, engaged, enthusiastic —
specialty seafood. “We don’t even I am always curious to see which trend-
Entrepreneur Michael Jalileyan describes look at other banks,” Michael setting innovation he plans to pursue,
Bank of America in much the same said. “We would never need to. and how our entire range of products can
manner as top chefs, five-star hospitality There are no surprises. We’re assist him.”
groups and specialty retail outlets react simply constantly impressed.”
after tasting the high-end caviar and Small business banker Marc Ramer leads “Bank of America has tremendous
smoked salmon supplied by his business: a team that supports Michael, including size and scale,” Michael said. “But the
“It’s almost too good to be true.” a recent, nearly two-year search for a attention always feels specialized
larger facility to house the flourishing and personal. Marc deftly handles the
A Bank of America customer since he business. Marc’s extensive due diligence financial aspects, leaving me free to
was a teenager, Michael never hesitated enabled Michael’s company to identify concentrate on running and growing my
when weighing the banking needs and avoid a potentially six-figure repair business. And that’s a lot off my plate.”

Financing
a sustainable
world
A message from
Vice Chairman
Anne Finucane
Over the last several years, we have discussed with you We are bringing together private banks,
institutional and individual investors,
how our focus on environmental, social and governance development banks, and nonprofits to
(ESG) principles is an essential part of how we deliver ensure more capital can be applied
responsible growth. Our ESG leadership defines how we to a single issue or opportunity.
deploy our capital and resources, informs our business Every day, our teams are creating new
practices, and helps determine how and when we use solutions, forging new partnerships, and
our voice in support of our values. It also enables us providing guidance and support to fuel
to pursue growing business opportunities and manage progress. In 2019, we will continue to
use our focus on responsible growth
risk associated with addressing the world’s biggest and ESG leadership to help define how
environmental and social issues. we operate as a force for good in the
global economy.
Over the next several pages, you will see highlights of our 2018 work in
all of these areas. One particular area of focus has been solidifying a
more formal approach to how we deploy our own capital and engage our
partners on this topic to create greater impact around the world.
Today, the world is facing monumental challenges, and it is clear that

potential solutions are woefully under-resourced. There is a significant
gap between the capital that must be applied to global challenges and
the amount that is being deployed today. This gap cannot be filled by
public-sector and philanthropic capital alone; it requires private-sector
engagement. In 2018,
One important aspect of our ESG focus is how we can help mobilize we mobilized,
players across the entire financial system to increase the flow of capital
to address the major global challenges that are articulated by the United conservatively,
Nations Sustainable Development Goals (SDGs), such as affordable
housing, sustainable energy, clean water and sanitation, education and more than
health care. We refer to our efforts as Capital Deployment — an enterprise-
wide initiative designed to unlock the necessary financing and investment $50 billion that
to address these issues.
impacted a
Continued financial innovation is also required to make a greater impact
and spur additional private capital toward the SDGs. A key opportunity key subset of
for us to stimulate additional private capital to finance sustainable
development in emerging and developing markets is through an approach the SDGs.
known as blended finance — the combination of various sources of capital
to accommodate different risk tolerances and return requirements.

water and sanitation. This $50 million
fund will impact 4.6 million people in
India, Indonesia, Cambodia and the
Philippines.
We also provided a $250,000 grant

to GivePower Foundation to install
solar-powered desalination systems,
bringing safe water to communities in
developing areas. Since 2015, we have
delivered $1.75 million in grants to
the GivePower Foundation, which has
supported solar technology in over 1,800
schools and 22 community microgrids.
Case study:
Meeting global challenges Transforming communities
by empowering women
with committed capital Solar power is transforming villages
across India. In 2018, we partnered with
four non-governmental organizations
(NGOs) in India to set up 49 solar micro-
Our Capital Deployment efforts aim capital to help address the SDGs. This grids — electrifying 1,420 homes and
to unlock vital financing to address new pool of Bank of America funding 38 public institutions, including health
our target SDGs. Highlights of our supports deals that would ordinarily fall care centers and schools. Powering
work include: outside of our Risk Framework, but by the villages also empowered women in
which, through our participation, we can the community. With the solar panels
Environmental business drive significant leverage and impact.
commitment installed, women could collect water
Bank of America is leveraging resources In January 2019, we announced the first in 20 minutes, rather than the typical
to support clean and renewable energy two projects that will benefit from this three hours, which gave them more time
around the globe. In 2018, we deployed capital. We are investing $2.5 million in to pursue education and employment
$21.5 billion in capital to support low- the $50 million LISC Charlotte Housing opportunities.
carbon, sustainable business activities Investment Fund, which will support the
through lending, investing, capital raising construction of affordable housing in Driving innovation
and developing financial solutions for our headquarter city. Our investment is We work closely with many organi-
clients. Over the past six years, we have expected to help house more than 1,500 zations to help find solutions and
delivered nearly $105 billion toward our families. We also made a $5 million drive innovation in sustainability. In
environmental business commitment to commitment to invest in the soon-to-be 2018, Bank of America was named
deploy $125 billion by 2025. For example, launched responAbility Access to Clean a founding member of the Stanford
in partnership with Vivint Solar, Inc., we Power Fund, which aims to finance the Strategic Energy Alliance, which
developed a standalone financing vehicle expansion of off-grid, affordable solar has produced a Sustainable Finance
that allowed the company to completely power for residential and small busi- Initiative and will facilitate research
recycle its working capital in a rooftop nesses in sub-Saharan Africa and India. and education between companies and
installation. This work is reshaping how Our investment is expected to help faculty members.
the residential solar industry develops provide clean energy to 6 million people
and finances rooftop solar and supports and 6,000 small businesses in energy We will continue to pursue capital
95MWs of residential solar for the impoverished areas. deployment efforts that mobilize players
company, providing more attractive across the entire financial system to
clean energy solutions for thousands of Addressing clean water increase the flow of capital to address
customers nationwide. and sanitation major global challenges.
In 2018, we closed on our $5 million
Blended Finance Catalyst Pool loan to WaterEquity’s WaterCredit
In November 2018, we launched the Investment Fund 3, which immediately Photo: Our $500,000 grant to GRID Alternatives
supports the organization’s SolarCorps Fellowship
Blended Finance Catalyst Pool, a new deployed the capital to microfinance Program, which provides solar installation
financing initiative to provide $60 million institutions on the ground to provide training while expanding access to solar power
in capital and mobilize additional private loans that connect households to clean in underserved communities.

Improving As a leader in community development, Bank of America is delivering financing solutions
that build and preserve affordable housing, create jobs through economic development,
lives through and support environmentally sustainable business activity. This includes a commitment
from our Community Development Banking, which deployed $4.7 billion in loans, tax credit
community equity investments and other real estate development solutions in 2018.
development Community Development Banking remains focused on providing safe housing options,
with an added emphasis on employment opportunities. Much of this effort is driven by
creating affordable housing for families, seniors, students, veterans, the formerly homeless,
those with special needs and other at-risk groups. In 2018, Community Development
Banking financed more than 16,000 housing units — of which, over 15,000 were affordable.
Revitalizing the Jordan Downs, a 1950s-era public housing provided $56.7 million in construction loans
development in the Watts neighborhood of and $50.4 million in low-income housing tax
Jordan Downs Los Angeles, is being transformed through credit (LIHTC) equity to construct 250 new
housing project a public-private partnership involving Bank affordable housing units.
of America Merrill Lynch, the city of Los
Angeles, the Los Angeles Housing Authority, Improving resident services and creating
nonprofit developer BRIDGE Housing, and jobs are also part of the life-changing impact
for-profit developer Michaels Organization of Jordan Downs. The project created 65
Development Company. new jobs, of which 46 were filled by Jordan
Downs residents, participants in YouthBuild®
The multiyear redevelopment project encom- and other community members. As the
passes construction of 1,400 new affordable project continues, there will be additional
housing units with new retail, a community opportunities for residents to apply for jobs
center and parks. For the initial phase of to help rebuild their community — and build
the project, Bank of America Merrill Lynch successful lives.

“We are committed to helping
underserved neighborhoods become
thriving communities. Community
Development Banking uses a wide
variety of financing solutions to
help provide affordable housing,
improve education and create jobs,
thereby improving the quality of A deep connection to
life for residents and creating more the communities we serve
sustainable neighborhoods.” At Bank of America, we are making a diverse pipeline of talent and
Jim DeMare financial lives better through a connect individuals to meaningful
Co-Head of Global FICC Trading and Head of tailored, community-centered career opportunities. In June 2018,
approach that matches our products we committed to hiring 10,000 indi-
the Commercial Real Estate Bank (CREB)
and services, jobs, and capital viduals from LMI neighborhoods
to meet the unique needs of our over five years through our Pathways
clients in low- and moderate- career development program.
income (LMI) communities. We are also equipping our
From managing daily finances employees with career develop-
1,400 to establishing good credit, we
help people build their financial
ment tools and resources through
the Academy at Bank of America,
Redevelopment of Jordan Downs foundations through safe and including on-boarding, mentoring
will include 1,400 new affordable transparent products, such as and career advice, and long-term
housing units our Bank of America Advantage development training. Nearly
SafeBalance Banking™, an account 40,000 Consumer and Small
that prevents overdraft fees. In the Business employees participated
Photo: Raul Anaya, market president for past two years, more than 400,000 in the training in 2018, with one-
Greater Los Angeles, is joined by Mayor Eric Advantage SafeBalance Banking quarter moving their careers forward.
Garcetti and other city officials, developers, accounts have been opened, under- Rounding out our approach to
activists, and residents at the groundbreaking scoring how we are connecting enable economic mobility in LMI
ceremony for the new Jordan Downs housing
people to tailored products that communities, loans and philan-
development. (Photo by Ted7 Photography,
courtesy of BRIDGE Housing). best serve their needs. thropic investments help to finance
Our community financial the institutions, individuals and
centers also provide convenient programs that help make neighbor-
access to our team of professionals hoods stronger. For example, we
trained to serve our clients’ needs. invest in community development
In addition to being well-versed financial institutions (CDFIs) to
in banking resources, employees extend credit to those unable to
in community financial centers qualify for traditional loans, and we
receive training on Better Money now have a $1.5 billion portfolio of
Habits® to share financial know- loans and investments to 255 CDFIs
how with clients about topics such across the United States, Puerto
as rebuilding credit, savings and Rico and the District of Columbia.
budgeting, and more.
To build pathways to economic
Photo Above: At the Boyle Heights
mobility, we invest in and hire
Community financial center in Los Angeles,
directly from the communities and all around the U.S., we are connecting
we serve by partnering with local communities to the resources they need
nonprofit organizations to foster to succeed.
“We understand the unique challenges clients in LMI neighborhoods

face managing their day-to-day finances, improving credit and
building long-term financial wellness. Delivering tailored resources
to these clients is an important part of our strategy because when
these communities are made stronger, we all benefit.”
Dean Athanasia
President of Consumer and Small Business

Arts matter
Driving economic mobility We believe in the power of the arts to help
economies thrive, educate and enrich societies,
and social progress and create greater cultural understanding.
That is why we are a leader in helping the arts
To help individuals and families achieve a more secure financial life, we flourish across the globe, supporting more than
have invested $2 billion of philanthropic capital over the past 10 years to 2,000 nonprofit cultural institutions each year.
advance economic mobility through the funding of workforce development With unique programs such as Museums
and education, community development and basic needs. For example, in on Us®, Art in our Communities®, and the
early 2019, the Women of Ireland Fund established the first endowment Bank of America Art Conservation Project,
in Ireland to support charities and social enterprises seeking to enhance we are creating access for our customers
women’s economic mobility. The €1 million, three-year fund will be matched and employees, helping art museums create
by the Irish government to create a €2 million fund for women’s workforce revenue-generating opportunities, and
development programs. conserving cultural treasures from around
the world.
Additionally, we are creating thriving communities through resources,
>2,000
capital deployment, and the power of our employee volunteers. This
includes our free Better Money Habits financial education platform, now
fully available in Spanish and English. Recent analysis indicated 1 in 4 users
nonprofit cultural institutions
of Better Money Habits content and tools grew their savings by 20 percent supported annually
or more.
Investing in young people

In 2019, as part of our broader commitment to
preparing young adults for workforce success,
we expanded our long-standing partnership with
City Year to help students succeed in school and
prepare young leaders for fulfilling careers in the
United States, United Kingdom and South Africa.
The collaboration represents the first time a cor-
porate sponsor is investing in teams in all three
countries where City Year operates.
Celebrating 15 years of Neighborhood Builders

and creating stronger communities
To mark the 15th year of our In response to nonprofits’ need to
Neighborhood Builders® program in access capital for strategic growth,
2018, which supports nonprofits and we’ve developed Capital Connections,
nonprofit leaders who address economic which leverages our robust partnerships
mobility, we expanded the number of with CDFIs to connect Neighborhood
annual program awards from 66 to 98. Builders to low-interest loans. Recently,
The awards offer selected nonprofits Habitat for Humanity® of Durham in
$200,000 in flexible funding, in-person Durham, N.C., a 2017 Neighborhood
leadership development, a network of Builder awardee, secured $1.5 million in
peer organizations, and the opportunity capital to expand its housing program.
to access capital. A complementary
program, Neighborhood Champions, will
The organization typically builds, sells
and finances 25 homes and repairs 50 >$220M
be introduced in 42 new cities in 2019 homes annually, mostly in low-income Through Neighborhood Builders,
to support nonprofit leadership across areas of the city. we’ve invested more than
the U.S. Each nonprofit awardee will $220 million in 1,000+ local
receive $50,000 in flexible funding and nonprofits and provided leader-
ship development to 2,000+
virtual leadership development for the
nonprofit executives since 2004.
organization.

Investing in
women
Women play a vital role in driving the economic growth that fuels the global economy. Through our partnerships, women
entrepreneurs have the power to succeed through mentoring, training and access to capital; we have helped more than
10,000 women from 80 countries grow their businesses.
Global Ambassadors Tory Burch Foundation

Program Capital Program
Through our Global Ambassadors Our $50 million investment in the The Bank of America
Program, a partnership with Vital Tory Burch Foundation Capital
Voices, more than 160 women Program, which connects women
Institute for Women’s
leaders of small businesses and business owners to affordable Entrepreneurship
social enterprises from 66 coun- loans, has delivered capital through at Cornell
tries have been connected to CDFIs to more than 1,800 women
mentoring and workshops to build in 16 states. The Bank of America Institute
organizational management, finan- for Women’s Entrepreneurship
cial acumen and leadership skills. at Cornell offers the only online
certificate program that helps
women entrepreneurs develop the
skills and knowledge they need to
Cherie Blair build, manage and grow successful
Foundation Kiva businesses. The institute will train
5,000 women entrepreneurs over
We partner with the Cherie Blair Through our partnership with the next four years.
Foundation on its Mentoring Kiva, we are providing more than
Women in Business program, which $1 million in funds to women busi-
has matched more than 2,000 ness owners, and have assisted
women in developing and emerg- more than 7,200 women entrepre-
ing countries to online mentors, neurs in more than 30 countries.
including more than 500 mentors
from Bank of America.

Sharing our success — ESG highlights
Environmental, social and governance (ESG) principles help define how Bank of America delivers
responsible, sustainable growth, how we contribute to the global economy, and how we share success
with the clients and communities we serve.
Capital deployment ESG client balances Better Money

In 2018, we mobilized, conservatively, $17.9 billion in assets with a clearly Habits
more than $50 billion that impacted defined ESG investment approach. In 2018, visitors to Better Money Habits
a key subset of the SDGs. home loans content were 13 times
CDFI lending more likely to obtain a home loan
Environmental business We originated $200 million in loans
within 30 days.
commitment as part of our more than $1.5 billion In 2018, visitors to Better Money Habits
Deployed $21.5 billion in capital to investment in 255 CDFIs. college content were five times more
support low-carbon, sustainable business likely to open a savings account within
Announced a $20 million Veteran
activities through lending, investing, 30 days.
Entrepreneur Lending Program to
capital raising, and developing financial connect veteran business owners with BetterMoneyHabits.com Spanish
solutions for clients around the world affordable capital through participating content has resulted in higher average
as part of our environmental business CDFIs to help grow their businesses. time on site, up 37%, and visitors are
commitment to deploy $125 billion by more likely to return to the site by
2025. Since 2013, we have delivered 4 percentage points.
nearly $105 billion toward this goal.
Community
Development Banking
Green bonds and Philanthropic giving
Through Community Development
social bonds Banking, we deployed more than Invested more than $200 million in
$4.7 billion in loans, tax credit equity philanthropic capital from the Bank of
Issued our fourth and largest green investments and other real estate America Charitable Foundation as part of
bond for $2.25 billion and issued a development solutions in 2018. our $2 billion, 10-year giving goal.
$500 million social bond — the first
social bond issued by a U.S. bank.
Small business lending Employee giving
One of the top small business lenders and volunteering
with $34.7 billion total outstanding Last year, employees volunteered
“Our green bond and social bond small business loan balances as of Q3 2 million hours, and donated or pledged
programs demonstrate that 2018, according to the FDIC. $23 million to causes they care about.
the bank is truly committed The impact of employee giving and
to the communities we serve,
while also giving us access
Bank of America matching gifts from the bank totaled
$53 million in support of the communi-
to investors that would not Art Conservation ties we serve.
typically be funding sources for Project
a bank. Fundamentally, these are
a means for society to advocate Through the Bank of America Art
for a sustainable composition Conservation Project, we provided grants
of the asset side of the balance to fund 21 conservation projects
sheet.” in nine countries to conserve paintings,
sculptures, and archaeological pieces that
Andrei Magasiner
are important to cultural heritage.
Treasurer

Being a great place to work — 2018 highlights
A critical component of how we drive responsible growth is making Bank of America a great place to work.
We deliver on our commitment to be a great place to work by recognizing and rewarding performance,
ensuring an inclusive workplace for our employees around the world, creating opportunities for our
employees to develop and grow, and supporting employees’ physical, emotional and financial wellness.
Being an inclusive workplace Creating opportunities Recognizing and

for all of our employees around for employees to grow rewarding performance
the world and develop
• More than 50% of our global • In 2018, more than 27,000 new • We have been an industry leader in
workforce are women and more than teammates joined our company, includ- establishing an internal minimum rate
45% of our U.S.-based workforce ing more than 3,500 future leaders who of pay for our U.S. hourly employees and
are people of color. were recent college graduates. have made regular increases over many
years. Two years ago, we raised
• Our 11 Employee Networks, with more • We have invested in leading platforms, our minimum wage to $15 per
than 250 chapters made up of over including The Learning Hub,
hour and our minimum wage is
120,000 memberships worldwide, myLearning and myCareer, to help higher today. Our average rate for
connect employees with shared interests employees develop their skills and grow
all U.S. hourly employees is significantly
and those who support them. their careers at Bank of America.
above this level.
• 60,000+ employees have par- • 86% of eligible managers • In 2017 and 2018, 90% and 95% of
ticipated in courageous conversations, participated in some form of manager
our employees, respectively, shared in
group and one-on-one discussions which development training in 2018.
our success by receiving special compen-
encourage employees to discuss topics
that are important to them, like race and
• Our tuition reimbursement program sation awards. We’re a leader in providing
provides employees up to $5,250 per this type of award for two consecutive
gender dynamics, social justice, LGBT+
equality and mental health.
year for courses related to current or years.
future roles at our company.
• We had 4 million+ recognition
• Bank of America supports employees’ moments (eCards given and received) in
commitment to improving their commu- 2018. That’s more than eight recognition
nities, and allows individuals up to two moments every minute.
paid hours per week for volunteering
with nonprofit organizations.
• On average, 85% of employees • Since 2014, 85,000+ employees

Supporting employees’ and their partners have completed have been supported by our Life Event
annual health screenings over the past Services team, an internal, highly special-
physical, emotional and five years; in 2018, nearly 200,000 ized group providing resources, benefits,
financial wellness employees, spouses/partners counseling and other personalized
completed their annual health screenings. support to employees who faced major
life events.
• There has been no increase in • In 2018, we doubled the number
medical premiums for employees earning of free, in-person confidential • We provide 401(k) matching contribu-
less than $50,000 since 2012. For higher- counseling sessions available tions of up to 5% of eligible pay aÂer
paid employees, the average contribution through our Employee Assistance Pro- one year of service, plus 2% or 3% in
increase since 2012 has been below the gram for our U.S. employees and eligible annual company contributions.
national health care trend. family members.

We ask our
teammates, too
A message from Sheri Bronstein
Chief Human Resources Officer
Listening to our teammates answer the question “What Our focus includes recognizing and
rewarding performance, ensuring a
would you like the power to do?” has helped us shape diverse and inclusive workplace for our
all we do to be a great place to work. To serve our employees around the world, creating
opportunities for our employees to
customers and communities well, we have built a develop and grow, and supporting
great team. And we are investing in our teammates employees’ physical, emotional and
financial wellness.
so they can deliver for our clients and customers and
impact the communities where we live and work. Rewarding our
teammates’ performance
We offer fair, competitive compensa-
tion based on market rates by role and
performance. We regularly benchmark
compensation against other companies,
both within and outside our industry,
to ensure our pay is competitive with
comparable roles in the market.

We’re committed to supporting a competi- across our company, including our 11 Employee Networks with over 120,000
tive minimum rate of pay. We have been an memberships worldwide. We also encourage our teammates to have coura-
industry leader in establishing an internal geous conversations, which foster inclusion, understanding, and positive action
minimum rate of pay for our U.S. hourly by creating awareness of employees’ experiences and perspectives related to
employees and have made regular increases differences in background, experience or viewpoints.
over many years. Two years ago, we raised
our minimum wage to $15 per hour, and our Providing opportunities for development and growth
minimum wage is higher today. Our average We provide resources, programs and tools to help employees develop and grow
rate for all U.S. hourly employees is signifi- at the company. Our tuition reimbursement program provides employees up to
cantly above this level. $5,250 per year for courses related to current or future roles at our company.
We also offer online learning courses, professional growth, and development
of our managers through programs like Manager Excellence and access to the
For the last two myCareer website to view open positions. In 2018, we helped support more
than 17,000 employees find new roles within the company, and we had
years, we’ve shared historically low employee turnover.
our success with our Supporting wellness

We support the physical, emotional and financial wellness of our teammates
employees through by providing quality health care with annual premium increases below the
national U.S. average. We offer health care coverage for all U.S. benefits-
special compensation eligible employees that costs them no more than 7 percent of their wages.
awards for approxi- We also provide industry-leading benefits such as 16 weeks of paid parental
leave — maternity, paternity, and adoption; 20 days of paid bereavement leave
mately 90 percent for full-time employees who lose a spouse, partner or child; and confidential
counseling through our Employee Assistance Program. And for the moments
and 95 percent, when employees and their families need support the most, our internal,
highly specialized Life Event Services (LES) group provides personalized
respectively, of our support to them. More than 85,000 team members have worked with the
highly trained and empathetic LES team members for needs around survivor
teammates globally. support, domestic violence, natural and man-made disasters, transition
related to military service, and other major life events. The team provides
resources, benefits, counseling and other support, tapping experts inside and
We’re proud to be a leader among compa- outside the company. Overall, employee satisfaction with our benefits is at an
nies providing awards of this type to our all-time high. You can read more about our benefits, resources and programs
employees for two consecutive years, from on the previous page.
cash bonuses to stock, totaling more than
$1 billion. These awards were in addition We are proud that others have recognized us for our focus on our teammates.
to the compensation these teammates For instance, Euromoney recognized us as the World’s Best Bank for Diversity
otherwise received. These awards recognize and Inclusion, and we were awarded the 2019 Catalyst Award for our innova-
the contributions of our employees to tive organizational efforts to advance women in the workplace. We were also
drive responsible growth, and reflect the named as one of the 100 Best Companies to Work For by Fortune magazine
continuing benefits of U.S. tax reform to and the global research and consulting firm, Great Place to Work® for our focus
our company. on being a great place to work and delivering value for our customers and
clients, and named as the only financial services company on Fortune’s
Bringing our whole selves to work inaugural Best Big Companies to Work For list, which recognized seven
We are proud to be a team that mirrors companies with more than 100,000 U.S.-based employees that passed the
the diversity of our customers, clients and Great Place to Work Certification bar. You can read more about the external
communities: More than 50 percent of our recognition we have received in our proxy statement.
global workforce are women, and more than
We had one of our best years ever in 2018: strong recognition for customer
45 percent of our U.S.-based workforce are
service in every category, the highest levels of customer satisfaction, and
people of color. Our commitment comes
record financial results that allowed us to keep investing in how we serve our
from the top: Our CEO chairs the company’s
clients and customers. We attracted more than 27,000 new teammates to our
Global Diversity and Inclusion Council,
company, including more than 3,500 future leaders who were recent college
which is composed of leaders representing
graduates. Our teammates’ consistent commitment to our purpose allows us
every line of business and geography, and is
to deliver for our customers, communities and shareholders. Our commitment
responsible for setting and upholding diver-
to our teammates is demonstrated by our continued investment in making
sity and inclusion goals and practices. And
Bank of America a great place to work.
at every level, we drive a culture of inclusion
through a range of programs to connect
employees, executives, and thought leaders

Bank of America Corporation — Financial Highlights
Bank of America Corporation (NYSE: BAC) is headquartered in Charlotte, North Carolina. As of December 31, 2018, we operated in
all 50 states, the District of Columbia, the U.S. Virgin Islands, Puerto Rico and more than 35 countries. Through our banking and
various nonbank subsidiaries throughout the United States and in international markets, we provide a diversified range of banking
and nonbank financial services and products through four business segments: Consumer Banking, Global Wealth and Investment
Management, Global Banking, and Global Markets.
Financial Highlights ($ in millions, except per share information)

For the year 2018 2017 2016
Revenue, net of interest expense $ 91,247 $ 87,352 $ 83,701
Net income 28,147 18,232 17,822
Earnings per common share 2.64 1.63 1.57
Diluted earnings per common share 2.61 1.56 1.49
Dividends paid per common share 0.54 0.39 0.25
Return on average assets 1.21% 0.80% 0.81%
Return on average tangible common shareholders’ equity 1 15.55 9.41 9.51
Efficiency ratio 58.50 62.67 65.81
Average diluted common shares issued and outstanding 10,237 10,778 11,047
At year-end 2018 2017 2016

Total loans and leases $ 946,895 $ 936,749 $ 906,683
Total assets 2,354,507 2,281,234 2,188,067
Total deposits 1,381,476 1,309,545 1,260,934
Total shareholders’ equity 265,325 267,146 266,195
Book value per common share 25.13 23.80 23.97
Tangible book value per common share 1 17.91 16.96 16.89
Market price per common share 24.64 29.52 22.10
Common shares issued and outstanding 9,669 10,287 10,053
Tangible common equity ratio 1 7.6% 7.9% 8.0%
Represents a non-GAAP financial measure. For more information on these measures and ratios, and a corresponding reconciliation to GAAP financial measures, see Supplemental Financial
1
Data on page 39 and Non-GAAP Reconciliations on page 40 of the 2018 Financial Review section.
Total Cumulative Shareholder Return2 BAC Five-Year Stock Performance

$250 $35
$30
$200 $25
$20
$15
$150
$10
$5
$100 $0
2014 2015 2016 2017 2018
$50
HIGH $18.13 $18.45 $23.16 $29.88 $32.84
$0 LOW 14.51 15.15 11.16 22.05 22.73
2013 2014 2015 2016 2017 2018 CLOSE 17.89 16.83 22.10 29.52 24.64
December 31 2013 2014 2015 2016 2017 2018 Book Value Per Share/
Bank of America Corporation $100 $116 $110 $147 $199 $169 Tangible Book Value Per Share
S&P 500 100 114 115 129 157 150
$25.13
$23.97
$23.80
KBW Bank Sector Index 100 109 110 141 167 138
$22.48
$21.32
$17.91
$16.96
$16.89
$15.56
$14.43
2
This graph compares the yearly change in the Corporation’s total cumulative shareholder return
on its common stock with (i) the Standard & Poor’s 500 Index and (ii) the KBW Bank Index for
the years ended December 31, 2013 through 2018. The graph assumes an initial investment of
$100 at the end of 2013 and the reinvestment of all dividends during the years indicated. 2014 2015 2016 2017 2018
Book Value Per Share Tangible Book Value Per Share 3
3
Tangible book value per share is a non-GAAP fi nancial measure.

Table 10 Average Balances and Interest Rates - FTE Basis
Interest Interest Interest

Average Income/ Yield/ Average Income/ Yield/ Average Income/ Yield/
Balance Expense Rate Balance Expense Rate Balance Expense Rate
(Dollars in millions) 2018 2017 2016
Earning assets
Interest-bearing deposits with the Federal Reserve, non-U.S.
central banks and other banks $ 139,848 $ 1,926 1.38% $ 127,431 $ 1,122 0.88% $ 133,374 $ 605 0.45%
Time deposits placed and other short-term investments 9,446 216 2.29 12,112 241 1.99 9,026 140 1.55
Federal funds sold and securities borrowed or purchased under
agreements to resell (1) 251,328 3,176 1.26 222,818 1,806 0.81 216,161 967 0.45
Trading account assets 132,724 4,901 3.69 129,007 4,618 3.58 129,766 4,563 3.52
Debt securities 437,312 11,837 2.66 435,005 10,626 2.44 418,289 9,263 2.23
Loans and leases (2):
Residential mortgage 207,523 7,294 3.51 197,766 6,831 3.45 188,250 6,488 3.45
Home equity 53,886 2,573 4.77 62,260 2,608 4.19 71,760 2,713 3.78
U.S. credit card 94,612 9,579 10.12 91,068 8,791 9.65 87,905 8,170 9.29
Non-U.S. credit card (3) — — — 3,929 358 9.12 9,527 926 9.72
Direct/Indirect and other consumer (4) 93,036 3,104 3.34 96,002 2,734 2.85 94,148 2,371 2.52
Total consumer 449,057 22,550 5.02 451,025 21,322 4.73 451,590 20,668 4.58
U.S. commercial 304,387 11,937 3.92 292,452 9,765 3.34 276,887 8,101 2.93
Non-U.S. commercial 97,664 3,220 3.30 95,005 2,566 2.70 93,263 2,337 2.51
Commercial real estate (5) 60,384 2,618 4.34 58,502 2,116 3.62 57,547 1,773 3.08
Commercial lease financing 21,557 698 3.24 21,747 706 3.25 21,146 627 2.97
Total commercial 483,992 18,473 3.82 467,706 15,153 3.24 448,843 12,838 2.86
2018 Financial Review

Total loans and leases (3) 933,049 41,023 4.40 918,731 36,475 3.97 900,433 33,506 3.72
Other earning assets (1) 76,524 4,300 5.62 76,957 3,224 4.19 59,775 2,496 4.18
Total earning assets (1,6) 1,980,231 67,379 3.40 1,922,061 58,112 3.02 1,866,824 51,540 2.76
Cash and due from banks 25,830 27,995 27,893
Other assets, less allowance for loan and lease losses 319,185 318,577 295,501
Total assets $ 2,325,246 $ 2,268,633 $ 2,190,218
Interest-bearing liabilities
U.S. interest-bearing deposits:
Savings $ 54,226 $ 6 0.01% $ 53,783 $ 5 0.01% $ 49,495 $ 5 0.01%
NOW and money market deposit accounts 676,382 2,636 0.39 628,647 873 0.14 589,737 294 0.05
Consumer CDs and IRAs 39,823 157 0.39 44,794 121 0.27 48,594 133 0.27
Negotiable CDs, public funds and other deposits 50,593 991 1.96 36,782 354 0.96 32,889 160 0.49
Total U.S. interest-bearing deposits 821,024 3,790 0.46 764,006 1,353 0.18 720,715 592 0.08
Non-U.S. interest-bearing deposits:
Banks located in non-U.S. countries 2,312 39 1.69 2,442 21 0.85 3,891 32 0.82
Governments and official institutions 810 — 0.01 1,006 10 0.95 1,437 9 0.64
Time, savings and other 65,097 666 1.02 62,386 547 0.88 59,183 382 0.65
Total non-U.S. interest-bearing deposits 68,219 705 1.03 65,834 578 0.88 64,511 423 0.66
Total interest-bearing deposits 889,243 4,495 0.51 829,840 1,931 0.23 785,226 1,015 0.13
Federal funds purchased, securities loaned or sold under
agreements to repurchase, short-term borrowings and other
interest-bearing liabilities (1) 269,748 5,839 2.17 274,975 3,146 1.14 252,585 1,933 0.77
Trading account liabilities 50,928 1,358 2.67 45,518 1,204 2.64 37,897 1,018 2.69
Long-term debt 230,693 7,645 3.31 225,133 6,239 2.77 228,617 5,578 2.44
Total interest-bearing liabilities (1,6) 1,440,612 19,337 1.34 1,375,466 12,520 0.91 1,304,325 9,544 0.73
Noninterest-bearing sources:
Noninterest-bearing deposits 425,698 439,956 437,335
Other liabilities (1) 194,188 181,922 182,715
Shareholders’ equity 264,748 271,289 265,843
Total liabilities and shareholders’ equity $ 2,325,246 $ 2,268,633 $ 2,190,218
Net interest spread 2.06% 2.11% 2.03%
Impact of noninterest-bearing sources 0.36 0.26 0.22
Net interest income/yield on earning assets (7) $ 48,042 2.42% $ 45,592 2.37% $ 41,996 2.25%
(1) Certain prior-period amounts have been reclassified to conform to current period presentation.
(2) Nonperforming loans are included in the respective average loan balances. Income on these nonperforming loans is generally recognized on a cost recovery basis.
(3) Includes assets of the Corporation’s non-U.S. consumer credit card business, which was sold during the second quarter of 2017.
(4) Includes non-U.S. consumer loans of $2.8 billion, $2.9 billion and $3.4 billion in 2018, 2017 and 2016, respectively.
(5) Includes U.S. commercial real estate loans of $56.4 billion, $55.0 billion and $54.2 billion, and non-U.S. commercial real estate loans of $4.0 billion, $3.5 billion and $3.4 billion in 2018, 2017
and 2016, respectively.
(6) Interest income includes the impact of interest rate risk management contracts, which decreased interest income on the underlying assets by $171 million, $44 million and $176 million in 2018,
2017 and 2016, respectively. Interest expense includes the impact of interest rate risk management contracts, which decreased interest expense on the underlying liabilities by $130 million, $1.4
billion and $2.1 billion in 2018, 2017 and 2016, respectively. For more information, see Interest Rate Risk Management for the Banking Book on page 89.
(7) Net interest income includes FTE adjustments of $610 million, $925 million and $900 million in 2018, 2017 and 2016, respectively.
Bank of America 2018 33

Financial Review
Table of Contents
Page
Executive Summary 35
Recent Developments 36
Financial Highlights 36
Balance Sheet Overview 38
Supplemental Financial Data 39
Business Segment Operations 45
Consumer Banking 46
Global Wealth & Investment Management 48
Global Banking 50
Global Markets 52
All Other 53
Off-Balance Sheet Arrangements and Contractual Obligations 54
Managing Risk 55
Strategic Risk Management 58
Capital Management 58
Liquidity Risk 62
Credit Risk Management 66
Consumer Portfolio Credit Risk Management 66
Commercial Portfolio Credit Risk Management 74
Non-U.S. Portfolio 80
Provision for Credit Losses 82
Allowance for Credit Losses 82
Market Risk Management 85
Trading Risk Management 86
Interest Rate Risk Management for the Banking Book 89
Mortgage Banking Risk Management 91
Compliance and Operational Risk Management 91
Reputational Risk Management 92
Complex Accounting Estimates 92
2017 Compared to 2016 94
Statistical Tables 96
34 Bank of America 2018

Management’s Discussion and Analysis of Financial Condition and Results of Operations
Bank of America Corporation (the “Corporation”) and its impairment assessments, of certain of the Corporation’s assets and
management may make certain statements that constitute liabilities; uncertainty regarding the content, timing and impact of
“forward-looking statements” within the meaning of the Private regulatory capital and liquidity requirements; the impact of adverse
Securities Litigation Reform Act of 1995. These statements can be changes to total loss-absorbing capacity requirements and/or global
identified by the fact that they do not relate strictly to historical or systemically important bank surcharges; the success of our
current facts. Forward-looking statements often use words such as reorganization of Merrill Lynch, Pierce, Fenner & Smith Incorporated;
“anticipates,” “targets,” “expects,” “hopes,” “estimates,” “intends,” the potential impact of actions of the Board of Governors of the
“plans,” “goals,” “believes,” “continue” and other similar expressions Federal Reserve System on the Corporation’s capital plans; the
or future or conditional verbs such as “will,” “may,” “might,” “should,” effect of regulations, other guidance or additional information on
“would” and “could.” Forward-looking statements represent the the impact from the Tax Cuts and Jobs Act; the impact of
Corporation’s current expectations, plans or forecasts of its future implementation and compliance with U.S. and international laws,
results, revenues, expenses, efficiency ratio, capital measures, regulations and regulatory interpretations, including, but not limited
strategy and future business and economic conditions more to, recovery and resolution planning requirements, Federal Deposit
generally, and other future matters. These statements are not Insurance Corporation assessments, the Volcker Rule, fiduciary
guarantees of future results or performance and involve certain standards and derivatives regulations; a failure in or breach of the
known and unknown risks, uncertainties and assumptions that are Corporation’s operational or security systems or infrastructure, or
difficult to predict and are often beyond the Corporation’s control. those of third parties, including as a result of cyber-attacks; the
Actual outcomes and results may differ materially from those impact on the Corporation’s business, financial condition and results
expressed in, or implied by, any of these forward-looking statements. of operations from the planned exit of the United Kingdom from the
You should not place undue reliance on any forward-looking European Union; the impact of a prolonged federal government
statement and should consider the following uncertainties and risks, shutdown and uncertainty regarding the federal government’s debt
as well as the risks and uncertainties more fully discussed under limit; and other similar matters.
Item 1A. Risk Factors of our 2018 Annual Report on Form 10-K: the Forward-looking statements speak only as of the date they are
Corporation’s potential claims, damages, penalties, fines and made, and the Corporation undertakes no obligation to update any
reputational damage resulting from pending or future litigation, forward-looking statement to reflect the impact of circumstances or
regulatory proceedings and enforcement actions and the possibility events that arise after the date the forward-looking statement was
that amounts may be in excess of the Corporation’s recorded liability made.
and estimated range of possible loss for litigation and regulatory Notes to the Consolidated Financial Statements referred to in
exposures; the possibility that the Corporation could face increased the Management’s Discussion and Analysis of Financial Condition
servicing, securities, fraud, indemnity, contribution or other claims and Results of Operations (MD&A) are incorporated by reference
from one or more counterparties, including trustees, purchasers of into the MD&A. Certain prior-year amounts have been reclassified
loans, underwriters, issuers, other parties involved in securitizations, to conform to current-year presentation. Throughout the MD&A,
monolines or private-label and other investors; the possibility that the Corporation uses certain acronyms and abbreviations which
future representations and warranties losses may occur in excess are defined in the Glossary.
of the Corporation’s recorded liability and estimated range of
possible loss for its representations and warranties exposures; the Executive Summary
Corporation’s ability to resolve representations and warranties
repurchase and related claims, including claims brought by investors Business Overview
or trustees seeking to avoid the statute of limitations for repurchase The Corporation is a Delaware corporation, a bank holding company
claims; the risks related to the discontinuation of the London (BHC) and a financial holding company. When used in this report,
InterBank Offered Rate and other reference rates, including “the Corporation” may refer to Bank of America Corporation
increased expenses and litigation and the effectiveness of hedging individually, Bank of America Corporation and its subsidiaries, or
strategies; uncertainties about the financial stability and growth certain of Bank of America Corporation’s subsidiaries or affiliates.
rates of non-U.S. jurisdictions, the risk that those jurisdictions may Our principal executive offices are located in Charlotte, North
face difficulties servicing their sovereign debt, and related stresses Carolina. Through our banking and various nonbank subsidiaries
on financial markets, currencies and trade, and the Corporation’s throughout the U.S. and in international markets, we provide a
exposures to such risks, including direct, indirect and operational; diversified range of banking and nonbank financial services and
the impact of U.S. and global interest rates, inflation, currency products through four business segments: Consumer Banking,
exchange rates, economic conditions, trade policies, including Global Wealth & Investment Management (GWIM), Global Banking
tariffs, and potential geopolitical instability; the impact on the and Global Markets, with the remaining operations recorded in All
Corporation’s business, financial condition and results of operations Other. We operate our banking activities primarily under the Bank
of a potential higher interest rate environment; the possibility that of America, National Association (Bank of America, N.A. or BANA)
future credit losses may be higher than currently expected due to charter. At December 31, 2018, the Corporation had approximately
changes in economic assumptions, customer behavior, adverse $2.4 trillion in assets and a headcount of approximately 204,000
developments with respect to U.S. or global economic conditions employees.
and other uncertainties; the Corporation’s ability to achieve its As of December 31, 2018, we served clients through
expense targets and expectations regarding net interest income, operations across the U.S., its territories and more than 35
net charge-offs, loan growth or other projections; adverse changes countries. Our retail banking footprint covers approximately 85
to the Corporation’s credit ratings from the major credit rating percent of the U.S. population, and we serve approximately 66
agencies; an inability to access capital markets or maintain deposits; million consumer and small business clients with approximately
estimates of the fair value and other accounting values, subject to 4,300 retail financial centers, approximately 16,300 ATMs, and

leading digital banking platforms (www.bankofamerica.com) with activity. In addition, we continue to analyze and evaluate legacy
more than 36 million active users, including over 26 million active contracts across all products to determine the impact of a
mobile users. We offer industry-leading support to approximately discontinuation of LIBOR or other benchmarks and to address
three million small business owners. Our wealth management consequential changes to those legacy contracts. Certain actions
businesses, with client balances of approximately $2.6 trillion, required to mitigate risks associated with the unavailability of
provide tailored solutions to meet client needs through a full set benchmarks and implementation of new methodologies and
of investment management, brokerage, banking, trust and contractual mechanics are dependent on a consensus being
retirement products. We are a global leader in corporate and reached by the industry or the markets in various jurisdictions
investment banking and trading across a broad range of asset around the world. As a result, there is uncertainty as to the
classes serving corporations, governments, institutions and solutions that will be developed to address the unavailability of
individuals around the world. LIBOR or other benchmarks, as well as the overall impact to our
businesses, operations and results. Additionally, any transition
Recent Developments from current benchmarks may alter the Corporation’s risk profiles
and models, valuation tools, product design and effectiveness of
Capital Management hedging strategies, as well as increase the costs and risks related
During 2018, we repurchased $20.1 billion of common stock to potential regulatory requirements.
pursuant to the Board of Directors’ (the Board) repurchase
authorizations under our 2018 and 2017 Comprehensive Capital Financial Highlights
Analysis and Review (CCAR) plans, including repurchases to offset
equity-based compensation awards. Also, in addition to the
previously announced repurchases associated with the 2018 Table 1 Summary Income Statement and Selected
CCAR capital plan, on February 7, 2019, we announced a plan to Financial Data
repurchase an additional $2.5 billion of common stock through (Dollars in millions, except per share information) 2018 2017
June 30, 2019, which was approved by the Board of Governors of Income statement
the Federal Reserve System (Federal Reserve). For additional Net interest income $ 47,432 $ 44,667
information, see Capital Management on page 58. Noninterest income 43,815 42,685
Total revenue, net of interest expense 91,247 87,352
U.K. Exit from the EU Provision for credit losses 3,282 3,396
We conduct business in Europe, the Middle East and Africa Noninterest expense 53,381 54,743
primarily through our subsidiaries in the U.K. and Ireland. A Income before income taxes 34,584 29,213
referendum held in the U.K. in 2016 resulted in a majority vote in Income tax expense 6,437 10,981
favor of exiting the European Union (EU). In March 2017, the U.K. Net income 28,147 18,232
notified the EU of its intent to withdraw from the EU, which is Preferred stock dividends 1,451 1,614
Net income applicable to common $ 26,696 $ 16,618
scheduled to occur on March 29, 2019. Negotiations between the
U.K. and the EU regarding the terms, conditions and timing of the Per common share information
withdrawal are ongoing and the outcome remains uncertain. In Earnings $ 2.64 $ 1.63
preparation for the withdrawal, we have implemented changes to Diluted earnings 2.61 1.56
our operating model in the region, including establishing our Dividends paid 0.54 0.39
principal EU banking and broker-dealer operations outside the U.K. Performance ratios
The changes are expected to enable us to continue to service our Return on average assets 1.21% 0.80%
clients with minimal disruption, retain operational flexibility, Return on average common shareholders’
equity 11.04 6.72
minimize transition risks and maximize legal entity efficiencies,
Return on average tangible common
independent of the outcome and timing of the withdrawal. shareholders’ equity (1) 15.55 9.41
Efficiency ratio 58.50 62.67
LIBOR and Other Benchmark Rates Balance sheet at year end
The U.K. Financial Conduct Authority (FCA), which regulates the Total loans and leases $ 946,895 $ 936,749
London InterBank Offered Rate (LIBOR), announced in July 2017 Total assets 2,354,507 2,281,234
that it will no longer persuade or require banks to submit rates for Total deposits 1,381,476 1,309,545
LIBOR after 2021. This announcement along with financial Total common shareholders’ equity 242,999 244,823
benchmark reforms more generally and changes in the interbank Total shareholders’ equity 265,325 267,146
lending markets have resulted in uncertainty about the future of (1) Return on average tangible common shareholders’ equity is a non-GAAP financial measure. For
more information and a corresponding reconciliation to accounting principles generally accepted
LIBOR and certain other rates or indices used as interest rate in the United States of America (GAAP) financial measures, see Non-GAAP Reconciliations on
page 40.
“benchmarks.” These actions and uncertainties may trigger future
changes in the rules or methodologies used to calculate Net income was $28.1 billion, or $2.61 per diluted share in 2018
benchmarks or lead to the discontinuation or unavailability of compared to $18.2 billion, or $1.56 per diluted share in 2017.
benchmarks. The improvement in net income was driven by a decrease in income
The Corporation has established an enterprise-wide initiative tax expense due to the impacts of the Tax Cuts and Jobs Act (the
to identify, assess and monitor risks associated with the potential Tax Act), an increase in net interest income, higher noninterest
discontinuation or unavailability of benchmarks, including LIBOR, income, lower provision for credit losses and a decline in
and the transition to alternative reference rates. As part of this noninterest expense. Impacts from the Tax Act include a reduction
initiative, the Corporation is actively engaged with global in the federal corporate income tax rate to 21 percent from 35
regulators, industry working groups and trade associations to percent. In addition, results for 2017 included a reduction in net
develop strategies for transitions from current benchmarks to income of $2.9 billion due to the Tax Act, driven largely by a lower
alternative reference rates. We are updating our operational valuation of certain U.S. deferred tax assets and liabilities.
processes and models to support new alternative reference rate

Net Interest Income Provision for Credit Losses
Net interest income increased $2.8 billion to $47.4 billion in 2018 The provision for credit losses decreased $114 million to $3.3
compared to 2017. Net interest yield on a fully taxable-equivalent billion in 2018 compared to 2017, primarily reflecting a 2017
(FTE) basis increased five basis points (bps) to 2.42 percent for single-name non-U.S. commercial charge-off and improvement in
2018. These increases were primarily driven by higher interest the commercial portfolio. In the consumer portfolio, the impact of
rates as well as loan and deposit growth, partially offset by the sale of the non-U.S. consumer credit card business in 2017
tightening spreads, higher Global Markets funding costs and the was more than offset by a slower pace of improvement in the
impact of the sale of the non-U.S. consumer credit card business consumer real estate portfolio, and portfolio seasoning and loan
in 2017. For more information on net interest yield and the FTE growth in the U.S. credit card portfolio. For more information on
basis, see Supplemental Financial Data on page 39, and for more the provision for credit losses, see Provision for Credit Losses on
information on interest rate risk management, see Interest Rate page 82.
Risk Management for the Banking Book on page 89.
Noninterest Expense
Noninterest Income
Table 3 Noninterest Expense
Table 2 Noninterest Income
(Dollars in millions) 2018 2017
Personnel $ 31,880 $ 31,931
(Dollars in millions) 2018 2017 Occupancy 4,066 4,009
Card income $ 6,051 $ 5,902 Equipment 1,705 1,692
Service charges 7,767 7,818 Marketing 1,674 1,746
Investment and brokerage services 14,160 13,836 Professional fees 1,699 1,888
Investment banking income 5,327 6,011 Data processing 3,222 3,139
Trading account profits 8,540 7,277 Telecommunications 699 699
Other income 1,970 1,841 Other general operating 8,436 9,639
Total noninterest income $ 43,815 $ 42,685 Total noninterest expense $ 53,381 $ 54,743
Noninterest income increased $1.1 billion to $43.8 billion in 2018 Noninterest expense decreased $1.4 billion to $53.4 billion in
compared to 2017. The following highlights the significant 2018 compared to 2017. The decrease was primarily due to lower
changes. other general operating expense, primarily driven by a decline in
Card income increased $149 million primarily driven by an litigation and Federal Deposit Insurance Corporation (FDIC)
increase in credit and debit card spending, as well as increased expense as well as a $316 million impairment charge in 2017
late fees and annual fees, partially offset by higher rewards related to certain data centers.
costs, lower cash advance fees, and the impact of the sale of
the non-U.S. consumer credit card business in 2017. Income Tax Expense
Investment and brokerage services income increased $324
million primarily due to assets under management (AUM) flows Table 4 Income Tax Expense
and higher market valuations, partially offset by the impact of
changing market dynamics on transactional revenue and AUM (Dollars in millions) 2018 2017
pricing. Income before income taxes $ 34,584 $ 29,213
Investment banking income decreased $684 million primarily Income tax expense 6,437 10,981
due to declines in advisory fees and debt underwriting, the Effective tax rate 18.6% 37.6%
latter of which was driven by lower fee pools.

Tax expense for 2018 reflected the new 21 percent federal income
Trading account profits increased $1.3 billion primarily due to
tax rate and the other provisions of the Tax Act, as well as our
increased client activity in equity financing and derivatives,
recurring tax preference benefits.
higher market interest rates and strong trading performance
Tax expense for 2017 included a charge of $1.9 billion
in equity derivatives, partially offset by weakness in credit
reflecting the initial impact of the Tax Act, including a tax charge
products.
of $2.3 billion related primarily to a lower valuation of certain
Other income increased $129 million primarily due to gains on
deferred tax assets and liabilities and a $347 million tax benefit
sales of consumer real estate loans, primarily non-core, of
on the pretax loss from the lower valuation of our tax-advantaged
$731 million, offset by a $729 million charge related to the
energy investments. Other than the impact of the Tax Act, the
redemption of certain trust preferred securities in 2018. Other
effective tax rate for 2017 was driven by our recurring tax
income for 2017 included a downward valuation adjustment
preference benefits as well as an expense from the sale of the
of $946 million on tax-advantaged energy investments in
non-U.S. consumer credit card business, largely offset by benefits
connection with the Tax Act and a $793 million pretax gain
related to stock-based compensation and the restructuring of
recognized in connection with the sale of the non-U.S.
certain subsidiaries.
consumer credit card business.
We expect the effective tax rate for 2019 to be approximately
19 percent, absent unusual items.

Balance Sheet Overview
Table 5 Selected Balance Sheet Data

December 31
(Dollars in millions) 2018 2017 % Change
Assets
Cash and cash equivalents $ 177,404 $ 157,434 13%
Federal funds sold and securities borrowed or purchased under agreements to resell 261,131 212,747 23
Trading account assets 214,348 209,358 2
Debt securities 441,753 440,130 —
Loans and leases 946,895 936,749 1
Allowance for loan and lease losses (9,601) (10,393) (8)
All other assets 322,577 335,209 (4)
Total assets $ 2,354,507 $ 2,281,234 3
Liabilities
Deposits $ 1,381,476 $ 1,309,545 5
Federal funds purchased and securities loaned or sold under agreements to repurchase 186,988 176,865 6
Trading account liabilities 68,220 81,187 (16)
Short-term borrowings 20,189 32,666 (38)
Long-term debt 229,340 227,402 1
All other liabilities 202,969 186,423 9
Total liabilities 2,089,182 2,014,088 4
Shareholders’ equity 265,325 267,146 (1)
Total liabilities and shareholders’ equity $ 2,354,507 $ 2,281,234 3
Assets and liquidity risk and to take advantage of market conditions that
At December 31, 2018, total assets were approximately $2.4 create economically attractive returns on these investments. Debt
trillion, up $73.3 billion from December 31, 2017. The increase securities increased $1.6 billion primarily driven by the deployment
in assets was primarily due to higher securities borrowed or of deposit inflows. In 2018, the Corporation transferred available-
purchased under agreements to resell due to investment of excess for-sale (AFS) debt securities with an amortized cost of $64.5
cash levels in higher yielding assets and increased client activity, billion to held to maturity. For more information on debt securities,
and higher cash and cash equivalents driven by deposit growth. see Note 4 – Securities to the Consolidated Financial Statements.
Cash and Cash Equivalents Loans and Leases

Cash and cash equivalents increased $20.0 billion primarily driven Loans and leases increased $10.1 billion primarily due to net loan
by deposit growth, partially offset by investment of short-term growth driven by client demand for commercial loans and increases
excess cash into securities purchased under agreements to resell, in residential mortgage. For more information on the loan portfolio,
and loan growth. see Credit Risk Management on page 66.
Federal Funds Sold and Securities Borrowed or Purchased Allowance for Loan and Lease Losses
Under Agreements to Resell The allowance for loan and lease losses decreased $792 million
Federal funds transactions involve lending reserve balances on a primarily due to the impact of improvements in credit quality from
short-term basis. Securities borrowed or purchased under a stronger economy and continued runoff and sales in the non-
agreements to resell are collateralized lending transactions core consumer real estate portfolio. For additional information,
utilized to accommodate customer transactions, earn interest rate see Allowance for Credit Losses on page 82.
spreads, and obtain securities for settlement and for collateral.
Liabilities
At December 31, 2018, total liabilities were approximately $2.1
agreements to resell increased $48.4 billion due to investment of
trillion, up $75.1 billion from December 31, 2017, primarily due
excess cash levels in higher yielding assets and a higher level of
to deposit growth.
customer financing activity.
Deposits
Trading Account Assets
Deposits increased $71.9 billion primarily due to an increase in
Trading account assets consist primarily of long positions in equity
retail deposits.
and fixed-income securities including U.S. government and agency
securities, corporate securities and non-U.S. sovereign debt. Federal Funds Purchased and Securities Loaned or Sold
Trading account assets increased $5.0 billion primarily driven by Under Agreements to Repurchase
additional inventory in fixed-income, currencies and commodities Federal funds transactions involve borrowing reserve balances on
(FICC) to meet expected client demand. a short-term basis. Securities loaned or sold under agreements
Debt Securities to repurchase are collateralized borrowing transactions utilized to
Debt securities primarily include U.S. Treasury and agency accommodate customer transactions, earn interest rate spreads
securities, mortgage-backed securities (MBS), principally agency and finance assets on the balance sheet. Federal funds purchased
MBS, non-U.S. bonds, corporate bonds and municipal debt. We and securities loaned or sold under agreements to repurchase
use the debt securities portfolio primarily to manage interest rate increased $10.1 billion primarily due to an increase in matched
book funding within Global Markets.

Trading Account Liabilities We view net interest income and related ratios and analyses
Trading account liabilities consist primarily of short positions in on an FTE basis, which when presented on a consolidated basis,
equity and fixed-income securities including U.S. Treasury and are non-GAAP financial measures. To derive the FTE basis, net
agency securities, corporate securities and non-U.S. sovereign interest income is adjusted to reflect tax-exempt income on an
debt. Trading account liabilities decreased $13.0 billion primarily equivalent before-tax basis with a corresponding increase in
due to lower levels of short positions in government and corporate income tax expense. For purposes of this calculation, we used the
bonds driven by expected client demand within Global Markets. federal statutory tax rate of 21 percent for 2018 (35 percent for
all prior periods) and a representative state tax rate. Net interest
Short-term Borrowings yield, which measures the basis points we earn over the cost of
Short-term borrowings provide an additional funding source and funds, utilizes net interest income (and thus total revenue) on an
primarily consist of Federal Home Loan Bank (FHLB) short-term FTE basis. We believe that presentation of these items on an FTE
borrowings, notes payable and various other borrowings that basis allows for comparison of amounts from both taxable and
generally have maturities of one year or less. Short-term tax-exempt sources and is consistent with industry practices.
borrowings decreased $12.5 billion primarily due to a decrease We may present certain key performance indicators and ratios
in short-term FHLB advances. For more information on short-term excluding certain items (e.g., debit valuation adjustment (DVA)
borrowings, see Note 10 – Federal Funds Sold or Purchased, gains (losses)) which result in non-GAAP financial measures. We
Securities Financing Agreements, Short-term Borrowings and believe that the presentation of measures that exclude these items
Restricted Cash to the Consolidated Financial Statements. is useful because such measures provide additional information
to assess the underlying operational performance and trends of
Long-term Debt our businesses and to allow better comparison of period-to-period
Long-term debt increased $1.9 billion primarily driven by issuances
operating performance.
outpacing maturities and redemptions. For more information on
We also evaluate our business based on certain ratios that
long-term debt, see Note 11 – Long-term Debt to the Consolidated
utilize tangible equity, a non-GAAP financial measure. Tangible
Financial Statements.
equity represents an adjusted shareholders’ equity or common
shareholders’ equity amount which has been reduced by goodwill
Shareholders’ Equity
and certain acquired intangible assets (excluding mortgage
Shareholders’ equity decreased $1.8 billion driven by returns of
servicing rights (MSRs)), net of related deferred tax liabilities.
capital to shareholders of $27.0 billion through common and
These measures are used to evaluate our use of equity. In addition,
preferred stock dividends and share repurchases and a $4.0 billion
profitability, relationship and investment models use both return
after-tax decrease in the fair value of AFS debt securities recorded
on average tangible common shareholders’ equity and return on
in accumulated other comprehensive income (OCI), largely offset
average tangible shareholders’ equity as key measures to support
by earnings.
our overall growth goals. These ratios are as follows:
Cash Flows Overview Return on average tangible common shareholders’ equity
The Corporation’s operating assets and liabilities support our measures our earnings contribution as a percentage of
global markets and lending activities. We believe that cash flows adjusted common shareholders’ equity. The tangible common
from operations, available cash balances and our ability to equity ratio represents adjusted ending common shareholders’
generate cash through short- and long-term debt are sufficient to equity divided by total assets less goodwill and certain acquired
fund our operating liquidity needs. Our investing activities primarily intangible assets (excluding MSRs), net of related deferred tax
include the debt securities portfolio and loans and leases. Our liabilities.
financing activities reflect cash flows primarily related to customer Return on average tangible shareholders’ equity measures our
deposits, securities financing agreements and long-term debt. For earnings contribution as a percentage of adjusted average total
more information on liquidity, see Liquidity Risk on page 62. shareholders’ equity. The tangible equity ratio represents
adjusted ending shareholders’ equity divided by total assets
Supplemental Financial Data less goodwill and certain acquired intangible assets (excluding
In this Form 10-K, we present certain non-GAAP financial MSRs), net of related deferred tax liabilities.
measures. Non-GAAP financial measures exclude certain items or Tangible book value per common share represents adjusted
otherwise include components that differ from the most directly ending common shareholders’ equity divided by ending
comparable measures calculated in accordance with GAAP. Non- common shares outstanding.
GAAP financial measures are provided as additional useful We believe that the use of ratios that utilize tangible equity
information to assess our financial condition, results of operations provides additional useful information because they present
(including period-to-period operating performance) or compliance measures of those assets that can generate income. Tangible
with prospective regulatory requirements. These non-GAAP book value per share provides additional useful information about
financial measures are not intended as a substitute for GAAP the level of tangible assets in relation to outstanding shares of
financial measures and may not be defined or calculated the same common stock.
way as non-GAAP financial measures used by other companies. The aforementioned supplemental data and performance
measures are presented in Tables 8 and 9.

Non-GAAP Reconciliations
Tables 6 and 7 provide reconciliations of certain non-GAAP financial measures to GAAP financial measures.
Table 6 Five-year Reconciliations to GAAP Financial Measures (1)

(Dollars in millions, shares in thousands) 2018 2017 2016 2015 2014
Reconciliation of average shareholders’ equity to average tangible shareholders’ equity and
average tangible common shareholders’ equity
Shareholders’ equity $ 264,748 $ 271,289 $ 265,843 $ 251,384 $ 238,317
Goodwill (68,951) (69,286) (69,750) (69,772) (69,809)
Intangible assets (excluding MSRs) (2,058) (2,652) (3,382) (4,201) (5,109)
Related deferred tax liabilities 906 1,463 1,644 1,852 2,090
Tangible shareholders’ equity $ 194,645 $ 200,814 $ 194,355 $ 179,263 $ 165,489
Preferred stock (22,949) (24,188) (24,656) (21,808) (15,410)
Tangible common shareholders’ equity $ 171,696 $ 176,626 $ 169,699 $ 157,455 $ 150,079
Reconciliation of year-end shareholders’ equity to year-end tangible shareholders’ equity and
year-end tangible common shareholders’ equity
Shareholders’ equity $ 265,325 $ 267,146 $ 266,195 $ 255,615 $ 243,476
Goodwill (68,951) (68,951) (69,744) (69,761) (69,777)
Related deferred tax liabilities 858 943 1,545 1,716 1,960
Tangible shareholders’ equity $ 195,458 $ 196,826 $ 195,007 $ 183,802 $ 171,047
Preferred stock (22,326) (22,323) (25,220) (22,272) (19,309)
Tangible common shareholders’ equity $ 173,132 $ 174,503 $ 169,787 $ 161,530 $ 151,738
Reconciliation of year-end assets to year-end tangible assets
Assets $ 2,354,507 $ 2,281,234 $ 2,188,067 $ 2,144,606 $ 2,104,539
Goodwill (68,951) (68,951) (69,744) (69,761) (69,777)
Related deferred tax liabilities 858 943 1,545 1,716 1,960
Tangible assets $ 2,284,640 $ 2,210,914 $ 2,116,879 $ 2,072,793 $ 2,032,110
(1) Presents reconciliations of non-GAAP financial measures to GAAP financial measures. For more information on non-GAAP financial measures and ratios we use in assessing the results of the
Corporation, see Supplemental Financial Data on page 39.
Table 7 Quarterly Reconciliations to GAAP Financial Measures (1)

2018 Quarters 2017 Quarters
(Dollars in millions) Fourth Third Second First Fourth Third Second First
Reconciliation of average shareholders’ equity to average tangible
shareholders’ equity and average tangible common shareholders’
equity
Shareholders’ equity $ 263,698 $ 264,653 $ 265,181 $ 265,480 $ 273,162 $ 273,238 $ 270,977 $ 267,700
Goodwill (68,951) (68,951) (68,951) (68,951) (68,954) (68,969) (69,489) (69,744)
Intangible assets (excluding MSRs) (1,857) (1,992) (2,126) (2,261) (2,399) (2,549) (2,743) (2,923)
Related deferred tax liabilities 874 896 916 939 1,344 1,465 1,506 1,539
Tangible shareholders’ equity $ 193,764 $ 194,606 $ 195,020 $ 195,207 $ 203,153 $ 203,185 $ 200,251 $ 196,572
Preferred stock (22,326) (22,841) (23,868) (22,767) (22,324) (24,024) (25,221) (25,220)
Tangible common shareholders’ equity $ 171,438 $ 171,765 $ 171,152 $ 172,440 $ 180,829 $ 179,161 $ 175,030 $ 171,352
Reconciliation of period-end shareholders’ equity to period-end
tangible shareholders’ equity and period-end tangible common
shareholders’ equity
Shareholders’ equity $ 265,325 $ 262,158 $ 264,216 $ 266,224 $ 267,146 $ 271,969 $ 270,660 $ 267,990
Goodwill (68,951) (68,951) (68,951) (68,951) (68,951) (68,968) (68,969) (69,744)
Related deferred tax liabilities 858 878 900 920 943 1,435 1,471 1,513
Tangible shareholders’ equity $ 195,458 $ 192,177 $ 194,122 $ 196,016 $ 196,826 $ 201,977 $ 200,552 $ 196,932
Preferred stock (22,326) (22,326) (23,181) (24,672) (22,323) (22,323) (25,220) (25,220)
Tangible common shareholders’ equity $ 173,132 $ 169,851 $ 170,941 $ 171,344 $ 174,503 $ 179,654 $ 175,332 $ 171,712
Reconciliation of period-end assets to period-end tangible assets
Assets $ 2,354,507 $ 2,338,833 $ 2,291,670 $ 2,328,478 $ 2,281,234 $ 2,284,174 $ 2,254,714 $ 2,247,794
Goodwill (68,951) (68,951) (68,951) (68,951) (68,951) (68,968) (68,969) (69,744)
Related deferred tax liabilities 858 878 900 920 943 1,435 1,471 1,513
Tangible assets $ 2,284,640 $ 2,268,852 $ 2,221,576 $ 2,258,270 $ 2,210,914 $ 2,214,182 $ 2,184,606 $ 2,176,736
(1) Presents reconciliations of non-GAAP financial measures to GAAP financial measures. For more information on non-GAAP financial measures and ratios we use in assessing the results of the
Corporation, see Supplemental Financial Data on page 39.

Table 8 Five-year Summary of Selected Financial Data
(In millions, except per share information) 2018 2017 2016 2015 2014
Income statement
Net interest income $ 47,432 $ 44,667 $ 41,096 $ 38,958 $ 40,779
Noninterest income 43,815 42,685 42,605 44,007 45,115
Total revenue, net of interest expense 91,247 87,352 83,701 82,965 85,894
Provision for credit losses 3,282 3,396 3,597 3,161 2,275
Noninterest expense 53,381 54,743 55,083 57,617 75,656
Income before income taxes 34,584 29,213 25,021 22,187 7,963
Income tax expense 6,437 10,981 7,199 6,277 2,443
Net income 28,147 18,232 17,822 15,910 5,520
Net income applicable to common shareholders 26,696 16,618 16,140 14,427 4,476
Average common shares issued and outstanding 10,096.5 10,195.6 10,284.1 10,462.3 10,527.8
Average diluted common shares issued and outstanding 10,236.9 10,778.4 11,046.8 11,236.2 10,584.5
Performance ratios
Return on average assets 1.21% 0.80% 0.81% 0.74% 0.26%
Return on average common shareholders’ equity 11.04 6.72 6.69 6.28 2.01
Return on average tangible common shareholders’ equity (1) 15.55 9.41 9.51 9.16 2.98
Return on average shareholders’ equity 10.63 6.72 6.70 6.33 2.32
Return on average tangible shareholders’ equity (1) 14.46 9.08 9.17 8.88 3.34
Total ending equity to total ending assets 11.27 11.71 12.17 11.92 11.57
Total average equity to total average assets 11.39 11.96 12.14 11.64 11.11
Dividend payout 20.31 24.24 15.94 14.49 28.20
Per common share data
Earnings $ 2.64 $ 1.63 $ 1.57 $ 1.38 $ 0.43
Diluted earnings 2.61 1.56 1.49 1.31 0.42
Dividends paid 0.54 0.39 0.25 0.20 0.12
Book value 25.13 23.80 23.97 22.48 21.32
Tangible book value (1) 17.91 16.96 16.89 15.56 14.43
Market capitalization $ 238,251 $ 303,681 $ 222,163 $ 174,700 $ 188,141
Average balance sheet
Total loans and leases $ 933,049 $ 918,731 $ 900,433 $ 876,787 $ 898,703
Total assets 2,325,246 2,268,633 2,190,218 2,160,536 2,145,393
Total deposits 1,314,941 1,269,796 1,222,561 1,155,860 1,124,207
Long-term debt 230,693 225,133 228,617 240,059 253,607
Common shareholders’ equity 241,799 247,101 241,187 229,576 222,907
Total shareholders’ equity 264,748 271,289 265,843 251,384 238,317
Asset quality (2)
Allowance for credit losses (3) $ 10,398 $ 11,170 $ 11,999 $ 12,880 $ 14,947
Nonperforming loans, leases and foreclosed properties (4) 5,244 6,758 8,084 9,836 12,629
Allowance for loan and lease losses as a percentage of total loans and leases
outstanding (4) 1.02% 1.12% 1.26% 1.37% 1.66%
Allowance for loan and lease losses as a percentage of total nonperforming loans
and leases (4) 194 161 149 130 121
Net charge-offs (5) $ 3,763 $ 3,979 $ 3,821 $ 4,338 $ 4,383
Net charge-offs as a percentage of average loans and leases outstanding (4, 5) 0.41% 0.44% 0.43% 0.50% 0.49%
Capital ratios at year end (6)
Common equity tier 1 capital 11.6% 11.5% 10.8% 9.8% 9.6%
Tier 1 capital 13.2 13.0 12.4 11.2 11.0
Total capital 15.1 14.8 14.2 12.8 12.7
Tier 1 leverage 8.4 8.6 8.8 8.4 7.8
Supplementary leverage ratio 6.8 n/a n/a n/a n/a
Tangible equity (1) 8.6 8.9 9.2 8.9 8.4
Tangible common equity (1) 7.6 7.9 8.0 7.8 7.5
(1) Tangible equity ratios and tangible book value per share of common stock are non-GAAP financial measures. For more information on these ratios and corresponding reconciliations to GAAP financial
measures, see Supplemental Financial Data on page 39.
(2) Asset quality metrics include $75 million of non-U.S. consumer credit card net charge-offs in 2017 and $243 million of non-U.S. consumer credit card allowance for loan and lease losses, $9.2
billion of non-U.S. consumer credit card loans and $175 million of non-U.S. consumer credit card net charge-offs in 2016. The Corporation sold its non-U.S. consumer credit card business in 2017.
(3) Includes the allowance for loan and leases losses and the reserve for unfunded lending commitments.
(4) Balances and ratios do not include loans accounted for under the fair value option. For additional exclusions from nonperforming loans, leases and foreclosed properties, see Consumer Portfolio
Credit Risk Management – Nonperforming Consumer Loans, Leases and Foreclosed Properties Activity on page 73 and corresponding Table 31 and Commercial Portfolio Credit Risk Management –
Nonperforming Commercial Loans, Leases and Foreclosed Properties Activity on page 78 and corresponding Table 38.
(5) Net charge-offs exclude $273 million, $207 million, $340 million, $808 million and $810 million of write-offs in the purchased credit-impaired (PCI) loan portfolio for 2018, 2017, 2016, 2015 and
2014, respectively.
(6) Basel 3 transition provisions for regulatory capital adjustments and deductions were fully phased-in as of January 1, 2018. Prior periods are presented on a fully phased-in basis. For additional
information, including which approach is used to assess capital adequacy, see Capital Management on page 58.
n/a = not applicable

Table 9 Selected Quarterly Financial Data
2018 Quarters 2017 Quarters
(In millions, except per share information) Fourth Third Second First Fourth Third Second First
Income statement
Net interest income $ 12,304 $ 11,870 $ 11,650 $ 11,608 $ 11,462 $ 11,161 $ 10,986 $ 11,058
Noninterest income (1) 10,432 10,907 10,959 11,517 8,974 10,678 11,843 11,190
Total revenue, net of interest expense 22,736 22,777 22,609 23,125 20,436 21,839 22,829 22,248
Provision for credit losses 905 716 827 834 1,001 834 726 835
Noninterest expense 13,133 13,067 13,284 13,897 13,274 13,394 13,982 14,093
Income before income taxes 8,698 8,994 8,498 8,394 6,161 7,611 8,121 7,320
Income tax expense (1) 1,420 1,827 1,714 1,476 3,796 2,187 3,015 1,983
Net income (1) 7,278 7,167 6,784 6,918 2,365 5,424 5,106 5,337
Net income applicable to common shareholders 7,039 6,701 6,466 6,490 2,079 4,959 4,745 4,835
Average common shares issued and outstanding 9,855.8 10,031.6 10,181.7 10,322.4 10,470.7 10,197.9 10,013.5 10,099.6
Average diluted common shares issued and outstanding 9,996.0 10,170.8 10,309.4 10,472.7 10,621.8 10,746.7 10,834.8 10,919.7
Performance ratios
Return on average assets 1.24% 1.23% 1.17% 1.21% 0.41% 0.95% 0.90% 0.97%
Four-quarter trailing return on average assets (2) 1.21 1.00 0.93 0.86 0.80 0.91 0.89 0.88
Return on average common shareholders’ equity 11.57 10.99 10.75 10.85 3.29 7.89 7.75 8.09
Return on average tangible common shareholders’ equity (3) 16.29 15.48 15.15 15.26 4.56 10.98 10.87 11.44
Return on average shareholders’ equity 10.95 10.74 10.26 10.57 3.43 7.88 7.56 8.09
Return on average tangible shareholders’ equity (3) 14.90 14.61 13.95 14.37 4.62 10.59 10.23 11.01
Total ending equity to total ending assets 11.27 11.21 11.53 11.43 11.71 11.91 12.00 11.92
Total average equity to total average assets 11.30 11.42 11.42 11.41 11.87 12.03 11.94 12.00
Dividend payout 20.90 22.35 18.83 19.06 60.35 25.59 15.78 15.64
Per common share data
Earnings $ 0.71 $ 0.67 $ 0.64 $ 0.63 $ 0.20 $ 0.49 $ 0.47 $ 0.48
Diluted earnings 0.70 0.66 0.63 0.62 0.20 0.46 0.44 0.45
Dividends paid 0.15 0.15 0.12 0.12 0.12 0.12 0.075 0.075
Book value 25.13 24.33 24.07 23.74 23.80 23.87 24.85 24.34
Tangible book value (3) 17.91 17.23 17.07 16.84 16.96 17.18 17.75 17.22
Market capitalization $ 238,251 $ 290,424 $ 282,259 $ 305,176 $ 303,681 $ 264,992 $ 239,643 $ 235,291
Average balance sheet
Total loans and leases $ 934,721 $ 930,736 $ 934,818 $ 931,915 $ 927,790 $ 918,129 $ 914,717 $ 914,144
Total assets 2,334,586 2,317,829 2,322,678 2,325,878 2,301,687 2,271,104 2,269,293 2,231,649
Total deposits 1,344,951 1,316,345 1,300,659 1,297,268 1,293,572 1,271,711 1,256,838 1,256,632
Long-term debt 230,616 233,475 229,037 229,603 227,644 227,309 224,019 221,468
Common shareholders’ equity 241,372 241,812 241,313 242,713 250,838 249,214 245,756 242,480
Total shareholders’ equity 263,698 264,653 265,181 265,480 273,162 273,238 270,977 267,700
Asset quality (4)
Allowance for credit losses (5) $ 10,398 $ 10,526 $ 10,837 $ 11,042 $ 11,170 $ 11,455 $ 11,632 $ 11,869
Nonperforming loans, leases and foreclosed properties (6) 5,244 5,449 6,181 6,694 6,758 6,869 7,127 7,637
Allowance for loan and lease losses as a percentage of total loans
and leases outstanding (6) 1.02% 1.05% 1.08% 1.11% 1.12% 1.16% 1.20% 1.25%
Allowance for loan and lease losses as a percentage of total
nonperforming loans and leases (6) 194 189 170 161 161 163 160 156
Net charge-offs (7) $ 924 $ 932 $ 996 $ 911 $ 1,237 $ 900 $ 908 $ 934
Annualized net charge-offs as a percentage of average loans and
leases outstanding (6, 7) 0.39% 0.40% 0.43% 0.40% 0.53% 0.39% 0.40% 0.42%
Capital ratios at period end (8)
Common equity tier 1 capital 11.6% 11.4% 11.4% 11.3% 11.5% 11.9% 11.5% 11.0%
Tier 1 capital 13.2 12.9 13.0 13.0 13.0 13.4 13.2 12.6
Total capital 15.1 14.7 14.8 14.8 14.8 15.1 15.0 14.3
Tier 1 leverage 8.4 8.3 8.4 8.4 8.6 8.9 8.8 8.8
Supplementary leverage ratio 6.8 6.7 6.7 6.8 n/a n/a n/a n/a
Tangible equity (3) 8.6 8.5 8.7 8.7 8.9 9.1 9.2 9.1
Tangible common equity (3) 7.6 7.5 7.7 7.6 7.9 8.1 8.0 7.9
(1) Net income for the fourth quarter of 2017 included a charge of $2.9 billion related to the Tax Act effects which consisted of $946 million in noninterest income and $1.9 billion in income tax expense.
(2) Calculated as total net income for four consecutive quarters divided by annualized average assets for four consecutive quarters.
(3) Tangible equity ratios and tangible book value per share of common stock are non-GAAP financial measures. For more information on these ratios and corresponding reconciliations to GAAP financial
measures, see Supplemental Financial Data on page 39.
(4) Asset quality metrics include $31 million of non-U.S. consumer credit card net charge-offs for the second quarter of 2017 and $242 million of non-U.S. consumer credit card allowance for loan and
lease losses, $9.5 billion of non-U.S. consumer credit card loans and $44 million of non-U.S. consumer credit card net charge-offs for the first quarter of 2017. The Corporation sold its non-U.S.
consumer credit card business in the second quarter of 2017.
(5) Includes the allowance for loan and lease losses and the reserve for unfunded lending commitments.
(6) Balances and ratios do not include loans accounted for under the fair value option. For additional exclusions from nonperforming loans, leases and foreclosed properties, see Consumer Portfolio
Credit Risk Management – Nonperforming Consumer Loans, Leases and Foreclosed Properties Activity on page 73 and corresponding Table 31 and Commercial Portfolio Credit Risk Management –
Nonperforming Commercial Loans, Leases and Foreclosed Properties Activity on page 78 and corresponding Table 38.
(7) Net charge-offs exclude $107 million, $95 million, $36 million and $35 million of write-offs in the PCI loan portfolio in the fourth, third, second and first quarters of 2018, and $46 million, $73 million,
$55 million and $33 million in the fourth, third, second and first quarters of 2017, respectively.
(8) Basel 3 transition provisions for regulatory capital adjustments and deductions were fully phased-in as of January 1, 2018. Prior periods are presented on a fully phased-in basis. For additional
information, including which approach is used to assess capital adequacy, see Capital Management on page 58.

Table 10 Average Balances and Interest Rates - FTE Basis
Interest Interest Interest

Average Income/ Yield/ Average Income/ Yield/ Average Income/ Yield/
Balance Expense Rate Balance Expense Rate Balance Expense Rate
Earning assets
Interest-bearing deposits with the Federal Reserve, non-U.S.
central banks and other banks $ 139,848 $ 1,926 1.38% $ 127,431 $ 1,122 0.88% $ 133,374 $ 605 0.45%
Time deposits placed and other short-term investments 9,446 216 2.29 12,112 241 1.99 9,026 140 1.55
agreements to resell (1) 251,328 3,176 1.26 222,818 1,806 0.81 216,161 967 0.45
Trading account assets 132,724 4,901 3.69 129,007 4,618 3.58 129,766 4,563 3.52
Debt securities 437,312 11,837 2.66 435,005 10,626 2.44 418,289 9,263 2.23
Loans and leases (2):
Residential mortgage 207,523 7,294 3.51 197,766 6,831 3.45 188,250 6,488 3.45
Home equity 53,886 2,573 4.77 62,260 2,608 4.19 71,760 2,713 3.78
U.S. credit card 94,612 9,579 10.12 91,068 8,791 9.65 87,905 8,170 9.29
Non-U.S. credit card (3) — — — 3,929 358 9.12 9,527 926 9.72
Direct/Indirect and other consumer (4) 93,036 3,104 3.34 96,002 2,734 2.85 94,148 2,371 2.52
Total consumer 449,057 22,550 5.02 451,025 21,322 4.73 451,590 20,668 4.58
U.S. commercial 304,387 11,937 3.92 292,452 9,765 3.34 276,887 8,101 2.93
Non-U.S. commercial 97,664 3,220 3.30 95,005 2,566 2.70 93,263 2,337 2.51
Commercial real estate (5) 60,384 2,618 4.34 58,502 2,116 3.62 57,547 1,773 3.08
Commercial lease financing 21,557 698 3.24 21,747 706 3.25 21,146 627 2.97
Total commercial 483,992 18,473 3.82 467,706 15,153 3.24 448,843 12,838 2.86
Total loans and leases (3) 933,049 41,023 4.40 918,731 36,475 3.97 900,433 33,506 3.72
Other earning assets (1) 76,524 4,300 5.62 76,957 3,224 4.19 59,775 2,496 4.18
Total earning assets (1,6) 1,980,231 67,379 3.40 1,922,061 58,112 3.02 1,866,824 51,540 2.76
Cash and due from banks 25,830 27,995 27,893
Other assets, less allowance for loan and lease losses 319,185 318,577 295,501
Total assets $ 2,325,246 $ 2,268,633 $ 2,190,218
Interest-bearing liabilities
Savings $ 54,226 $ 6 0.01% $ 53,783 $ 5 0.01% $ 49,495 $ 5 0.01%
NOW and money market deposit accounts 676,382 2,636 0.39 628,647 873 0.14 589,737 294 0.05
Consumer CDs and IRAs 39,823 157 0.39 44,794 121 0.27 48,594 133 0.27
Negotiable CDs, public funds and other deposits 50,593 991 1.96 36,782 354 0.96 32,889 160 0.49
Total U.S. interest-bearing deposits 821,024 3,790 0.46 764,006 1,353 0.18 720,715 592 0.08
Banks located in non-U.S. countries 2,312 39 1.69 2,442 21 0.85 3,891 32 0.82
Governments and official institutions 810 — 0.01 1,006 10 0.95 1,437 9 0.64
Time, savings and other 65,097 666 1.02 62,386 547 0.88 59,183 382 0.65
Total non-U.S. interest-bearing deposits 68,219 705 1.03 65,834 578 0.88 64,511 423 0.66
Total interest-bearing deposits 889,243 4,495 0.51 829,840 1,931 0.23 785,226 1,015 0.13
Federal funds purchased, securities loaned or sold under
agreements to repurchase, short-term borrowings and other
interest-bearing liabilities (1) 269,748 5,839 2.17 274,975 3,146 1.14 252,585 1,933 0.77
Trading account liabilities 50,928 1,358 2.67 45,518 1,204 2.64 37,897 1,018 2.69
Long-term debt 230,693 7,645 3.31 225,133 6,239 2.77 228,617 5,578 2.44
Total interest-bearing liabilities (1,6) 1,440,612 19,337 1.34 1,375,466 12,520 0.91 1,304,325 9,544 0.73
Noninterest-bearing sources:
Noninterest-bearing deposits 425,698 439,956 437,335
Other liabilities (1) 194,188 181,922 182,715
Shareholders’ equity 264,748 271,289 265,843
Total liabilities and shareholders’ equity $ 2,325,246 $ 2,268,633 $ 2,190,218
Net interest spread 2.06% 2.11% 2.03%
Impact of noninterest-bearing sources 0.36 0.26 0.22
Net interest income/yield on earning assets (7) $ 48,042 2.42% $ 45,592 2.37% $ 41,996 2.25%
(1) Certain prior-period amounts have been reclassified to conform to current period presentation.
(2) Nonperforming loans are included in the respective average loan balances. Income on these nonperforming loans is generally recognized on a cost recovery basis.
(3) Includes assets of the Corporation’s non-U.S. consumer credit card business, which was sold during the second quarter of 2017.
(4) Includes non-U.S. consumer loans of $2.8 billion, $2.9 billion and $3.4 billion in 2018, 2017 and 2016, respectively.
(5) Includes U.S. commercial real estate loans of $56.4 billion, $55.0 billion and $54.2 billion, and non-U.S. commercial real estate loans of $4.0 billion, $3.5 billion and $3.4 billion in 2018, 2017
and 2016, respectively.
(6) Interest income includes the impact of interest rate risk management contracts, which decreased interest income on the underlying assets by $171 million, $44 million and $176 million in 2018,
2017 and 2016, respectively. Interest expense includes the impact of interest rate risk management contracts, which decreased interest expense on the underlying liabilities by $130 million, $1.4
billion and $2.1 billion in 2018, 2017 and 2016, respectively. For more information, see Interest Rate Risk Management for the Banking Book on page 89.
(7) Net interest income includes FTE adjustments of $610 million, $925 million and $900 million in 2018, 2017 and 2016, respectively.

Table 11 Analysis of Changes in Net Interest Income - FTE Basis
Due to Change in (1) Due to Change in (1)
Volume Rate Net Change Volume Rate Net Change
(Dollars in millions) From 2017 to 2018 From 2016 to 2017
Increase (decrease) in interest income
Interest-bearing deposits with the Federal Reserve, non-U.S. central banks and other
banks $ 109 $ 695 $ 804 $ (32) $ 549 $ 517
Time deposits placed and other short-term investments (53) 28 (25) 48 53 101
Federal funds sold and securities borrowed or purchased under agreements to resell 230 1,140 1,370 36 803 839
Trading account assets 134 149 283 (22) 77 55
Debt securities 44 1,167 1,211 438 925 1,363
Loans and leases:
Residential mortgage 329 134 463 335 8 343
Home equity (350) 315 (35) (360) 255 (105)
U.S. credit card 339 449 788 290 331 621
Non-U.S. credit card (2) (358) — (358) (544) (24) (568)
Direct/Indirect and other consumer (82) 452 370 48 315 363
Total consumer 1,228 654
U.S. commercial 402 1,770 2,172 468 1,196 1,664
Non-U.S. commercial 71 583 654 48 181 229
Commercial real estate 70 432 502 29 314 343
Commercial lease financing (5) (3) (8) 19 60 79
Total commercial 3,320 2,315
Total loans and leases 4,548 2,969
Other earning assets (18) 1,094 1,076 721 7 728
Total interest income $ 9,267 $ 6,572
Increase (decrease) in interest expense
Savings $ — $ 1 $ 1 $ — $ — $ —
NOW and money market deposit accounts 74 1,689 1,763 20 559 579
Consumer CDs and IRAs (13) 49 36 (12) — (12)
Negotiable CDs, public funds and other deposits 132 505 637 20 174 194
Total U.S. interest-bearing deposits 2,437 761
Banks located in non-U.S. countries (1) 19 18 (12) 1 (11)
Governments and official institutions (2) (8) (10) (3) 4 1
Time, savings and other 26 93 119 24 141 165
Total non-U.S. interest-bearing deposits 127 155
Total interest-bearing deposits 2,564 916
Federal funds purchased, securities loaned or sold under agreements to repurchase,
short-term borrowings and other interest-bearing liabilities (71) 2,764 2,693 184 1,029 1,213
Trading account liabilities 140 14 154 206 (20) 186
Long-term debt 151 1,255 1,406 (85) 746 661
Total interest expense 6,817 2,976
Net increase in net interest income (3) $ 2,450 $ 3,596
(1) The changes for each category of interest income and expense are divided between the portion of change attributable to the variance in volume and the portion of change attributable to the variance
in rate for that category. The unallocated change in rate or volume variance is allocated between the rate and volume variances.
(2) The Corporation sold its non-U.S. credit card business in the second quarter of 2017.
(3) Includes changes in FTE basis adjustments of a $315 million decrease from 2017 to 2018 and a $25 million increase from 2016 to 2017.

Business Segment Operations
Business Segment Operations
Segment Description and Basis of Presentation
Segment Description
We report our and Basis
results of operations of Presentation
through the following four business segments: Consumer Banking, GWIM, Global Banking and Global
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Bank of America Corporation
Global Wealth &

Consumer Global Wealth & Global Banking Global Markets All Other
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Banking Investment
Management
Banking Management
Deposits • Merrill Lynch Global • Investment • Fixed Income, • ALM Activities

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• Business Banking • Equity Investments
Consumer Lending • Business Banking • Equity Investments
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• Consumer and • Corporate Activities
and Residual
• Consumer and
Small Business and Residual
Small Business Expense Allocations
Credit Card Expense Allocations
Credit Card • Accounting
• Debit Card • Accounting
Reclassifications
• Debit Card Reclassifications
• Core Consumer and Eliminations
• Core Consumer and Eliminations
Real Estate Loans • Initial Impact of
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• Consumer Vehicle Tax ActImpact of
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Lending Vehicle
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Consumer Banking
Deposits Consumer Lending Total Consumer Banking

(Dollars in millions) 2018 2017 2018 2017 2018 2017 % Change
Net interest income $ 16,024 $ 13,353 $ 11,099 $ 10,954 $ 27,123 $ 24,307 12%
Noninterest income:
Card income 8 8 5,281 5,062 5,289 5,070 4
Service charges 4,298 4,265 2 1 4,300 4,266 1
All other income 430 391 381 487 811 878 (8)
Total noninterest income 4,736 4,664 5,664 5,550 10,400 10,214 2
Total revenue, net of interest expense 20,760 18,017 16,763 16,504 37,523 34,521 9
Provision for credit losses 195 201 3,469 3,324 3,664 3,525 4
Noninterest expense 10,522 10,388 7,191 7,407 17,713 17,795 —
Income before income taxes 10,043 7,428 6,103 5,773 16,146 13,201 22
Income tax expense 2,561 2,813 1,556 2,186 4,117 4,999 (18)
Net income $ 7,482 $ 4,615 $ 4,547 $ 3,587 $ 12,029 $ 8,202 47
Effective tax rate (1) 25.5% 37.9%
Net interest yield 2.35% 2.05% 3.97% 4.18% 3.78 3.54

Return on average allocated capital 62 38 18 14 33 22
Efficiency ratio 50.68 57.66 42.90 44.88 47.20 51.55
Balance Sheet
Average
Total loans and leases $ 5,233 $ 5,084 $ 278,574 $ 260,974 $ 283,807 $ 266,058 7%
Total earning assets (2) 682,600 651,963 279,217 261,802 717,197 686,612 4
Total assets (2) 710,925 679,306 290,068 273,253 756,373 725,406 4
Total deposits 678,640 646,930 5,533 6,390 684,173 653,320 5
Allocated capital 12,000 12,000 25,000 25,000 37,000 37,000 —
Year end
Total loans and leases $ 5,470 $ 5,143 $ 288,865 $ 275,330 $ 294,335 $ 280,473 5%
Total earning assets (2) 694,676 675,485 289,249 275,742 728,817 709,832 3
Total assets (2) 724,015 703,330 299,970 287,390 768,877 749,325 3
Total deposits 691,666 670,802 4,480 5,728 696,146 676,530 3
(1) Estimated at the segment level only.
(2) In segments and businesses where the total of liabilities and equity exceeds assets, we allocate assets from All Other to match the segments’ and businesses’ liabilities and allocated shareholders’
equity. As a result, total earning assets and total assets of the businesses may not equal total Consumer Banking.
Consumer Banking, which is comprised of Deposits and Consumer The provision for credit losses increased $139 million to $3.7
Lending, offers a diversified range of credit, banking and billion driven by portfolio seasoning and loan growth in the U.S.
investment products and services to consumers and small credit card portfolio. Noninterest expense decreased $82 million
businesses. Deposits and Consumer Lending include the net to $17.7 billion driven by operating efficiencies and lower litigation
impact of migrating customers and their related deposit, and FDIC expense. These decreases were partially offset by
brokerage asset and loan balances between Deposits, Consumer investments in digital capabilities and business growth, including
Lending and GWIM, as well as other client-managed businesses. primary sales professionals, combined with investments in new
Our customers and clients have access to a coast to coast network financial centers and renovations.
including financial centers in 34 states and the District of The return on average allocated capital was 33 percent, up
Columbia. Our network includes approximately 4,300 financial from 22 percent, driven by higher net income. For more information
centers, approximately 16,300 ATMs, nationwide call centers, and on capital allocated to the business segments, see Business
leading digital banking platforms with more than 36 million active Segment Operations on page 45.
users, including over 26 million active mobile users.
Deposits
Consumer Banking Results Deposits includes the results of consumer deposit activities which
Net income for Consumer Banking increased $3.8 billion to $12.0 consist of a comprehensive range of products provided to
billion in 2018 compared to 2017 primarily driven by higher pretax consumers and small businesses. Our deposit products include
income and lower income tax expense from the reduction in the traditional savings accounts, money market savings accounts,
federal income tax rate. The increase in pretax income was driven CDs and IRAs, and noninterest- and interest-bearing checking
by higher revenue and lower noninterest expense, partially offset accounts, as well as investment accounts and products. Net
by higher provision for credit losses. Net interest income interest income is allocated to the deposit products using our
increased $2.8 billion to $27.1 billion primarily due to the funds transfer pricing process that matches assets and liabilities
beneficial impact of an increase in investable assets as a result with similar interest rate sensitivity and maturity characteristics.
of an increase in deposits, as well as higher interest rates, pricing Deposits generates fees such as account service fees, non-
discipline and loan growth. Noninterest income increased $186 sufficient funds fees, overdraft charges and ATM fees, as well as
million to $10.4 billion driven by higher card income, partially investment and brokerage fees from Merrill Edge accounts. Merrill
offset by lower mortgage banking income, which is included in all Edge is an integrated investing and banking service targeted at
other income. customers with less than $250,000 in investable assets. Merrill
Edge provides investment advice and guidance, client brokerage servicing residential mortgages and home equity loans in the core
asset services, a self-directed online investing platform and key portfolio, including loans held on the balance sheet of Consumer
banking capabilities including access to the Corporation’s network Lending and loans serviced for others.
of financial centers and ATMs. Net income for Consumer Lending increased $960 million to
Net income for Deposits increased $2.9 billion to $7.5 billion $4.5 billion in 2018 driven by lower income tax expense, higher
in 2018 driven by higher revenue and lower income tax expense, revenue and lower noninterest expense, partially offset by higher
partially offset by higher noninterest expense. Net interest income provision for credit losses. Net interest income increased $145
increased $2.7 billion to $16.0 billion primarily due to the million to $11.1 billion primarily driven by higher interest rates
beneficial impact of an increase in investable assets as a result and the impact of an increase in loan balances. Noninterest
of higher deposits, and pricing discipline. Noninterest income income increased $114 million to $5.7 billion driven by higher
increased $72 million to $4.7 billion primarily driven by higher card income, partially offset by lower mortgage banking income.
service charges. The provision for credit losses increased $145 million to $3.5
The provision for credit losses decreased $6 million to $195 billion driven by portfolio seasoning and loan growth in the U.S.
million in 2018. Noninterest expense increased $134 million to credit card portfolio. Noninterest expense decreased $216 million
$10.5 billion primarily driven by investments in digital capabilities to $7.2 billion primarily driven by operating efficiencies.
and business growth, including primary sales professionals, Average loans increased $17.6 billion to $278.6 billion in
combined with investments in new financial centers and 2018 driven by increases in residential mortgages and U.S. credit
renovations. These increases were partially offset by lower card loans, partially offset by lower home equity balances.
litigation and FDIC expense.
Average deposits increased $31.7 billion to $678.6 billion in
2018 driven by strong organic growth. Growth in checking, money
Key Statistics – Consumer Lending
market savings and traditional savings of $36.3 billion was (Dollars in millions) 2018 2017
partially offset by a decline in time deposits of $4.6 billion. Total U.S. credit card (1)
Gross interest yield 10.12% 9.65%
Risk-adjusted margin 8.34 8.67
Key Statistics – Deposits New accounts (in thousands) 4,544 4,939
Purchase volumes $ 264,706 $244,753
2018 2017
Debit card purchase volumes $ 318,562 $298,641
(1) In addition to the U.S. credit card portfolio in Consumer Banking, the remaining U.S. credit
Total deposit spreads (excludes noninterest costs) (1) 2.14% 1.84%
card portfolio is in GWIM.
Year end During 2018, the total U.S. credit card risk-adjusted margin
Client brokerage assets (in millions) $ 185,881 $177,045 decreased 33 bps compared to 2017, primarily driven by
Active digital banking users (units in thousands) (2) 36,264 34,855
increased net charge-offs and higher credit card rewards costs.
Active mobile banking users (units in thousands) 26,433 24,238
Total U.S. credit card purchase volumes increased $20.0 billion
Financial centers 4,341 4,477
ATMs 16,255 16,039
to $264.7 billion, and debit card purchase volumes increased
(1) Includes deposits held in Consumer Lending. $19.9 billion to $318.6 billion, reflecting higher levels of
(2) Digital users represents mobile and/or online users across consumer businesses. consumer spending.
Client brokerage assets increased $8.8 billion in 2018 driven
by strong client flows, partially offset by market performance. Key Statistics – Loan Production (1)
Active mobile banking users increased 2.2 million reflecting
continuing changes in our customers’ banking preferences. The (Dollars in millions) 2018 2017
Total (2):
number of financial centers declined by a net 136 reflecting
First mortgage $ 41,195 $ 50,581
changes in customer preferences to self-service options as we
Home equity 14,869 16,924
continue to optimize our consumer banking network and improve
Consumer Banking:
our cost to serve. First mortgage $ 27,280 $ 34,065
Home equity 13,251 15,199
Consumer Lending (1) The loan production amounts represent the unpaid principal balance of loans and, in the case
Consumer Lending offers products to consumers and small of home equity, the principal amount of the total line of credit.
businesses across the U.S. The products offered include credit (2) In addition to loan production in Consumer Banking, there is also first mortgage and home
equity loan production in GWIM.
and debit cards, residential mortgages and home equity loans,
and direct and indirect loans such as automotive, recreational First mortgage loan originations in Consumer Banking and for
vehicle and consumer personal loans. In addition to earning net the total Corporation decreased $6.8 billion and $9.4 billion in
interest spread revenue on its lending activities, Consumer 2018 primarily driven by a higher interest rate environment driving
Lending generates interchange revenue from credit and debit card lower first-lien mortgage refinances.
transactions, late fees, cash advance fees, annual credit card Home equity production in Consumer Banking and for the total
fees, mortgage banking fee income and other miscellaneous fees. Corporation decreased $1.9 billion and $2.1 billion in 2018
Consumer Lending products are available to our customers primarily driven by lower demand.
through our retail network, direct telephone, and online and mobile
channels. Consumer Lending results also include the impact of

Global Wealth & Investment Management

Net interest income $ 6,294 $ 6,173 2%
Noninterest income:
Investment and brokerage services 11,959 11,394 5
All other income 1,085 1,023 6
Total noninterest income 13,044 12,417 5
Total revenue, net of interest expense 19,338 18,590 4
Provision for credit losses 86 56 54

Noninterest expense 13,777 13,556 2
Income before income taxes 5,475 4,978 10
Income tax expense 1,396 1,885 (26)
Net income $ 4,079 $ 3,093 32
Effective tax rate 25.5% 37.9%
Net interest yield 2.42 2.32

Return on average allocated capital 28 22
Balance Sheet
Average
Total loans and leases $ 161,342 $ 152,682 6%
Total earning assets 259,807 265,670 (2)
Total assets 277,219 281,517 (2)
Total deposits 241,256 245,559 (2)
Allocated capital 14,500 14,000 4
Year end
Total earning assets 287,197 267,026 8
Total assets 305,906 284,321 8
Total deposits 268,700 246,994 9
GWIM consists of two primary businesses: Merrill Lynch Global Noninterest income, which primarily includes investment and
Wealth Management (MLGWM) and U.S. Trust, Bank of America brokerage services income, increased $627 million to $13.0
Private Wealth Management (U.S. Trust). billion. The increase was driven by the impact of AUM flows and
MLGWM’s advisory business provides a high-touch client higher market valuations, partially offset by the impact of changing
experience through a network of financial advisors focused on market dynamics on transactional revenue and AUM pricing.
clients with over $250,000 in total investable assets. MLGWM Noninterest expense increased $221 million to $13.8 billion
provides tailored solutions to meet clients’ needs through a full primarily due to higher revenue-related incentive expense and
set of investment management, brokerage, banking and investments for business growth, partially offset by continued
retirement products. expense discipline.
U.S. Trust, together with MLGWM’s Private Banking & The return on average allocated capital was 28 percent, up
Investments Group, provides comprehensive wealth management from 22 percent, as higher net income was partially offset by an
solutions targeted to high net worth and ultra high net worth increased capital allocation. For more information on capital
clients, as well as customized solutions to meet clients’ wealth allocated to the business segments, see Business Segment
structuring, investment management, trust and banking needs, Operations on page 45.
including specialty asset management services. Revenue from MLGWM of $15.9 billion and revenue from U.S.
Net income for GWIM increased $986 million to $4.1 billion Trust of $3.4 billion both increased four percent due to higher
in 2018 compared to 2017 due to higher revenue and lower asset management fees driven by higher net flows and market
income tax expense from the reduction in the federal income tax valuations, and an increase in net interest income. The increase
rate, partially offset by an increase in noninterest expense and in MLGWM revenue was partially offset by lower AUM pricing and
provision for credit losses. The operating margin was 28 percent transactional revenue.
compared to 27 percent a year ago.
Net interest income increased $121 million to $6.3 billion due
to higher deposit spreads and average loan balances, partially
offset by lower loan spreads and average deposit balances.

Key Indicators and Metrics
(Dollars in millions, except as noted) 2018 2017
Revenue by Business
Merrill Lynch Global Wealth Management $ 15,895 $ 15,288
U.S. Trust 3,432 3,295
Other 11 7
Total revenue, net of interest expense $ 19,338 $ 18,590
Client Balances by Business, at year end

Merrill Lynch Global Wealth Management $ 2,193,562 $ 2,305,664
U.S. Trust 427,294 446,199
Total client balances $ 2,620,856 $ 2,751,863
Client Balances by Type, at year end

Assets under management $ 1,021,221 $ 1,080,747
Brokerage and other assets 1,162,997 1,261,990
Deposits 268,700 246,994
Loans and leases (1) 167,938 162,132
Total client balances $ 2,620,856 $ 2,751,863
Assets Under Management Rollforward

Assets under management, beginning of year $ 1,080,747 $ 886,148
Net client flows 36,406 95,707
Market valuation/other (95,932) 98,892
Total assets under management, end of year $ 1,021,221 $ 1,080,747
Associates, at year end (2)

Number of financial advisors 17,518 17,355
Total wealth advisors, including financial advisors 19,459 19,238
Total primary sales professionals, including financial advisors and wealth advisors 20,556 20,318
Merrill Lynch Global Wealth Management Metric

Financial advisor productivity (3) (in thousands) $ 1,034 $ 1,005
U.S. Trust Metric, at year end

Primary sales professionals 1,747 1,714
(1) Includes margin receivables which are classified in customer and other receivables on the Consolidated Balance Sheet.
(2) Includes financial advisors in the Consumer Banking segment of 2,722 and 2,402 at December 31, 2018 and 2017.
(3) Financial advisor productivity is defined as MLGWM total revenue, excluding the allocation of certain asset and liability management (ALM) activities, divided by the total average number of financial
advisors (excluding financial advisors in the Consumer Banking segment).
Client Balances
Client balances managed under advisory and/or discretion of of time, excluding market appreciation/depreciation and other
GWIM are AUM and are typically held in diversified portfolios. Fees adjustments.
earned on AUM are calculated as a percentage of clients’ AUM Client balances decreased $131.0 billion, or five percent, in
balances. The asset management fees charged to clients per year 2018 to $2.6 trillion, primarily due to lower market valuations on
depend on various factors, but are commonly driven by the breadth AUM and brokerage balances, as measured at December 31,
of the client’s relationship. The net client AUM flows represent 2018, partially offset by positive flows.
the net change in clients’ AUM balances over a specified period

Global Banking

Net interest income $ 10,881 $ 10,504 4%
Noninterest income:
Service charges 3,027 3,125 (3)
Investment banking fees 2,891 3,471 (17)
All other income 2,845 2,899 (2)
Total noninterest income 8,763 9,495 (8)
Total revenue, net of interest expense 19,644 19,999 (2)
Provision for credit losses 8 212 (96)

Noninterest expense 8,591 8,596 —
Income before income taxes 11,045 11,191 (1)
Net income $ 8,173 $ 6,953 18
Net interest yield 2.98 2.93

Balance Sheet
Average
Total assets 424,353 416,038 2
Allocated capital 41,000 40,000 3
Year end
Total assets 441,477 424,533 4
Global Banking, which includes Global Corporate Banking, Global Revenue decreased $355 million to $19.6 billion driven by
Commercial Banking, Business Banking and Global Investment lower noninterest income, partially offset by higher net interest
Banking, provides a wide range of lending-related products and income. Net interest income increased $377 million to $10.9
services, integrated working capital management and treasury billion primarily due to the impact of higher interest rates, as well
solutions, and underwriting and advisory services through our as loan and deposit growth. Noninterest income decreased $732
network of offices and client relationship teams. Our lending million to $8.8 billion primarily due to lower investment banking
products and services include commercial loans, leases, fees. The provision for credit losses improved $204 million to $8
commitment facilities, trade finance, commercial real estate million primarily driven by Global Banking’s portion of a 2017 single-
lending and asset-based lending. Our treasury solutions business name non-U.S. commercial charge-off and continued improvement
includes treasury management, foreign exchange and short-term in the commercial portfolio.
investing options. We also provide investment banking products The return on average allocated capital was 20 percent, up
to our clients such as debt and equity underwriting and distribution, from 17 percent, as higher net income was partially offset by an
and merger-related and other advisory services. Underwriting debt increased capital allocation. For more information on capital
and equity issuances, fixed-income and equity research, and allocated to the business segments, see Business Segment
certain market-based activities are executed through our global Operations on page 45.
broker-dealer affiliates, which are our primary dealers in several
countries. Within Global Banking, Global Commercial Banking Global Corporate, Global Commercial and Business
clients generally include middle-market companies, commercial Banking
real estate firms and not-for-profit companies. Global Corporate Global Corporate, Global Commercial and Business Banking each
Banking clients generally include large global corporations, include Business Lending and Global Transaction Services
financial institutions and leasing clients. Business Banking clients activities. Business Lending includes various lending-related
include mid-sized U.S.-based businesses requiring customized products and services, and related hedging activities, including
and integrated financial advice and solutions. commercial loans, leases, commitment facilities, trade finance,
Net income for Global Banking increased $1.2 billion to $8.2 real estate lending and asset-based lending. Global Transaction
billion in 2018 compared to 2017 primarily driven by lower income Services includes deposits, treasury management, credit card,
tax expense from the reduction in the federal income tax rate and foreign exchange and short-term investment products.
lower provision for credit losses, partially offset by lower revenue.
Noninterest expense was relatively unchanged.

The table below and following discussion present a summary of the results, which exclude certain investment banking activities in
Global Banking.
Global Corporate, Global Commercial and Business Banking

Global Corporate Banking Global Commercial Banking Business Banking Total
2018 2017 2018 2017 2018 2017 2018 2017
(Dollars in millions)
Revenue
Business Lending $ 4,122 $ 4,387 $ 4,039 $ 4,280 $ 393 $ 404 $ 8,554 $ 9,071
Global Transaction Services 3,656 3,322 3,288 3,017 973 849 7,917 7,188
Total revenue, net of interest expense $ 7,778 $ 7,709 $ 7,327 $ 7,297 $ 1,366 $ 1,253 $ 16,471 $ 16,259
Balance Sheet
Average
Total deposits 163,559 148,704 135,337 127,720 37,462 36,435 336,358 312,859
Year end
Total deposits 173,183 155,614 149,118 137,538 37,973 36,120 360,274 329,272
Business Lending revenue decreased $517 million in 2018 banking fees, the following table presents total Corporation
compared to 2017. The decrease was primarily driven by the investment banking fees and the portion attributable to Global
impact of tax reform on certain tax-advantaged investments and Banking.
lower leasing-related revenues.
Global Transaction Services revenue increased $729 million
to $7.9 billion in 2018 compared to 2017 driven by higher short-
Investment Banking Fees
term rates and increased deposits. Global Banking Total Corporation
Average loans and leases increased two percent in 2018 (Dollars in millions) 2018 2017 2018 2017
compared to 2017 driven by growth in the commercial and Products
industrial, and commercial real estate portfolios. Average deposits Advisory $ 1,152 $ 1,557 $ 1,258 $ 1,691
increased eight percent due to growth in domestic and Debt issuance 1,327 1,506 3,084 3,635
international interest-bearing balances. Equity issuance 412 408 1,183 940
Gross investment
Global Investment Banking banking fees 2,891 3,471 5,525 6,266
Client teams and product specialists underwrite and distribute Self-led deals (68) (113) (198) (255)
debt, equity and loan products, and provide advisory services and Total investment
banking fees $ 2,823 $ 3,358 $ 5,327 $ 6,011
tailored risk management solutions. The economics of certain
investment banking and underwriting activities are shared primarily
Total Corporation investment banking fees, excluding self-led
between Global Banking and Global Markets under an internal
deals, of $5.3 billion, which are primarily included within Global
revenue-sharing arrangement. Global Banking originates certain
Banking and Global Markets, decreased 11 percent in 2018
deal-related transactions with our corporate and commercial
compared to 2017 primarily due to declines in advisory fees and
clients that are executed and distributed by Global Markets. To
debt underwriting, the latter of which was driven by lower fee pools.
provide a complete discussion of our consolidated investment

Global Markets

Net interest income $ 3,171 $ 3,744 (15)%
Noninterest income:
Investment and brokerage services 1,780 2,049 (13)
Investment banking fees 2,296 2,476 (7)
Trading account profits 7,932 6,710 18
All other income 884 972 (9)
Total noninterest income 12,892 12,207 6
Total revenue, net of interest expense 16,063 15,951 1
Provision for credit losses — 164 (100)

Noninterest expense 10,686 10,731 —
Income before income taxes 5,377 5,056 6
Net income $ 3,979 $ 3,293 21

Balance Sheet
Average
Trading-related assets:
Trading account securities $ 215,112 $ 216,996 (1)%
Reverse repurchases 125,084 101,795 23
Securities borrowed 78,889 82,210 (4)
Derivative assets 46,047 40,811 13
Total trading-related assets 465,132 441,812 5
Total loans and leases 72,651 71,413 2
Total assets 666,003 638,673 4
Total deposits 31,209 32,864 (5)
Allocated capital 35,000 35,000 —
Year end
Total trading-related assets $ 447,998 $ 419,375 7%
Total loans and leases 73,928 76,778 (4)
Total assets 641,922 629,013 2
Global Markets offers sales and trading services and research and Global Banking under an internal revenue-sharing
services to institutional clients across fixed-income, credit, arrangement. Global Banking originates certain deal-related
currency, commodity and equity businesses. Global Markets transactions with our corporate and commercial clients that are
product coverage includes securities and derivative products in executed and distributed by Global Markets. For information on
both the primary and secondary markets. Global Markets provides investment banking fees on a consolidated basis, see page 51.
market-making, financing, securities clearing, settlement and Net income for Global Markets increased $686 million to $4.0
custody services globally to our institutional investor clients in billion in 2018 compared to 2017. Net DVA losses were $162
support of their investing and trading activities. We also work with million compared to losses of $428 million in 2017. Excluding net
our commercial and corporate clients to provide risk management DVA, net income increased $544 million to $4.1 billion. These
products using interest rate, equity, credit, currency and commodity increases were primarily driven by lower income tax expense from
derivatives, foreign exchange, fixed-income and mortgage-related the reduction in the federal income tax rate, a decrease in the
products. As a result of our market-making activities in these provision for credit losses and modestly higher revenue.
products, we may be required to manage risk in a broad range of Sales and trading revenue, excluding net DVA, increased $19
financial products including government securities, equity and million due to higher Equities revenue, largely offset by lower FICC
equity-linked securities, high-grade and high-yield corporate debt revenue. The provision for credit losses decreased $164 million
securities, syndicated loans, MBS, commodities and asset-backed driven by Global Markets’ portion of a single-name non-U.S.
securities. The economics of certain investment banking and commercial charge-off in 2017. Noninterest expense decreased
underwriting activities are shared primarily between Global Markets $45 million to $10.7 billion primarily due to lower operating costs.

Average total assets increased $27.3 billion to $666.0 billion
in 2018 primarily driven by increased levels of inventory in FICC Sales and Trading Revenue (1, 2)
to facilitate client demand and growth in Equities derivative client
financing activities. Total year-end assets increased $12.9 billion (Dollars in millions) 2018 2017
to $641.9 billion at December 31, 2018 due to increased levels Sales and trading revenue
of inventory in FICC. Fixed-income, currencies and commodities $ 8,186 $ 8,657
Equities 4,876 4,120
The return on average allocated capital was 11 percent, up
Total sales and trading revenue $ 13,062 $ 12,777
from 9 percent, reflecting higher net income. For more information
on capital allocated to the business segments, see Business Sales and trading revenue, excluding net DVA (3)
Segment Operations on page 45. Fixed-income, currencies and commodities $ 8,328 $ 9,051
Equities 4,896 4,154
Sales and Trading Revenue Total sales and trading revenue, excluding net DVA $ 13,224 $ 13,205
Sales and trading revenue includes unrealized and realized gains (1) Includes FTE adjustments of $249 million and $236 million for 2018 and 2017. For more
information on sales and trading revenue, see Note 3 – Derivatives to the Consolidated Financial
and losses on trading and other assets, net interest income, and Statements.
fees primarily from commissions on equity securities. Sales and (2) Includes Global Banking sales and trading revenue of $430 million and $236 million for 2018
and 2017.
trading revenue is segregated into fixed-income (government debt (3) FICC and Equities sales and trading revenue, excluding net DVA, is a non-GAAP financial measure.
obligations, investment and non-investment grade corporate debt FICC net DVA losses were $142 million and $394 million for 2018 and 2017. Equities net DVA
losses were $20 million and $34 million for 2018 and 2017.
obligations, commercial MBS, residential mortgage-backed
securities, collateralized loan obligations, interest rate and credit The following explanations for year-over-year changes in sales
derivative contracts), currencies (interest rate and foreign and trading, FICC and Equities revenue exclude net DVA, but would
exchange contracts), commodities (primarily futures, forwards, be the same whether net DVA was included or excluded. FICC
swaps and options) and equities (equity-linked derivatives and revenue decreased $723 million in 2018 primarily due to lower
cash equity activity). The following table and related discussion activity and a less favorable market in credit-related products. The
present sales and trading revenue, substantially all of which is in decline in FICC revenue was also impacted by higher funding costs,
Global Markets, with the remainder in Global Banking. In addition, which were driven by increases in market interest rates. Equities
the following table and related discussion present sales and revenue increased $742 million in 2018 driven by strength in client
trading revenue, excluding net DVA, which is a non-GAAP financial financing and derivatives.
measure. For more information on net DVA, see Supplemental
Financial Data on page 39.
All Other

Net interest income $ 573 $ 864 (34)%
Noninterest income (loss) (1,284) (1,648) (22)
Total revenue, net of interest expense (711) (784) (9)
Provision for credit losses (476) (561) (15)

Noninterest expense 2,614 4,065 (36)
Loss before income taxes (2,849) (4,288) (34)
Income tax benefit (2,736) (979) n/m
Net loss $ (113) $ (3,309) (97)
Balance Sheet
Average
Total loans and leases $ 61,013 $ 82,489 (26)%
Total assets (1) 201,298 206,999 (3)
Total deposits 21,966 25,194 (13)
Year end
Total loans and leases $ 48,061 $ 69,452 (31)%
Total assets (1) 196,325 194,042 1
Total deposits 18,541 22,719 (18)
(1)In segments where the total of liabilities and equity exceeds assets, which are generally deposit-taking segments, we allocate assets from All Other to those segments to match liabilities (i.e.,
deposits) and allocated shareholders’ equity. Average allocated assets were $517.0 billion and $515.6 billion for 2018 and 2017, and year-end allocated assets were $540.8 billion and $520.4
billion at December 31, 2018 and 2017.
n/m = not meaningful
All Other consists of ALM activities, equity investments, non-core allocation methodologies and hedge ineffectiveness. The results
mortgage loans and servicing activities, the net impact of periodic of certain ALM activities are allocated to our business segments.
revisions to the MSR valuation model for core and non-core MSRs For more information on our ALM activities, see Note 23 – Business
and the related economic hedge results, liquidating businesses Segment Information to the Consolidated Financial Statements.
and residual expense allocations. ALM activities encompass Equity investments include our merchant services joint venture as
certain residential mortgages, debt securities, interest rate and well as a portfolio of equity, real estate and other alternative
foreign currency risk management activities, the impact of certain investments. For more information on our merchant services joint

venture, see Note 12 – Commitments and Contingencies to the Off-Balance Sheet Arrangements and
Consolidated Financial Statements.
The Corporation classifies consumer real estate loans as core
Contractual Obligations
We have contractual obligations to make future payments on debt
or non-core based on loan and customer characteristics. For more
and lease agreements. Additionally, in the normal course of
information on the core and non-core portfolios, see Consumer
business, we enter into contractual arrangements whereby we
Portfolio Credit Risk Management on page 66. Residential
commit to future purchases of products or services from
mortgage loans that are held for ALM purposes, including interest
unaffiliated parties. Purchase obligations are defined as
rate or liquidity risk management, are classified as core and are
obligations that are legally binding agreements whereby we agree
presented on the balance sheet of All Other. During 2018,
to purchase products or services with a specific minimum quantity
residential mortgage loans held for ALM activities decreased $3.6
at a fixed, minimum or variable price over a specified period of
billion to $24.9 billion at December 31, 2018 primarily as a result
time. Included in purchase obligations are vendor contracts, the
of payoffs and paydowns. Non-core residential mortgage and home
most significant of which include communication services,
equity loans, which are principally runoff portfolios, are also held
processing services and software contracts. Debt, lease and other
in All Other. During 2018, total non-core loans decreased $17.8
obligations are more fully discussed in Note 11 – Long-term Debt
billion to $23.5 billion at December 31, 2018 due primarily to loan
and Note 12 – Commitments and Contingencies to the Consolidated
sales of $10.8 billion, as well as payoffs and paydowns.
The net loss for All Other improved $3.2 billion to a loss of
Other long-term liabilities include our contractual funding
$113 million, driven by a charge of $2.9 billion in 2017 due to
obligations related to the Non-U.S. Pension Plans and Nonqualified
enactment of the Tax Act. The pretax loss for 2018 compared to
and Other Pension Plans (together, the Plans). Obligations to the
2017 decreased $1.4 billion primarily due to lower noninterest
Plans are based on the current and projected obligations of the
expense.
Plans, performance of the Plans’ assets, and any participant
Revenue increased $73 million to a loss of $711 million
contributions, if applicable. During 2018 and 2017, we contributed
primarily due to gains of $731 million from the sale of consumer
$156 million and $514 million to the Plans, and we expect to make
real estate loans, primarily non-core, offset by a $729 million
$127 million of contributions during 2019. The Plans are more
charge related to the redemption of certain trust preferred
fully discussed in Note 17 – Employee Benefit Plans to the
securities in 2018. Results for 2017 included a downward
valuation adjustment of $946 million on tax-advantaged energy
We enter into commitments to extend credit such as loan
investments in connection with the Tax Act and a pretax gain of
commitments, standby letters of credit (SBLCs) and commercial
$793 million recognized in connection with the sale of the non-
letters of credit to meet the financing needs of our customers. For
U.S. consumer credit card business in 2017.
a summary of the total unfunded, or off-balance sheet, credit
Noninterest expense decreased $1.5 billion to $2.6 billion
extension commitment amounts by expiration date, see Credit
primarily due to lower non-core mortgage costs and reduced
Extension Commitments in Note 12 – Commitments and
operational costs from the sale of the non-U.S. consumer credit
Contingencies to the Consolidated Financial Statements.
card business. Also, the prior-year period included a $316 million
We also utilize variable interest entities (VIEs) in the ordinary
impairment charge related to certain data centers.
course of business to support our financing and investing needs
The income tax benefit was $2.7 billion in 2018 compared to
as well as those of our customers. For more information on our
a benefit of $1.0 billion in 2017. The increase in the tax benefit
involvement with unconsolidated VIEs, see Note 7 – Securitizations
was primarily driven by a charge of $1.9 billion in 2017 related to
and Other Variable Interest Entities to the Consolidated Financial
impacts of the Tax Act for the lower valuation of certain deferred
Statements.
tax assets and liabilities. Both periods included income tax benefit
Table 12 includes certain contractual obligations at December
adjustments to eliminate the FTE treatment of certain tax credits
31, 2018 and 2017.
recorded in Global Banking.
Table 12 Contractual Obligations

December 31
December 31, 2018 2017
Due After Due After
One Year Three Years
Due in One Through Through Due After
(Dollars in millions) Year or Less Three Years Five Years Five Years Total Total
Long-term debt $ 37,975 $ 43,685 $ 41,603 $ 106,077 $ 229,340 $ 227,402
Operating lease obligations 2,370 4,197 3,043 6,160 15,770 14,520
Purchase obligations 1,288 1,162 507 1,091 4,048 4,219
Time deposits 53,482 5,477 1,473 607 61,039 67,844
Other long-term liabilities 1,611 1,049 729 544 3,933 4,972
Estimated interest expense on long-term debt and time deposits (1) 6,795 10,778 8,407 30,872 56,852 49,123
Total contractual obligations $ 103,521 $ 66,348 $ 55,762 $ 145,351 $ 370,982 $ 368,080
(1) Represents forecasted net interest expense on long-term debt and time deposits based on interest rates at December 31, 2018 and 2017. Forecasts are based on the contractual maturity dates
of each liability, and are net of derivative hedges, where applicable.

Representations and Warranties Obligations within our risk appetite. Sustaining a culture of managing risk well
For more information on representations and warranties throughout the organization is critical to our success and is a clear
obligations in connection with the sale of mortgage loans, see expectation of our executive management team and the Board.
Note 12 – Commitments and Contingencies to the Consolidated Our Risk Framework serves as the foundation for the consistent
Financial Statements. For more information related to the and effective management of risks facing the Corporation. The
sensitivity of the assumptions used to estimate our reserve for Risk Framework sets forth clear roles, responsibilities and
representations and warranties, see Complex Accounting accountability for the management of risk and provides a blueprint
Estimates – Representations and Warranties Liability on page 94. for how the Board, through delegation of authority to committees
and executive officers, establishes risk appetite and associated
Managing Risk limits for our activities.
Executive management assesses, with Board oversight, the
Overview risk-adjusted returns of each business. Management reviews and
Risk is inherent in all our business activities. Sound risk approves the strategic and financial operating plans, as well as
management enables us to serve our customers and deliver for the capital plan and Risk Appetite Statement, and recommends
our shareholders. If not managed well, risks can result in financial them annually to the Board for approval. Our strategic plan takes
loss, regulatory sanctions and penalties, and damage to our into consideration return objectives and financial resources, which
reputation, each of which may adversely impact our ability to must align with risk capacity and risk appetite. Management sets
execute our business strategies. We take a comprehensive financial objectives for each business by allocating capital and
approach to risk management with a defined Risk Framework and setting a target for return on capital for each business. Capital
an articulated Risk Appetite Statement which are approved allocations and operating limits are regularly evaluated as part of
annually by the Enterprise Risk Committee (ERC) and the Board. our overall governance processes as the businesses and the
The seven key types of risk faced by the Corporation are economic environment in which we operate continue to evolve. For
strategic, credit, market, liquidity, compliance, operational and more information regarding capital allocations, see Business
reputational. Segment Operations on page 45.
Strategic risk is the risk resulting from incorrect assumptions The Corporation’s risk appetite indicates the amount of capital,
about external or internal factors, inappropriate business earnings or liquidity we are willing to put at risk to achieve our
plans, ineffective business strategy execution, or failure to strategic objectives and business plans, consistent with applicable
respond in a timely manner to changes in the regulatory, regulatory requirements. Our risk appetite provides a common and
macroeconomic or competitive environments in the geographic comparable set of measures for senior management and the Board
locations in which we operate. to clearly indicate our aggregate level of risk and to monitor whether
Credit risk is the risk of loss arising from the inability or failure the Corporation’s risk profile remains in alignment with our
of a borrower or counterparty to meet its obligations. strategic and capital plans. Our risk appetite is formally articulated
Market risk is the risk that changes in market conditions may in the Risk Appetite Statement, which includes both qualitative
adversely impact the value of assets or liabilities, or otherwise components and quantitative limits.
negatively impact earnings. Our overall capacity to take risk is limited; therefore, we prioritize
Liquidity risk is the inability to meet expected or unexpected the risks we take in order to maintain a strong and flexible financial
cash flow and collateral needs while continuing to support our position so we can withstand challenging economic conditions and
businesses and customers under a range of economic take advantage of organic growth opportunities. Therefore, we set
conditions. objectives and targets for capital and liquidity that are intended
Compliance risk is the risk of legal or regulatory sanctions, to permit us to continue to operate in a safe and sound manner,
material financial loss or damage to the reputation of the including during periods of stress.
Corporation arising from the failure of the Corporation to comply Our lines of business operate with risk limits (which may include
with the requirements of applicable laws, rules and regulations credit, market and/or operational limits, as applicable) that align
and our internal policies and procedures. with the Corporation’s risk appetite. Executive management is
Operational risk is the risk of loss resulting from inadequate responsible for tracking and reporting performance measurements
or failed processes, people and systems, or from external as well as any exceptions to guidelines or limits. The Board, and
events. its committees when appropriate, oversees financial performance,
Reputational risk is the risk that negative perceptions of the execution of the strategic and financial operating plans, adherence
Corporation’s conduct or business practices may adversely to risk appetite limits and the adequacy of internal controls.
impact its profitability or operations. For a more detailed discussion of our risk management
The following sections address in more detail the specific activities, see the discussion below and pages 58 through 92.
procedures, measures and analyses of the major categories of
risk. This discussion of managing risk focuses on the current Risk Risk Management Governance
Framework that, as part of its annual review process, was approved The Risk Framework describes delegations of authority whereby
by the ERC and the Board. the Board and its committees may delegate authority to
As set forth in our Risk Framework, a culture of managing risk management-level committees or executive officers. Such
well is fundamental to fulfilling our purpose and our values and delegations may authorize certain decision-making and approval
delivering responsible growth. It requires us to focus on risk in all functions, which may be evidenced in, for example, committee
activities and encourages the necessary mindset and behavior to charters, job descriptions, meeting minutes and resolutions.
enable effective risk management, and promotes sound risk-taking

The chart
The chart below
below illustrates
illustrates the
the inter-relationship
inter-relationship among
among the
the Board,
Board, Board
Board committees
committees and
and management
management committees
committees that
that have
have the
the
The chart
majority below
of risk
risk illustrates
oversight the inter-relationship
responsibilities for the among the Board, Board committees and management committees that have the
the Corporation.
Corporation.
majority of oversight responsibilities for
majority of risk oversight responsibilities for the Corporation.
(1)
Board
Board of
of Directors
(1)
Directors (1)
Enterprise
Enterprise Corporate
Corporate Compensation
Compensation
Audit
Audit Enterprise Corporate Compensation
Board
Board Audit Risk
Risk Governance
Governance and Benefits
and Benefits
Board Committee
Committee Risk Governance and Benefits
Committees
Committees Committee Committee
Committee Committee
Committee Committee
Committee
Committees Committee Committee Committee
Management
Management Corporate
Corporate Management
Management
Disclosure
Disclosure Management Reg O
Reg O Corporate Management
Management
Management Disclosure(2) Risk
Risk Reg O Benefits
Benefits Compensation
Compensation
Management Committee
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(2)
Risk Committee
Committee Benefits Compensation
Committees
Committees Committee (2) Committee
Committee Committee Committee
Committee Committee
Committee
Committees Committee Committee Committee
(1)
(1) This
This presentation
presentation does
does not
not include
include committees
committees forfor other
other legal
legal entities.
entities.
(1)
(2)
(2) This presentation
Reports
Reports to the
to the CEO
CEOdoes
andnot
and CFOinclude
CFO with committees
with oversight
oversight forAudit
by the
by the otherCommittee.
Audit legal entities.
Committee.
(2) Reports to the CEO and CFO with oversight by the Audit Committee.
Board
Board of
of Directors and Board Committees responsibilities for
responsibilities for the
the identification,
identification, measurement,
measurement, monitoring
monitoring
Board of Directors
The BoardDirectors and
andofBoard
is composed Board Committees
Committees
16 directors, all but one of whom are
responsibilities
and
and control
control of
for the we
of key
key risks
identification,
risks we face.
face. The
measurement,
The ERC
ERC may
may consult
monitoring
consult with
with other
other
The Board is composed of 16 directors, all but one of whom are and control of key risks we face. The ERC may consult with other
The Board is composed
independent. of 16 directors, all but one of whom are Board committees on risk-related
risk-related matters.
independent. The The Board
Board authorizes
authorizes management
management to to maintain
maintain anan Board committees on matters.
Board committees on risk-related matters.
independent.
effective Risk The Board
Risk Framework,
Framework, and authorizes
and oversees management
oversees compliance to
compliance with maintain
with safe an
safe and
and
effective
effective Risk Framework, and oversees compliance with safe and Other
Other Board
Board Committees
sound banking practices. In addition, the Board
sound banking practices. In addition, the Board or its committees
sound banking practices.
or its committees Other Board Committees
Our Corporate
CorporateCommittees
Governance Committee
Committee oversees our Board’s
Board’s
conduct
conduct inquiries
inquiries of, andInreceive
of, and addition,
receive the Board
reports
reports fromormanagement
from
its committees
management on
on Our
Our Corporate
Governance
Governance Committee
oversees our
oversees our Board’s
conduct
risk-relatedinquiries of,toand receive reports from management on governance processes, identifies and reviews the qualifications of
governance processes, identifies and reviews the qualifications of
risk-related matters to assess scope or resource limitations that
matters assess scope or resource limitations that governance processes, identifies and reviews the qualifications of
risk-related
could impede matters
impede the to
the ability assess
ability of scope
of Independent or
Independent Risk resource limitations
Risk Management
Management (IRM) that
(IRM) potential Board
potential Board members,
members, recommends
recommends nominees
nominees for election
for election to
to
could potential Board members, recommends nominees for election to
could
and/orimpede
Corporatethe Audit
abilitytoofexecute
Independent Risk Management
its responsibilities.
responsibilities. (IRM)
The Board
Board our Board, recommends committee appointments
our Board, recommends committee appointments for Board for Board
and/or Corporate Audit to execute its The our Board,
and/or Corporate
committees Audit below
to execute its responsibilities. The Board approval
approval andrecommends
and reviews our
reviews
committee appointments
our Environmental,
Environmental, Social and
Social
for Board
and Governance
Governance
committees discussed below have the principal responsibility for
discussed have the principal responsibility for approval and reviews our Environmental, Social and Governance
committees
enterprise-wide discussed
oversightbelowof have
our theriskprincipal
managementresponsibility for
activities. and stockholder engagement activities.
and stockholder engagement activities.
enterprise-wide oversight of our risk management activities. andOur
stockholder engagement
enterprise-wide
Through these oversight
activities, the ofBoard
our andriskapplicable
management activities.
committees are Compensation
Our Compensation and activities.
and Benefits Committee
Benefits Committee oversees
oversees
Through these activities, the Board and applicable committees are Our Compensation
Through
providedthese activities, the
with information
information on Board riskand
our risk applicable
profile committees
and oversee
oversee are
executive establishing,
establishing, maintaining and
maintaining and
Benefits Committee
and administering
administering our
oversees
our compensation
compensation
provided with on our profile and executive establishing, maintaining and administering our approving
compensation
provided
management with information
addressing on key
our risk
risksprofile
we and oversee
face. Otherexecutive
Board programs
programs and employee benefit plans, including approving and
and employee benefit plans, including and
management addressing key risks we face. Other Board programs and employee benefit plans, including
management
committees, as asaddressing
described below,key risks
below, provide weadditional
face. Other Board
oversight of recommending
recommending our Chief
our Chief Executive
Executive Officer’s
Officer’s (CEO) approving
(CEO) compensation
compensation
and
committees, described provide additional oversight of recommending our Chief Executive Officer’s (CEO) compensation
committees,
specific risks. as described below, provide additional oversight of to our Board for further approval by all independent directors,
to our Board for further approval by all independent directors, and and
specific risks. to our Boardand
for further approval
specific
Each risks.
of the
the committees
committees shown shown on on the
the above
above chart
chart regularly
regularly reviewing
reviewing approving
and approving all by of
all
all independent
of our executive
our
directors,
executive and
officers’
officers’
Each of reviewing and asapproving all of our for executive officers’
Each ofthe
reports the committees shown on the within above chart regularly compensation, well as compensation non-management
compensation, as well as compensation for non-management
reports toto the Board
Board onon risk-related
risk-related matters
matters within the the committee’s
committee’s compensation, as well as compensation for non-management
reports to the Board
responsibilities, which on
which is risk-related
is intended
intended to matters within
to collectively the
collectively provide committee’s
provide thethe Board
Board directors.
directors.
responsibilities, directors.
responsibilities,
with which is intended to collectively provide the Board
with integrated
integrated insight
insight about
about ourour management
management of of enterprise-wide
enterprise-wide Management
Management Committees
Committees
with
risks.integrated insight about our management of enterprise-wide Management Committees
risks. Management committees
Management committees may receive
may receive their authority from
their authority from the
the
risks. Management
Audit Committee
Committee Board, a Board committee,may
committees receive
another their authority
management from the
committee
Board, a Board committee, another management committee or or
Audit
Audit Committee Board,
from one
onea Board
or more
morecommittee,
executive another
officers.management
Our primary committee or
primary management-
management-
The Audit Committee oversees the qualifications, performance and
The Audit Committee oversees the qualifications, performance and from or executive officers. Our
The Audit Committee from one committee
level risk
risk or more executive
is the officers. OurRisk
the Management
Management primary management-
Committee (MRC).
independence
independence of theoversees
of the the qualifications,
Independent
Independent Registered
performance
Registered Public
Public and
Accounting
Accounting level committee is
level risk to
committee is the Management
Risk Committee
Risk Committee
(MRC).
(MRC).
independence
Firm, the of the Independent
performance of our corporateRegistered
audit Public the
function, Accounting
integrity Subject
Subject to Board Board oversight,
oversight, the the MRC
MRC is is responsible
responsible for for
Firm, the performance of our corporate audit function, the integrity Subject to Board oversight, the facing
MRC the is Corporation.
responsible Thisfor
Firm,
ourthe
of our performance
consolidated of ourstatements,
financial corporate audit function, thewith
our compliance
compliance integrity
legal management
management oversight
oversight of key
of key risks
risks facing the Corporation. This
of consolidated financial statements, our with legal management oversight of key risks facingofthe Corporation. This
of
andour consolidated
regulatory financial statements,
requirements, and makes our compliance
inquiries of with legal
management includes providing management oversight our
includes providing management oversight of our compliance andcompliance and
and regulatory requirements, and makes inquiries of management includes providing
and regulatory
or the
the Corporaterequirements,
General Auditor and(CGA)
Auditor makesto inquiries
determine ofwhether
management
there operational
operational risk management
risk programs, oversight
programs, balance ofsheet
balance
our compliance
sheet and capital
and
and
capital
or Corporate General (CGA) to determine whether there operational risk programs, balance sheetactivities,
and capital
or
arethescope
Corporate General Auditor (CGA)that
to determine whether there management, funding activities and other liquidity
management, funding activities and other liquidity activities, stress stress
are scope or resource limitations that impede the ability
or resource limitations impede the ability of
of management,
are scope or
Corporate Audit resource
Audit to to executelimitations
execute its that impede
its responsibilities. the
responsibilities. The ability
The Audit of
Audit testing, tradingfunding
testing, trading activities
activities,
activities,
andand
recovery
recovery
other liquidity activities,
resolution
and resolution planning, stress
planning, model
model
Corporate testing, trading activities, recovery and resolution planning, model
Corporate
Committee Audit
is also to execute
responsible its
for responsibilities.
overseeing The
compliance Audit
risk risk,
risk, subsidiary governance and activities between member
subsidiary governance and activities between member banks
banks
Committee is also responsible for overseeing compliance risk risk, subsidiary governance and activities between member banks
Committee
pursuant toto is
thealso
Newresponsible
York Stock for overseeing
Stock Exchange
Exchange listing compliance
standards. risk and their
and their nonbank
nonbank affiliates pursuant
affiliates pursuant to Federal
to Federal Reserve
Reserve rules
rules and
and
pursuant the New York listing standards. and their nonbank affiliates pursuant to Federal Reserve rules and
pursuant to the New York Stock Exchange listing standards. regulations, among other
regulations, among other things.things.
regulations, among other things.
Enterprise Risk
Enterprise Risk Committee
Committee
Enterprise
The Risk Committee Lines
Lines of
of Defense
Defense
The ERC
ERC has
has primary
primary responsibility
responsibility for
for oversight
oversight of
of the
the Risk
Risk Lines of clear
Defense
The ERC has
Framework and primary
key risksresponsibility
we face and offorthe
oversight of theoverall
Corporation’s Risk We have ownership and accountability across three lines of
We have clear ownership and accountability across three lines of
Framework and key risks we face and of the Corporation’s overall We have clear ownership and accountability across three lines of
Framework
risk andapproves
key risks we Risk
face and of the and
Corporation’s overall defense:
defense: Front
Front Line
Line Units
Units (FLUs),
(FLUs), IRM
IRM and
and Corporate
Corporate Audit.
Audit. We
We
risk appetite.
appetite. It
It approves the
the Risk Framework
Framework and the
the Risk
Risk Appetite
Appetite defense:
risk appetite.
Statement and It approves
and further the Risk
further recommends Framework
recommends these and the
these documents Risk
documents to Appetite
to the
the Board
Board also haveFront
also have Line
control
control
Units (FLUs),
functions
functions outsideIRM
outside of
and Corporate
of FLUs
FLUs and IRM
and
Audit.
IRM (e.g.,
(e.g., We
Legal
Legal
Statement also Global
have control functions outside ofthree
FLUs lines
and IRM (e.g., Legal
Statement
for and further recommends these documents to the Board and Human Resources). The of defense
and Global Human Resources). The three lines of defense are are
for approval.
approval. The The ERCERC oversees
oversees senior
senior management’s
management’s and Global Human Resources). The three lines of defense are
for approval. The ERC oversees senior management’s
56
56 Bank
Bank of
of America
America 2018
2018
integrated into our management-level governance structure. Each the Corporation, with a goal of ensuring risks are appropriately
of these functional roles is described in more detail below. considered, evaluated and responded to in a timely manner.
We employ our risk management process, referred to as
Executive Officers Identify, Measure, Monitor and Control, as part of our daily
Executive officers lead various functions representing the activities.
functional roles. Authority for functional roles may be delegated
to executive officers from the Board, Board committees or Identify – To be effectively managed, risks must be clearly defined
management-level committees. Executive officers, in turn, may and proactively identified. Proper risk identification focuses on
further delegate responsibilities, as appropriate, to management- recognizing and understanding key risks inherent in our
level committees, management routines or individuals. Executive business activities or key risks that may arise from external
officers review our activities for consistency with our Risk factors. Each employee is expected to identify and escalate
Framework, Risk Appetite Statement and applicable strategic, risks promptly. Risk identification is an ongoing process,
capital and financial operating plans, as well as applicable policies, incorporating input from FLUs and control functions, designed
standards, procedures and processes. Executive officers and to be forward looking and capture relevant risk factors across
other employees make decisions individually on a day-to-day basis, all of our lines of business.
consistent with the authority they have been delegated. Executive Measure – Once a risk is identified, it must be prioritized and
officers and other employees may also serve on committees and accurately measured through a systematic risk quantification
participate in committee decisions. process including quantitative and qualitative components.
Risk is measured at various levels including, but not limited
Front Line Units to, risk type, FLU, legal entity and on an aggregate basis. This
FLUs, which include the lines of business as well as the Global risk quantification process helps to capture changes in our risk
Technology and Operations Group, are responsible for profile due to changes in strategic direction, concentrations,
appropriately assessing and effectively managing all of the risks portfolio quality and the overall economic environment. Senior
associated with their activities. management considers how risk exposures might evolve under
Three organizational units that include FLU activities and a variety of stress scenarios.
control function activities, but are not part of IRM are the Chief Monitor – We monitor risk levels regularly to track adherence to
Financial Officer (CFO) Group, Global Marketing and Corporate risk appetite, policies, standards, procedures and processes.
Affairs (GM&CA) and the Chief Administrative Officer (CAO) Group. We also regularly update risk assessments and review risk
exposures. Through our monitoring, we can determine our level
Independent Risk Management of risk relative to limits and can take action in a timely manner.
IRM is part of our control functions and includes Global Risk We also can determine when risk limits are breached and have
Management and Global Compliance and Operational Risk. We processes to appropriately report and escalate exceptions.
have other control functions that are not part of IRM (other control This includes requests for approval to managers and alerts to
functions may also provide oversight to FLU activities), including executive management, management-level committees or the
Legal, Global Human Resources and certain activities within the Board (directly or through an appropriate committee).
CAO Group, CFO Group and GM&CA. IRM, led by the Chief Risk Control – We establish and communicate risk limits and controls
Officer (CRO), is responsible for independently assessing and through policies, standards, procedures and processes that
overseeing risks within FLUs and other control functions. IRM define the responsibilities and authority for risk-taking. The
establishes written enterprise policies and procedures that include limits and controls can be adjusted by the Board or
concentration risk limits, where appropriate. Such policies and management when conditions or risk tolerances warrant.
procedures outline how aggregate risks are identified, measured, These limits may be absolute (e.g., loan amount, trading
monitored and controlled. volume) or relative (e.g., percentage of loan book in higher-risk
The CRO has the stature, authority and independence to categories). Our lines of business are held accountable to
develop and implement a meaningful risk management framework. perform within the established limits.
The CRO has unrestricted access to the Board and reports directly
to both the ERC and to the CEO. Global Risk Management is The formal processes used to manage risk represent a part of
organized into horizontal risk teams, front line unit risk teams and our overall risk management process. We instill a strong and
control function risk teams that work collaboratively in executing comprehensive culture of managing risk well through
their respective duties. communications, training, policies, procedures and organizational
roles and responsibilities. Establishing a culture reflective of our
Corporate Audit purpose to help make our customers’ financial lives better and
Corporate Audit and the CGA maintain their independence from delivering our responsible growth strategy are also critical to
the FLUs, IRM and other control functions by reporting directly to effective risk management. We understand that improper actions,
the Audit Committee or the Board. The CGA administratively behaviors or practices that are illegal, unethical or contrary to our
reports to the CEO. Corporate Audit provides independent core values could result in harm to the Corporation, our
assessment and validation through testing of key processes and shareholders or our customers, damage the integrity of the
controls across the Corporation. Corporate Audit includes Credit financial markets, or negatively impact our reputation, and have
Review which periodically tests and examines credit portfolios and established protocols and structures so that such conduct risk is
processes. governed and reported across the Corporation. Specifically, our
Code of Conduct provides a framework for all of our employees to
Risk Management Processes conduct themselves with the highest integrity. Additionally, we
The Risk Framework requires that strong risk management continue to strengthen the link between the employee performance
practices are integrated in key strategic, capital and financial management process and individual compensation to encourage
planning processes and in day-to-day business processes across employees to work toward enterprise-wide risk goals.

Corporation-wide Stress Testing required. With oversight by the Board and the ERC, executive
Integral to our Capital Planning, Financial Planning and Strategic management performs similar analyses throughout the year, and
Planning processes, we conduct capital scenario management and evaluates changes to the financial forecast or the risk, capital or
stress forecasting on a periodic basis to better understand balance liquidity positions as deemed appropriate to balance and optimize
sheet, earnings and capital sensitivities to certain economic and achieving the targeted risk appetite, shareholder returns and
business scenarios, including economic and market conditions maintaining the targeted financial strength. Proprietary models are
that are more severe than anticipated. These stress forecasts used to measure the capital requirements for credit, country,
provide an understanding of the potential impacts from our risk market, operational and strategic risks. The allocated capital
profile on the balance sheet, earnings and capital, and serve as assigned to each business is based on its unique risk profile. With
a key component of our capital and risk management practices. oversight by the Board, executive management assesses the risk-
The intent of stress testing is to develop a comprehensive adjusted returns of each business in approving strategic and
understanding of potential impacts of on- and off-balance sheet financial operating plans. The businesses use allocated capital to
risks at the Corporation and how they impact financial resiliency, define business strategies, and price products and transactions.
which provides confidence to management, regulators and our
investors. Capital Management
The Corporation manages its capital position so that its capital is
Contingency Planning more than adequate to support its business activities and aligns
We have developed and maintain contingency plans that are with risk, risk appetite and strategic planning. Additionally, we seek
designed to prepare us in advance to respond in the event of to maintain safety and soundness at all times, even under adverse
potential adverse economic, financial or market stress. These scenarios, take advantage of organic growth opportunities, meet
contingency plans include our Capital Contingency Plan and obligations to creditors and counterparties, maintain ready access
Financial Contingency and Recovery Plan, which provide to financial markets, continue to serve as a credit intermediary,
monitoring, escalation, actions and routines designed to enable remain a source of strength for our subsidiaries, and satisfy current
us to increase capital, access funding sources and reduce risk and future regulatory capital requirements. Capital management
through consideration of potential options that include asset sales, is integrated into our risk and governance processes, as capital
business sales, capital or debt issuances, or other de-risking is a key consideration in the development of our strategic plan,
strategies. We also maintain a Resolution Plan to limit adverse risk appetite and risk limits.
systemic impacts that could be associated with a potential We conduct an Internal Capital Adequacy Assessment Process
resolution of Bank of America. (ICAAP) on a periodic basis. The ICAAP is a forward-looking
assessment of our projected capital needs and resources,
Strategic Risk Management incorporating earnings, balance sheet and risk forecasts under
Strategic risk is embedded in every business and is one of the baseline and adverse economic and market conditions. We utilize
major risk categories along with credit, market, liquidity, periodic stress tests to assess the potential impacts to our
compliance, operational and reputational risks. This risk results balance sheet, earnings, regulatory capital and liquidity under a
from incorrect assumptions about external or internal factors, variety of stress scenarios. We perform qualitative risk
inappropriate business plans, ineffective business strategy assessments to identify and assess material risks not fully
execution, or failure to respond in a timely manner to changes in captured in our forecasts or stress tests. We assess the potential
the regulatory, macroeconomic or competitive environments, in the capital impacts of proposed changes to regulatory capital
geographic locations in which we operate, such as competitor requirements. Management assesses ICAAP results and provides
actions, changing customer preferences, product obsolescence documented quarterly assessments of the adequacy of our capital
and technology developments. Our strategic plan is consistent guidelines and capital position to the Board or its committees.
with our risk appetite, capital plan and liquidity requirements, and We periodically review capital allocated to our businesses and
specifically addresses strategic risks. allocate capital annually during the strategic and capital planning
On an annual basis, the Board reviews and approves the processes. For additional information, see Business Segment
strategic plan, capital plan, financial operating plan and Risk Operations on page 45.
Appetite Statement. With oversight by the Board, executive
management directs the lines of business to execute our strategic CCAR and Capital Planning
plan consistent with our core operating principles and risk appetite. The Federal Reserve requires BHCs to submit a capital plan and
The executive management team monitors business performance requests for capital actions on an annual basis, consistent with
throughout the year and provides the Board with regular progress the rules governing the CCAR capital plan.
reports on whether strategic objectives and timelines are being On June 28, 2018, following the Federal Reserve’s non-
met, including reports on strategic risks and if additional or objection to our 2018 CCAR capital plan, the Board authorized the
alternative actions need to be considered or implemented. The repurchase of approximately $20.6 billion in common stock from
regular executive reviews focus on assessing forecasted earnings July 1, 2018 through June 30, 2019, which includes approximately
and returns on capital, the current risk profile, current capital and $600 million in repurchases to offset shares awarded under equity-
liquidity requirements, staffing levels and changes required to based compensation plans during the same period. In addition to
support the strategic plan, stress testing results, and other the previously announced repurchases associated with the 2018
qualitative factors such as market growth rates and peer analysis. CCAR capital plan, on February 7, 2019, we announced a plan to
Significant strategic actions, such as capital actions, material repurchase an additional $2.5 billion of common stock through
acquisitions or divestitures, and resolution plans are reviewed and June 30, 2019, which was approved by the Federal Reserve.
approved by the Board. At the business level, processes are in During 2018, pursuant to the Board’s authorizations, including
place to discuss the strategic risk implications of new, expanded those related to our 2017 CCAR capital plan that expired June 30,
or modified businesses, products or services and other strategic 2018, we repurchased $20.1 billion of common stock, which
initiatives, and to provide formal review and approval where includes common stock repurchases to offset equity-based

compensation awards. At December 31, 2018, our remaining stock Minimum Capital Requirements
repurchase authorization was $10.3 billion. Minimum capital requirements and related buffers were fully
Our stock repurchases are subject to various factors, including phased in as of January 1, 2019. The PCA framework established
the Corporation’s capital position, liquidity, financial performance categories of capitalization, including well capitalized, based on
and alternative uses of capital, stock trading price and general the Basel 3 regulatory ratio requirements. U.S. banking regulators
market conditions, and may be suspended at any time. The are required to take certain mandatory actions depending on the
repurchases may be effected through open market purchases or category of capitalization, with no mandatory actions required for
privately negotiated transactions, including repurchase plans that well-capitalized banking organizations.
satisfy the conditions of Rule 10b5-1 of the Securities Exchange In order to avoid restrictions on capital distributions and
Act of 1934, as amended. As a “well-capitalized” BHC, we may discretionary bonus payments, the Corporation must meet risk-
notify the Federal Reserve of our intention to make additional based capital ratio requirements that include a capital
capital distributions not to exceed 0.25 percent of Tier 1 capital, conservation buffer greater than 2.5 percent, plus any applicable
and which were not contemplated in our capital plan, subject to countercyclical capital buffer and a global systemically important
the Federal Reserve’s non-objection. bank (G-SIB) surcharge. The buffers and surcharge must be
comprised solely of CET1 capital and were phased in over a three-
Regulatory Capital year period that ended January 1, 2019.
As a financial services holding company, we are subject to The Corporation is also required to maintain a minimum
regulatory capital rules, including Basel 3, issued by U.S. banking supplementary leverage ratio (SLR) of 3.0 percent plus a leverage
regulators. Basel 3 established minimum capital ratios and buffer buffer of 2.0 percent in order to avoid certain restrictions on capital
requirements and outlined two methods of calculating risk- distributions and discretionary bonus payments. Our insured
weighted assets, the Standardized approach and the Advanced depository institution subsidiaries are required to maintain a
approaches. The Standardized approach relies primarily on minimum 6.0 percent SLR to be considered well capitalized under
supervisory risk weights based on exposure type, and the the PCA framework. The numerator of the SLR is quarter-end Basel
Advanced approaches determine risk weights based on internal 3 Tier 1 capital. The denominator is total leverage exposure based
models. on the daily average of the sum of on-balance sheet exposures
The Corporation and its primary affiliated banking entity, BANA, less permitted Tier 1 deductions, as well as the simple average
are Advanced approaches institutions under Basel 3 and are of certain off-balance sheet exposures, as of the end of each month
required to report regulatory risk-based capital ratios and risk- in a quarter.
weighted assets under both the Standardized and Advanced
approaches. The approach that yields the lower ratio is used to Capital Composition and Ratios
assess capital adequacy including under the Prompt Corrective Table 13 presents Bank of America Corporation’s capital ratios
Action (PCA) framework. As of December 31, 2018, Common equity and related information in accordance with Basel 3 Standardized
tier 1 (CET1) and Tier 1 capital ratios for the Corporation were and Advanced approaches as measured at December 31, 2018
lower under the Standardized approach whereas the Advanced and 2017. As of the periods presented, the Corporation met the
approaches yielded a lower Total capital ratio. definition of well capitalized under current regulatory requirements.

Table 13 Bank of America Corporation Regulatory Capital under Basel 3 (1)
Current 2019
Standardized Advanced Regulatory Regulatory
Approach Approaches Minimum (2) Minimum (3)
(Dollars in millions, except as noted) December 31, 2018
Risk-based capital metrics:
Common equity tier 1 capital $ 167,272 $ 167,272
Tier 1 capital 189,038 189,038
Total capital (4) 221,304 212,878
Risk-weighted assets (in billions) 1,437 1,409
Common equity tier 1 capital ratio 11.6% 11.9% 8.25% 9.5%
Tier 1 capital ratio 13.2 13.4 9.75 11.0
Total capital ratio 15.4 15.1 11.75 13.0
Leverage-based metrics:
Adjusted quarterly average assets (in billions) (5) $ 2,258 $ 2,258
Tier 1 leverage ratio 8.4% 8.4% 4.0 4.0
SLR leverage exposure (in billions) $ 2,791

SLR 6.8% 5.0 5.0
December 31, 2017

Common equity tier 1 capital $ 168,461 $ 168,461
Tier 1 capital 190,189 190,189
Total capital (4) 224,209 215,311
Risk-weighted assets (in billions) 1,443 1,459
Common equity tier 1 capital ratio 11.7% 11.5% 7.25% 9.5%
Tier 1 capital ratio 13.2 13.0 8.75 11.0
Total capital ratio 15.5 14.8 10.75 13.0
Adjusted quarterly average assets (in billions) (5) $ 2,223 $ 2,223
Tier 1 leverage ratio 8.6% 8.6% 4.0 4.0
(1) Basel 3 transition provisions for regulatory capital adjustments and deductions were fully phased in as of January 1, 2018. Prior periods are presented on a fully phased-in basis.
(2) The December 31, 2018 and 2017 amounts include a transition capital conservation buffer of 1.875 percent and 1.25 percent and a transition G-SIB surcharge of 1.875 percent and 1.5 percent.
The countercyclical capital buffer for both periods is zero.
(3) The 2019 regulatory minimums include a capital conservation buffer of 2.5 percent and G-SIB surcharge of 2.5 percent. The countercyclical capital buffer is zero. We became subject to these
regulatory minimums on January 1, 2019. The SLR minimum includes a leverage buffer of 2.0 percent and was applicable beginning on January 1, 2018.
(4) Total capital under the Advanced approaches differs from the Standardized approach due to differences in the amount permitted in Tier 2 capital related to the qualifying allowance for credit losses.
(5) Reflects adjusted average total assets for the three months ended December 31, 2018 and 2017.
CET1 capital was $167.3 billion at December 31, 2018, a 2 capital. Standardized risk-weighted assets, which yielded the
decrease of $1.2 billion from December 31, 2017, driven by lower CET1 capital ratio for December 31, 2018, decreased $5.5
common stock repurchases, dividends and market value declines billion during 2018 to $1,437 billion primarily due to sales of non-
on AFS debt securities included in accumulated OCI, partially offset core mortgage loans and a decrease in market risk, partially offset
by earnings. During 2018, Total capital under the Advanced by an increase in commercial loans.
approaches decreased $2.4 billion driven by the same factors as Table 14 shows the capital composition at December 31, 2018
CET1 capital and a decrease in subordinated debt included in Tier and 2017.
Table 14 Capital Composition under Basel 3 (1)

December 31
Total common shareholders’ equity $ 242,999 $ 244,823
Goodwill, net of related deferred tax liabilities (68,572) (68,576)
Deferred tax assets arising from net operating loss and tax credit carryforwards (5,981) (6,555)
Intangibles, other than mortgage servicing rights and goodwill, net of related deferred tax liabilities (1,294) (1,743)
Other 120 512
Common equity tier 1 capital 167,272 168,461
Qualifying preferred stock, net of issuance cost 22,326 22,323
Other (560) (595)
Tier 1 capital 189,038 190,189
Tier 2 capital instruments 21,887 22,938
Eligible credit reserves included in Tier 2 capital 1,972 2,272
Other (19) (88)
Total capital under the Advanced approaches $ 212,878 $ 215,311
(1) Basel 3 transition provisions for regulatory capital adjustments and deductions were fully phased in as of January 1, 2018. Prior periods are presented on a fully phased-in basis.

Table 15 shows the components of risk-weighted assets as measured under Basel 3 at December 31, 2018 and 2017.
Table 15 Risk-weighted Assets under Basel 3 (1)

Standardized Advanced Standardized Advanced
Approach Approaches Approach Approaches
December 31
(Dollars in billions) 2018 2017
Credit risk $ 1,384 $ 827 $ 1,384 $ 867
Market risk 53 52 59 58
Operational risk n/a 500 n/a 500
Risks related to credit valuation adjustments n/a 30 n/a 34
Total risk-weighted assets $ 1,437 $ 1,409 $ 1,443 $ 1,459
(1)Basel 3 transition provisions for regulatory capital adjustments and deductions were fully phased in as of January 1, 2018. Prior periods are presented on a fully phased-in basis.
Bank of America, N.A. Regulatory Capital

Table 16 presents regulatory capital information for BANA in accordance with Basel 3 Standardized and Advanced approaches as
measured at December 31, 2018 and 2017. BANA met the definition of well capitalized under the PCA framework for both periods.
Table 16 Bank of America, N.A. Regulatory Capital under Basel 3

Standardized Approach Advanced Approaches
Minimum
Ratio Amount Ratio Amount Required (1)
(Dollars in millions) December 31, 2018
Common equity tier 1 capital 12.5% $ 149,824 15.6% $ 149,824 6.5%
Tier 1 capital 12.5 149,824 15.6 149,824 8.0
Total capital 13.5 161,760 16.0 153,627 10.0
Tier 1 leverage 8.7 149,824 8.7 149,824 5.0
SLR 7.1 149,824 6.0
December 31, 2017

Common equity tier 1 capital 12.5% $ 150,552 14.9% $ 150,552 6.5%
Tier 1 capital 12.5 150,552 14.9 150,552 8.0
Total capital 13.6 163,243 15.4 154,675 10.0
Tier 1 leverage 9.0 150,552 9.0 150,552 5.0
(1) Percent required to meet guidelines to be considered well capitalized under the PCA framework.
Regulatory Developments no floor. The SLR would not incorporate a stress buffer
requirement. The proposal also updates the capital distribution
Minimum Total Loss-Absorbing Capacity assumptions used in the CCAR stress test to better align with a
The Federal Reserve’s final rule, which was effective January 1, firm’s expected actions in stress, notably removing the assumption
2019, includes minimum external total loss-absorbing capacity that a BHC will carry out all of its planned capital actions under
(TLAC) and long-term debt requirements to improve the resolvability stress.
and resiliency of large, interconnected BHCs. As of December 31,
2018, the Corporation’s TLAC and long-term debt exceeded our Enhanced Supplementary Leverage Ratio and TLAC
estimated 2019 minimum requirements. Requirements
On April 11, 2018, the Federal Reserve and Office of the
Stress Buffer Requirements Comptroller of the Currency announced a proposal to modify the
On April 10, 2018, the Federal Reserve announced a proposal to enhanced SLR standards applicable to U.S. G-SIBs and their
integrate the annual quantitative assessment of the CCAR program insured depository institution subsidiaries. The proposal replaces
with the buffer requirements in the Basel 3 capital rule by the existing 2.0 percent leverage buffer with a leverage buffer
introducing stress buffer requirements as a replacement of the tailored to each G-SIB, set at 50 percent of the applicable G-SIB
CCAR quantitative objection. Under the Standardized approach, surcharge. This proposal also replaces the current 6.0 percent
the proposal replaces the existing static 2.5 percent capital threshold at which a G-SIB’s insured depository institution
conservation buffer with a stress capital buffer, calculated as the subsidiaries are considered well capitalized under the PCA
decrease in the CET1 capital ratio in the supervisory severely framework with a threshold set at 3.0 percent plus 50 percent of
adverse scenario of the modified CCAR stress test plus four the G-SIB surcharge applicable to the subsidiary’s G-SIB holding
quarters of planned common stock dividend payments, floored at company. Correspondingly, the proposal updates the external TLAC
2.5 percent. The static 2.5 percent capital conservation buffer leverage buffer for each G-SIB to 50 percent of the applicable G-
would be retained under the Advanced approaches. The proposal SIB surcharge and revises the leverage component of the minimum
also introduces a stress leverage buffer requirement which would external long-term debt requirement from 4.5 percent to 2.5
be calculated as the decrease in the Tier 1 leverage ratio in the percent plus 50 percent of the applicable G-SIB surcharge.
supervisory severely adverse scenario of the modified CCAR stress
test plus four quarters of planned common stock dividends, with

Revisions to Basel 3 to Address Current Expected Credit dealers: MLPF&S and BofA Securities, Inc., a newly formed broker-
Loss Accounting dealer. Under the contemplated reorganization, which is expected
On December 18, 2018, the U.S. banking regulators issued a final to occur during 2019, BofA Securities, Inc. would become the legal
rule to address the regulatory capital impact of using the current entity for the institutional services that are now provided by
expected credit loss methodology to measure credit reserves MLPF&S. MLPF&S’ retail services would remain with MLPF&S. The
under a new accounting standard that is effective on January 1, contemplated reorganization is subject to regulatory approval. For
2020. For more information on this standard, see Note 1 – more information on resolution planning, see Item 1. Business –
Summary of Significant Accounting Principles to the Consolidated Resolution Planning of our 2018 Annual Report on Form 10-K.
Financial Statements. The final rule provides an option to phase Merrill Lynch International (MLI), a U.K. investment firm, is
in the impact to regulatory capital over a three-year period on a regulated by the Prudential Regulation Authority and the FCA, and
straight-line basis. It also updates the existing regulatory capital is subject to certain regulatory capital requirements. At December
framework by creating a new defined term, adjusted allowance for 31, 2018, MLI’s capital resources were $35.0 billion, which
credit losses, which would include credit losses on all financial exceeded the minimum Pillar 1 requirement of $12.7 billion.
instruments measured at amortized cost with the exception of
purchased credit-deteriorated assets. The final rule continues to Liquidity Risk
allow a limited amount of credit losses to be recognized in Tier 2
capital and maintains the existing limits under the Standardized Funding and Liquidity Risk Management
and Advanced approaches. Our primary liquidity risk management objective is to meet
expected or unexpected cash flow and collateral needs while
Single-Counterparty Credit Limits continuing to support our businesses and customers under a range
On June 14, 2018, the Federal Reserve published a final rule of economic conditions. To achieve that objective, we analyze and
establishing single-counterparty credit limits (SCCL) for BHCs with monitor our liquidity risk under expected and stressed conditions,
total consolidated assets of $250 billion or more. The SCCL rule maintain liquidity and access to diverse funding sources, including
is designed to ensure that the maximum possible loss that a BHC our stable deposit base, and seek to align liquidity-related
could incur due to the default of a single counterparty or a group incentives and risks.
of connected counterparties would not endanger the BHC’s We define liquidity as readily available assets, limited to cash
survival, thereby reducing the probability of future financial crises. and high-quality, liquid, unencumbered securities that we can use
Beginning January 1, 2020, G-SIBs must calculate SCCL on a daily to meet our contractual and contingent financial obligations as
basis by dividing the aggregate net credit exposure to a given those obligations arise. We manage our liquidity position through
counterparty by the G-SIB’s Tier 1 capital, ensuring that exposures line of business and ALM activities, as well as through our legal
to other G-SIBs and nonbank financial institutions regulated by the entity funding strategy, on both a forward and current (including
Federal Reserve do not breach 15 percent of Tier 1 capital and intraday) basis under both expected and stressed conditions. We
exposures to most other counterparties do not breach 25 percent believe that a centralized approach to funding and liquidity
of Tier 1 capital. Certain exposures, including exposures to the management enhances our ability to monitor liquidity
U.S. government, U.S. government-sponsored entities and requirements, maximizes access to funding sources, minimizes
qualifying central counterparties, are exempt from the credit limits. borrowing costs and facilitates timely responses to liquidity
events.
Broker-dealer Regulatory Capital and Securities The Board approves our liquidity risk policy and the Financial
Regulation Contingency and Recovery Plan. The ERC establishes our liquidity
The Corporation’s principal U.S. broker-dealer subsidiaries are risk tolerance levels. The MRC is responsible for overseeing
Merrill Lynch, Pierce, Fenner & Smith Incorporated (MLPF&S) and liquidity risks and directing management to maintain exposures
Merrill Lynch Professional Clearing Corp (MLPCC). MLPCC is a fully- within the established tolerance levels. The MRC reviews and
guaranteed subsidiary of MLPF&S and provides clearing and monitors our liquidity position and stress testing results, approves
settlement services. Both entities are subject to the net capital certain liquidity risk limits and reviews the impact of strategic
requirements of Securities and Exchange Commission (SEC) Rule decisions on our liquidity. For more information, see Managing Risk
15c3-1. Both entities are also registered as futures commission on page 55. Under this governance framework, we have developed
merchants and are subject to the Commodity Futures Trading certain funding and liquidity risk management practices which
Commission Regulation 1.17. include: maintaining liquidity at the parent company and selected
MLPF&S has elected to compute the minimum capital subsidiaries, including our bank subsidiaries and other regulated
requirement in accordance with the Alternative Net Capital entities; determining what amounts of liquidity are appropriate for
Requirement as permitted by SEC Rule 15c3-1. At December 31, these entities based on analysis of debt maturities and other
2018, MLPF&S’ regulatory net capital as defined by Rule 15c3-1 potential cash outflows, including those that we may experience
was $13.4 billion and exceeded the minimum requirement of $2.0 during stressed market conditions; diversifying funding sources,
billion by $11.4 billion. MLPCC’s net capital of $4.4 billion considering our asset profile and legal entity structure; and
exceeded the minimum requirement of $617 million by $3.8 performing contingency planning.
billion.
In accordance with the Alternative Net Capital Requirements, NB Holdings Corporation
MLPF&S is required to maintain tentative net capital in excess of We have intercompany arrangements with certain key subsidiaries
$1.0 billion, net capital in excess of $500 million and notify the under which we transferred certain assets of Bank of America
SEC in the event its tentative net capital is less than $5.0 billion. Corporation, as the parent company, which is a separate and
At December 31, 2018, MLPF&S had tentative net capital and net distinct legal entity from our banking and nonbank subsidiaries,
capital in excess of the minimum and notification requirements. and agreed to transfer certain additional parent company assets
As a result of resolution planning, the current business of not needed to satisfy anticipated near-term expenditures, to NB
MLPF&S is expected to be reorganized into two affiliated broker- Holdings Corporation, a wholly-owned holding company subsidiary

(NB Holdings). The parent company is expected to continue to have 2018 and 2017. We have established operational procedures to
access to the same flow of dividends, interest and other amounts enable us to borrow against these assets, including regularly
of cash necessary to service its debt, pay dividends and perform monitoring our total pool of eligible loans and securities collateral.
other obligations as it would have had if it had not entered into Eligibility is defined in guidelines from the FHLBs and the Federal
these arrangements and transferred any assets. Reserve and is subject to change at their discretion. Due to
In consideration for the transfer of assets, NB Holdings issued regulatory restrictions, liquidity generated by the bank subsidiaries
a subordinated note to the parent company in a principal amount can generally be used only to fund obligations within the bank
equal to the value of the transferred assets. The aggregate subsidiaries, and transfers to the parent company or nonbank
principal amount of the note will increase by the amount of any subsidiaries may be subject to prior regulatory approval.
future asset transfers. NB Holdings also provided the parent Liquidity held in other regulated entities, comprised primarily
company with a committed line of credit that allows the parent of broker-dealer subsidiaries, is primarily available to meet the
company to draw funds necessary to service near-term cash obligations of that entity and transfers to the parent company or
needs. These arrangements support our preferred single point of to any other subsidiary may be subject to prior regulatory approval
entry resolution strategy, under which only the parent company due to regulatory restrictions and minimum requirements. Our
would be resolved under the U.S. Bankruptcy Code. These other regulated entities also hold unencumbered investment-grade
arrangements include provisions to terminate the line of credit, securities and equities that we believe could be used to generate
forgive the subordinated note and require the parent company to additional liquidity.
transfer its remaining financial assets to NB Holdings if our Table 18 presents the composition of average GLS for the three
projected liquidity resources deteriorate so severely that resolution months ended December 31, 2018 and 2017.
of the parent company becomes imminent.
Global Liquidity Sources and Other Unencumbered Assets Table 18 Average Global Liquidity Sources Composition
We maintain liquidity available to the Corporation, including the
Three Months Ended
parent company and selected subsidiaries, in the form of cash December 31
and high-quality, liquid, unencumbered securities. Our liquidity
buffer, referred to as Global Liquidity Sources (GLS), is comprised
Cash on deposit $ 113 $ 118
of assets that are readily available to the parent company and
U.S. Treasury securities 81 62
selected subsidiaries, including holding company, bank and broker- U.S. agency securities and mortgage-backed
dealer subsidiaries, even during stressed market conditions. Our securities 340 330
cash is primarily on deposit with the Federal Reserve Bank and, Non-U.S. government securities 10 12
to a lesser extent, central banks outside of the U.S. We limit the Total Average Global Liquidity Sources $ 544 $ 522
composition of high-quality, liquid, unencumbered securities to
U.S. government securities, U.S. agency securities, U.S. agency Our GLS are substantially the same in composition to what
MBS and a select group of non-U.S. government securities. We qualifies as High Quality Liquid Assets (HQLA) under the final U.S.
can quickly obtain cash for these securities, even in stressed Liquidity Coverage Ratio (LCR) rules. However, HQLA for purposes
conditions, through repurchase agreements or outright sales. We of calculating LCR is not reported at market value, but at a lower
hold our GLS in legal entities that allow us to meet the liquidity value that incorporates regulatory deductions and the exclusion
requirements of our global businesses, and we consider the impact of excess liquidity held at certain subsidiaries. The LCR is
of potential regulatory, tax, legal and other restrictions that could calculated as the amount of a financial institution’s unencumbered
limit the transferability of funds among entities. HQLA relative to the estimated net cash outflows the institution
Table 17 presents average GLS for the three months ended could encounter over a 30-day period of significant liquidity stress,
December 31, 2018 and 2017. expressed as a percentage. Our average consolidated HQLA, on
a net basis, was $446 billion and $439 billion for the three months
ended December 31, 2018 and 2017. For the same periods, the
Table 17 Average Global Liquidity Sources average consolidated LCR was 118 percent and 125 percent. Our
LCR will fluctuate due to normal business flows from customer
Three Months Ended
December 31 activity.
Liquidity Stress Analysis
Parent company and NB Holdings $ 76 $ 79
We utilize liquidity stress analysis to assist us in determining the
Bank subsidiaries 420 394
appropriate amounts of liquidity to maintain at the parent company
Other regulated entities 48 49
Total Average Global Liquidity Sources $ 544 $ 522
and our subsidiaries to meet contractual and contingent cash
outflows under a range of scenarios. The scenarios we consider
Typically, parent company and NB Holdings liquidity is in the and utilize incorporate market-wide and Corporation-specific
form of cash deposited with BANA. events, including potential credit rating downgrades for the parent
Our bank subsidiaries’ liquidity is primarily driven by deposit company and our subsidiaries, and more severe events including
and lending activity, as well as securities valuation and net debt potential resolution scenarios. The scenarios are based on our
activity. Liquidity at bank subsidiaries excludes the cash deposited historical experience, experience of distressed and failed financial
by the parent company and NB Holdings. Our bank subsidiaries institutions, regulatory guidance, and both expected and
can also generate incremental liquidity by pledging a range of unexpected future events.
unencumbered loans and securities to certain FHLBs and the The types of potential contractual and contingent cash outflows
Federal Reserve Discount Window. The cash we could have we consider in our scenarios may include, but are not limited to,
obtained by borrowing against this pool of specifically-identified upcoming contractual maturities of unsecured debt and reductions
eligible assets was $344 billion and $308 billion at December 31, in new debt issuance; diminished access to secured financing
markets; potential deposit withdrawals; increased draws on loan
commitments, liquidity facilities and letters of credit; additional often overnight. Disruptions in secured financing markets for
collateral that counterparties could call if our credit ratings were financial institutions have occurred in prior market cycles which
downgraded; collateral and margin requirements arising from resulted in adverse changes in terms or significant reductions in
market value changes; and potential liquidity required to maintain the availability of such financing. We manage the liquidity risks
businesses and finance customer activities. Changes in certain arising from secured funding by sourcing funding globally from a
market factors, including, but not limited to, credit rating diverse group of counterparties, providing a range of securities
downgrades, could negatively impact potential contractual and collateral and pursuing longer durations, when appropriate. For
contingent outflows and the related financial instruments, and in more information on secured financing agreements, see Note 10
some cases these impacts could be material to our financial – Federal Funds Sold or Purchased, Securities Financing
results. Agreements, Short-term Borrowings and Restricted Cash to the
We consider all sources of funds that we could access during Consolidated Financial Statements.
each stress scenario and focus particularly on matching available We issue long-term unsecured debt in a variety of maturities
sources with corresponding liquidity requirements by legal entity. and currencies to achieve cost-efficient funding and to maintain
We also use the stress modeling results to manage our asset and an appropriate maturity profile. While the cost and availability of
liability profile and establish limits and guidelines on certain unsecured funding may be negatively impacted by general market
funding sources and businesses. conditions or by matters specific to the financial services industry
or the Corporation, we seek to mitigate refinancing risk by actively
Net Stable Funding Ratio managing the amount of our borrowings that we anticipate will
U.S. banking regulators issued a proposal for a Net Stable Funding mature within any month or quarter.
Ratio (NSFR) requirement applicable to U.S. financial institutions Table 19 presents our long-term debt by major currency at
following the Basel Committee’s final standard. The proposed U.S. December 31, 2018 and 2017.
NSFR would apply to the Corporation on a consolidated basis and
to our insured depository institutions. While the final requirement
remains pending and is subject to change, if finalized as proposed, Table 19 Long-term Debt by Major Currency
we expect to be in compliance within the regulatory timeline. The
December 31
standard is intended to reduce funding risk over a longer time
horizon. The NSFR is designed to provide an appropriate amount
U.S. dollar $ 180,709 $ 175,623
of stable funding, generally capital and liabilities maturing beyond
Euro 34,296 35,481
one year, given the mix of assets and off-balance sheet items.
British pound 5,450 7,016
Japanese yen 3,036 2,993
Diversified Funding Sources
Canadian dollar 2,935 1,966
We fund our assets primarily with a mix of deposits, and secured
Australian dollar 1,722 3,046
and unsecured liabilities through a centralized, globally Other 1,192 1,277
coordinated funding approach diversified across products, Total long-term debt $ 229,340 $ 227,402
programs, markets, currencies and investor groups.
The primary benefits of our centralized funding approach Total long-term debt increased $1.9 billion during 2018,
include greater control, reduced funding costs, wider name primarily due to issuances outpacing maturities and redemptions.
recognition by investors and greater flexibility to meet the variable We may, from time to time, purchase outstanding debt instruments
funding requirements of subsidiaries. Where regulations, time in various transactions, depending on market conditions, liquidity
zone differences or other business considerations make parent and other factors. Our other regulated entities may also make
company funding impractical, certain other subsidiaries may issue markets in our debt instruments to provide liquidity for investors.
their own debt. For more information on long-term debt funding, see Note 11 –
We fund a substantial portion of our lending activities through Long-term Debt to the Consolidated Financial Statements.
our deposits, which were $1.38 trillion and $1.31 trillion at During 2018, we issued $64.4 billion of long-term debt
December 31, 2018 and 2017. Deposits are primarily generated consisting of $30.7 billion for Bank of America Corporation,
by our Consumer Banking, GWIM and Global Banking segments. substantially all of which was TLAC compliant, $18.7 billion for
These deposits are diversified by clients, product type and Bank of America, N.A. and $15.0 billion of other debt. During 2017,
geography, and the majority of our U.S. deposits are insured by we issued $53.3 billion of long-term debt consisting of $37.7
the FDIC. We consider a substantial portion of our deposits to be billion for Bank of America Corporation, substantially all of which
a stable, low-cost and consistent source of funding. We believe was TLAC compliant, $8.2 billion for Bank of America, N.A. and
this deposit funding is generally less sensitive to interest rate $7.4 billion of other debt.
changes, market volatility or changes in our credit ratings than During 2018, we had total long-term debt maturities and
wholesale funding sources. Our lending activities may also be redemptions in the aggregate of $53.3 billion consisting of $29.8
financed through secured borrowings, including credit card billion for Bank of America Corporation, $11.2 billion for Bank of
securitizations and securitizations with government-sponsored America, N.A. and $12.3 billion of other debt. During 2017, we
enterprises (GSE), the Federal Housing Administration (FHA) and had total long-term debt maturities and redemptions in the
private-label investors, as well as FHLB loans. aggregate of $48.8 billion consisting of $29.1 billion for Bank of
Our trading activities in other regulated entities are primarily America Corporation, $13.3 billion for Bank of America, N.A. and
funded on a secured basis through securities lending and $6.4 billion of other debt.
repurchase agreements, and these amounts will vary based on During 2018, we redeemed trust preferred securities of 11
customer activity and market conditions. We believe funding these trusts with a carrying value of $3.1 billion and recorded a charge
activities in the secured financing markets is more cost-efficient of $729 million in other income. We also collapsed two trusts,
and less sensitive to changes in our credit ratings than unsecured with no financial statement impact, that held fixed-rate junior
financing. Repurchase agreements are generally short-term and subordinated notes with a carrying value of $741 million that were

outstanding at December 31, 2018. At December 31, 2018, we or securities, including long-term debt, short-term borrowings,
had one remaining floating-rate junior subordinated note held in preferred stock and other securities, including asset
trust. securitizations. Our credit ratings are subject to ongoing review by
We use derivative transactions to manage the duration, interest the rating agencies, and they consider a number of factors,
rate and currency risks of our borrowings, considering the including our own financial strength, performance, prospects and
characteristics of the assets they are funding. For more information operations as well as factors not under our control. The rating
on our ALM activities, see Interest Rate Risk Management for the agencies could make adjustments to our ratings at any time, and
Banking Book on page 89. they provide no assurances that they will maintain our ratings at
We may also issue unsecured debt in the form of structured current levels.
notes for client purposes, certain of which qualify as TLAC eligible Other factors that influence our credit ratings include changes
debt. During 2018, we issued $6.9 billion of structured notes, to the rating agencies’ methodologies for our industry or certain
which are debt obligations that pay investors returns linked to other security types; the rating agencies’ assessment of the general
debt or equity securities, indices, currencies or commodities. We operating environment for financial services companies; our
typically hedge the returns we are obligated to pay on these relative positions in the markets in which we compete; our various
liabilities with derivatives and/or investments in the underlying risk exposures and risk management policies and activities;
instruments, so that from a funding perspective, the cost is similar pending litigation and other contingencies or potential tail risks;
to our other unsecured long-term debt. We could be required to our reputation; our liquidity position, diversity of funding sources
settle certain structured note obligations for cash or other and funding costs; the current and expected level and volatility of
securities prior to maturity under certain circumstances, which we our earnings; our capital position and capital management
consider for liquidity planning purposes. We believe, however, that practices; our corporate governance; the sovereign credit ratings
a portion of such borrowings will remain outstanding beyond the of the U.S. government; current or future regulatory and legislative
earliest put or redemption date. initiatives; and the agencies’ views on whether the U.S.
Substantially all of our senior and subordinated debt government would provide meaningful support to the Corporation
obligations contain no provisions that could trigger a requirement or its subsidiaries in a crisis.
for an early repayment, require additional collateral support, result On December 5, 2018, Moody’s Investors Service (Moody’s)
in changes to terms, accelerate maturity or create additional placed the long-term and short-term ratings of the Corporation as
financial obligations upon an adverse change in our credit ratings, well as the long-term ratings of its rated subsidiaries, including
financial ratios, earnings, cash flows or stock price. BANA, on review for upgrade. The agency cited the Corporation’s
strengthening profitability, continued adherence to a conservative
Contingency Planning risk profile, and stable capital ratios as drivers of the review. A
We maintain contingency funding plans that outline our potential rating review indicates that those ratings are under consideration
responses to liquidity stress events at various levels of severity. for a change in the near term, which typically concludes within 90
These policies and plans are based on stress scenarios and days. Moody’s concurrently affirmed the short-term ratings of the
include potential funding strategies and communication and Corporation’s rated subsidiaries, including BANA.
notification procedures that we would implement in the event we The ratings from Standard & Poor’s Global Ratings (S&P) for
experienced stressed liquidity conditions. We periodically review the Corporation and its subsidiaries did not change during 2018.
and test the contingency funding plans to validate efficacy and The last change to the ratings from S&P was a one-notch upgrade
assess readiness. of the Corporation’s long-term ratings in November 2017.
Our U.S. bank subsidiaries can access contingency funding On June 21, 2018, Fitch Ratings (Fitch) upgraded the
through the Federal Reserve Discount Window. Certain non-U.S. Corporation’s long-term senior debt rating to A+ from A as part of
subsidiaries have access to central bank facilities in the the agency’s latest review of 12 Global Trading & Investment Banks,
jurisdictions in which they operate. While we do not rely on these citing our sustained and improved risk-adjusted earnings, lower
sources in our liquidity modeling, we maintain the policies, risk appetite relative to peers, overall franchise strength and solid
procedures and governance processes that would enable us to liquidity position. The Corporation’s short-term debt rating of F1
access these sources if necessary. was affirmed. Additionally, Fitch upgraded the long- and short-term
debt ratings of the Corporation’s rated U.S. subsidiaries, including
Credit Ratings
BANA and MLPF&S, and upgraded the long-term debt ratings of
Our borrowing costs and ability to raise funds are impacted by our
our rated international subsidiaries, including MLI. The outlook at
credit ratings. In addition, credit ratings may be important to
Fitch remains stable for all long-term debt ratings.
customers or counterparties when we compete in certain markets
Table 20 presents the Corporation’s current long-term/short-
and when we seek to engage in certain transactions, including
term senior debt ratings and outlooks expressed by the rating
over-the-counter (OTC) derivatives. Thus, it is our objective to
agencies.
maintain high-quality credit ratings, and management maintains
an active dialogue with the major rating agencies.
Credit ratings and outlooks are opinions expressed by rating
agencies on our creditworthiness and that of our obligations

Table 20 Senior Debt Ratings
Moody’s Investors Service Standard & Poor’s Global Ratings Fitch Ratings
Long-term Short-term Outlook Long-term Short-term Outlook Long-term Short-term Outlook
Review for
Bank of America Corporation A3 P-2 upgrade A- A-2 Stable A+ F1 Stable
Review for
Bank of America, N.A. Aa3 P-1 upgrade (1) A+ A-1 Stable AA- F1+ Stable
Merrill Lynch, Pierce, Fenner &
Smith Incorporated NR NR NR A+ A-1 Stable AA- F1+ Stable
Merrill Lynch International NR NR NR A+ A-1 Stable A+ F1 Stable
(1)Review for upgrade only applies to BANA’s long-term rating.
NR = not rated
A reduction in certain of our credit ratings or the ratings of commitments are accounted for under the fair value option. Credit
certain asset-backed securitizations may have a material adverse risk for categories of assets carried at fair value is not accounted
effect on our liquidity, potential loss of access to credit markets, for as part of the allowance for credit losses but as part of the fair
the related cost of funds, our businesses and on certain trading value adjustments recorded in earnings. For derivative positions,
revenues, particularly in those businesses where counterparty our credit risk is measured as the net cost in the event the
creditworthiness is critical. In addition, under the terms of certain counterparties with contracts in which we are in a gain position
OTC derivative contracts and other trading agreements, in the fail to perform under the terms of those contracts. We use the
event of downgrades of our or our rated subsidiaries’ credit ratings, current fair value to represent credit exposure without giving
the counterparties to those agreements may require us to provide consideration to future mark-to-market changes. The credit risk
additional collateral, or to terminate these contracts or amounts take into consideration the effects of legally enforceable
agreements, which could cause us to sustain losses and/or master netting agreements and cash collateral. Our consumer and
adversely impact our liquidity. If the short-term credit ratings of commercial credit extension and review procedures encompass
our parent company, bank or broker-dealer subsidiaries were funded and unfunded credit exposures. For more information on
downgraded by one or more levels, the potential loss of access to derivatives and credit extension commitments, see Note 3 –
short-term funding sources such as repo financing and the effect Derivatives and Note 12 – Commitments and Contingencies to the
on our incremental cost of funds could be material. Consolidated Financial Statements.
While certain potential impacts are contractual and We manage credit risk based on the risk profile of the borrower
quantifiable, the full scope of the consequences of a credit rating or counterparty, repayment sources, the nature of underlying
downgrade to a financial institution is inherently uncertain, as it collateral, and other support given current events, conditions and
depends upon numerous dynamic, complex and inter-related expectations. We classify our portfolios as either consumer or
factors and assumptions, including whether any downgrade of a commercial and monitor credit risk in each as discussed below.
company’s long-term credit ratings precipitates downgrades to its We refine our underwriting and credit risk management
short-term credit ratings, and assumptions about the potential practices as well as credit standards to meet the changing
behaviors of various customers, investors and counterparties. For economic environment. To mitigate losses and enhance customer
more information on potential impacts of credit rating downgrades, support in our consumer businesses, we have in place collection
see Liquidity Risk – Liquidity Stress Analysis on page 63. programs and loan modification and customer assistance
For more information on additional collateral and termination infrastructures. We utilize a number of actions to mitigate losses
payments that could be required in connection with certain OTC in the commercial businesses including increasing the frequency
derivative contracts and other trading agreements as a result of and intensity of portfolio monitoring, hedging activity and our
such a credit rating downgrade, see Note 3 – Derivatives to the practice of transferring management of deteriorating commercial
Consolidated Financial Statements and Item 1A. Risk Factors of exposures to independent special asset officers as credits enter
our 2018 Annual Report on Form 10-K. criticized categories.
For more information on our credit risk management activities,
Common Stock Dividends see Consumer Portfolio Credit Risk Management below,
For a summary of our declared quarterly cash dividends on Commercial Portfolio Credit Risk Management on page 74, Non-
common stock during 2018 and through February 26, 2019, see U.S. Portfolio on page 80, Provision for Credit Losses on page 82,
Note 13 – Shareholders’ Equity to the Consolidated Financial Allowance for Credit Losses on page 82, and Note 5 – Outstanding
Statements. Loans and Leases and Note 6 – Allowance for Credit Losses to the
Credit Risk Management
Credit risk is the risk of loss arising from the inability or failure of Consumer Portfolio Credit Risk Management
a borrower or counterparty to meet its obligations. Credit risk can Credit risk management for the consumer portfolio begins with
also arise from operational failures that result in an erroneous initial underwriting and continues throughout a borrower’s credit
advance, commitment or investment of funds. We define the credit cycle. Statistical techniques in conjunction with experiential
exposure to a borrower or counterparty as the loss potential arising judgment are used in all aspects of portfolio management
from all product classifications including loans and leases, deposit including underwriting, product pricing, risk appetite, setting credit
overdrafts, derivatives, assets held-for-sale and unfunded lending limits, and establishing operating processes and metrics to
commitments which include loan commitments, letters of credit quantify and balance risks and returns. Statistical models are built
and financial guarantees. Derivative positions are recorded at fair using detailed behavioral information from external sources such
value and assets held-for-sale are recorded at either fair value or as credit bureaus and/or internal historical experience and are a
the lower of cost or fair value. Certain loans and unfunded component of our consumer credit risk management process.

These models are used in part to assist in making both new and Note 5 – Outstanding Loans and Leases to the Consolidated
ongoing credit decisions, as well as portfolio management Financial Statements.
strategies, including authorizations and line management, Table 21 presents our outstanding consumer loans and leases,
collection practices and strategies, and determination of the consumer nonperforming loans and accruing consumer loans past
allowance for loan and lease losses and allocated capital for credit due 90 days or more. Nonperforming loans do not include past
risk. due consumer credit card loans, other unsecured loans and in
general, consumer loans not secured by real estate (bankruptcy
Consumer Credit Portfolio loans are included) as these loans are typically charged off no
Improvement in home prices continued during 2018 resulting in later than the end of the month in which the loan becomes 180
improved credit quality and lower credit losses in the home equity days past due. Real estate-secured past due consumer loans that
portfolio, partially offset by seasoning and loan growth in the U.S. are insured by the FHA or individually insured under long-term
credit card portfolio compared to 2017. standby agreements with Fannie Mae and Freddie Mac (collectively,
Improved credit quality, continued loan balance runoff and the fully-insured loan portfolio) are reported as accruing as
sales primarily in the non-core consumer real estate portfolio, opposed to nonperforming since the principal repayment is
partially offset by seasoning within the U.S. credit card portfolio, insured. Fully-insured loans included in accruing past due 90 days
drove a $581 million decrease in the consumer allowance for loan or more are primarily from our repurchases of delinquent FHA loans
and lease losses in 2018 to $4.8 billion at December 31, 2018. pursuant to our servicing agreements with the Government
For additional information, see Allowance for Credit Losses on National Mortgage Association (GNMA). Additionally,
page 82. nonperforming loans and accruing balances past due 90 days or
For more information on our accounting policies regarding more do not include the PCI loan portfolio or loans accounted for
delinquencies, nonperforming status, charge-offs, troubled debt under the fair value option even though the customer may be
restructurings (TDRs) for the consumer portfolio and PCI loans, contractually past due.
see Note 1 – Summary of Significant Accounting Principles and
Table 21 Consumer Credit Quality

Accruing Past Due
Outstandings Nonperforming 90 Days or More
December 31
(Dollars in millions) 2018 2017 2018 2017 2018 2017
Residential mortgage (1) $ 208,557 $ 203,811 $ 1,893 $ 2,476 $ 1,884 $ 3,230
Home equity 48,286 57,744 1,893 2,644 — —
U.S. credit card 98,338 96,285 n/a n/a 994 900
Direct/Indirect consumer (2) 91,166 96,342 56 46 38 40
Other consumer (3) 202 166 — — — —
Consumer loans excluding loans accounted for under the fair value option $ 446,549 $ 454,348 $ 3,842 $ 5,166 $ 2,916 $ 4,170
Loans accounted for under the fair value option (4) 682 928
Total consumer loans and leases $ 447,231 $ 455,276
Percentage of outstanding consumer loans and leases (5) n/a n/a 0.86% 1.14% 0.65% 0.92%
Percentage of outstanding consumer loans and leases, excluding PCI and fully-
insured loan portfolios (5) n/a n/a 0.91 1.23 0.24 0.22
(1) Residential mortgage loans accruing past due 90 days or more are fully-insured loans. At December 31, 2018 and 2017, residential mortgage includes $1.4 billion and $2.2 billion of loans on which
interest had been curtailed by the FHA, and therefore were no longer accruing interest, although principal was still insured, and $498 million and $1.0 billion of loans on which interest was still
accruing.
(2) Outstandings include auto and specialty lending loans and leases of $50.1 billion and $52.4 billion, unsecured consumer lending loans of $383 million and $469 million, U.S. securities-based
lending loans of $37.0 billion and $39.8 billion, non-U.S. consumer loans of $2.9 billion and $3.0 billion and other consumer loans of $746 million and $684 million at December 31, 2018 and
2017.
(3) Substantially all of other consumer at December 31, 2018 and 2017 is consumer overdrafts.
(4) Consumer loans accounted for under the fair value option include residential mortgage loans of $336 million and $567 million and home equity loans of $346 million and $361 million at December
31, 2018 and 2017. For more information on the fair value option, see Note 21 – Fair Value Option to the Consolidated Financial Statements.
(5) Excludes consumer loans accounted for under the fair value option. At December 31, 2018 and 2017, $12 million and $26 million of loans accounted for under the fair value option were past due
90 days or more and not accruing interest.

Table 22 presents net charge-offs and related ratios for consumer loans and leases.
Table 22 Consumer Net Charge-offs and Related Ratios

Net Charge-offs (1) Net Charge-off Ratios (1, 2)
(Dollars in millions) 2018 2017 2018 2017
Residential mortgage $ 28 $ (100) 0.01% (0.05)%
Home equity (2) 213 — 0.34
U.S. credit card 2,837 2,513 3.00 2.76
Non-U.S. credit card (3) — 75 — 1.91
Direct/Indirect consumer 195 214 0.21 0.22
Other consumer 182 163 n/m n/m
Total $ 3,240 $ 3,078 0.72 0.68
(1)Net charge-offs exclude write-offs in the PCI loan portfolio. For more information, see Consumer Portfolio Credit Risk Management – Purchased Credit-impaired Loan Portfolio on page 72.
(2)Net charge-off ratios are calculated as net charge-offs divided by average outstanding loans and leases excluding loans accounted for under the fair value option.
(3)Represents net charge-offs related to the non-U.S. credit card loan portfolio, which was sold during the second quarter of 2017.

Net charge-offs, as shown in Tables 22 and 23, exclude write- 2010, qualified under GSE underwriting guidelines, or otherwise
offs in the PCI loan portfolio of $154 million and $131 million in met our underwriting guidelines in place in 2015 are characterized
residential mortgage and $119 million and $76 million in home as core loans. All other loans are generally characterized as non-
equity for 2018 and 2017. Net charge-off ratios including the PCI core loans and represent runoff portfolios. Core loans as reported
write-offs were 0.09 percent and 0.02 percent for residential in Table 23 include loans held in the Consumer Banking and GWIM
mortgage and 0.22 percent and 0.47 percent for home equity in segments, as well as loans held for ALM activities in All Other.
2018 and 2017. As shown in Table 23, outstanding core consumer real estate
Table 23 presents outstandings, nonperforming balances, net loans increased $12.8 billion during 2018 driven by an increase
charge-offs, allowance for loan and lease losses and provision for of $17.1 billion in residential mortgage, partially offset by a $4.2
loan and lease losses for the core and non-core portfolios within billion decrease in home equity.
the consumer real estate portfolio. We categorize consumer real During 2018, we sold $11.6 billion of consumer real estate
estate loans as core and non-core based on loan and customer loans compared to $4.0 billion in 2017. In addition to recurring
characteristics such as origination date, product type, loan-to-value loan sales, the 2018 amount includes sales of loans, primarily
(LTV), Fair Isaac Corporation (FICO) score and delinquency status non-core, with a carrying value of $9.6 billion and related gains of
consistent with our current consumer and mortgage servicing $731 million recorded in other income in the Consolidated
strategy. Generally, loans that were originated after January 1, Statement of Income.
Table 23 Consumer Real Estate Portfolio (1)

Outstandings Nonperforming
December 31 Net Charge-offs (2)
Core portfolio
Residential mortgage $ 193,695 $ 176,618 $ 1,010 $ 1,087 $ 11 $ (45)
Home equity 40,010 44,245 955 1,079 78 100
Total core portfolio 233,705 220,863 1,965 2,166 89 55
Non-core portfolio
Residential mortgage 14,862 27,193 883 1,389 17 (55)
Home equity 8,276 13,499 938 1,565 (80) 113
Total non-core portfolio 23,138 40,692 1,821 2,954 (63) 58
Consumer real estate portfolio
Residential mortgage 208,557 203,811 1,893 2,476 28 (100)
Home equity 48,286 57,744 1,893 2,644 (2) 213
Total consumer real estate portfolio $ 256,843 $ 261,555 $ 3,786 $ 5,120 $ 26 $ 113
Allowance for Loan

and Lease Losses Provision for Loan
December 31 and Lease Losses
2018 2017 2018 2017
Core portfolio
Residential mortgage $ 214 $ 218 $ 7 $ (79)
Home equity 228 367 (60) (91)
Total core portfolio 442 585 (53) (170)
Non-core portfolio
Residential mortgage 208 483 (104) (201)
Home equity 278 652 (335) (339)
Total non-core portfolio 486 1,135 (439) (540)
Consumer real estate portfolio
Residential mortgage 422 701 (97) (280)
Home equity 506 1,019 (395) (430)
Total consumer real estate portfolio $ 928 $ 1,720 $ (492) $ (710)
(1) Outstandings and nonperforming loans exclude loans accounted for under the fair value option. Consumer loans accounted for under the fair value option included residential mortgage loans of
$336 million and $567 million and home equity loans of $346 million and $361 million at December 31, 2018 and 2017. For additional information, see Note 21 – Fair Value Option to the Consolidated
(2) Net charge-offs exclude write-offs in the PCI loan portfolio. For more information, see Consumer Portfolio Credit Risk Management – Purchased Credit-impaired Loan Portfolio on page 72.
We believe that the presentation of information adjusted to Residential Mortgage

exclude the impact of the PCI loan portfolio, the fully-insured loan The residential mortgage portfolio made up the largest percentage
portfolio and loans accounted for under the fair value option is of our consumer loan portfolio at 47 percent of consumer loans
more representative of the ongoing operations and credit quality and leases at December 31, 2018. Approximately 44 percent of
of the business. As a result, in the following tables and discussions the residential mortgage portfolio was in Consumer Banking and
of the residential mortgage and home equity portfolios, we exclude 37 percent was in GWIM. The remaining portion was in All Other
loans accounted for under the fair value option and provide and was comprised of originated loans, purchased loans used in
information that excludes the impact of the PCI loan portfolio and our overall ALM activities, delinquent FHA loans repurchased
the fully-insured loan portfolio in certain credit quality statistics. pursuant to our servicing agreements with GNMA as well as loans
We separately disclose information on the PCI loan portfolio on repurchased related to our representations and warranties.
page 72.

Outstanding balances in the residential mortgage portfolio Table 24 presents certain residential mortgage key credit
increased $4.7 billion in 2018 as retention of new originations statistics on both a reported basis and excluding the PCI loan
was partially offset by loan sales of $8.9 billion and runoff. portfolio and the fully-insured loan portfolio. Additionally, in the
At December 31, 2018 and 2017, the residential mortgage “Reported Basis” columns in the following table, accruing
portfolio included $20.1 billion and $23.7 billion of outstanding balances past due and nonperforming loans do not include the
fully-insured loans, of which $14.0 billion and $17.4 billion had PCI loan portfolio, in accordance with our accounting policies, even
FHA insurance with the remainder protected by long-term standby though the customer may be contractually past due. As such, the
agreements. At December 31, 2018 and 2017, $3.5 billion and following discussion presents the residential mortgage portfolio
$5.2 billion of the FHA-insured loan population were repurchases excluding the PCI loan portfolio and the fully-insured loan portfolio.
of delinquent FHA loans pursuant to our servicing agreements with
GNMA.
Table 24 Residential Mortgage – Key Credit Statistics
Excluding Purchased
Credit-impaired and
Reported Basis (1) Fully-insured Loans (1)
December 31
Outstandings $ 208,557 $ 203,811 $ 184,627 $ 172,069
Accruing past due 30 days or more 3,945 5,987 1,155 1,521
Accruing past due 90 days or more 1,884 3,230 — —
Nonperforming loans 1,893 2,476 1,893 2,476
Percent of portfolio
Refreshed LTV greater than 90 but less than or equal to 100 2% 3% 1% 2%
Refreshed LTV greater than 100 1 2 1 1
Refreshed FICO below 620 4 6 2 3
2006 and 2007 vintages (2) 6 10 5 8
2018 2017 2018 2017

Net charge-off ratio (3) 0.01% (0.05)% 0.02% (0.06)%
(1) Outstandings, accruing past due, nonperforming loans and percentages of portfolio exclude loans accounted for under the fair value option.
(2) These vintages of loans accounted for $536 million, or 28 percent, and $825 million, or 33 percent, of nonperforming residential mortgage loans at December 31, 2018 and 2017.
(3) Net charge-off ratios are calculated as net charge-offs divided by average outstanding loans excluding loans accounted for under the fair value option.
Nonperforming residential mortgage loans decreased $583 entered the amortization period was $8.6 billion, or 16 percent,
million in 2018 primarily driven by sales. Of the nonperforming at December 31, 2018. Residential mortgage loans that have
residential mortgage loans at December 31, 2018, $716 million, entered the amortization period generally have experienced a
or 38 percent, were current on contractual payments. Loans higher rate of early stage delinquencies and nonperforming status
accruing past due 30 days or more decreased $366 million due compared to the residential mortgage portfolio as a whole. At
to continued improvement in credit quality as well as loan sales December 31, 2018, $177 million, or two percent, of outstanding
in the non-core portfolio. interest-only residential mortgages that had entered the
Net charge-offs increased $128 million to $28 million in 2018 amortization period were accruing past due 30 days or more
compared to $100 million of net recoveries in 2017 primarily due compared to $1.2 billion, or one percent, for the entire residential
to net recoveries related to loan sales in 2017. mortgage portfolio. In addition, at December 31, 2018, $365
Loans with a refreshed LTV greater than 100 percent million, or four percent, of outstanding interest-only residential
represented one percent of the residential mortgage loan portfolio mortgage loans that had entered the amortization period were
at both December 31, 2018 and 2017. Of the loans with a nonperforming, of which $128 million were contractually current,
refreshed LTV greater than 100 percent, 99 percent and 98 percent compared to $1.9 billion, or one percent, for the entire residential
were performing at December 31, 2018 and 2017. Loans with a mortgage portfolio. Loans that have yet to enter the amortization
refreshed LTV greater than 100 percent reflect loans where the period in our interest-only residential mortgage portfolio are
outstanding carrying value of the loan is greater than the most primarily well-collateralized loans to our wealth management
recent valuation of the property securing the loan. clients and have an interest-only period of three to ten years.
Of the $184.6 billion in total residential mortgage loans Approximately 90 percent of these loans that have yet to enter the
outstanding at December 31, 2018, as shown in Table 24, 30 amortization period will not be required to make a fully-amortizing
percent were originated as interest-only loans. The outstanding payment until 2022 or later.
balance of interest-only residential mortgage loans that have

Table 25 presents outstandings, nonperforming loans and net charge-offs by certain state concentrations for the residential mortgage
portfolio. The Los Angeles-Long Beach-Santa Ana Metropolitan Statistical Area (MSA) within California represented 16 percent of
outstandings at both December 31, 2018 and 2017. In the New York area, the New York-Northern New Jersey-Long Island MSA made
up 13 percent of outstandings at both December 31, 2018 and 2017.
Table 25 Residential Mortgage State Concentrations

Outstandings (1) Nonperforming (1)
California $ 74,463 $ 68,455 $ 314 $ 433 $ (22) $ (103)
New York (3) 19,085 17,239 222 227 10 (2)
Florida (3) 11,296 10,880 221 280 (6) (13)
Texas 7,747 7,237 102 126 4 1
New Jersey (3) 6,959 6,099 98 130 8 —
Other 65,077 62,159 936 1,280 34 17
Residential mortgage loans (4) $ 184,627 $ 172,069 $ 1,893 $ 2,476 $ 28 $ (100)
Fully-insured loan portfolio 20,130 23,741
Purchased credit-impaired residential mortgage loan portfolio (5) 3,800 8,001
Total residential mortgage loan portfolio $ 208,557 $ 203,811
(1) Outstandings and nonperforming loans exclude loans accounted for under the fair value option.
(2) Net charge-offs exclude $154 million and $131 million of write-offs in the residential mortgage PCI loan portfolio in 2018 and 2017. For more information on PCI write-offs, see Consumer Portfolio
Credit Risk Management – Purchased Credit-impaired Loan Portfolio on page 72.
(3) In these states, foreclosure requires a court order following a legal proceeding (judicial states).
(4) Amounts exclude the PCI residential mortgage and fully-insured loan portfolios.
(5) At December 31, 2018 and 2017, 49 percent and 47 percent of PCI residential mortgage loans were in California. There were no other significant single state concentrations.
Home Equity balances in the home equity portfolio decreased $9.5 billion in
At December 31, 2018, the home equity portfolio made up 11 2018 primarily due to paydowns and loan sales of $2.7 billion
percent of the consumer portfolio and was comprised of home outpacing new originations and draws on existing lines. Of the total
equity lines of credit (HELOCs), home equity loans and reverse home equity portfolio at December 31, 2018 and 2017, $17.3
mortgages. billion and $18.7 billion, or 36 percent and 32 percent, were in
At December 31, 2018, our HELOC portfolio had an outstanding first-lien positions. At December 31, 2018, outstanding balances
balance of $44.3 billion, or 92 percent of the total home equity in the home equity portfolio that were in a second-lien or more
portfolio, compared to $51.2 billion, or 89 percent, at December junior-lien position and where we also held the first-lien loan totaled
31, 2017. HELOCs generally have an initial draw period of 10 $7.9 billion, or 17 percent of our total home equity portfolio
years, and after the initial draw period ends, the loans generally excluding the PCI loan portfolio.
convert to 15-year amortizing loans. Unused HELOCs totaled $43.1 billion and $44.2 billion at
At December 31, 2018, our home equity loan portfolio had an December 31, 2018 and 2017. The decrease was primarily due
outstanding balance of $1.8 billion, or four percent of the total to accounts reaching the end of their draw period, which
home equity portfolio, compared to $4.4 billion, or seven percent, automatically eliminates open line exposure, and customers
at December 31, 2017. Home equity loans are almost all fixed- choosing to close accounts. Both of these more than offset the
rate loans with amortizing payment terms of 10 to 30 years, and impact of new production. The HELOC utilization rate was 51
of the $1.8 billion at December 31, 2018, 68 percent have 25- to percent and 54 percent at December 31, 2018 and 2017.
30-year terms. At December 31, 2018, our reverse mortgage Table 26 presents certain home equity portfolio key credit
portfolio had an outstanding balance of $2.2 billion, or four percent statistics on both a reported basis and excluding the PCI loan
of the total home equity portfolio, compared to $2.1 billion, or four portfolio. Additionally, in the “Reported Basis” columns in the
percent, at December 31, 2017. We no longer originate reverse following table, accruing balances past due 30 days or more and
mortgages. nonperforming loans do not include the PCI loan portfolio, in
At December 31, 2018, 75 percent of the home equity portfolio accordance with our accounting policies, even though the customer
was in Consumer Banking, 17 percent was in All Other and the may be contractually past due. As such, the following discussion
remainder of the portfolio was primarily in GWIM. Outstanding presents the home equity portfolio excluding the PCI loan portfolio.

Table 26 Home Equity – Key Credit Statistics
Excluding Purchased
Reported Basis (1) Credit-impaired Loans (1)
December 31
Outstandings $ 48,286 $ 57,744 $ 47,441 $ 55,028
Accruing past due 30 days or more (2) 363 502 363 502
Nonperforming loans (2) 1,893 2,644 1,893 2,644
Percent of portfolio
Refreshed CLTV greater than 90 but less than or equal to 100 2% 3% 2% 3%
Refreshed CLTV greater than 100 3 5 3 4
Refreshed FICO below 620 5 6 5 6
2006 and 2007 vintages (3) 22 29 21 27
2018 2017 2018 2017

Net charge-off ratio (4) —% 0.34% —% 0.36%
(1) Outstandings, accruing past due, nonperforming loans and percentages of the portfolio exclude loans accounted for under the fair value option.
(2) Accruing past due 30 days or more include $48 million and $67 million and nonperforming loans include $218 million and $344 million of loans where we serviced the underlying first lien at December
31, 2018 and 2017.
(3) These vintages of loans have higher refreshed combined loan-to-value (CLTV) ratios and accounted for 49 percent and 52 percent of nonperforming home equity loans at December 31, 2018 and
2017, and $11 million and $193 million of net charge-offs in 2018 and 2017.
(4) Net charge-off ratios are calculated as net charge-offs divided by average outstanding loans excluding loans accounted for under the fair value option.
Nonperforming outstanding balances in the home equity severity of loss on the second lien. Of those outstanding balances
portfolio decreased $751 million in 2018 as outflows, including with a refreshed CLTV greater than 100 percent, 96 percent of the
sales, outpaced new inflows. Of the nonperforming home equity customers were current on their home equity loan and 91 percent
loans at December 31, 2018, $1.1 billion, or 59 percent, were of second-lien loans with a refreshed CLTV greater than 100
current on contractual payments. Nonperforming loans that are percent were current on both their second-lien and underlying first-
contractually current primarily consist of collateral-dependent lien loans at December 31, 2018.
TDRs, including those that have been discharged in Chapter 7 Of the $47.4 billion in total home equity portfolio outstandings
bankruptcy, junior-lien loans where the underlying first lien is 90 at December 31, 2018, as shown in Table 26, 20 percent require
days or more past due, as well as loans that have not yet interest-only payments. The outstanding balance of HELOCs that
demonstrated a sustained period of payment performance have reached the end of their draw period and have entered the
following a TDR. In addition, $463 million, or 24 percent, of amortization period was $15.8 billion at December 31, 2018. The
nonperforming home equity loans were 180 days or more past due HELOCs that have entered the amortization period have
and had been written down to the estimated fair value of the experienced a higher percentage of early stage delinquencies and
collateral, less costs to sell. Accruing loans that were 30 days or nonperforming status when compared to the HELOC portfolio as
more past due decreased $139 million in 2018. a whole. At December 31, 2018, $267 million, or two percent, of
In some cases, the junior-lien home equity outstanding balance outstanding HELOCs that had entered the amortization period were
that we hold is performing, but the underlying first lien is not. For accruing past due 30 days or more. In addition, at December 31,
outstanding balances in the home equity portfolio on which we 2018, $1.7 billion, or 11 percent, of outstanding HELOCs that had
service the first-lien loan, we are able to track whether the first- entered the amortization period were nonperforming. Loans that
lien loan is in default. For loans where the first lien is serviced by have yet to enter the amortization period in our interest-only
a third party, we utilize credit bureau data to estimate the portfolio are primarily post-2008 vintages and generally have
delinquency status of the first lien. At December 31, 2018, we better credit quality than the previous vintages that had entered
estimate that $610 million of current and $83 million of 30 to 89 the amortization period. We communicate to contractually current
days past due junior-lien loans were behind a delinquent first-lien customers more than a year prior to the end of their draw period
loan. We service the first-lien loans on $114 million of these to inform them of the potential change to the payment structure
combined amounts, with the remaining $579 million serviced by before entering the amortization period, and provide payment
third parties. Of the $693 million of current to 89 days past due options to customers prior to the end of the draw period.
junior-lien loans, based on available credit bureau data and our Although we do not actively track how many of our home equity
own internal servicing data, we estimate that approximately $221 customers pay only the minimum amount due on their home equity
million had first-lien loans that were 90 days or more past due. loans and lines, we can infer some of this information through a
Net charge-offs decreased $215 million to a net recovery of $2 review of our HELOC portfolio that we service and that is still in
million in 2018 compared to net charge-offs of $213 million in its revolving period. During 2018, 14 percent of these customers
2017 driven by favorable portfolio trends due in part to with an outstanding balance did not pay any principal on their
improvement in home prices and the U.S. economy. HELOCs.
Outstanding balances with a refreshed CLTV greater than 100 Table 27 presents outstandings, nonperforming balances and
percent comprised three percent and four percent of the home net charge-offs by certain state concentrations for the home equity
equity portfolio at December 31, 2018 and 2017. Outstanding portfolio. In the New York area, the New York-Northern New Jersey-
balances with a refreshed CLTV greater than 100 percent reflect Long Island MSA made up 13 percent of the outstanding home
loans where our loan and available line of credit combined with equity portfolio at both December 31, 2018 and 2017. Loans
any outstanding senior liens against the property are equal to or within this MSA contributed $35 million and $58 million of net
greater than the most recent valuation of the property securing charge-offs in 2018 and 2017 within the home equity portfolio.
the loan. Depending on the value of the property, there may be The Los Angeles-Long Beach-Santa Ana MSA within California
collateral in excess of the first lien that is available to reduce the made up 11 percent of the outstanding home equity portfolio
at both December 31, 2018 and 2017. Loans within this MSA contributed net recoveries of $23 million and $20 million within the
home equity portfolio in 2018 and 2017.
Table 27 Home Equity State Concentrations

Outstandings (1) Nonperforming (1)
California $ 13,228 $ 15,145 $ 536 $ 766 $ (54) $ (37)
Florida (3) 5,363 6,308 315 411 1 38
New Jersey (3) 3,833 4,546 150 191 25 44
New York (3) 3,549 4,195 194 252 23 35
Massachusetts 2,376 2,751 65 92 5 9
Other 19,092 22,083 633 932 (2) 124
Home equity loans (4) $ 47,441 $ 55,028 $ 1,893 $ 2,644 $ (2) $ 213
Purchased credit-impaired home equity portfolio (5) 845 2,716
Total home equity loan portfolio $ 48,286 $ 57,744
(1) Outstandings and nonperforming loans exclude loans accounted for under the fair value option.
(2) Net charge-offs exclude $119 million and $76 million of write-offs in the home equity PCI loan portfolio in 2018 and 2017. For more information on PCI write-offs, see Consumer Portfolio Credit Risk
Management – Purchased Credit-impaired Loan Portfolio.
(3) In these states, foreclosure requires a court order following a legal proceeding (judicial states).
(4) Amount excludes the PCI home equity portfolio.
(5) At December 31, 2018 and 2017, 34 percent and 28 percent of PCI home equity loans were in California. There were no other significant single state concentrations.
Purchased Credit-impaired Loan Portfolio Table 28 presents the unpaid principal balance, carrying value,
Loans acquired with evidence of credit quality deterioration since related valuation allowance and the net carrying value as a
origination and for which it is probable at purchase that we will be percentage of the unpaid principal balance for the PCI loan
unable to collect all contractually required payments are accounted portfolio.
for under the accounting standards for PCI loans.
Table 28 Purchased Credit-impaired Loan Portfolio
Unpaid Gross Related Carrying Value Percent of

Principal Carrying Valuation Net of Valuation Unpaid Principal
Balance Value Allowance Allowance Balance
Residential mortgage (1) $ 3,872 $ 3,800 $ 30 $ 3,770 97.37%
Home equity 896 845 61 784 87.50
Total purchased credit-impaired loan portfolio $ 4,768 $ 4,645 $ 91 $ 4,554 95.51
December 31, 2017

Residential mortgage (1) $ 8,117 $ 8,001 $ 117 $ 7,884 97.13%
Home equity 2,787 2,716 172 2,544 91.28
Total purchased credit-impaired loan portfolio $ 10,904 $ 10,717 $ 289 $ 10,428 95.63
(1) At December 31, 2018 and 2017, pay option loans had an unpaid principal balance of $757 million and $1.4 billion and a carrying value of $744 million and $1.4 billion. This includes $645 million
and $1.2 billion of loans that were credit-impaired upon acquisition and $67 million and $141 million of loans that were 90 days or more past due. The total unpaid principal balance of pay option
loans with accumulated negative amortization was $73 million and $160 million, including $4 million and $9 million of negative amortization at December 31, 2018 and 2017.
The total PCI unpaid principal balance decreased $6.1 billion, 32 percent based on the unpaid principal balance at December
or 56 percent, in 2018 primarily driven by loan sales with a carrying 31, 2018.
value of $4.4 billion compared to sales of $803 million in 2017.
Of the unpaid principal balance of $4.8 billion at December 31, U.S. Credit Card
2018, $4.3 billion, or 90 percent, was current based on the At December 31, 2018, 97 percent of the U.S. credit card portfolio
contractual terms, $208 million, or four percent, was in early stage was managed in Consumer Banking with the remainder in GWIM.
delinquency and $205 million was 180 days or more past due, Outstandings in the U.S. credit card portfolio increased $2.1 billion
including $172 million of first-lien mortgages and $33 million of in 2018 to $98.3 billion due to higher retail volume partially offset
home equity loans. by payments as well as the sale of a small portfolio. In 2018, net
The PCI residential mortgage loan and home equity portfolios charge-offs increased $324 million to $2.8 billion, and U.S. credit
represented 82 percent and 18 percent of the total PCI loan card loans 30 days or more past due and still accruing interest
portfolio at December 31, 2018. Those loans to borrowers with a increased $142 million and loans 90 days or more past due and
refreshed FICO score below 620 represented 19 percent and 21 still accruing interest increased $94 million, each driven by
percent of the PCI residential mortgage loan and home equity portfolio seasoning and loan growth.
portfolios at December 31, 2018. Residential mortgage and home Unused lines of credit for U.S. credit card totaled $334.8 billion
equity loans with a refreshed LTV or CLTV greater than 90 percent, and $326.3 billion at December 31, 2018 and 2017. The increase
after consideration of purchase accounting adjustments and the was driven by account growth and lines of credit increases.
related valuation allowance, represented 10 percent and 28 Table 29 presents certain state concentrations for the U.S.
percent of their respective PCI loan portfolios and 11 percent and credit card portfolio.

Table 29 U.S. Credit Card State Concentrations
Accruing Past Due
Outstandings 90 Days or More
December 31 Net Charge-offs
California $ 16,062 $ 15,254 $ 163 $ 136 $ 479 $ 412
Florida 8,840 8,359 119 94 332 259
Texas 7,730 7,451 84 76 224 194
New York 6,066 5,977 81 91 268 218
Washington 4,558 4,350 24 20 63 56
Other 55,082 54,894 523 483 1,471 1,374
Total U.S. credit card portfolio $ 98,338 $ 96,285 $ 994 $ 900 $ 2,837 $ 2,513
Direct/Indirect Consumer securities-based lending due to higher paydowns, and in our auto
At December 31, 2018, 55 percent of the direct/indirect portfolio portfolio as paydowns outpaced originations. Net charge-offs
was included in Consumer Banking (consumer auto and specialty decreased $19 million to $195 million in 2018 due largely to
lending – automotive, marine, aircraft, recreational vehicle loans clarifying regulatory guidance related to bankruptcy and
and consumer personal loans) and 45 percent was included in repossession issued during 2017.
GWIM (principally securities-based lending loans). Table 30 presents certain state concentrations for the direct/
Outstandings in the direct/indirect portfolio decreased $5.2 indirect consumer loan portfolio.
billion in 2018 to $91.2 billion primarily due to declines in
Table 30 Direct/Indirect State Concentrations

Accruing Past Due
Outstandings 90 Days or More
December 31 Net Charge-offs
California $ 11,734 $ 12,897 $ 4 $ 3 $ 21 $ 21
Florida 10,240 11,184 4 5 36 43
Texas 9,876 10,676 6 5 30 38
New York 6,296 6,557 2 2 9 7
New Jersey 3,308 3,449 1 1 2 6
Other 49,712 51,579 21 24 97 99
Total direct/indirect loan portfolio $ 91,166 $ 96,342 $ 38 $ 40 $ 195 $ 214
Nonperforming Consumer Loans, Leases and Foreclosed it is included in foreclosed properties. Certain delinquent
Properties Activity government-guaranteed loans (principally FHA-insured loans) are
Table 31 presents nonperforming consumer loans, leases and excluded from our nonperforming loans and foreclosed properties
foreclosed properties activity during 2018 and 2017. During 2018, activity as we expect we will be reimbursed once the property is
nonperforming consumer loans declined $1.3 billion to $3.8 billion conveyed to the guarantor for principal and, up to certain limits,
primarily driven by loan sales of $969 million. costs incurred during the foreclosure process and interest accrued
At December 31, 2018, $1.1 billion, or 29 percent, of during the holding period.
nonperforming loans were 180 days or more past due and had We classify junior-lien home equity loans as nonperforming
been written down to their estimated property value less costs to when the first-lien loan becomes 90 days past due even if the
sell. In addition, at December 31, 2018, $1.9 billion, or 49 percent, junior-lien loan is performing. At December 31, 2018 and 2017,
of nonperforming consumer loans were modified and are now $221 million and $330 million of such junior-lien home equity
current after successful trial periods, or are current loans classified loans were included in nonperforming loans and leases.
as nonperforming loans in accordance with applicable policies. Nonperforming loans also include certain loans that have been
Foreclosed properties increased $8 million in 2018 to $244 modified in TDRs where economic concessions have been granted
million as additions outpaced liquidations. PCI loans are excluded to borrowers experiencing financial difficulties. Nonperforming
from nonperforming loans as these loans were written down to fair TDRs, excluding those modified loans in the PCI loan portfolio, are
value at the acquisition date; however, once we acquire the included in Table 31.
underlying real estate upon foreclosure of the delinquent PCI loan,

Table 31 Nonperforming Consumer Loans, Leases and Foreclosed Properties Activity
Nonperforming loans and leases, January 1 $ 5,166 $ 6,004
Additions 2,440 3,254
Reductions:
Paydowns and payoffs (958) (1,052)
Sales (969) (511)
Returns to performing status (1) (1,283) (1,438)
Charge-offs (401) (676)
Transfers to foreclosed properties (151) (217)
Transfers to loans held-for-sale (2) (198)
Total net reductions to nonperforming loans and leases (1,324) (838)
Total nonperforming loans and leases, December 31 3,842 5,166
Foreclosed properties, December 31 (2) 244 236
Nonperforming consumer loans, leases and foreclosed properties, December 31 $ 4,086 $ 5,402
Nonperforming consumer loans and leases as a percentage of outstanding consumer loans and leases (3) 0.86% 1.14%
Nonperforming consumer loans, leases and foreclosed properties as a percentage of outstanding consumer loans, leases and
foreclosed properties (3) 0.92 1.19
(1) Consumer loans may be returned to performing status when all principal and interest is current and full repayment of the remaining contractual principal and interest is expected, or when the loan
otherwise becomes well-secured and is in the process of collection.
(2) Foreclosed property balances do not include properties insured by certain government-guaranteed loans, principally FHA-insured, of $488 million and $801 million at December 31, 2018 and 2017.
(3) Outstanding consumer loans and leases exclude loans accounted for under the fair value option.
Table 32 presents TDRs for the consumer real estate portfolio. Performing TDR balances are excluded from nonperforming loans
and leases in Table 31.
Table 32 Consumer Real Estate Troubled Debt Restructurings

December 31, 2018 December 31, 2017
(Dollars in millions) Nonperforming Performing Total Nonperforming Performing Total
Residential mortgage (1, 2) $ 1,209 $ 4,988 $ 6,197 $ 1,535 $ 8,163 $ 9,698
Home equity (3) 1,107 1,252 2,359 1,457 1,399 2,856
Total consumer real estate troubled debt restructurings $ 2,316 $ 6,240 $ 8,556 $ 2,992 $ 9,562 $ 12,554
(1) At December 31, 2018 and 2017, residential mortgage TDRs deemed collateral dependent totaled $1.6 billion and $2.8 billion, and included $960 million and $1.2 billion of loans classified as
nonperforming and $605 million and $1.6 billion of loans classified as performing.
(2) Residential mortgage performing TDRs included $2.8 billion and $3.7 billion of loans that were fully-insured at December 31, 2018 and 2017.
(3) At December 31, 2018 and 2017, home equity TDRs deemed collateral dependent totaled $1.3 billion and $1.6 billion, and included $961 million and $1.2 billion of loans classified as nonperforming
and $322 million and $388 million of loans classified as performing.
In addition to modifying consumer real estate loans, we work cash flow, risk profile or outlook of a borrower or counterparty. In
with customers who are experiencing financial difficulty by making credit decisions, we consider risk rating, collateral, country,
modifying credit card and other consumer loans. Credit card and industry and single-name concentration limits while also balancing
other consumer loan modifications generally involve a reduction these considerations with the total borrower or counterparty
in the customer’s interest rate on the account and placing the relationship. We use a variety of tools to continuously monitor the
customer on a fixed payment plan not exceeding 60 months, all ability of a borrower or counterparty to perform under its
of which are considered TDRs (the renegotiated TDR portfolio). obligations. We use risk rating aggregations to measure and
Modifications of credit card and other consumer loans are evaluate concentrations within portfolios. In addition, risk ratings
made through renegotiation programs utilizing direct customer are a factor in determining the level of allocated capital and the
contact, but may also utilize external renegotiation programs. The allowance for credit losses.
renegotiated TDR portfolio is excluded in large part from Table 31 As part of our ongoing risk mitigation initiatives, we attempt to
as substantially all of the loans remain on accrual status until work with clients experiencing financial difficulty to modify their
either charged off or paid in full. At December 31, 2018 and 2017, loans to terms that better align with their current ability to pay. In
our renegotiated TDR portfolio was $566 million and $490 million, situations where an economic concession has been granted to a
of which $481 million and $426 million were current or less than borrower experiencing financial difficulty, we identify these loans
30 days past due under the modified terms. The increase in the as TDRs. For more information on our accounting policies regarding
renegotiated TDR portfolio was primarily driven by new delinquencies, nonperforming status and net charge-offs for the
renegotiated enrollments outpacing runoff of existing portfolios. commercial portfolio, see Note 1 – Summary of Significant
Accounting Principles to the Consolidated Financial Statements.
Commercial Portfolio Credit Risk Management
Credit risk management for the commercial portfolio begins with Management of Commercial Credit Risk
an assessment of the credit risk profile of the borrower or Concentrations
counterparty based on an analysis of its financial position. As part Commercial credit risk is evaluated and managed with the goal
of the overall credit risk assessment, our commercial credit that concentrations of credit exposure continue to be aligned with
exposures are assigned a risk rating and are subject to approval our risk appetite. We review, measure and manage concentrations
based on defined credit approval standards. Subsequent to loan of credit exposure by industry, product, geography, customer
origination, risk ratings are monitored on an ongoing basis, and if relationship and loan size. We also review, measure and manage
necessary, adjusted to reflect changes in the financial condition, commercial real estate loans by geographic location and property
type. In addition, within our non-U.S. portfolio, we evaluate other countries. As a member, we may be required to pay a pro-
exposures by region and by country. Tables 37, 40, 43 and 44 rata share of the losses incurred by some of these organizations
summarize our concentrations. We also utilize syndications of as a result of another member default and under other loss
exposure to third parties, loan sales, hedging and other risk scenarios. For additional information, see Note 12 – Commitments
mitigation techniques to manage the size and risk profile of the and Contingencies to the Consolidated Financial Statements.
commercial credit portfolio. For more information on our industry
concentrations, see Commercial Portfolio Credit Risk Management Commercial Credit Portfolio
– Industry Concentrations on page 78 and Table 40. During 2018, credit quality among large corporate borrowers was
We account for certain large corporate loans and loan strong, and there was continued improvement in the energy
commitments, including issued but unfunded letters of credit portfolio. Credit quality of commercial real estate borrowers in
which are considered utilized for credit risk management purposes, most sectors remained stable with conservative LTV ratios.
that exceed our single-name credit risk concentration guidelines However, some of the commercial real estate markets experienced
under the fair value option. Lending commitments, both funded slowing tenant demand and decelerating rental income.
and unfunded, are actively managed and monitored, and as Total commercial utilized credit exposure increased $20.2
appropriate, credit risk for these lending relationships may be billion in 2018 to $621.0 billion primarily driven by commercial
mitigated through the use of credit derivatives, with our credit view loan growth. The utilization rate for loans and leases, SBLCs and
and market perspectives determining the size and timing of the financial guarantees, and commercial letters of credit, in the
hedging activity. In addition, we purchase credit protection to cover aggregate, was 59 percent at both December 31, 2018 and 2017.
the funded portion as well as the unfunded portion of certain other Table 33 presents commercial credit exposure by type for
credit exposures. To lessen the cost of obtaining our desired credit utilized, unfunded and total binding committed credit exposure.
protection levels, credit exposure may be added within an industry, Commercial utilized credit exposure includes SBLCs and financial
borrower or counterparty group by selling protection. These credit guarantees and commercial letters of credit that have been issued
derivatives do not meet the requirements for treatment as and for which we are legally bound to advance funds under
accounting hedges. They are carried at fair value with changes in prescribed conditions during a specified time period, and excludes
fair value recorded in other income. exposure related to trading account assets. Although funds have
In addition, we are a member of various securities and not yet been advanced, these exposure types are considered
derivative exchanges and clearinghouses, both in the U.S. and utilized for credit risk management purposes.
Table 33 Commercial Credit Exposure by Type

Commercial Utilized (1) Commercial Unfunded (2, 3, 4) Total Commercial Committed
December 31
Loans and leases (5) $ 505,724 $ 487,748 $ 369,282 $ 364,743 $ 875,006 $ 852,491
Derivative assets (6) 43,725 37,762 — — 43,725 37,762
Standby letters of credit and financial guarantees 34,941 34,517 491 863 35,432 35,380
Debt securities and other investments 25,425 28,161 4,250 4,864 29,675 33,025
Loans held-for-sale 9,090 10,257 14,812 9,742 23,902 19,999
Commercial letters of credit 1,210 1,467 168 155 1,378 1,622
Other 898 888 — — 898 888
Total $ 621,013 $ 600,800 $ 389,003 $ 380,367 $ 1,010,016 $ 981,167
(1) Commercial utilized exposure includes loans of $3.7 billion and $4.8 billion and issued letters of credit with a notional amount of $100 million and $232 million accounted for under the fair value
option at December 31, 2018 and 2017.
(2) Commercial unfunded exposure includes commitments accounted for under the fair value option with a notional amount of $3.0 billion and $4.6 billion at December 31, 2018 and 2017.
(3) Excludes unused business card lines, which are not legally binding.
(4) Includes the notional amount of unfunded legally binding lending commitments net of amounts distributed (i.e., syndicated or participated) to other financial institutions. The distributed amounts
were $10.7 billion and $11.0 billion at December 31, 2018 and 2017.
(5) Includes credit risk exposure associated with assets under operating lease arrangements of $6.1 billion and $6.3 billion at December 31, 2018 and 2017.
(6) Derivative assets are carried at fair value, reflect the effects of legally enforceable master netting agreements and have been reduced by cash collateral of $32.4 billion and $34.6 billion at December
31, 2018 and 2017. Not reflected in utilized and committed exposure is additional non-cash derivative collateral held of $33.0 billion and $26.2 billion at December 31, 2018 and 2017, which
consists primarily of other marketable securities.
Outstanding commercial loans and leases increased $18.2 billion during 2018 primarily in the U.S. commercial portfolio. The
allowance for loan and lease losses for the commercial portfolio decreased $211 million to $4.8 billion at December 31, 2018. For
additional information, see Allowance for Credit Losses on page 82. Table 34 presents our commercial loans and leases portfolio and
related credit quality information at December 31, 2018 and 2017.

Table 34 Commercial Credit Quality
Accruing Past Due
Outstandings Nonperforming 90 Days or More
December 31
Commercial and industrial:
U.S. commercial $ 299,277 $ 284,836 $ 794 $ 814 $ 197 $ 144
Non-U.S. commercial 98,776 97,792 80 299 — 3
Total commercial and industrial 398,053 382,628 874 1,113 197 147
Commercial real estate (1) 60,845 58,298 156 112 4 4
Commercial lease financing 22,534 22,116 18 24 29 19
481,432 463,042 1,048 1,249 230 170
U.S. small business commercial (2) 14,565 13,649 54 55 84 75
Commercial loans excluding loans accounted for under
the fair value option 495,997 476,691 1,102 1,304 314 245
Loans accounted for under the fair value option (3) 3,667 4,782 — 43 — —
Total commercial loans and leases $ 499,664 $ 481,473 $ 1,102 $ 1,347 $ 314 $ 245
(1) Includes U.S. commercial real estate of $56.6 billion and $54.8 billion and non-U.S. commercial real estate of $4.2 billion and $3.5 billion at December 31, 2018 and 2017.
(2) Includes card-related products.
(3) Commercial loans accounted for under the fair value option include U.S. commercial of $2.5 billion and $2.6 billion and non-U.S. commercial of $1.1 billion and $2.2 billion at December 31, 2018
and 2017. For more information on the fair value option, see Note 21 – Fair Value Option to the Consolidated Financial Statements.
Table 35 presents net charge-offs and related ratios for our commercial loans and leases for 2018 and 2017. The decrease in net
charge-offs of $378 million for 2018 was primarily driven by a single-name non-U.S. commercial charge-off of $292 million in 2017.
Table 35 Commercial Net Charge-offs and Related Ratios

Net Charge-offs Net Charge-off Ratios (1)
U.S. commercial $ 215 $ 232 0.07% 0.08%
Non-U.S. commercial 68 440 0.07 0.48
Total commercial and industrial 283 672 0.07 0.18
Commercial real estate 1 9 — 0.02
Commercial lease financing (1) 5 (0.01) 0.02
283 686 0.06 0.15
U.S. small business commercial 240 215 1.70 1.60
Total commercial $ 523 $ 901 0.11 0.20
(1) Net charge-off ratios are calculated as net charge-offs divided by average outstanding loans and leases excluding loans accounted for under the fair value option.
Table 36 presents commercial reservable criticized utilized exposure by loan type. Criticized exposure corresponds to the Special
Mention, Substandard and Doubtful asset categories as defined by regulatory authorities. Total commercial reservable criticized utilized
exposure decreased $2.5 billion, or 18 percent, during 2018 driven by broad-based improvements including the energy sector. At
December 31, 2018 and 2017, 91 percent and 84 percent of commercial reservable criticized utilized exposure was secured.
Table 36 Commercial Reservable Criticized Utilized Exposure (1, 2)

December 31
U.S. commercial $ 7,986 2.43% $ 9,891 3.15%
Non-U.S. commercial 1,013 0.97 1,766 1.70
Total commercial and industrial 8,999 2.08 11,657 2.79
Commercial real estate 936 1.50 566 0.95
Commercial lease financing 366 1.62 581 2.63
10,301 1.99 12,804 2.57
U.S. small business commercial 760 5.22 759 5.56
Total commercial reservable criticized utilized exposure (1) $ 11,061 2.08 $ 13,563 2.65
(1) Total commercial reservable criticized utilized exposure includes loans and leases of $10.3 billion and $12.5 billion and commercial letters of credit of $781 million and $1.1 billion at December
31, 2018 and 2017.
(2) Percentages are calculated as commercial reservable criticized utilized exposure divided by total commercial reservable utilized exposure for each exposure category.

Commercial and Industrial dependent on the sale or lease of the real estate as the primary
Commercial and industrial loans include U.S. commercial and non- source of repayment. The portfolio remains diversified across
U.S. commercial portfolios. property types and geographic regions. California represented the
largest state concentration at 23 percent of the commercial real
U.S. Commercial estate loans and leases portfolio at both December 31, 2018 and
At December 31, 2018, 70 percent of the U.S. commercial loan 2017. The commercial real estate portfolio is predominantly
portfolio, excluding small business, was managed in Global managed in Global Banking and consists of loans made primarily
Banking, 16 percent in Global Markets, 12 percent in GWIM to public and private developers, and commercial real estate firms.
(generally business-purpose loans for high net worth clients) and Outstanding loans increased $2.5 billion, or four percent, during
the remainder primarily in Consumer Banking. U.S. commercial 2018 to $60.8 billion due to new originations, including higher
loans increased $14.4 billion in 2018 primarily in Global Banking. hold levels on syndicated loans, outpacing paydowns.
Reservable criticized utilized exposure decreased $1.9 billion, or During 2018, we continued to see low default rates and solid
19 percent, driven by broad-based improvements including the credit quality in both the residential and non-residential portfolios.
energy sector. We use a number of proactive risk mitigation initiatives to reduce
Non-U.S. Commercial adversely rated exposure in the commercial real estate portfolio,
At December 31, 2018, 81 percent of the non-U.S. commercial including transfers of deteriorating exposures to management by
loan portfolio was managed in Global Banking and 19 percent in independent special asset officers and the pursuit of loan
Global Markets. Reservable criticized utilized exposure decreased restructurings or asset sales to achieve the best results for our
$753 million, or 43 percent, and nonperforming loans and leases customers and the Corporation.
decreased $219 million, or 73 percent, due primarily to paydowns, Nonperforming commercial real estate loans and foreclosed
sales and charge-offs. Net charge-offs decreased $372 million in properties increased $48 million, or 29 percent, during 2018 to
2018 primarily due to a single-name non-U.S. commercial charge- $212 million, primarily due to a single-name downgrade.
off of $292 million in 2017. For more information on the non-U.S. Table 37 presents outstanding commercial real estate loans
commercial portfolio, see Non-U.S. Portfolio on page 80. by geographic region, based on the geographic location of the
collateral, and by property type.
Commercial Real Estate
Commercial real estate primarily includes commercial loans and
leases secured by non-owner-occupied real estate and is
Table 37 Outstanding Commercial Real Estate Loans

December 31
By Geographic Region
California $ 14,002 $ 13,607
Northeast 10,895 10,072
Southwest 7,339 6,970
Southeast 5,726 5,487
Midwest 3,772 3,769
Florida 3,680 3,170
Illinois 2,989 3,263
Midsouth 2,919 2,962
Northwest 2,178 2,657
Non-U.S. 4,240 3,538
Other (1) 3,105 2,803
Total outstanding commercial real estate loans $ 60,845 $ 58,298
By Property Type
Non-residential
Office $ 17,246 $ 16,718
Shopping centers / Retail 8,798 8,825
Multi-family rental 7,762 8,280
Hotels / Motels 7,248 6,344
Industrial / Warehouse 5,379 6,070
Unsecured 2,956 2,187
Multi-use 2,848 2,771
Other 7,029 5,645
Total non-residential 59,266 56,840
Residential 1,579 1,458
Total outstanding commercial real estate loans $ 60,845 $ 58,298
(1) Includes unsecured loans to real estate investment trusts and national home builders whose portfolios of properties span multiple geographic regions and properties in the states of Colorado, Utah,
Hawaii, Wyoming and Montana.
U.S. Small Business Commercial

The U.S. small business commercial loan portfolio is comprised of small business card loans and small business loans managed in
Consumer Banking. Credit card-related products were 51 percent and 50 percent of the U.S. small business commercial portfolio at
December 31, 2018 and 2017. Of the U.S. small business commercial net charge-offs, 95 percent and 90 percent were credit card-
related products in 2018 and 2017.
Nonperforming Commercial Loans, Leases and Foreclosed 31, 2018, 93 percent of commercial nonperforming loans, leases
Properties Activity and foreclosed properties were secured and 55 percent were
Table 38 presents the nonperforming commercial loans, leases contractually current. Commercial nonperforming loans were
and foreclosed properties activity during 2018 and 2017. carried at 89 percent of their unpaid principal balance before
Nonperforming loans do not include loans accounted for under the consideration of the allowance for loan and lease losses as the
fair value option. During 2018, nonperforming commercial loans carrying value of these loans has been reduced to the estimated
and leases decreased $202 million to $1.1 billion. At December collateral value less costs to sell.
Table 38 Nonperforming Commercial Loans, Leases and Foreclosed Properties Activity (1, 2)
Nonperforming loans and leases, January 1 $ 1,304 $ 1,703
Additions 1,415 1,616
Reductions:
Paydowns (771) (930)
Sales (210) (136)
Returns to performing status (3) (246) (280)
Charge-offs (361) (455)
Transfers to foreclosed properties (12) (40)
Transfers to loans held-for-sale (17) (174)
Total net reductions to nonperforming loans and leases (202) (399)
Total nonperforming loans and leases, December 31 1,102 1,304
Foreclosed properties, December 31 56 52
Nonperforming commercial loans, leases and foreclosed properties, December 31 $ 1,158 $ 1,356
Nonperforming commercial loans and leases as a percentage of outstanding commercial loans and leases (4) 0.22% 0.27%
Nonperforming commercial loans, leases and foreclosed properties as a percentage of outstanding commercial loans, leases and
foreclosed properties (4) 0.23 0.28
(1) Balances do not include nonperforming loans held-for-sale of $292 million and $339 million at December 31, 2018 and 2017.
(2) Includes U.S. small business commercial activity. Small business card loans are excluded as they are not classified as nonperforming.
(3) Commercial loans and leases may be returned to performing status when all principal and interest is current and full repayment of the remaining contractual principal and interest is expected, or
when the loan otherwise becomes well-secured and is in the process of collection. TDRs are generally classified as performing after a sustained period of demonstrated payment performance.
(4) Outstanding commercial loans exclude loans accounted for under the fair value option.
Table 39 presents our commercial TDRs by product type and performing status. U.S. small business commercial TDRs are comprised
of renegotiated small business card loans and small business loans. The renegotiated small business card loans are not classified
as nonperforming as they are charged off no later than the end of the month in which the loan becomes 180 days past due. For more
information on TDRs, see Note 5 – Outstanding Loans and Leases to the Consolidated Financial Statements.
Table 39 Commercial Troubled Debt Restructurings

(Dollars in millions) Nonperforming Performing Total Nonperforming Performing Total
U.S. commercial $ 306 $ 1,092 $ 1,398 $ 370 $ 866 $ 1,236
Non-U.S. commercial 78 162 240 11 219 230
Total commercial and industrial 384 1,254 1,638 381 1,085 1,466
Commercial real estate 114 6 120 38 9 47
Commercial lease financing 3 68 71 5 13 18
501 1,328 1,829 424 1,107 1,531
U.S. small business commercial 3 18 21 4 15 19
Total commercial troubled debt restructurings $ 504 $ 1,346 $ 1,850 $ 428 $ 1,122 $ 1,550
Industry Concentrations allocated on an industry-by-industry basis. A risk management

Table 40 presents commercial committed and utilized credit framework is in place to set and approve industry limits as well
exposure by industry and the total net credit default protection as to provide ongoing monitoring. The MRC oversees industry limit
purchased to cover the funded and unfunded portions of certain governance.
credit exposures. Our commercial credit exposure is diversified Asset Managers and Funds, our largest industry concentration
across a broad range of industries. Total commercial committed with committed exposure of $107.9 billion, increased $16.8
exposure increased $28.8 billion, or three percent, during 2018 billion, or 18 percent, during 2018. The change reflects an increase
to $1.0 trillion. The increase in commercial committed exposure in exposure to several counterparties.
was concentrated in the Asset Managers and Funds, Real Estate, our second largest industry concentration with
Pharmaceuticals and Biotechnology, and Capital Goods industry committed exposure of $86.5 billion, increased $2.7 billion, or
sectors. Increases were partially offset by reduced exposure to three percent, during 2018. For more information on the
the Media, Food and Staples Retailing, and Energy industry commercial real estate and related portfolios, see Commercial
sectors. Portfolio Credit Risk Management – Commercial Real Estate on
Industry limits are used internally to manage industry page 77.
concentrations and are based on committed exposure that is
Capital Goods, our third largest industry concentration with charge-offs were $31 million in 2018 compared to $156 million
committed exposure of $75.1 billion, increased $4.7 billion, or in 2017. Energy sector reservable criticized exposure decreased
seven percent, during 2018. The increase in committed exposure $833 million during 2018 to $787 million due to improvement in
occurred primarily as a result of increases in large conglomerates, credit quality coupled with exposure reductions. The energy
as well as trading companies, distributors and electrical equipment allowance for credit losses decreased $225 million during 2018
companies, partially offset by a decrease in machinery companies. to $335 million.
Our energy-related committed exposure decreased $4.5 billion,
or 12 percent, during 2018 to $32.3 billion. Energy sector net
Table 40 Commercial Credit Exposure by Industry (1)

Commercial Total Commercial
Utilized Committed (2)
December 31
Asset managers and funds $ 71,756 $ 59,190 $ 107,888 $ 91,092
Real estate (3) 65,328 61,940 86,514 83,773
Capital goods 39,192 36,705 75,080 70,417
Finance companies 36,662 34,050 56,659 53,107
Healthcare equipment and services 35,763 37,780 56,489 57,256
Government and public education 43,675 48,684 54,749 58,067
Materials 27,347 24,001 51,865 47,386
Retailing 25,333 26,117 47,507 48,796
Consumer services 25,702 27,191 43,298 43,605
Food, beverage and tobacco 23,586 23,252 42,745 42,815
Commercial services and supplies 22,623 22,100 39,349 35,496
Energy 13,727 16,345 32,279 36,765
Transportation 22,814 21,704 31,523 29,946
Global commercial banks 26,269 29,491 28,321 31,764
Utilities 12,035 11,342 27,623 27,935
Technology hardware and equipment 13,014 10,728 26,228 22,071
Individuals and trusts 18,643 18,549 25,019 25,097
Media 12,132 19,155 24,502 33,955
Pharmaceuticals and biotechnology 7,430 5,653 23,634 18,623
Vehicle dealers 17,603 16,896 20,446 20,361
Consumer durables and apparel 9,904 8,859 20,199 17,296
Software and services 8,809 8,562 19,172 18,202
Insurance 8,674 6,411 15,807 12,990
Telecommunication services 8,686 6,389 14,166 13,108
Automobiles and components 7,131 5,988 13,893 13,318
Food and staples retailing 4,787 4,955 9,093 15,589
Religious and social organizations 3,757 4,454 5,620 6,318
Financial markets infrastructure (clearinghouses) 2,382 688 4,107 2,403
Other 6,249 3,621 6,241 3,616
Total commercial credit exposure by industry $ 621,013 $ 600,800 $ 1,010,016 $ 981,167
Net credit default protection purchased on total commitments (4) $ (2,663) $ (2,129)
(1) Includes U.S. small business commercial exposure.
(2) Includes the notional amount of unfunded legally binding lending commitments net of amounts distributed (i.e., syndicated or participated) to other financial institutions. The distributed amounts
were $10.7 billion and $11.0 billion at December 31, 2018 and 2017.
(3) Industries are viewed from a variety of perspectives to best isolate the perceived risks. For purposes of this table, the real estate industry is defined based on the primary business activity of the
borrowers or counterparties using operating cash flows and primary source of repayment as key factors.
(4) Represents net notional credit protection purchased. For additional information, see Commercial Portfolio Credit Risk Management – Risk Mitigation.
Risk Mitigation value option, as well as certain other credit exposures, was $2.7
We purchase credit protection to cover the funded portion as well billion and $2.1 billion. We recorded net losses of $2 million for
as the unfunded portion of certain credit exposures. To lower the 2018 compared to net losses of $66 million in 2017 on these
cost of obtaining our desired credit protection levels, we may add positions. The gains and losses on these instruments were offset
credit exposure within an industry, borrower or counterparty group by gains and losses on the related exposures. The Value-at-Risk
by selling protection. (VaR) results for these exposures are included in the fair value
At December 31, 2018 and 2017, net notional credit default option portfolio information in Table 47. For additional information,
protection purchased in our credit derivatives portfolio to hedge see Trading Risk Management on page 86.
our funded and unfunded exposures for which we elected the fair

Tables 41 and 42 present the maturity profiles and the credit In most cases, credit derivative transactions are executed on
exposure debt ratings of the net credit default protection portfolio a daily margin basis. Therefore, events such as a credit downgrade,
at December 31, 2018 and 2017. depending on the ultimate rating level, or a breach of credit
covenants would typically require an increase in the amount of
collateral required by the counterparty, where applicable, and/or
Table 41 Net Credit Default Protection by Maturity allow us to take additional protective measures such as early
December 31
termination of all trades. For more information on credit derivatives
2018 2017 and counterparty credit risk valuation adjustments, see Note 3 –
Less than or equal to one year 20% 42% Derivatives to the Consolidated Financial Statements.
Greater than one year and less than or equal
to five years 78 58 Non-U.S. Portfolio
Greater than five years 2 — Our non-U.S. credit and trading portfolios are subject to country
Total net credit default protection 100% 100% risk. We define country risk as the risk of loss from unfavorable
economic and political conditions, currency fluctuations, social
instability and changes in government policies. A risk management
Table 42 Net Credit Default Protection by Credit framework is in place to measure, monitor and manage non-U.S.
Exposure Debt Rating risk and exposures. In addition to the direct risk of doing business
in a country, we also are exposed to indirect country risks (e.g.,
Net Percent of Net Percent of related to the collateral received on secured financing transactions
Notional (1) Total Notional (1) Total or related to client clearing activities). These indirect exposures
December 31 are managed in the normal course of business through credit,
(Dollars in millions) 2018 2017 market and operational risk governance, rather than through
Ratings (2, 3) country risk governance.
A $ (700) 26.3% $ (280) 13.2% Table 43 presents our 20 largest non-U.S. country exposures
BBB (501) 18.8 (459) 21.6 at December 31, 2018. These exposures accounted for 89 percent
BB (804) 30.2 (893) 41.9
and 86 percent of our total non-U.S. exposure at December 31,
B (422) 15.8 (403) 18.9
2018 and 2017. Net country exposure for these 20 countries
CCC and below (205) 7.7 (84) 3.9
increased $44.1 billion in 2018, primarily driven by increased
NR (4) (31) 1.2 (10) 0.5
placements with central banks in the U.K., Japan and Germany.
Total net credit
default protection $ (2,663) 100.0% $ (2,129) 100.0% Non-U.S. exposure is presented on an internal risk
(1) Represents net credit default protection purchased. management basis and includes sovereign and non-sovereign
(2) Ratings are refreshed on a quarterly basis. credit exposure, securities and other investments issued by or
(3) Ratings of BBB- or higher are considered to meet the definition of investment grade.
(4) NR is comprised of index positions held and any names that have not been rated. domiciled in countries other than the U.S.
Funded loans and loan equivalents include loans, leases, and
In addition to our net notional credit default protection other extensions of credit and funds, including letters of credit and
purchased to cover the funded and unfunded portion of certain due from placements. Unfunded commitments are the undrawn
credit exposures, credit derivatives are used for market-making portion of legally binding commitments related to loans and loan
activities for clients and establishing positions intended to profit equivalents. Net counterparty exposure includes the fair value of
from directional or relative value changes. We execute the majority derivatives, including the counterparty risk associated with credit
of our credit derivative trades in the OTC market with large, default swaps (CDS), and secured financing transactions.
multinational financial institutions, including broker-dealers and, Securities and other investments are carried at fair value and long
to a lesser degree, with a variety of other investors. Because these securities exposures are netted against short exposures with the
transactions are executed in the OTC market, we are subject to same underlying issuer to, but not below, zero. Net country
settlement risk. We are also subject to credit risk in the event that exposure represents country exposure less hedges and credit
these counterparties fail to perform under the terms of these default protection purchased, net of credit default protection sold.
contracts. In order to properly reflect counterparty credit risk, we
record counterparty credit risk valuation adjustments on certain
derivative assets, including our purchased credit default
protection.

Table 43 Top 20 Non-U.S. Countries Exposure
Country Net Country Increase
Funded Loans Unfunded Net Securities/ Exposure at Hedges and Exposure at (Decrease) from
and Loan Loan Counterparty Other December 31 Credit Default December 31 December 31
(Dollars in millions) Equivalents Commitments Exposure Investments 2018 Protection 2018 2017
United Kingdom $ 28,833 $ 20,410 $ 6,419 $ 2,639 $ 58,301 $ (3,447) $ 54,854 $ 17,259
Germany 24,856 6,823 1,835 443 33,957 (5,300) 28,657 7,154
Japan 17,762 1,316 1,023 1,341 21,442 (1,419) 20,023 10,933
Canada 7,388 7,234 1,641 3,773 20,036 (521) 19,515 792
China 12,774 681 975 495 14,925 (284) 14,641 (1,284)
France 7,137 5,849 1,331 1,214 15,531 (2,880) 12,651 2,108
Netherlands 8,405 2,992 389 973 12,759 (1,182) 11,577 3,110
India 7,147 451 312 3,379 11,289 (177) 11,112 615
Brazil 6,651 544 209 3,172 10,576 (327) 10,249 (467)
Australia 5,173 3,132 571 1,507 10,383 (453) 9,930 (659)
South Korea 5,634 463 897 2,456 9,450 (280) 9,170 1,269
Switzerland 5,494 2,580 335 201 8,610 (846) 7,764 1,967
Hong Kong 5,287 442 321 1,224 7,274 (38) 7,236 (1,442)
Mexico 3,506 1,275 140 1,444 6,365 (129) 6,236 749
Belgium 4,684 1,016 103 147 5,950 (372) 5,578 1,613
Singapore 3,330 125 362 1,770 5,587 (70) 5,517 (746)
Spain 3,769 1,138 290 792 5,989 (1,339) 4,650 1,542
United Arab Emirates 3,371 135 138 55 3,699 (50) 3,649 262
Taiwan 2,311 13 288 623 3,235 — 3,235 523
Italy 2,372 1,065 491 597 4,525 (1,444) 3,081 (1,165)
Total top 20 non-U.S.
countries exposure $ 165,884 $ 57,684 $ 18,070 $ 28,245 $ 269,883 $ (20,558) $ 249,325 $ 44,133
A number of economic conditions and geopolitical events have monitoring our exposures to tariff-sensitive industries and our
given rise to risk aversion in certain emerging markets. Our largest international exposure, particularly to countries that account for
emerging market country exposure at December 31, 2018 was a large percentage of U.S. trade.
China, with net exposure of $14.6 billion, concentrated in large Table 44 presents countries where total cross-border exposure
state-owned companies, subsidiaries of multinational exceeded one percent of our total assets. At December 31, 2018,
corporations and commercial banks. the U.K. and France were the only countries where total cross-
The outlook for policy direction and therefore economic border exposure exceeded one percent of our total assets. At
performance in the EU remains uncertain as a consequence of December 31, 2018, Germany and China had total cross-border
reduced political cohesion among EU countries. Additionally, we exposure of $20.4 billion and $19.5 billion representing 0.87
believe that the uncertainty in the U.K.’s ability to negotiate a percent and 0.83 percent of our total assets. No other countries
favorable exit from the EU will further weigh on economic had total cross-border exposure that exceeded 0.75 percent of
performance. Our largest EU country exposure at December 31, our total assets at December 31, 2018.
2018 was the U.K. with net exposure of $54.9 billion, a $17.3 Cross-border exposure includes the components of Country
billion increase from December 31, 2017. The increase was driven Risk Exposure as detailed in Table 43 as well as the notional
by corporate loan growth and increased placements with the amount of cash loaned under secured financing agreements. Local
central bank as part of liquidity management. exposure, defined as exposure booked in local offices of a
Markets have reacted negatively to the escalating tensions respective country with clients in the same country, is excluded.
between the U.S. and several key trading partners. We are closely
Table 44 Total Cross-border Exposure Exceeding One Percent of Total Assets
Exposure as a
Cross-border Percent of
(Dollars in millions) December 31 Public Sector Banks Private Sector Exposure Total Assets
United Kingdom 2018 $ 1,505 $ 3,458 $ 46,191 $ 51,154 2.17%
2017 923 2,984 47,205 51,112 2.24
2016 2,975 4,557 42,105 49,637 2.27
France 2018 633 2,385 29,847 32,865 1.40
2017 2,964 1,521 27,903 32,388 1.42
2016 4,956 1,205 23,193 29,354 1.34

Provision for Credit Losses the portion of loans that will default based on individual loan
The provision for credit losses decreased $114 million to $3.3 attributes, the most significant of which are refreshed LTV or CLTV,
billion in 2018 compared to 2017 primarily due to improvement and borrower credit score as well as vintage and geography, all of
in the commercial portfolio, partially offset by an increase in the which are further broken down into current delinquency status.
consumer portfolio. The provision for credit losses was $481 Additionally, we incorporate the delinquency status of underlying
million lower than net charge-offs for 2018, resulting in a reduction first-lien loans on our junior-lien home equity portfolio in our
in the allowance for credit losses. This compared to a reduction allowance process. Incorporating refreshed LTV and CLTV into our
of $583 million in the allowance for credit losses in 2017. probability of default allows us to factor the impact of changes in
The provision for credit losses for the consumer portfolio home prices into our allowance for loan and lease losses. These
increased $222 million to $2.9 billion in 2018 compared to 2017. loss forecast models are updated on a quarterly basis to
The increase was primarily driven by a slower pace of improvement incorporate information reflecting the current economic
in the consumer real estate portfolio, and portfolio seasoning and environment. As of December 31, 2018, the loss forecast process
loan growth in the U.S. credit card portfolio, partially offset by the resulted in reductions in the allowance related to the residential
impact of the sale of the non-U.S. consumer credit card business mortgage and home equity portfolios compared to December 31,
in 2017. 2017.
The provision for credit losses for the commercial portfolio, The allowance for commercial loan and lease losses is
including unfunded lending commitments, decreased $336 million established by product type after analyzing historical loss
to $333 million in 2018 compared to 2017. The decrease was experience, internal risk rating, current economic conditions,
primarily driven by a 2017 single-name non-U.S. commercial industry performance trends, geographic and obligor
charge-off and improvement in the commercial portfolio. concentrations within each portfolio and any other pertinent
information. The statistical models for commercial loans are
Allowance for Credit Losses generally updated annually and utilize our historical database of
actual defaults and other data, including external default data. The
Allowance for Loan and Lease Losses loan risk ratings and composition of the commercial portfolios
The allowance for loan and lease losses is comprised of two used to calculate the allowance are updated quarterly to
components. The first component covers nonperforming incorporate the most recent data reflecting the current economic
commercial loans and TDRs. The second component covers loans environment. For risk-rated commercial loans, we estimate the
and leases on which there are incurred losses that are not yet probability of default and the loss given default (LGD) based on
individually identifiable, as well as incurred losses that may not our historical experience of defaults and credit losses. Factors
be represented in the loss forecast models. We evaluate the considered when assessing the internal risk rating include the
adequacy of the allowance for loan and lease losses based on the value of the underlying collateral, if applicable, the industry in which
total of these two components, each of which is described in more the obligor operates, the obligor’s liquidity and other financial
detail below. The allowance for loan and lease losses excludes indicators, and other quantitative and qualitative factors relevant
loans held-for-sale (LHFS) and loans accounted for under the fair to the obligor’s credit risk. As of December 31, 2018, the allowance
value option as the fair value reflects a credit risk component. for the U.S. commercial and non-U.S. commercial portfolios
The first component of the allowance for loan and lease losses decreased compared to December 31, 2017.
covers both nonperforming commercial loans and all TDRs within Also included within the second component of the allowance
the consumer and commercial portfolios. These loans are subject for loan and lease losses are reserves to cover losses that are
to impairment measurement based on the present value of incurred but, in our assessment, may not be adequately
projected future cash flows discounted at the loan’s original represented in the historical loss data used in the loss forecast
effective interest rate, or in certain circumstances, impairment models. For example, factors that we consider include, among
may also be based upon the collateral value or the loan’s others, changes in lending policies and procedures, changes in
observable market price if available. Impairment measurement for economic and business conditions, changes in the nature and size
the renegotiated consumer credit card, small business credit card of the portfolio, changes in portfolio concentrations, changes in
and unsecured consumer TDR portfolios is based on the present the volume and severity of past due loans and nonaccrual loans,
value of projected cash flows discounted using the average the effect of external factors such as competition, and legal and
portfolio contractual interest rate, excluding promotionally priced regulatory requirements. Further, we consider the inherent
loans, in effect prior to restructuring. For purposes of computing uncertainty in mathematical models that are built upon historical
this specific loss component of the allowance, larger impaired data.
loans are evaluated individually and smaller impaired loans are During 2018, the factors that impacted the allowance for loan
evaluated as a pool using historical experience for the respective and lease losses included improvement in the credit quality of the
product types and risk ratings of the loans. consumer real estate portfolios driven by continuing improvements
The second component of the allowance for loan and lease in the U.S. economy and strong labor markets, proactive credit
losses covers the remaining consumer and commercial loans and risk management initiatives and the impact of high credit quality
leases that have incurred losses that are not yet individually originations. Evidencing the improvements in the U.S. economy
identifiable. The allowance for consumer (including credit card and and strong labor markets are low levels of unemployment and
other consumer loans) and certain homogeneous commercial loan increases in home prices. In addition to these improvements, in
and lease products is based on aggregated portfolio evaluations, the consumer portfolio, nonperforming consumer loans decreased
which include both quantitative and qualitative components, $1.3 billion in 2018 as returns to performing status, loan sales,
generally by product type. Loss forecast models are utilized that paydowns and charge-offs continued to outpace new nonaccrual
consider a variety of factors including, but not limited to, historical loans. During 2018, the allowance for loan and lease losses in
loss experience, estimated defaults or foreclosures based on the commercial portfolio reflected decreased energy reserves
portfolio trends, delinquencies, economic trends and credit primarily driven by improvement in energy exposures including
scores. Our consumer real estate loss forecast model estimates reservable criticized utilized exposures.

We monitor differences between estimated and actual incurred at December 31, 2017. See Tables 34, 35 and 36 for more details
loan and lease losses. This monitoring process includes periodic on key commercial credit statistics.
assessments by senior management of loan and lease portfolios The allowance for loan and lease losses as a percentage of
and the models used to estimate incurred losses in those total loans and leases outstanding was 1.02 percent at December
portfolios. 31, 2018 compared to 1.12 percent at December 31, 2017.
The allowance for loan and lease losses for the consumer
portfolio, as presented in Table 45, was $4.8 billion at December Reserve for Unfunded Lending Commitments
31, 2018, a decrease of $581 million from December 31, 2017. In addition to the allowance for loan and lease losses, we also
The decrease was primarily in the consumer real estate portfolio, estimate probable losses related to unfunded lending
partially offset by an increase in the U.S. credit card portfolio. The commitments such as letters of credit, financial guarantees,
reduction in the allowance for the consumer real estate portfolio unfunded bankers’ acceptances and binding loan commitments,
was due to improved home prices, lower nonperforming loans and excluding commitments accounted for under the fair value option.
a decrease in loan balances in our non-core portfolio. The increase Unfunded lending commitments are subject to the same
in the allowance for the U.S. credit card portfolio was driven by assessment as funded loans, including estimates of probability
portfolio seasoning and loan growth. of default and LGD. Due to the nature of unfunded commitments,
The allowance for loan and lease losses for the commercial the estimate of probable losses must also consider utilization. To
portfolio, as presented in Table 45, was $4.8 billion at December estimate the portion of these undrawn commitments that is likely
31, 2018, a decrease of $211 million from December 31, 2017 to be drawn by a borrower at the time of estimated default, analyses
primarily driven by improvement in energy exposures. Commercial of our historical experience are applied to the unfunded
reservable criticized utilized exposure decreased to $11.1 billion commitments to estimate the funded exposure at default (EAD).
at December 31, 2018 from $13.6 billion (to 2.08 percent from The expected loss for unfunded lending commitments is the
2.65 percent of total commercial reservable utilized exposure) at product of the probability of default, the LGD and the EAD, adjusted
December 31, 2017, driven by broad-based improvements for any qualitative factors including economic uncertainty and
including the energy sector. Nonperforming commercial loans inherent imprecision in models.
decreased to $1.1 billion at December 31, 2018 from $1.3 billion The reserve for unfunded lending commitments was $797
(to 0.22 percent from 0.27 percent of outstanding commercial million at December 31, 2018 compared to $777 million at
loans excluding loans accounted for under the fair value option) December 31, 2017.
Table 45 Allocation of the Allowance for Credit Losses by Product Type

Percent of Percent of
Loans and Loans and
Percent of Leases Percent of Leases
Amount Total Outstanding (1) Amount Total Outstanding (1)
(Dollars in millions) December 31, 2018 December 31, 2017
Allowance for loan and lease losses
Residential mortgage $ 422 4.40% 0.20% $ 701 6.74% 0.34%
Home equity 506 5.27 1.05 1,019 9.80 1.76
U.S. credit card 3,597 37.47 3.66 3,368 32.41 3.50
Direct/Indirect consumer 248 2.58 0.27 264 2.54 0.27
Other consumer 29 0.30 n/m 31 0.30 n/m
Total consumer 4,802 50.02 1.08 5,383 51.79 1.18
U.S. commercial (2) 3,010 31.35 0.96 3,113 29.95 1.04
Non-U.S. commercial 677 7.05 0.69 803 7.73 0.82
Commercial real estate 958 9.98 1.57 935 9.00 1.60
Commercial lease financing 154 1.60 0.68 159 1.53 0.72
Total commercial 4,799 49.98 0.97 5,010 48.21 1.05
Allowance for loan and lease losses (3) 9,601 100.00% 1.02 10,393 100.00% 1.12
Reserve for unfunded lending commitments 797 777
Allowance for credit losses $ 10,398 $ 11,170
(1) Ratios are calculated as allowance for loan and lease losses as a percentage of loans and leases outstanding excluding loans accounted for under the fair value option. Consumer loans accounted
for under the fair value option include residential mortgage loans of $336 million and $567 million and home equity loans of $346 million and $361 million at December 31, 2018 and 2017.
Commercial loans accounted for under the fair value option include U.S. commercial loans of $2.5 billion and $2.6 billion and non-U.S. commercial loans of $1.1 billion and $2.2 billion at December
31, 2018 and 2017.
(2) Includes allowance for loan and lease losses for U.S. small business commercial loans of $474 million and $439 million at December 31, 2018 and 2017.
(3) Includes $91 million and $289 million of valuation allowance presented with the allowance for loan and lease losses related to PCI loans at December 31, 2018 and 2017.

Table 46 presents a rollforward of the allowance for credit losses, which includes the allowance for loan and lease losses and the
reserve for unfunded lending commitments, for 2018 and 2017.
Table 46 Allowance for Credit Losses

Allowance for loan and lease losses, January 1 $ 10,393 $ 11,237
Loans and leases charged off
Residential mortgage (207) (188)
Home equity (483) (582)
U.S. credit card (3,345) (2,968)
Non-U.S. credit card (1) — (103)
Direct/Indirect consumer (495) (491)
Other consumer (197) (212)
Total consumer charge-offs (4,727) (4,544)
U.S. commercial (2) (575) (589)
Non-U.S. commercial (82) (446)
Commercial real estate (10) (24)
Commercial lease financing (8) (16)
Total commercial charge-offs (675) (1,075)
Total loans and leases charged off (5,402) (5,619)
Recoveries of loans and leases previously charged off
Residential mortgage 179 288
Home equity 485 369
U.S. credit card 508 455
Non-U.S. credit card (1) — 28
Direct/Indirect consumer 300 277
Other consumer 15 49
Total consumer recoveries 1,487 1,466
U.S. commercial (3) 120 142
Non-U.S. commercial 14 6
Commercial real estate 9 15
Commercial lease financing 9 11
Total commercial recoveries 152 174
Total recoveries of loans and leases previously charged off 1,639 1,640
Net charge-offs (3,763) (3,979)
Write-offs of PCI loans (273) (207)
Provision for loan and lease losses 3,262 3,381
Other (4) (18) (39)
Allowance for loan and lease losses, December 31 9,601 10,393
Reserve for unfunded lending commitments, January 1 777 762
Provision for unfunded lending commitments 20 15
Reserve for unfunded lending commitments, December 31 797 777
Allowance for credit losses, December 31 $ 10,398 $ 11,170
Loan and allowance ratios:

Loans and leases outstanding at December 31 (5) $ 942,546 $ 931,039
Allowance for loan and lease losses as a percentage of total loans and leases outstanding at December 31 (5) 1.02% 1.12%
Consumer allowance for loan and lease losses as a percentage of total consumer loans and leases outstanding at December 31 (6) 1.08 1.18
Commercial allowance for loan and lease losses as a percentage of total commercial loans and leases outstanding at December 31 (7) 0.97 1.05
Average loans and leases outstanding (5) $ 927,531 $ 911,988
Net charge-offs as a percentage of average loans and leases outstanding (5, 8) 0.41% 0.44%
Net charge-offs and PCI write-offs as a percentage of average loans and leases outstanding (5) 0.44 0.46
Allowance for loan and lease losses as a percentage of total nonperforming loans and leases at December 31 (5) 194 161
Ratio of the allowance for loan and lease losses at December 31 to net charge-offs (8) 2.55 2.61
Ratio of the allowance for loan and lease losses at December 31 to net charge-offs and PCI write-offs 2.38 2.48
Amounts included in allowance for loan and lease losses for loans and leases that are excluded from nonperforming loans and leases
at December 31 (9) $ 4,031 $ 3,971
Allowance for loan and lease losses as a percentage of total nonperforming loans and leases, excluding the allowance for loan and
lease losses for loans and leases that are excluded from nonperforming loans and leases at December 31 (5, 9) 113% 99%
(1) Represents net charge-offs related to the non-U.S. credit card loan portfolio, which was sold in 2017.
(2) Includes U.S. small business commercial charge-offs of $287 million and $258 million in 2018 and 2017.
(3) Includes U.S. small business commercial recoveries of $47 million and $43 million in 2018 and 2017.
(4) Primarily represents the net impact of portfolio sales, consolidations and deconsolidations, foreign currency translation adjustments, transfers to held for sale and certain other reclassifications.
(5) Outstanding loan and lease balances and ratios do not include loans accounted for under the fair value option of $4.3 billion and $5.7 billion at December 31, 2018 and 2017. Average loans
accounted for under the fair value option were $5.5 billion and $6.7 billion in 2018 and 2017.
(6) Excludes consumer loans accounted for under the fair value option of $682 million and $928 million at December 31, 2018 and 2017.
(7) Excludes commercial loans accounted for under the fair value option of $3.7 billion and $4.8 billion at December 31, 2018 and 2017.
(8) Net charge-offs exclude $273 million and $207 million of write-offs in the PCI loan portfolio in 2018 and 2017. For more information on PCI write-offs, see Consumer Portfolio Credit Risk Management
– Purchased Credit-impaired Loan Portfolio on page 72.
(9) Primarily includes amounts allocated to U.S. credit card and unsecured consumer lending portfolios in Consumer Banking and PCI loans in All Other.

Market Risk Management certain trading-related assets and liabilities, deposits, borrowings
Market risk is the risk that changes in market conditions may and derivatives. Hedging instruments used to mitigate these risks
adversely impact the value of assets or liabilities, or otherwise include derivatives such as options, futures, forwards and swaps.
negatively impact earnings. This risk is inherent in the financial
instruments associated with our operations, primarily within our Foreign Exchange Risk
Global Markets segment. We are also exposed to these risks in Foreign exchange risk represents exposures to changes in the
other areas of the Corporation (e.g., our ALM activities). In the values of current holdings and future cash flows denominated in
event of market stress, these risks could have a material impact currencies other than the U.S. dollar. The types of instruments
on our results. For more information, see Interest Rate Risk exposed to this risk include investments in non-U.S. subsidiaries,
Management for the Banking Book on page 89. foreign currency-denominated loans and securities, future cash
Our traditional banking loan and deposit products are non- flows in foreign currencies arising from foreign exchange
trading positions and are generally reported at amortized cost for transactions, foreign currency-denominated debt and various
assets or the amount owed for liabilities (historical cost). However, foreign exchange derivatives whose values fluctuate with changes
these positions are still subject to changes in economic value in the level or volatility of currency exchange rates or non-
based on varying market conditions, with one of the primary risks U.S. interest rates. Hedging instruments used to mitigate this risk
being changes in the levels of interest rates. The risk of adverse include foreign exchange options, currency swaps, futures,
changes in the economic value of our non-trading positions arising forwards, and foreign currency-denominated debt and deposits.
from changes in interest rates is managed through our ALM
activities. We have elected to account for certain assets and
Mortgage Risk
Mortgage risk represents exposures to changes in the values of
liabilities under the fair value option.
mortgage-related instruments. The values of these instruments
Our trading positions are reported at fair value with changes
are sensitive to prepayment rates, mortgage rates, agency debt
reflected in income. Trading positions are subject to various
ratings, default, market liquidity, government participation and
changes in market-based risk factors. The majority of this risk is
interest rate volatility. Our exposure to these instruments takes
generated by our activities in the interest rate, foreign exchange,
several forms. For example, we trade and engage in market-making
credit, equity and commodities markets. In addition, the values of
activities in a variety of mortgage securities including whole loans,
assets and liabilities could change due to market liquidity,
pass-through certificates, commercial mortgages and
correlations across markets and expectations of market volatility.
collateralized mortgage obligations including collateralized debt
We seek to manage these risk exposures by using a variety of
obligations using mortgages as underlying collateral. In addition,
techniques that encompass a broad range of financial
we originate a variety of MBS, which involves the accumulation of
instruments. The key risk management techniques are discussed
mortgage-related loans in anticipation of eventual securitization,
in more detail in the Trading Risk Management section.
and we may hold positions in mortgage securities and residential
Global Risk Management is responsible for providing senior
mortgage loans as part of the ALM portfolio. We also record MSRs
management with a clear and comprehensive understanding of
as part of our mortgage origination activities. Hedging instruments
the trading risks to which we are exposed. These responsibilities
used to mitigate this risk include derivatives such as options,
include ownership of market risk policy, developing and maintaining
swaps, futures and forwards as well as securities including MBS
quantitative risk models, calculating aggregated risk measures,
and U.S. Treasury securities. For more information, see Mortgage
establishing and monitoring position limits consistent with risk
Banking Risk Management on page 91.
appetite, conducting daily reviews and analysis of trading inventory,
approving material risk exposures and fulfilling regulatory
Equity Market Risk
requirements. Market risks that impact businesses outside of
Equity market risk represents exposures to securities that
Global Markets are monitored and governed by their respective
represent an ownership interest in a corporation in the form of
governance functions.
domestic and foreign common stock or other equity-linked
Quantitative risk models, such as VaR, are an essential
instruments. Instruments that would lead to this exposure include,
component in evaluating the market risks within a portfolio. The
but are not limited to, the following: common stock, exchange-
Enterprise Model Risk Committee (EMRC), a subcommittee of the
traded funds, American Depositary Receipts, convertible bonds,
MRC, is responsible for providing management oversight and
listed equity options (puts and calls), OTC equity options, equity
approval of model risk management and governance. The EMRC
total return swaps, equity index futures and other equity derivative
defines model risk standards, consistent with our risk framework
products. Hedging instruments used to mitigate this risk include
and risk appetite, prevailing regulatory guidance and industry best
options, futures, swaps, convertible bonds and cash positions.
practice. Models must meet certain validation criteria, including
effective challenge of the model development process and a Commodity Risk
sufficient demonstration of developmental evidence incorporating Commodity risk represents exposures to instruments traded in
a comparison of alternative theories and approaches. The EMRC the petroleum, natural gas, power and metals markets. These
oversees that model standards are consistent with model risk instruments consist primarily of futures, forwards, swaps and
requirements and monitors the effective challenge in the model options. Hedging instruments used to mitigate this risk include
validation process across the Corporation. In addition, the relevant options, futures and swaps in the same or similar commodity
stakeholders must agree on any required actions or restrictions product, as well as cash positions.
to the models and maintain a stringent monitoring process for
continued compliance. Issuer Credit Risk
Issuer credit risk represents exposures to changes in the
Interest Rate Risk creditworthiness of individual issuers or groups of issuers. Our
Interest rate risk represents exposures to instruments whose portfolio is exposed to issuer credit risk where the value of an
values vary with the level or volatility of interest rates. These asset may be adversely impacted by changes in the levels of credit
instruments include, but are not limited to, loans, debt securities, spreads, by credit migration or by defaults. Hedging instruments
used to mitigate this risk include bonds, CDS and other credit or lower levels of portfolio diversification than will be experienced.
fixed-income instruments. In order for the VaR model to reflect current market conditions, we
update the historical data underlying our VaR model on a weekly
Market Liquidity Risk basis, or more frequently during periods of market stress, and
Market liquidity risk represents the risk that the level of expected regularly review the assumptions underlying the model. A minor
market activity changes dramatically and, in certain cases, may portion of risks related to our trading positions is not included in
even cease. This exposes us to the risk that we will not be able VaR. These risks are reviewed as part of our ICAAP. For more
to transact business and execute trades in an orderly manner information regarding ICAAP, see Capital Management on page 58.
which may impact our results. This impact could be further Global Risk Management continually reviews, evaluates and
exacerbated if expected hedging or pricing correlations are enhances our VaR model so that it reflects the material risks in
compromised by disproportionate demand or lack of demand for our trading portfolio. Changes to the VaR model are reviewed and
certain instruments. We utilize various risk mitigating techniques approved prior to implementation and any material changes are
as discussed in more detail in Trading Risk Management. reported to management through the appropriate management
committees.
Trading Risk Management Trading limits on quantitative risk measures, including VaR, are
To evaluate risk in our trading activities, we focus on the actual independently set by Global Markets Risk Management and
and potential volatility of revenues generated by individual reviewed on a regular basis so that trading limits remain relevant
positions as well as portfolios of positions. Various techniques and within our overall risk appetite for market risks. Trading limits
and procedures are utilized to enable the most complete are reviewed in the context of market liquidity, volatility and
understanding of these risks. Quantitative measures of market strategic business priorities. Trading limits are set at both a
risk are evaluated on a daily basis from a single position to the granular level to allow for extensive coverage of risks as well as
portfolio of the Corporation. These measures include sensitivities at aggregated portfolios to account for correlations among risk
of positions to various market risk factors, such as the potential factors. All trading limits are approved at least annually. Approved
impact on revenue from a one basis point change in interest rates, trading limits are stored and tracked in a centralized limits
and statistical measures utilizing both actual and hypothetical management system. Trading limit excesses are communicated
market moves, such as VaR and stress testing. Periods of extreme to management for review. Certain quantitative market risk
market stress influence the reliability of these techniques to measures and corresponding limits have been identified as critical
varying degrees. Qualitative evaluations of market risk utilize the in the Corporation’s Risk Appetite Statement. These risk appetite
suite of quantitative risk measures while understanding each of limits are reported on a daily basis and are approved at least
their respective limitations. Additionally, risk managers annually by the ERC and the Board.
independently evaluate the risk of the portfolios under the current In periods of market stress, Global Markets senior leadership
market environment and potential future environments. communicates daily to discuss losses, key risk positions and any
VaR is a common statistic used to measure market risk as it limit excesses. As a result of this process, the businesses may
allows the aggregation of market risk factors, including the effects selectively reduce risk.
of portfolio diversification. A VaR model simulates the value of a Table 47 presents the total market-based portfolio VaR which
portfolio under a range of scenarios in order to generate a is the combination of the total covered positions (and less liquid
distribution of potential gains and losses. VaR represents the loss trading positions) portfolio and the fair value option portfolio.
a portfolio is not expected to exceed more than a certain number Covered positions are defined by regulatory standards as trading
of times per period, based on a specified holding period, assets and liabilities, both on- and off-balance sheet, that meet a
confidence level and window of historical data. We use one VaR defined set of specifications. These specifications identify the
model consistently across the trading portfolios and it uses a most liquid trading positions which are intended to be held for a
historical simulation approach based on a three-year window of short-term horizon and where we are able to hedge the material
historical data. Our primary VaR statistic is equivalent to a 99 risk elements in a two-way market. Positions in less liquid markets,
percent confidence level. This means that for a VaR with a one- or where there are restrictions on the ability to trade the positions,
day holding period, there should not be losses in excess of VaR, typically do not qualify as covered positions. Foreign exchange and
on average, 99 out of 100 trading days. commodity positions are always considered covered positions,
Within any VaR model, there are significant and numerous except for structural foreign currency positions that are excluded
assumptions that will differ from company to company. The with prior regulatory approval. In addition, Table 47 presents our
accuracy of a VaR model depends on the availability and quality fair value option portfolio, which includes substantially all of the
of historical data for each of the risk factors in the portfolio. A VaR funded and unfunded exposures for which we elect the fair value
model may require additional modeling assumptions for new option, and their corresponding hedges. Additionally, market risk
products that do not have the necessary historical market data or VaR for trading activities as presented in Table 47 differs from VaR
for less liquid positions for which accurate daily prices are not used for regulatory capital calculations due to the holding period
consistently available. For positions with insufficient historical being used. The holding period for VaR used for regulatory capital
data for the VaR calculation, the process for establishing an calculations is 10 days, while for the market risk VaR presented
appropriate proxy is based on fundamental and statistical analysis below, it is one day. Both measures utilize the same process and
of the new product or less liquid position. This analysis identifies methodology.
reasonable alternatives that replicate both the expected volatility The total market-based portfolio VaR results in Table 47 include
and correlation to other market risk factors that the missing data market risk to which we are exposed from all business segments,
would be expected to experience. excluding credit valuation adjustment (CVA), DVA and related
VaR may not be indicative of realized revenue volatility as hedges. The majority of this portfolio is within the Global Markets
changes in market conditions or in the composition of the portfolio segment.
can have a material impact on the results. In particular, the
historical data used for the VaR calculation might indicate higher

Table 47 presents year-end, average, high and low daily trading except for structural foreign currency positions that are excluded
VaR for 2018 and 2017 using a 99 percent confidence level. The with prior regulatory approval.
amounts disclosed in Table 47 and Table 48 align to the view of The average total covered positions and less liquid trading
covered positions used in the Basel 3 capital calculations. Foreign positions portfolio VaR decreased during 2018 primarily due to a
exchange and commodity positions are always considered covered decrease in credit risk along with an increase in portfolio
positions, regardless of trading or banking treatment for the trade, diversification.
Table 47 Market Risk VaR for Trading Activities

2018 2017
(Dollars in millions) Year End Average High (1) Low (1) Year End Average High (1) Low (1)
Foreign exchange $ 9 $ 8 $ 15 $ 2 $ 7 $ 11 $ 25 $ 3
Interest rate 36 25 45 15 22 21 41 11
Credit 26 25 31 20 29 26 33 21
Equity 20 20 40 11 19 18 33 12
Commodities 13 8 15 3 5 5 9 3
Portfolio diversification (59) (55) — — (49) (47) — —
Total covered positions portfolio 45 31 45 20 33 34 53 23
Impact from less liquid exposures 5 3 — — 5 6 — —
Total covered positions and less liquid trading positions portfolio 50 34 51 23 38 40 63 26
Fair value option loans 8 11 18 8 9 10 14 7
Fair value option hedges 5 9 17 4 7 7 11 4
Fair value option portfolio diversification (7) (11) — — (7) (8) — —
Total fair value option portfolio 6 9 16 5 9 9 11 6
Portfolio diversification (3) (5) — — (4) (4) — —
Total market-based portfolio $ 53 $ 38 57 26 $ 43 $ 45 69 29
(1) The high and low for each portfolio may have occurred on different trading days than the high and low for the components. Therefore the impact from less liquid exposures and the amount of portfolio
diversification, which is the difference between the total portfolio and the sum of the individual components, is not relevant.
The graph below presents the daily covered positions and less liquid trading positions portfolio VaR for 2018, corresponding to the
data in Table 47.
Daily Total Covered Positions and Less Liquid Trading Portfolio VaR History
80
70
60
Dollars in Millions
50
VaR
40
30
20
10
0
12/31/2017 3/31/2018 6/30/2018 9/30/2018 12/31/2018

Additional VaR statistics produced within our single VaR model are provided in Table 48 at the same level of detail as in Table 47.
Evaluating VaR with additional statistics allows for an increased understanding of the risks in the portfolio as the historical market
data used in the VaR calculation does not necessarily follow a predefined statistical distribution. Table 48 presents average trading
VaR statistics at 99 percent and 95 percent confidence levels for 2018 and 2017.
Table 48 Average Market Risk VaR for Trading Activities – 99 percent and 95 percent VaR Statistics
2018 2017
(Dollars in millions) 99 percent 95 percent 99 percent 95 percent
Foreign exchange $ 8 $ 5 $ 11 $ 6
Interest rate 25 16 21 14
Credit 25 15 26 15
Equity 20 11 18 10
Commodities 8 4 5 3
Portfolio diversification (55) (33) (47) (30)
Total covered positions portfolio 31 18 34 18
Impact from less liquid exposures 3 1 6 2
Total covered positions and less liquid trading positions portfolio 34 19 40 20
Fair value option loans 11 6 10 6
Fair value option hedges 9 6 7 5
Fair value option portfolio diversification (11) (7) (8) (6)
Total fair value option portfolio 9 5 9 5
Portfolio diversification (5) (3) (4) (3)
Total market-based portfolio $ 38 $ 21 $ 45 $ 22
Backtesting Total Trading-related Revenue

The accuracy of the VaR methodology is evaluated by backtesting, Total trading-related revenue, excluding brokerage fees, and CVA,
which compares the daily VaR results, utilizing a one-day holding DVA and funding valuation adjustment gains (losses), represents
period, against a comparable subset of trading revenue. A the total amount earned from trading positions, including market-
backtesting excess occurs when a trading loss exceeds the VaR based net interest income, which are taken in a diverse range of
for the corresponding day. These excesses are evaluated to financial instruments and markets. Trading account assets and
understand the positions and market moves that produced the liabilities are reported at fair value. For more information on fair
trading loss with a goal to ensure that the VaR methodology value, see Note 20 – Fair Value Measurements to the Consolidated
accurately represents those losses. We expect the frequency of Financial Statements. Trading-related revenue can be volatile and
trading losses in excess of VaR to be in line with the confidence is largely driven by general market conditions and customer
level of the VaR statistic being tested. For example, with a 99 demand. Also, trading-related revenue is dependent on the volume
percent confidence level, we expect one trading loss in excess of and type of transactions, the level of risk assumed, and the
VaR every 100 days or between two to three trading losses in volatility of price and rate movements at any given time within the
excess of VaR over the course of a year. The number of backtesting ever-changing market environment. Significant daily revenue by
excesses observed can differ from the statistically expected business is monitored and the primary drivers of these are
number of excesses if the current level of market volatility is reviewed.
materially different than the level of market volatility that existed The following histogram is a graphic depiction of trading
during the three years of historical data used in the VaR calculation. volatility and illustrates the daily level of trading-related revenue
The trading revenue used for backtesting is defined by for 2018 and 2017. During 2018, positive trading-related revenue
regulatory agencies in order to most closely align with the VaR was recorded for 98 percent of the trading days, of which 79
component of the regulatory capital calculation. This revenue percent were daily trading gains of over $25 million. This compares
differs from total trading-related revenue in that it excludes revenue to 2017 where positive trading-related revenue was recorded for
from trading activities that either do not generate market risk or 100 percent of the trading days, of which 77 percent were daily
the market risk cannot be included in VaR. Some examples of the trading gains of over $25 million.
types of revenue excluded for backtesting are fees, commissions,
Histogram of Daily Trading-related Revenue
reserves, net interest income and intraday trading revenues. 160
We conduct daily backtesting on the VaR results used for 140
regulatory capital calculations as well as the VaR results for key

120
legal entities, regions and risk factors. These results are reported
to senior market risk management. Senior management regularly 100
Number of Days
reviews and evaluates the results of these tests. 80
During 2018, there were three days in which there was a 60
backtesting excess for our total covered portfolio VaR, utilizing a 40

one-day holding period.
20
0
-25 to 0 0 to 25 25 to 50 50 to 75 75 to 100 greater than 100
Revenue (dollars in millions)

Year Ended December 31, 2017 Year Ended December 31, 2018

Trading Portfolio Stress Testing
Because the very nature of a VaR model suggests results can Table 49 Forward Rates
exceed our estimates and it is dependent on a limited historical
window, we also stress test our portfolio using scenario analysis. December 31, 2018
Federal Three-month 10-Year
This analysis estimates the change in the value of our trading Funds LIBOR Swap
portfolio that may result from abnormal market movements. Spot rates 2.50% 2.81% 2.71%
A set of scenarios, categorized as either historical or 12-month forward rates 2.50 2.64 2.75
hypothetical, are computed daily for the overall trading portfolio
and individual businesses. These scenarios include shocks to December 31, 2017
underlying market risk factors that may be well beyond the shocks Spot rates 1.50% 1.69% 2.40%
found in the historical data used to calculate VaR. Historical 12-month forward rates 2.00 2.14 2.48
scenarios simulate the impact of the market moves that occurred
during a period of extended historical market stress. Generally, a Table 50 shows the pretax impact to forecasted net interest
multi-week period representing the most severe point during a income over the next 12 months from December 31, 2018 and
crisis is selected for each historical scenario. Hypothetical 2017, resulting from instantaneous parallel and non-parallel
scenarios provide estimated portfolio impacts from potential shocks to the market-based forward curve. Periodically we evaluate
future market stress events. Scenarios are reviewed and updated the scenarios presented so that they are meaningful in the context
in response to changing positions and new economic or political of the current rate environment.
information. In addition, new or ad hoc scenarios are developed During 2018, the asset sensitivity of our balance sheet to rising
to address specific potential market events or particular rates declined primarily due to increases in long-end rates. We
vulnerabilities in the portfolio. The stress tests are reviewed on a continue to be asset sensitive to a parallel move in interest rates
regular basis and the results are presented to senior management. with the majority of that impact coming from the short end of the
Stress testing for the trading portfolio is integrated with yield curve. Additionally, higher interest rates impact the fair value
enterprise-wide stress testing and incorporated into the limits of debt securities and, accordingly, for debt securities classified
framework. The macroeconomic scenarios used for enterprise- as AFS, may adversely affect accumulated OCI and thus capital
wide stress testing purposes differ from the typical trading portfolio levels under the Basel 3 capital rules. Under instantaneous upward
scenarios in that they have a longer time horizon and the results parallel shifts, the near-term adverse impact to Basel 3 capital is
are forecasted over multiple periods for use in consolidated capital reduced over time by offsetting positive impacts to net interest
and liquidity planning. For more information, see Managing Risk income. For more information on Basel 3, see Capital Management
on page 55. – Regulatory Capital on page 59.
Interest Rate Risk Management for the Banking Table 50 Estimated Banking Book Net Interest Income
Book Sensitivity to Curve Changes
The following discussion presents net interest income for banking
book activities. Short Long
Rate Rate December 31
Interest rate risk represents the most significant market risk (bps) (bps)
exposure to our banking book balance sheet. Interest rate risk is
Parallel Shifts
measured as the potential change in net interest income caused +100 bps
by movements in market interest rates. Client-facing activities, instantaneous shift +100 +100 $ 2,651 $ 3,317
primarily lending and deposit-taking, create interest rate sensitive -100 bps
instantaneous shift -100 -100 (4,109) (5,183)
positions on our balance sheet.
We prepare forward-looking forecasts of net interest income. Flatteners
Short-end
The baseline forecast takes into consideration expected future instantaneous change +100 — 1,977 2,182
business growth, ALM positioning and the direction of interest rate Long-end
movements as implied by the market-based forward curve. We instantaneous change — -100 (1,616) (2,765)
then measure and evaluate the impact that alternative interest Steepeners
rate scenarios have on the baseline forecast in order to assess Short-end
instantaneous change -100 — (2,478) (2,394)
interest rate sensitivity under varied conditions. The net interest
Long-end
income forecast is frequently updated for changing assumptions instantaneous change — +100 673 1,135
and differing outlooks based on economic trends, market
conditions and business strategies. Thus, we continually monitor The sensitivity analysis in Table 50 assumes that we take no
our balance sheet position in order to maintain an acceptable level action in response to these rate shocks and does not assume any
of exposure to interest rate changes. change in other macroeconomic variables normally correlated with
The interest rate scenarios that we analyze incorporate balance changes in interest rates. As part of our ALM activities, we use
sheet assumptions such as loan and deposit growth and pricing, securities, certain residential mortgages, and interest rate and
changes in funding mix, product repricing, maturity characteristics foreign exchange derivatives in managing interest rate sensitivity.
and investment securities premium amortization. Our overall goal The behavior of our deposit portfolio in the baseline forecast
is to manage interest rate risk so that movements in interest rates and in alternate interest rate scenarios is a key assumption in our
do not significantly adversely affect earnings and capital. projected estimates of net interest income. The sensitivity analysis
Table 49 presents the spot and 12-month forward rates used in Table 50 assumes no change in deposit portfolio size or mix
in our baseline forecasts at December 31, 2018 and 2017. from the baseline forecast in alternate rate environments. In higher
rate scenarios, any customer activity resulting in the replacement
of low-cost or noninterest-bearing deposits with higher yielding

deposits or market-based funding would reduce our benefit in hedges). The net losses on both open and terminated cash flow
those scenarios. hedge derivative instruments recorded in accumulated OCI were
$1.3 billion, on a pretax basis, at both December 31, 2018 and
Interest Rate and Foreign Exchange Derivative 2017. These net losses are expected to be reclassified into
Contracts earnings in the same period as the hedged cash flows affect
Interest rate and foreign exchange derivative contracts are utilized earnings and will decrease income or increase expense on the
in our ALM activities and serve as an efficient tool to manage our respective hedged cash flows. Assuming no change in open cash
interest rate and foreign exchange risk. We use derivatives to flow derivative hedge positions and no changes in prices or interest
hedge the variability in cash flows or changes in fair value on our rates beyond what is implied in forward yield curves at December
balance sheet due to interest rate and foreign exchange 31, 2018, the pretax net losses are expected to be reclassified
components. For more information on our hedging activities, see into earnings as follows: 25 percent within the next year, 56 percent
Note 3 – Derivatives to the Consolidated Financial Statements. in years two through five and 11 percent in years six through 10,
Our interest rate contracts are generally non-leveraged generic with the remaining eight percent thereafter. For more information
interest rate and foreign exchange basis swaps, options, futures on derivatives designated as cash flow hedges, see Note 3 –
and forwards. In addition, we use foreign exchange contracts, Derivatives to the Consolidated Financial Statements.
including cross-currency interest rate swaps, foreign currency We hedge our net investment in non-U.S. operations determined
futures contracts, foreign currency forward contracts and options to have functional currencies other than the U.S. dollar using
to mitigate the foreign exchange risk associated with foreign forward foreign exchange contracts that typically settle in less than
currency-denominated assets and liabilities. 180 days, cross-currency basis swaps and foreign exchange
Changes to the composition of our derivatives portfolio during options. We recorded net after-tax losses on derivatives in
2018 reflect actions taken for interest rate and foreign exchange accumulated OCI associated with net investment hedges which
rate risk management. The decisions to reposition our derivatives were offset by gains on our net investments in consolidated non-
portfolio are based on the current assessment of economic and U.S. entities at December 31, 2018.
financial conditions including the interest rate and foreign currency Table 51 presents derivatives utilized in our ALM activities and
environments, balance sheet composition and trends, and the shows the notional amount, fair value, weighted-average receive-
relative mix of our cash and derivative positions. fixed and pay-fixed rates, expected maturity and average estimated
We use interest rate derivative instruments to hedge the durations of our open ALM derivatives at December 31, 2018 and
variability in the cash flows of our assets and liabilities and other 2017. These amounts do not include derivative hedges on our
forecasted transactions (collectively referred to as cash flow MSRs.
Table 51 Asset and Liability Management Interest Rate and Foreign Exchange Contracts
December 31, 2018
Expected Maturity
Average
(Dollars in millions, average estimated duration in Fair Estimated
years) Value Total 2019 2020 2021 2022 2023 Thereafter Duration
Receive-fixed interest rate swaps (1) $ 2,128 5.17
Notional amount $ 198,914 $ 27,176 $ 16,347 $ 14,640 $ 19,866 $ 36,215 $ 84,670
Weighted-average fixed-rate 2.66% 1.87% 2.68% 3.17% 2.56% 2.37% 2.97%
Pay-fixed interest rate swaps (1) 295 6.30
Notional amount $ 49,275 $ 1,210 $ 4,344 $ 1,616 $ — $ 10,801 $ 31,304
Weighted-average fixed-rate 2.50% 2.07% 2.16% 2.22% —% 2.59% 2.55%
Same-currency basis swaps (2) 21
Notional amount $ 101,203 $ 7,628 $ 15,097 $ 15,493 $ 2,586 $ 2,017 $ 58,382
Foreign exchange basis swaps (1, 3, 4) (1,716)
Notional amount 106,742 13,946 21,448 19,241 10,239 6,260 35,608
Option products 2
Notional amount 587 572 — — — 15 —
Foreign exchange contracts (1, 4, 5) 82
Notional amount (6) (8,447) (27,823) 13 4,196 2,741 2,448 9,978
Net ALM contracts $ 812
For footnotes, see page 91.

Table 51 Asset and Liability Management Interest Rate and Foreign Exchange Contracts (continued)
December 31, 2017
Expected Maturity
Average
(Dollars in millions, average estimated duration in Fair Estimated
years) Value Total 2018 2019 2020 2021 2022 Thereafter Duration
Receive-fixed interest rate swaps (1) $ 2,330 5.38
Notional amount $176,390 $ 21,850 $ 27,176 $ 16,347 $ 6,498 $ 19,120 $ 85,399
Weighted-average fixed-rate 2.42% 3.20% 1.87% 1.88% 2.99% 2.10% 2.52%
Pay-fixed interest rate swaps (1) (37) 5.63
Notional amount $ 45,873 $ 11,555 $ 1,210 $ 4,344 $ 1,616 $ — $ 27,148
Weighted-average fixed-rate 2.15% 1.73% 2.07% 2.16% 2.22% —% 2.32%
Same-currency basis swaps (2) (17)
Notional amount $ 38,622 $ 11,028 $ 6,789 $ 1,180 $ 2,807 $ 955 $ 15,863
Foreign exchange basis swaps (1, 3, 4) (1,616)
Notional amount 107,263 24,886 11,922 13,367 9,301 6,860 40,927
Option products 13
Notional amount 1,218 1,201 — — — — 17
Foreign exchange contracts (1, 4, 5) 1,424
Notional amount (6) (11,783) (28,689) 2,231 (24) 2,471 2,919 9,309
Net ALM contracts $ 2,097
(1) Does not include basis adjustments on either fixed-rate debt issued by the Corporation or AFS debt securities, which are hedged using derivatives designated as fair value hedging instruments, that
substantially offset the fair values of these derivatives.
(2) At December 31, 2018 and 2017, the notional amount of same-currency basis swaps included $101.2 billion and $38.6 billion in both foreign currency and U.S. dollar-denominated basis swaps in
which both sides of the swap are in the same currency.
(3) Foreign exchange basis swaps consisted of cross-currency variable interest rate swaps used separately or in conjunction with receive-fixed interest rate swaps.
(4) Does not include foreign currency translation adjustments on certain non-U.S. debt issued by the Corporation that substantially offset the fair values of these derivatives.
(5) The notional amount of foreign exchange contracts of $(8.4) billion at December 31, 2018 was comprised of $25.2 billion in foreign currency-denominated and cross-currency receive-fixed swaps,
$(32.7) billion in net foreign currency forward rate contracts, $(1.8) billion in foreign currency-denominated pay-fixed swaps and $814 million in net foreign currency futures contracts. Foreign exchange
contracts of $(11.8) billion at December 31, 2017 were comprised of $29.1 billion in foreign currency-denominated and cross-currency receive-fixed swaps, $(35.6) billion in net foreign currency
forward rate contracts, $(6.2) billion in foreign currency-denominated pay-fixed swaps and $940 million in foreign currency futures contracts.
(6) Reflects the net of long and short positions. Amounts shown as negative reflect a net short position.
Mortgage Banking Risk Management Operational risk is the risk of loss resulting from inadequate
We originate, fund and service mortgage loans, which subject us or failed processes, people and systems or from external events.
to credit, liquidity and interest rate risks, among others. We Operational risk may occur anywhere in the Corporation, including
determine whether loans will be held for investment or held for third-party business processes, and is not limited to operations
sale at the time of commitment and manage credit and liquidity functions. Effects may extend beyond financial losses and may
risks by selling or securitizing a portion of the loans we originate. result in reputational risk impacts. Operational risk includes legal
Interest rate risk and market risk can be substantial in the risk. Additionally, operational risk is a component in the calculation
mortgage business. Changes in interest rates and other market of total risk-weighted assets used in the Basel 3 capital
factors impact the volume of mortgage originations. Changes in calculation. For more information on Basel 3 calculations, see
interest rates also impact the value of interest rate lock Capital Management on page 58.
commitments (IRLCs) and the related residential first mortgage FLUs and control functions are first and foremost responsible
LHFS between the date of the IRLC and the date the loans are for managing all aspects of their businesses, including their
sold to the secondary market. An increase in mortgage interest compliance and operational risk. FLUs and control functions are
rates typically leads to a decrease in the value of these required to understand their business processes and related risks
instruments. Conversely, when there is an increase in interest and controls, including the related regulatory requirements, and
rates, the value of the MSRs will increase driven by lower monitor and report on the effectiveness of the control environment.
prepayment expectations. Because the interest rate risks of these In order to actively monitor and assess the performance of their
two hedged items offset, we combine them into one overall hedged processes and controls, they must conduct comprehensive quality
item with one combined economic hedge portfolio consisting of assurance activities and identify issues and risks to remediate
derivative contracts and securities. control gaps and weaknesses. FLUs and control functions must
During 2018 and 2017, we recorded gains of $244 million and also adhere to compliance and operational risk appetite limits to
$118 million related to the change in fair value of the MSRs, IRLCs meet strategic, capital and financial planning objectives. Finally,
and LHFS, net of gains and losses on the hedge portfolio. For more FLUs and control functions are responsible for the proactive
information on MSRs, see Note 20 – Fair Value Measurements to identification, management and escalation of compliance and
the Consolidated Financial Statements. operational risks across the Corporation.
Global Compliance and Operational Risk teams independently
Compliance and Operational Risk Management assess compliance and operational risk, monitor business
Compliance risk is the risk of legal or regulatory sanctions, material activities and processes, evaluate FLUs and control functions for
financial loss or damage to the reputation of the Corporation adherence to applicable laws, rules and regulations, including
arising from the failure of the Corporation to comply with the identifying issues and risks, determining and developing tests to
requirements of applicable laws, rules, regulations and our internal be conducted by the Enterprise Independent Testing unit, and
policies and procedures (collectively, applicable laws, rules and reporting on the state of the control environment. Enterprise
regulations). Independent Testing, an independent testing function within IRM,
works with Global Compliance and Operational Risk, the FLUs and

control functions in the identification of testing needs and test The Corporation’s organization and governance structure
design, and is accountable for test execution, reporting and provides oversight of reputational risks, and reputational risk
analysis of results. reporting is provided regularly and directly to management and the
The Corporation’s approach to the management of compliance ERC, which provides primary oversight of reputational risk. In
risk is described in the Global Compliance - Enterprise Policy, which addition, each FLU has a committee, which includes
outlines the requirements of the Corporation’s compliance risk representatives from Compliance, Legal and Risk, that is
management program, and defines roles and responsibilities of responsible for the oversight of reputational risk. Such
FLUs, IRM and Corporate Audit, the three lines of defense in committees’ oversight includes providing approval for business
managing compliance risk. The requirements work together to activities that present elevated levels of reputational risks.
drive a comprehensive risk-based approach for the proactive
identification, management and escalation of compliance risks Complex Accounting Estimates
throughout the Corporation. For more information on FLUs and Our significant accounting principles, as described in Note 1 –
control functions, see Managing Risk on page 55. Summary of Significant Accounting Principles to the Consolidated
The Corporation’s approach to operational risk management Financial Statements, are essential in understanding the
is outlined in the Operational Risk Management - Enterprise Policy Management's Discussion and Analysis of Financial Condition and
which establishes the requirements of the Corporation’s Results of Operations (MD&A). Many of our significant accounting
operational risk management program and specifies the principles require complex judgments to estimate the values of
responsibilities and accountabilities of the first and second lines assets and liabilities. We have procedures and processes in place
of defense for managing operational risk so that our business to facilitate making these judgments.
processes are designed and executed effectively. The more judgmental estimates are summarized in the following
The Global Compliance Enterprise Policy and Operational Risk discussion. We have identified and described the development of
Management - Enterprise Policy also set the requirements for the variables most important in the estimation processes that
reporting compliance and operational risk information to executive involve mathematical models to derive the estimates. In many
management as well as the Board or appropriate Board-level cases, there are numerous alternative judgments that could be
committees in support of Global Compliance and Operational used in the process of determining the inputs to the models. Where
Risk’s responsibilities for conducting independent oversight of our alternatives exist, we have used the factors that we believe
compliance and operational risk management activities. The Board represent the most reasonable value in developing the inputs.
provides oversight of compliance risk through its Audit Committee Actual performance that differs from our estimates of the key
and the ERC, and operational risk through the ERC. variables could materially impact our results of operations.
A key operational risk facing the Corporation is information Separate from the possible future impact to our results of
security, which includes cybersecurity. Cybersecurity risk operations from input and model variables, the value of our lending
represents, among other things, exposure to failures or portfolio and market-sensitive assets and liabilities may change
interruptions of service or breaches of security, resulting from subsequent to the balance sheet date, often significantly, due to
malicious technological attacks or otherwise, that impact the the nature and magnitude of future credit and market conditions.
confidentiality, availability or integrity of our operations, systems Such credit and market conditions may change quickly and in
or data, including sensitive corporate and customer information. unforeseen ways and the resulting volatility could have a
The Corporation manages information security risk in accordance significant, negative effect on future operating results. These
with internal policies which govern our comprehensive information fluctuations would not be indicative of deficiencies in our models
security program designed to protect the Corporation by enabling or inputs.
preventative and detective measures to combat information and
cybersecurity risks. The Board and the ERC provide cybersecurity Allowance for Credit Losses
and information security risk oversight for the Corporation and our The allowance for credit losses, which includes the allowance for
Global Information Security Team manages the day-to-day loan and lease losses and the reserve for unfunded lending
implementation of our information security program. commitments, represents management’s estimate of probable
incurred credit losses in the Corporation’s loan and lease portfolio
Reputational Risk Management excluding those loans accounted for under the fair value option.
Reputational risk is the risk that negative perceptions of the The allowance for credit losses includes both quantitative and
Corporation’s conduct or business practices may adversely impact qualitative components. The qualitative component has a higher
its profitability or operations. Reputational risk may result from degree of management subjectivity, and includes factors such as
many of the Corporation’s activities, including those related to the concentrations, economic conditions and other considerations.
management of our strategic, operational, compliance and credit Our process for determining the allowance for credit losses is
risks. discussed in Note 1 – Summary of Significant Accounting Principles
The Corporation manages reputational risk through to the Consolidated Financial Statements.
established policies and controls in its businesses and risk Our estimate for the allowance for loan and lease losses is
management processes to mitigate reputational risks in a timely sensitive to the loss rates and expected cash flows from our
manner and through proactive monitoring and identification of Consumer Real Estate and Credit Card and Other Consumer
potential reputational risk events. If reputational risk events occur, portfolio segments, as well as our U.S. small business commercial
we focus on remediating the underlying issue and taking action to card portfolio within the Commercial portfolio segment. For each
minimize damage to the Corporation’s reputation. The Corporation one-percent increase in the loss rates on loans collectively
has processes and procedures in place to respond to events that evaluated for impairment in our Consumer Real Estate portfolio
give rise to reputational risk, including educating individuals and segment, excluding PCI loans, coupled with a one-percent
organizations that influence public opinion, implementing external decrease in the discounted cash flows on those loans individually
communication strategies to mitigate the risk, and informing key evaluated for impairment within this portfolio segment, the
stakeholders of potential reputational risks. allowance for loan and lease losses at December 31, 2018 would
have increased $24 million. We subject our PCI portfolio to stress

scenarios to evaluate the potential impact given certain events. its data with a higher degree of reliance applied to those that are
A one-percent decrease in the expected cash flows would result more directly observable and lesser reliance applied to those
in a $41 million impairment of the portfolio. Within our Credit Card developed through their own internal modeling. For example, broker
and Other Consumer portfolio segment and U.S. small business quotes in less active markets may only be indicative and therefore
commercial card portfolio, for each one-percent increase in the less reliable. These processes and controls are performed
loss rates on loans collectively evaluated for impairment coupled independently of the business. For additional information, see Note
with a one-percent decrease in the expected cash flows on those 20 – Fair Value Measurements and Note 21 – Fair Value Option to
loans individually evaluated for impairment, the allowance for loan the Consolidated Financial Statements.
and lease losses at December 31, 2018 would have increased
$44 million. Level 3 Assets and Liabilities
Our allowance for loan and lease losses is sensitive to the risk Financial assets and liabilities, and MSRs, where values are based
ratings assigned to loans and leases within the Commercial on valuation techniques that require inputs that are both
portfolio segment (excluding the U.S. small business commercial unobservable and are significant to the overall fair value
card portfolio). Assuming a downgrade of one level in the internal measurement are classified as Level 3 under the fair value
risk ratings for commercial loans and leases, except loans and hierarchy established in applicable accounting standards. The fair
leases already classified as Substandard and Doubtful as defined value of these Level 3 financial assets and liabilities and MSRs
by regulatory authorities, the allowance for loan and lease losses is determined using pricing models, discounted cash flow
would have increased $2.5 billion at December 31, 2018. methodologies or similar techniques for which the determination
The allowance for loan and lease losses as a percentage of of fair value requires significant management judgment or
total loans and leases at December 31, 2018 was 1.02 percent estimation.
and these hypothetical increases in the allowance would raise the Level 3 financial instruments may be hedged with derivatives
ratio to 1.30 percent. classified as Level 1 or 2; therefore, gains or losses associated
These sensitivity analyses do not represent management’s with Level 3 financial instruments may be offset by gains or losses
expectations of the deterioration in risk ratings or the increases associated with financial instruments classified in other levels of
in loss rates but are provided as hypothetical scenarios to assess the fair value hierarchy. The Level 3 gains and losses recorded in
the sensitivity of the allowance for loan and lease losses to earnings did not have a significant impact on our liquidity or capital.
changes in key inputs. We believe the risk ratings and loss We conduct a review of our fair value hierarchy classifications on
severities currently in use are appropriate and that the probability a quarterly basis. Transfers into or out of Level 3 are made if the
of the alternative scenarios outlined above occurring within a short significant inputs used in the financial models measuring the fair
period of time is remote. values of the assets and liabilities became unobservable or
The process of determining the level of the allowance for credit observable, respectively, in the current marketplace. For more
losses requires a high degree of judgment. It is possible that information on transfers into and out of Level 3 during 2018, 2017
others, given the same information, may at any point in time reach and 2016, see Note 20 – Fair Value Measurements to the
different reasonable conclusions. Consolidated Financial Statements.
Fair Value of Financial Instruments Accrued Income Taxes and Deferred Tax Assets
Under applicable accounting standards, we are required to Accrued income taxes, reported as a component of either other
maximize the use of observable inputs and minimize the use of assets or accrued expenses and other liabilities on the
unobservable inputs in measuring fair value. We classify fair value Consolidated Balance Sheet, represent the net amount of current
measurements of financial instruments and MSRs based on the income taxes we expect to pay to or receive from various taxing
three-level fair value hierarchy in the accounting standards. jurisdictions attributable to our operations to date. We currently
The fair values of assets and liabilities may include file income tax returns in more than 100 jurisdictions and consider
adjustments, such as market liquidity and credit quality, where many factors, including statutory, judicial and regulatory guidance,
appropriate. Valuations of products using models or other in estimating the appropriate accrued income taxes for each
techniques are sensitive to assumptions used for the significant jurisdiction.
inputs. Where market data is available, the inputs used for Net deferred tax assets, reported as a component of other
valuation reflect that information as of our valuation date. Inputs assets on the Consolidated Balance Sheet, represent the net
to valuation models are considered unobservable if they are decrease in taxes expected to be paid in the future because of
supported by little or no market activity. In periods of extreme net operating loss (NOL) and tax credit carryforwards and because
volatility, lessened liquidity or in illiquid markets, there may be of future reversals of temporary differences in the bases of assets
more variability in market pricing or a lack of market data to use and liabilities as measured by tax laws and their bases as reported
in the valuation process. In keeping with the prudent application in the financial statements. NOL and tax credit carryforwards result
of estimates and management judgment in determining the fair in reductions to future tax liabilities, and many of these attributes
value of assets and liabilities, we have in place various processes can expire if not utilized within certain periods. We consider the
and controls that include: a model validation policy that requires need for valuation allowances to reduce net deferred tax assets
review and approval of quantitative models used for deal pricing, to the amounts that we estimate are more likely than not to be
financial statement fair value determination and risk realized.
quantification; a trading product valuation policy that requires Consistent with the applicable accounting guidance, we monitor
verification of all traded product valuations; and a periodic review relevant tax authorities and change our estimates of accrued
and substantiation of daily profit and loss reporting for all traded income taxes and/or net deferred tax assets due to changes in
products. Primarily through validation controls, we utilize both income tax laws and their interpretation by the courts and
broker and pricing service inputs which can and do include both regulatory authorities. These revisions of our estimates, which
market-observable and internally-modeled values and/or valuation also may result from our income tax planning and from the
inputs. Our reliance on this information is affected by our resolution of income tax audit matters, may be material to our
understanding of how the broker and/or pricing service develops operating results for any given period.

See Note 19 – Income Taxes to the Consolidated Financial 2017 Compared to 2016
Statements for a table of significant tax attributes and additional The following discussion and analysis provide a comparison of our
information. For more information, see Item 1A. Risk Factors of results of operations for 2017 and 2016. This discussion should
our 2018 Annual Report on Form 10-K. be read in conjunction with the Consolidated Financial Statements
and related Notes.
Goodwill and Intangible Assets
The nature of and accounting for goodwill and intangible assets Overview
are discussed in Note 1 – Summary of Significant Accounting
Principles, and Note 8 – Goodwill and Intangible Assets. Beginning Net Income
with our annual goodwill impairment test as of June 30, 2018, we Net income was $18.2 billion, or $1.56 per diluted share in 2017
conducted a qualitative assessment, rather than a quantitative compared to $17.8 billion, or $1.49 per diluted share in 2016.
assessment as previously performed, that is more fully described The results for 2017 included a charge of $2.9 billion related to
in Note 1 – Summary of Significant Accounting Principles to the the Tax Act. The pretax results for 2017 compared to 2016 were
Consolidated Financial Statements. driven by higher revenue, largely the result of an increase in net
We completed our annual goodwill impairment test as of June interest income, lower provision for credit losses and a decline in
30, 2018 for all of our reporting units that had goodwill. We noninterest expense.
performed that test by assessing qualitative factors to determine
whether it is more likely than not that the fair value of each reporting Net Interest Income
unit is less than its respective carrying value. Factors considered Net interest income increased $3.6 billion to $44.7 billion in 2017
in the qualitative assessments include, among other things, compared to 2016. Net interest yield on an FTE basis increased
macroeconomic conditions, industry and market considerations, 12 bps to 2.37 percent for 2017. These increases were primarily
financial performance of the respective reporting unit and other driven by the benefits from higher interest rates and loan and
relevant entity- and reporting-unit specific considerations. If based deposit growth, partially offset by the sale of the non-U.S.
on the results of the qualitative assessment, it is more likely than consumer credit card business in the second quarter of 2017.
not that the fair value of a reporting unit is less than its carrying
value, a quantitative assessment is performed. Noninterest Income
Based on our qualitative assessments, we determined that for Noninterest income increased $80 million to $42.7 billion in 2017
each reporting unit with goodwill, it was more likely than not that compared to 2016. The following highlights the significant
its respective fair value exceeded its carrying value, indicating changes.
there was no impairment. For more information regarding goodwill Service charges increased $180 million primarily driven by the
balances at June 30, 2018, see Note 8 – Goodwill and Intangible impact of pricing strategies and higher treasury services
Assets to the Consolidated Financial Statements. related revenue.
Investment and brokerage services income increased $487
Representations and Warranties Liability million primarily driven by the impact of AUM flows and higher
The methodology used to estimate the liability for obligations under market valuations, partially offset by the impact of changing
representations and warranties related to transfers of residential market dynamics on transactional revenue and AUM pricing.
mortgage loans is a function of the type of representations and Investment banking income increased $770 million primarily
warranties provided in the sales contracts and considers a variety due to higher advisory fees and higher debt and equity issuance
of factors. These factors, which incorporate judgment, are subject fees.
to change based on our specific experience. Our experience in Trading account profits increased $375 million primarily due
negotiating settlements with trustees and other counterparties is to increased client financing activity in equities, partially offset
an important input in determining our estimate of the liability. We by weaker performance across most fixed-income products.
also consider actual defaults, estimated future defaults, historical Other income decreased $1.8 billion primarily due to lower
loss experience, estimated home prices and other economic mortgage banking income, with declines in both MSR results
conditions. Changes to any one of these factors could impact the and production. Included in 2017 was a $793 million pretax
estimate of our liability. gain recognized in connection with the sale of the non-U.S.
The representations and warranties provision may vary consumer credit card business and a downward valuation
significantly each period as the methodology used to estimate the adjustment of $946 million on tax-advantaged energy
expense continues to be refined. The estimate of the liability for investments in connection with the Tax Act.
representations and warranties is sensitive to future defaults, loss
severity and the net repurchase rate. An assumed simultaneous Provision for Credit Losses
increase or decrease of 10 percent in estimated future defaults, The provision for credit losses decreased $201 million to $3.4
loss severity and the net repurchase rate would result in an billion for 2017 compared to 2016 primarily due to reductions in
increase or decrease of approximately $200 million in the energy exposures in the commercial portfolio and credit quality
representations and warranties liability as of December 31, 2018. improvements in the consumer real estate portfolio. This was
These sensitivities are hypothetical and are intended to provide partially offset by portfolio seasoning and loan growth in the U.S.
an indication of the impact of a significant change in these key credit card portfolio and a single-name non-U.S. commercial
assumptions on the representations and warranties liability. In charge-off.
reality, changes in one assumption may result in changes in other
assumptions, which may or may not counteract the sensitivity. Noninterest Expense
For more information on representations and warranties Noninterest expense decreased $340 million to $54.7 billion for
exposure, see Note 12 – Commitments and Contingencies to the 2017 compared to 2016. The decrease was primarily due to lower
Consolidated Financial Statements. operating costs, a reduction from the sale of the non-U.S.
consumer credit card business and lower litigation expense,
partially offset by a $316 million impairment charge related to
certain data centers that were in the process of being sold and
$145 million for the shared success discretionary year-end bonus provision for credit losses. Revenue increased $1.6 billion to
awarded to certain employees. $20.0 billion driven by higher net interest income and noninterest
income. Net interest income increased $1.0 billion to $10.5 billion
Income Tax Expense due to loan and deposit-related growth, higher short-term rates on
Tax expense for 2017 included a charge of $1.9 billion reflecting an increased deposit base and the impact of the allocation of ALM
the impact of the Tax Act. Other than the impact of the Tax Act, activities, partially offset by credit spread compression.
the effective tax rate for 2017 was driven by our recurring tax Noninterest income increased $521 million to $9.5 billion largely
preference benefits as well as an expense recognized in due to higher investment banking fees. The provision for credit
connection with the sale of the non-U.S. consumer credit card losses decreased $671 million to $212 million in 2017 primarily
business, largely offset by benefits related to the adoption of the driven by reductions in energy exposures and continued portfolio
new accounting standard for the tax impact associated with share- improvement, partially offset by Global Banking’s portion of a 2017
based compensation, and the restructuring of certain subsidiaries. single-name non-U.S. commercial charge-off. Noninterest expense
The effective tax rate for 2016 was driven by our recurring tax increased $110 million to $8.6 billion in 2017 primarily driven by
preferences and net tax benefits related to various tax audit higher investments in technology and higher deposit insurance,
matters, partially offset by a charge for the impact of U.K. tax law partially offset by lower litigation costs.
changes enacted in 2016.
Global Markets
Business Segment Operations Net income for Global Markets decreased $524 million to $3.3
billion in 2017 compared to 2016. Net DVA losses were $428
Consumer Banking million compared to losses of $238 million in 2016. Excluding net
Net income for Consumer Banking increased $1.0 billion to $8.2 DVA, net income decreased $405 million to $3.6 billion primarily
billion in 2017 compared to 2016 primarily driven by higher net driven by higher noninterest expense, lower sales and trading
interest income, partially offset by higher provision for credit losses revenue and an increase in the provision for credit losses, partially
and lower mortgage banking income which is included in other offset by higher investment banking fees. Sales and trading
noninterest income. Net interest income increased $3.0 billion to revenue, excluding net DVA, decreased $423 million primarily due
$24.3 billion primarily due to the beneficial impact of an increase to weaker performance in rates products and emerging markets.
in investable assets as a result of higher deposits, as well as The provision for credit losses increased $133 million to $164
pricing discipline and loan growth. Noninterest income decreased million in 2017, reflecting Global Markets’ portion of a single-name
$227 million to $10.2 billion driven by lower mortgage banking non-U.S. commercial charge-off. Noninterest expense increased
income, partially offset by higher card income and service charges. $560 million to $10.7 billion primarily due to higher litigation
The provision for credit losses increased $810 million to $3.5 expense and continued investments in technology.
billion due to portfolio seasoning and loan growth in the U.S. credit
card portfolio. Noninterest expense increased $131 million to All Other
$17.8 billion driven by higher personnel expense, including the The net loss for All Other increased $1.6 billion to a net loss of
shared success discretionary year-end bonus, and increased FDIC $3.3 billion, driven by a charge of $2.9 billion due to enactment
expense, as well as investments in digital capabilities and of the Tax Act. The pretax loss for 2017 compared to 2016
business growth. These increases were partially offset by improved decreased $523 million reflecting lower noninterest expense and
operating efficiencies. a larger benefit in the provision for credit losses, partially offset
by a decline in revenue. Revenue declined $1.5 billion primarily
Global Wealth & Investment Management due to lower mortgage banking income. All other noninterest loss
Net income for GWIM increased $312 million to $3.1 billion in decreased marginally and included a pretax gain of $793 million
2017 compared to 2016 due to higher revenue, partially offset by on the sale of the non-U.S. credit card business and a downward
an increase in noninterest expense. Net interest income increased valuation adjustment of $946 million on tax-advantaged energy
$414 million to $6.2 billion driven by higher short-term interest investments in connection with the Tax Act.
rates. Noninterest income, which primarily includes investment The benefit in the provision for credit losses increased $461
and brokerage services income, increased $526 million to $12.4 million to a benefit of $561 million primarily driven by continued
billion. The increase in noninterest income was driven by the impact runoff of the non-core portfolio, loan sale recoveries and the sale
of AUM flows and higher market valuations, partially offset by the of the non-U.S. consumer credit card business.
impact of changing market dynamics on transactional revenue and Noninterest expense decreased $1.5 billion to $4.1 billion
AUM pricing. Noninterest expense increased $390 million to driven by lower litigation expense, lower personnel expense and a
$13.6 billion primarily driven by higher revenue-related incentive decline in non-core mortgage servicing costs.
costs. The income tax benefit was $1.0 billion in 2017 compared to
a benefit of $3.1 billion in 2016. The decrease in the tax benefit
Global Banking was driven by the impacts of the Tax Act. Both periods include
Net income for Global Banking increased $1.2 billion to $7.0 billion income tax benefit adjustments to eliminate the FTE treatment of
in 2017 compared to 2016 driven by higher revenue and lower certain tax credits recorded in Global Banking.

Statistical Tables
Table of Contents
Page
Table I – Outstanding Loans and Leases 96
Table II – Nonperforming Loans, Leases and Foreclosed Properties 97
Table III – Accruing Loans and Leases Past Due 90 Days or More 97
Table IV – Selected Loan Maturity Data 98
Table V – Allowance for Credit Losses 98
Table VI – Allocation of the Allowance for Credit Losses by Product Type 99
Table I Outstanding Loans and Leases

December 31
(Dollars in millions) 2018 2017 2016 2015 2014
Consumer
Residential mortgage $ 208,557 $ 203,811 $ 191,797 $ 187,911 $ 216,197
Home equity 48,286 57,744 66,443 75,948 85,725
U.S. credit card 98,338 96,285 92,278 89,602 91,879
Non-U.S. credit card — — 9,214 9,975 10,465
Direct/Indirect consumer (1) 91,166 96,342 95,962 90,149 81,386
Other consumer (2) 202 166 626 713 841
Total consumer loans excluding loans accounted for under the fair value option 446,549 454,348 456,320 454,298 486,493
Consumer loans accounted for under the fair value option (3) 682 928 1,051 1,871 2,077
Total consumer 447,231 455,276 457,371 456,169 488,570
Commercial
U.S. commercial 299,277 284,836 270,372 252,771 220,293
Non-U.S. commercial 98,776 97,792 89,397 91,549 80,083
Commercial real estate (4) 60,845 58,298 57,355 57,199 47,682
Commercial lease financing 22,534 22,116 22,375 21,352 19,579
481,432 463,042 439,499 422,871 367,637
U.S. small business commercial (5) 14,565 13,649 12,993 12,876 13,293
Total commercial loans excluding loans accounted for under the fair value option 495,997 476,691 452,492 435,747 380,930
Commercial loans accounted for under the fair value option (3) 3,667 4,782 6,034 5,067 6,604
Total commercial 499,664 481,473 458,526 440,814 387,534
Less: Loans of business held for sale (6) — — (9,214) — —
Total loans and leases $ 946,895 $ 936,749 $ 906,683 $ 896,983 $ 876,104
(1) Includes auto and specialty lending loans and leases of $50.1 billion, $52.4 billion, $50.7 billion, $43.9 billion and $38.7 billion, unsecured consumer lending loans of $383 million, $469 million,
$585 million, $886 million and $1.5 billion, U.S. securities-based lending loans of $37.0 billion, $39.8 billion, $40.1 billion, $39.8 billion and $35.8 billion, non-U.S. consumer loans of $2.9 billion,
$3.0 billion, $3.0 billion, $3.9 billion and $4.0 billion, student loans of $0, $0, $497 million, $564 million and $632 million, and other consumer loans of $746 million, $684 million, $1.1 billion,
$1.0 billion and $761 million at December 31, 2018, 2017, 2016, 2015 and 2014, respectively.
(2) Substantially all of other consumer at December 31, 2018 and 2017 is consumer overdrafts. Other consumer at December 31, 2016, 2015 and 2014 also includes consumer finance loans of $465
million, $564 million and $676 million, respectively.
(3) Consumer loans accounted for under the fair value option were residential mortgage loans of $336 million, $567 million, $710 million, $1.6 billion and $1.9 billion, and home equity loans of $346
million, $361 million, $341 million, $250 million and $196 million at December 31, 2018, 2017, 2016, 2015 and 2014, respectively. Commercial loans accounted for under the fair value option
were U.S. commercial loans of $2.5 billion, $2.6 billion, $2.9 billion, $2.3 billion and $1.9 billion, and non-U.S. commercial loans of $1.1 billion, $2.2 billion, $3.1 billion, $2.8 billion and $4.7 billion
at December 31, 2018, 2017, 2016, 2015 and 2014, respectively.
(4) Includes U.S. commercial real estate loans of $56.6 billion, $54.8 billion, $54.3 billion, $53.6 billion and $45.2 billion, and non-U.S. commercial real estate loans of $4.2 billion, $3.5 billion, $3.1
billion, $3.5 billion and $2.5 billion at December 31, 2018, 2017, 2016, 2015 and 2014, respectively.
(5) Includes card-related products.
(6) Represents non-U.S. credit card loans, which were included in assets of business held for sale on the Consolidated Balance Sheet.

Table II Nonperforming Loans, Leases and Foreclosed Properties (1)
December 31
Consumer
Residential mortgage $ 1,893 $ 2,476 $ 3,056 $ 4,803 $ 6,889
Home equity 1,893 2,644 2,918 3,337 3,901
Direct/Indirect consumer 56 46 28 24 28
Other consumer — — 2 1 1
Total consumer (2) 3,842 5,166 6,004 8,165 10,819
Commercial
U.S. commercial 794 814 1,256 867 701
Non-U.S. commercial 80 299 279 158 1
Commercial real estate 156 112 72 93 321
Commercial lease financing 18 24 36 12 3
1,048 1,249 1,643 1,130 1,026
U.S. small business commercial 54 55 60 82 87
Total commercial (3) 1,102 1,304 1,703 1,212 1,113
Total nonperforming loans and leases 4,944 6,470 7,707 9,377 11,932
Foreclosed properties 300 288 377 459 697
Total nonperforming loans, leases and foreclosed properties $ 5,244 $ 6,758 $ 8,084 $ 9,836 $ 12,629
(1) Balances do not include PCI loans even though the customer may be contractually past due. PCI loans were recorded at fair value upon acquisition and accrete interest income over the remaining
life of the loan. In addition, balances do not include foreclosed properties insured by certain government-guaranteed loans, principally FHA-insured loans, that entered foreclosure of $488 million,
$801 million, $1.2 billion, $1.4 billion and $1.1 billion at December 31, 2018, 2017, 2016, 2015 and 2014, respectively.
(2) In 2018, $625 million in interest income was estimated to be contractually due on $3.8 billion of consumer loans and leases classified as nonperforming at December 31, 2018, as presented in
the table above, plus $6.8 billion of TDRs classified as performing at December 31, 2018. Approximately $388 million of the estimated $625 million in contractual interest was received and included
in interest income for 2018.
(3) In 2018, $119 million in interest income was estimated to be contractually due on $1.1 billion of commercial loans and leases classified as nonperforming at December 31, 2018, as presented in
the table above, plus $1.3 billion of TDRs classified as performing at December 31, 2018. Approximately $84 million of the estimated $119 million in contractual interest was received and included
in interest income for 2018.
Table III Accruing Loans and Leases Past Due 90 Days or More (1)
December 31
Consumer
Residential mortgage (2) $ 1,884 $ 3,230 $ 4,793 $ 7,150 $ 11,407
U.S. credit card 994 900 782 789 866
Non-U.S. credit card — — 66 76 95
Other consumer — — 4 3 1
Total consumer 2,916 4,170 5,679 8,057 12,433
Commercial
U.S. commercial 197 144 106 113 110
Non-U.S. commercial — 3 5 1 —
230 170 137 132 153
U.S. small business commercial 84 75 71 61 67
Total commercial 314 245 208 193 220
Total accruing loans and leases past due 90 days or more $ 3,230 $ 4,415 $ 5,887 $ 8,250 $ 12,653
(1) Our policy is to classify consumer real estate-secured loans as nonperforming at 90 days past due, except the PCI loan portfolio, the fully-insured loan portfolio and loans accounted for under the
fair value option.
(2) Balances are fully-insured loans.

Table IV Selected Loan Maturity Data (1, 2)
December 31, 2018
Due After One
Due in One Year Through Due After
(Dollars in millions) Year or Less Five Years Five Years Total
U.S. commercial $ 74,365 $ 194,116 $ 47,888 $ 316,369
U.S. commercial real estate 11,622 40,393 4,590 56,605
Non-U.S. and other (3) 42,217 55,360 6,579 104,156
Total selected loans $ 128,204 $ 289,869 $ 59,057 $ 477,130
Percent of total 27% 61% 12% 100%
Sensitivity of selected loans to changes in interest rates for loans due after one year:
Fixed interest rates $ 17,109 $ 27,664
Floating or adjustable interest rates 272,760 31,393
Total $ 289,869 $ 59,057
(1) Loan maturities are based on the remaining maturities under contractual terms.
(2) Includes loans accounted for under the fair value option.
(3) Loan maturities include non-U.S. commercial and commercial real estate loans.
Table V Allowance for Credit Losses

Allowance for loan and lease losses, January 1 $ 10,393 $ 11,237 $ 12,234 $ 14,419 $ 17,428
Loans and leases charged off
Residential mortgage (207) (188) (403) (866) (855)
Home equity (483) (582) (752) (975) (1,364)
U.S. credit card (3,345) (2,968) (2,691) (2,738) (3,068)
Non-U.S. credit card (1) — (103) (238) (275) (357)
Direct/Indirect consumer (495) (491) (392) (383) (456)
Other consumer (197) (212) (232) (224) (268)
Total consumer charge-offs (4,727) (4,544) (4,708) (5,461) (6,368)
U.S. commercial (2) (575) (589) (567) (536) (584)
Non-U.S. commercial (82) (446) (133) (59) (35)
Commercial real estate (10) (24) (10) (30) (29)
Commercial lease financing (8) (16) (30) (19) (10)
Total commercial charge-offs (675) (1,075) (740) (644) (658)
Total loans and leases charged off (5,402) (5,619) (5,448) (6,105) (7,026)
Recoveries of loans and leases previously charged off
Residential mortgage 179 288 272 393 969
Home equity 485 369 347 339 457
U.S. credit card 508 455 422 424 430
Non-U.S. credit card (1) — 28 63 87 115
Other consumer 15 49 27 31 39
Total consumer recoveries 1,487 1,466 1,389 1,545 2,297
U.S. commercial (3) 120 142 175 172 214
Non-U.S. commercial 14 6 13 5 1
Total commercial recoveries 152 174 238 222 346
Total recoveries of loans and leases previously charged off 1,639 1,640 1,627 1,767 2,643
Net charge-offs (3,763) (3,979) (3,821) (4,338) (4,383)
Write-offs of PCI loans (273) (207) (340) (808) (810)
Provision for loan and lease losses 3,262 3,381 3,581 3,043 2,231
Other (4) (18) (39) (174) (82) (47)
Total allowance for loan and lease losses, December 31 9,601 10,393 11,480 12,234 14,419
Less: Allowance included in assets of business held for sale (5) — — (243) — —
Allowance for loan and lease losses, December 31 9,601 10,393 11,237 12,234 14,419
Reserve for unfunded lending commitments, January 1 777 762 646 528 484
Provision for unfunded lending commitments 20 15 16 118 44
Other (4) — — 100 — —
Reserve for unfunded lending commitments, December 31 797 777 762 646 528
Allowance for credit losses, December 31 $ 10,398 $ 11,170 $ 11,999 $ 12,880 $ 14,947
(1) Represents net charge-offs related to the non-U.S. credit card loan portfolio, which was sold in 2017.
(2) Includes U.S. small business commercial charge-offs of $287 million, $258 million, $253 million, $282 million and $345 million in 2018, 2017, 2016, 2015 and 2014, respectively.
(3) Includes U.S. small business commercial recoveries of $47 million, $43 million, $45 million, $57 million and $63 million in 2018, 2017, 2016, 2015 and 2014, respectively.
(5) Represents allowance related to the non-U.S. credit card loan portfolio, which was sold in 2017.

Table V Allowance for Credit Losses (continued)
Loan and allowance ratios (6):
Loans and leases outstanding at December 31 (7) $ 942,546 $ 931,039 $ 908,812 $ 890,045 $ 867,422
Allowance for loan and lease losses as a percentage of total loans and leases outstanding
at December 31 (7) 1.02% 1.12% 1.26% 1.37% 1.66%
Consumer allowance for loan and lease losses as a percentage of total consumer loans and
leases outstanding at December 31 (8) 1.08 1.18 1.36 1.63 2.05
Commercial allowance for loan and lease losses as a percentage of total commercial loans
and leases outstanding at December 31 (9) 0.97 1.05 1.16 1.11 1.16
Average loans and leases outstanding (7) $ 927,531 $ 911,988 $ 892,255 $ 869,065 $ 888,804
Net charge-offs as a percentage of average loans and leases outstanding (7, 10) 0.41% 0.44% 0.43% 0.50% 0.49%
Net charge-offs and PCI write-offs as a percentage of average loans and leases
outstanding (7) 0.44 0.46 0.47 0.59 0.58
Allowance for loan and lease losses as a percentage of total nonperforming loans and
leases at December 31 (7) 194 161 149 130 121
Ratio of the allowance for loan and lease losses at December 31 to net charge-offs (10) 2.55 2.61 3.00 2.82 3.29
Ratio of the allowance for loan and lease losses at December 31 to net charge-offs and PCI
write-offs 2.38 2.48 2.76 2.38 2.78
Amounts included in allowance for loan and lease losses for loans and leases that are
excluded from nonperforming loans and leases at December 31 (11) $ 4,031 $ 3,971 $ 3,951 $ 4,518 $ 5,944
Allowance for loan and lease losses as a percentage of total nonperforming loans and
leases, excluding the allowance for loan and lease losses for loans and leases that are
excluded from nonperforming loans and leases at December 31 (7, 11) 113% 99% 98% 82% 71%
(6) Loan and allowance ratios for 2016 include $243 million of non-U.S. credit card allowance for loan and lease losses and $9.2 billion of ending non-U.S. credit card loans, which were sold in 2017.
(7) Outstanding loan and lease balances and ratios do not include loans accounted for under the fair value option of $4.3 billion, $5.7 billion, $7.1 billion, $6.9 billion and $8.7 billion at December 31,
2018, 2017, 2016, 2015 and 2014, respectively. Average loans accounted for under the fair value option were $5.5 billion, $6.7 billion, $8.2 billion, $7.7 billion and $9.9 billion in 2018, 2017,
2016, 2015 and 2014, respectively.
(8) Excludes consumer loans accounted for under the fair value option of $682 million, $928 million, $1.1 billion, $1.9 billion and $2.1 billion at December 31, 2018, 2017, 2016, 2015 and 2014,
respectively.
(9) Excludes commercial loans accounted for under the fair value option of $3.7 billion, $4.8 billion, $6.0 billion, $5.1 billion and $6.6 billion at December 31, 2018, 2017, 2016, 2015 and 2014,
respectively.
(10) Net charge-offs exclude $273 million, $207 million, $340 million, $808 million and $810 million of write-offs in the PCI loan portfolio in 2018, 2017, 2016, 2015 and 2014 respectively. For more
information on PCI write-offs, see Consumer Portfolio Credit Risk Management – Purchased Credit-impaired Loan Portfolio on page 72.
(11) Primarily includes amounts allocated to U.S. credit card and unsecured consumer lending portfolios in Consumer Banking and PCI loans and the non-U.S. credit card portfolio in All Other.
Table VI Allocation of the Allowance for Credit Losses by Product Type

December 31
2018 2017 2016 2015 2014
Percent Percent Percent Percent Percent
(Dollars in millions) Amount of Total Amount of Total Amount of Total Amount of Total Amount of Total
Allowance for loan and lease losses
Residential mortgage $ 422 4.40% $ 701 6.74% $ 1,012 8.82% $ 1,500 12.26% $ 2,900 20.11%
Home equity 506 5.27 1,019 9.80 1,738 15.14 2,414 19.73 3,035 21.05
U.S. credit card 3,597 37.47 3,368 32.41 2,934 25.56 2,927 23.93 3,320 23.03
Non-U.S. credit card — — — — 243 2.12 274 2.24 369 2.56
Direct/Indirect consumer 248 2.58 264 2.54 244 2.13 223 1.82 299 2.07
Other consumer 29 0.30 31 0.30 51 0.44 47 0.38 59 0.41
Total consumer 4,802 50.02 5,383 51.79 6,222 54.21 7,385 60.36 9,982 69.23
U.S. commercial (1) 3,010 31.35 3,113 29.95 3,326 28.97 2,964 24.23 2,619 18.16
Non-U.S. commercial 677 7.05 803 7.73 874 7.61 754 6.17 649 4.50
Commercial real estate 958 9.98 935 9.00 920 8.01 967 7.90 1,016 7.05
Commercial lease financing 154 1.60 159 1.53 138 1.20 164 1.34 153 1.06
Total commercial 4,799 49.98 5,010 48.21 5,258 45.79 4,849 39.64 4,437 30.77
Total allowance for loan and lease
losses (2) 9,601 100.00% 10,393 100.00% 11,480 100.00% 12,234 100.00% 14,419 100.00%
Less: Allowance included in assets of
business held for sale (3) — — (243) — —
Allowance for loan and lease losses 9,601 10,393 11,237 12,234 14,419
Reserve for unfunded lending commitments 797 777 762 646 528
Allowance for credit losses $ 10,398 $ 11,170 $ 11,999 $ 12,880 $ 14,947
(1) Includes allowance for loan and lease losses for U.S. small business commercial loans of $474 million, $439 million, $416 million, $507 million and $536 million at December 31, 2018, 2017,
2016, 2015 and 2014, respectively.
(2) Includes $91 million, $289 million, $419 million, $804 million and $1.7 billion of valuation allowance presented with the allowance for loan and lease losses related to PCI loans at December 31,
2018, 2017, 2016, 2015 and 2014, respectively.
(3) Represents allowance for loan and lease losses related to the non-U.S. credit card loan portfolio, which was sold in 2017.

Financial Statements and Notes
Table of Contents
Page
Consolidated Statement of Income 103
Consolidated Statement of Comprehensive Income 103
Consolidated Balance Sheet 104
Consolidated Statement of Changes in Shareholders’ Equity 105
Consolidated Statement of Cash Flows 106
Note 1 – Summary of Significant Accounting Principles 107
Note 2 – Noninterest Income 115
Note 3 – Derivatives 116
Note 4 – Securities 123
Note 5 – Outstanding Loans and Leases 126
Note 6 – Allowance for Credit Losses 137
Note 7 – Securitizations and Other Variable Interest Entities 138
Note 8 – Goodwill and Intangible Assets 142
Note 9 – Deposits 143
Note 10 – Federal Funds Sold or Purchased, Securities Financing Agreements, Short-term Borrowings
and Restricted Cash 143
Note 11 – Long-term Debt 146
Note 12 – Commitments and Contingencies 147
Note 13 – Shareholders’ Equity 153
Note 14 – Accumulated Other Comprehensive Income (Loss) 155
Note 15 – Earnings Per Common Share 156
Note 16 – Regulatory Requirements and Restrictions 156
Note 17 – Employee Benefit Plans 158
Note 18 – Stock-based Compensation Plans 163
Note 19 – Income Taxes 163
Note 20 – Fair Value Measurements 165
Note 21 – Fair Value Option 175
Note 22 – Fair Value of Financial Instruments 177
Note 23 – Business Segment Information 178
Note 24 – Parent Company Information 181
Note 25 – Performance by Geographical Area 182
Glossary 183
Acronyms 184

Report of Management on Internal Control Over Financial Reporting
Bank of America Corporation and Subsidiaries
The management of Bank of America Corporation is responsible Management assessed the effectiveness of the Corporation’s
for establishing and maintaining adequate internal control over internal control over financial reporting as of December 31, 2018
financial reporting. based on the framework set forth by the Committee of Sponsoring
The Corporation’s internal control over financial reporting is a Organizations of the Treadway Commission in Internal Control –
process designed to provide reasonable assurance regarding the Integrated Framework (2013). Based on that assessment,
reliability of financial reporting and the preparation of financial management concluded that, as of December 31, 2018, the
statements for external purposes in accordance with accounting Corporation’s internal control over financial reporting is effective.
principles generally accepted in the United States of America. The The Corporation’s internal control over financial reporting
Corporation’s internal control over financial reporting includes as of December 31, 2018 has been audited by
those policies and procedures that (i) pertain to the maintenance PricewaterhouseCoopers, LLP, an independent registered public
of records that, in reasonable detail, accurately and fairly reflect accounting firm, as stated in their accompanying report which
the transactions and dispositions of the assets of the Corporation; expresses an unqualified opinion on the effectiveness of the
(ii) provide reasonable assurance that transactions are recorded Corporation’s internal control over financial reporting as of
as necessary to permit preparation of financial statements in December 31, 2018.
accordance with accounting principles generally accepted in the
United States of America, and that receipts and expenditures of
the Corporation are being made only in accordance with
authorizations of management and directors of the Corporation;
and (iii) provide reasonable assurance regarding prevention or
timely detection of unauthorized acquisition, use, or disposition Brian T. Moynihan
of the Corporation’s assets that could have a material effect on Chairman, Chief Executive Officer and President
the financial statements.
Because of its inherent limitations, internal control over
financial reporting may not prevent or detect misstatements. Also,
projections of any evaluation of effectiveness to future periods are
subject to the risk that controls may become inadequate because
of changes in conditions, or that the degree of compliance with
the policies or procedures may deteriorate. Paul M. Donofrio
Chief Financial Officer

Report of Independent Registered Public Accounting Firm
To the Board of Directors and Shareholders of Bank misstatement of the consolidated financial statements, whether
due to error or fraud, and performing procedures that respond to
of America Corporation:
those risks. Such procedures included examining, on a test basis,
Opinions on the Financial Statements and Internal evidence regarding the amounts and disclosures in the
consolidated financial statements. Our audits also included
Control over Financial Reporting evaluating the accounting principles used and significant
We have audited the accompanying consolidated balance sheets
estimates made by management, as well as evaluating the overall
of Bank of America Corporation and its subsidiaries as of
presentation of the consolidated financial statements. Our audit
December 31, 2018 and December 31, 2017, and the related
of internal control over financial reporting included obtaining an
consolidated statements of income, comprehensive income,
understanding of internal control over financial reporting,
changes in shareholders’ equity and cash flows for each of the
assessing the risk that a material weakness exists, and testing
three years in the period ended December 31, 2018, including the
and evaluating the design and operating effectiveness of internal
related notes (collectively referred to as the “consolidated financial
control based on the assessed risk. Our audits also included
statements”). We also have audited the Corporation’s internal
performing such other procedures as we considered necessary in
control over financial reporting as of December 31, 2018, based
the circumstances. We believe that our audits provide a reasonable
on criteria established in Internal Control - Integrated Framework
basis for our opinions.
(2013) issued by the Committee of Sponsoring Organizations of
the Treadway Commission (COSO). Definition and Limitations of Internal Control over
In our opinion, the consolidated financial statements referred
to above present fairly, in all material respects, the financial
Financial Reporting
A company’s internal control over financial reporting is a process
position of the Corporation as of December 31, 2018 and
designed to provide reasonable assurance regarding the reliability
December 31, 2017, and the results of its operations and its cash
of financial reporting and the preparation of financial statements
flows for each of the three years in the period ended December
for external purposes in accordance with generally accepted
31, 2018 in conformity with accounting principles generally
accounting principles. A company’s internal control over financial
accepted in the United States of America. Also in our opinion, the
reporting includes those policies and procedures that (i) pertain
Corporation maintained, in all material respects, effective internal
to the maintenance of records that, in reasonable detail, accurately
control over financial reporting as of December 31, 2018, based
and fairly reflect the transactions and dispositions of the assets
on criteria established in Internal Control - Integrated Framework
of the company; (ii) provide reasonable assurance that
(2013) issued by the COSO.
transactions are recorded as necessary to permit preparation of
Basis for Opinions financial statements in accordance with generally accepted
The Corporation’s management is responsible for these accounting principles, and that receipts and expenditures of the
consolidated financial statements, for maintaining effective company are being made only in accordance with authorizations
internal control over financial reporting, and for its assessment of of management and directors of the company; and (iii) provide
the effectiveness of internal control over financial reporting, reasonable assurance regarding prevention or timely detection of
included in the accompanying Report of Management on Internal unauthorized acquisition, use, or disposition of the company’s
Control Over Financial Reporting. Our responsibility is to express assets that could have a material effect on the financial
opinions on the Corporation’s consolidated financial statements statements.
and on the Corporation’s internal control over financial reporting Because of its inherent limitations, internal control over
based on our audits. We are a public accounting firm registered financial reporting may not prevent or detect misstatements. Also,
with the Public Company Accounting Oversight Board (United projections of any evaluation of effectiveness to future periods are
States) (PCAOB) and are required to be independent with respect subject to the risk that controls may become inadequate because
to the Corporation in accordance with the U.S. federal securities of changes in conditions, or that the degree of compliance with
laws and the applicable rules and regulations of the Securities the policies or procedures may deteriorate.
and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of
the PCAOB. Those standards require that we plan and perform the
audits to obtain reasonable assurance about whether the
consolidated financial statements are free of material Charlotte, North Carolina
misstatement, whether due to error or fraud, and whether effective February 26, 2019
internal control over financial reporting was maintained in all
material respects. We have served as the Corporation’s auditor since 1958.
Our audits of the consolidated financial statements included
performing procedures to assess the risks of material

Consolidated Statement of Income

(In millions, except per share information) 2018 2017 2016
Interest income
Loans and leases $ 40,811 $ 36,221 $ 33,228
Debt securities 11,724 10,471 9,167
Federal funds sold and securities borrowed or purchased under agreements to resell 3,176 2,390 1,118
Trading account assets 4,811 4,474 4,423
Other interest income 6,247 4,023 3,121
Total interest income 66,769 57,579 51,057
Interest expense
Deposits 4,495 1,931 1,015
Short-term borrowings 5,839 3,538 2,350
Trading account liabilities 1,358 1,204 1,018
Long-term debt 7,645 6,239 5,578
Total interest expense 19,337 12,912 9,961
Net interest income 47,432 44,667 41,096
Noninterest income
Card income 6,051 5,902 5,851
Service charges 7,767 7,818 7,638
Investment and brokerage services 14,160 13,836 13,349
Investment banking income 5,327 6,011 5,241
Trading account profits 8,540 7,277 6,902
Other income 1,970 1,841 3,624
Total noninterest income 43,815 42,685 42,605
Total revenue, net of interest expense 91,247 87,352 83,701
Provision for credit losses 3,282 3,396 3,597
Noninterest expense
Personnel 31,880 31,931 32,018
Occupancy 4,066 4,009 4,038
Equipment 1,705 1,692 1,804
Marketing 1,674 1,746 1,703
Professional fees 1,699 1,888 1,971
Data processing 3,222 3,139 3,007
Telecommunications 699 699 746
Other general operating 8,436 9,639 9,796
Total noninterest expense 53,381 54,743 55,083
Income before income taxes 34,584 29,213 25,021
Income tax expense 6,437 10,981 7,199
Net income $ 28,147 $ 18,232 $ 17,822
Preferred stock dividends 1,451 1,614 1,682
Net income applicable to common shareholders $ 26,696 $ 16,618 $ 16,140
Per common share information

Earnings $ 2.64 $ 1.63 $ 1.57
Diluted earnings 2.61 1.56 1.49
Average common shares issued and outstanding 10,096.5 10,195.6 10,284.1
Average diluted common shares issued and outstanding 10,236.9 10,778.4 11,046.8
Consolidated Statement of Comprehensive Income

Net income $ 28,147 $ 18,232 $ 17,822
Other comprehensive income (loss), net-of-tax:
Net change in debt and equity securities (3,953) 61 (1,345)
Net change in debit valuation adjustments 749 (293) (156)
Net change in derivatives (53) 64 182
Employee benefit plan adjustments (405) 288 (524)
Net change in foreign currency translation adjustments (254) 86 (87)
Other comprehensive income (loss) (3,916) 206 (1,930)
Comprehensive income $ 24,231 $ 18,438 $ 15,892
See accompanying Notes to Consolidated Financial Statements.

Consolidated Balance Sheet

December 31
Assets
Cash and due from banks $ 29,063 $ 29,480
Interest-bearing deposits with the Federal Reserve, non-U.S. central banks and other banks 148,341 127,954
Cash and cash equivalents 177,404 157,434
Time deposits placed and other short-term investments 7,494 11,153
Federal funds sold and securities borrowed or purchased under agreements to resell
(includes $56,399 and $52,906 measured at fair value) 261,131 212,747
Trading account assets (includes $119,363 and $106,274 pledged as collateral) 214,348 209,358
Derivative assets 43,725 37,762
Debt securities:
Carried at fair value 238,101 315,117
Held-to-maturity, at cost (fair value – $200,435 and $123,299) 203,652 125,013
Total debt securities 441,753 440,130
Loans and leases (includes $4,349 and $5,710 measured at fair value) 946,895 936,749
Allowance for loan and lease losses (9,601) (10,393)
Loans and leases, net of allowance 937,294 926,356
Premises and equipment, net 9,906 9,247
Goodwill 68,951 68,951
Loans held-for-sale (includes $2,942 and $2,156 measured at fair value) 10,367 11,430
Customer and other receivables 65,814 61,623
Other assets (includes $19,739 and $22,581 measured at fair value) 116,320 135,043
Total assets $ 2,354,507 $ 2,281,234
Liabilities
Deposits in U.S. offices:
Noninterest-bearing $ 412,587 $ 430,650
Interest-bearing (includes $492 and $449 measured at fair value) 891,636 796,576
Deposits in non-U.S. offices:
Noninterest-bearing 14,060 14,024
Interest-bearing 63,193 68,295
Total deposits 1,381,476 1,309,545
Federal funds purchased and securities loaned or sold under agreements to repurchase
(includes $28,875 and $36,182 measured at fair value) 186,988 176,865
Trading account liabilities 68,220 81,187
Derivative liabilities 37,891 34,300
Short-term borrowings (includes $1,648 and $1,494 measured at fair value) 20,189 32,666
Accrued expenses and other liabilities (includes $20,075 and $22,840 measured at fair value
and $797 and $777 of reserve for unfunded lending commitments) 165,078 152,123
Long-term debt (includes $27,637 and $31,786 measured at fair value) 229,340 227,402
Total liabilities 2,089,182 2,014,088
Commitments and contingencies (Note 7 – Securitizations and Other Variable Interest Entities
and Note 12 – Commitments and Contingencies)
Shareholders’ equity
Preferred stock, $0.01 par value; authorized – 100,000,000 shares; issued and outstanding – 3,843,140 and 3,837,683 shares 22,326 22,323
Common stock and additional paid-in capital, $0.01 par value; authorized – 12,800,000,000 shares;
issued and outstanding – 9,669,286,370 and 10,287,302,431 shares 118,896 138,089
Retained earnings 136,314 113,816
Accumulated other comprehensive income (loss) (12,211) (7,082)
Total shareholders’ equity 265,325 267,146
Total liabilities and shareholders’ equity $ 2,354,507 $ 2,281,234
Assets of consolidated variable interest entities included in total assets above (isolated to settle the liabilities of the variable interest entities)
Trading account assets $ 5,798 $ 6,521
Loans and leases 43,850 48,929
Allowance for loan and lease losses (912) (1,016)
Loans and leases, net of allowance 42,938 47,913
All other assets 337 1,721
Total assets of consolidated variable interest entities $ 49,073 $ 56,155
Liabilities of consolidated variable interest entities included in total liabilities above
Short-term borrowings $ 742 $ 312
Long-term debt (includes $10,943 and $9,872 of non-recourse debt) 10,944 9,873
All other liabilities (includes $27 and $34 of non-recourse liabilities) 30 37
Total liabilities of consolidated variable interest entities $ 11,716 $ 10,222

Consolidated Statement of Changes in Shareholders’ Equity
Accumulated
Common Stock and Other Total
Preferred Additional Paid-in Capital Retained Comprehensive Shareholders’
(In millions) Stock Shares Amount Earnings Income (Loss) Equity
Balance, December 31, 2015 $ 22,273 10,380.3 $ 151,042 $ 87,658 $ (5,358) $ 255,615
Net income 17,822 17,822
Net change in debt and equity securities (1,345) (1,345)
Net change in debit valuation adjustments (156) (156)
Net change in derivatives 182 182
Employee benefit plan adjustments (524) (524)
Net change in foreign currency translation adjustments (87) (87)
Dividends declared:
Common (2,573) (2,573)
Preferred (1,682) (1,682)
Issuance of preferred stock 2,947 2,947
Common stock issued under employee plans, net, and related
tax effects 5.1 1,108 1,108
Common stock repurchased (332.8) (5,112) (5,112)
Net income 18,232 18,232
Net change in debt and equity securities 61 61
Net change in debit valuation adjustments (293) (293)
Net change in derivatives 64 64
Employee benefit plan adjustments 288 288
Net change in foreign currency translation adjustments 86 86
Dividends declared:
Common (4,027) (4,027)
Preferred (1,578) (1,578)
Common stock issued in connection with exercise of warrants
and exchange of preferred stock (2,897) 700.0 2,933 (36) —
Common stock issued under employee plans, net, and other 43.3 932 932
Cumulative adjustment for adoption of hedge accounting
standard (32) 57 25
Adoption of accounting standard related to certain tax effects
stranded in accumulated other comprehensive income (loss) 1,270 (1,270) —
Net income 28,147 28,147
Net change in debt and equity securities (3,953) (3,953)
Net change in debit valuation adjustments 749 749
Net change in derivatives (53) (53)
Employee benefit plan adjustments (405) (405)
Net change in foreign currency translation adjustments (254) (254)
Dividends declared:
Common (5,424) (5,424)
Preferred (1,451) (1,451)
Issuance of preferred stock 4,515 4,515
Redemption of preferred stock (4,512) (4,512)
Common stock issued under employee plans, net, and other 58.2 901 (12) 889

Consolidated Statement of Cash Flows

Operating activities
Net income $ 28,147 $ 18,232 $ 17,822
Adjustments to reconcile net income to net cash provided by operating activities:
Provision for credit losses 3,282 3,396 3,597
Gains on sales of debt securities (154) (255) (490)
Depreciation and premises improvements amortization 1,525 1,482 1,511
Amortization of intangibles 538 621 730
Net amortization of premium/discount on debt securities 1,824 2,251 3,134
Deferred income taxes 3,041 8,175 5,793
Stock-based compensation 1,729 1,649 1,367
Loans held-for-sale:
Originations and purchases (28,071) (43,506) (33,107)
Proceeds from sales and paydowns of loans originally classified as held for sale and instruments
from related securitization activities 28,972 40,548 32,588
Net change in:
Trading and derivative instruments (23,673) (14,663) (2,635)
Other assets 11,920 (20,090) (14,103)
Accrued expenses and other liabilities 13,010 4,673 (35)
Other operating activities, net (2,570) 7,351 1,105
Net cash provided by operating activities 39,520 9,864 17,277
Investing activities
Net change in:
Time deposits placed and other short-term investments 3,659 (1,292) (2,117)
Federal funds sold and securities borrowed or purchased under agreements to resell (48,384) (14,523) (5,742)
Debt securities carried at fair value:
Proceeds from sales 5,117 73,353 71,547
Proceeds from paydowns and maturities 78,513 93,874 108,592
Purchases (76,640) (166,975) (189,061)
Held-to-maturity debt securities:
Proceeds from paydowns and maturities 18,789 16,653 18,677
Purchases (35,980) (25,088) (39,899)
Loans and leases:
Proceeds from sales of loans originally classified as held for investment and instruments
from related securitization activities 21,365 11,996 18,787
Purchases (4,629) (6,846) (12,283)
Other changes in loans and leases, net (31,292) (41,104) (31,194)
Other investing activities, net (1,986) 8,411 408
Net cash used in investing activities (71,468) (51,541) (62,285)
Financing activities
Net change in:
Deposits 71,931 48,611 63,675
Federal funds purchased and securities loaned or sold under agreements to repurchase 10,070 7,024 (4,000)
Short-term borrowings (12,478) 8,538 (4,014)
Long-term debt:
Proceeds from issuance 64,278 53,486 35,537
Retirement (53,046) (49,480) (51,623)
Preferred stock:
Proceeds from issuance 4,515 — 2,947
Redemption (4,512) — —
Common stock repurchased (20,094) (12,814) (5,112)
Cash dividends paid (6,895) (5,700) (4,194)
Other financing activities, net (651) (397) (63)
Net cash provided by financing activities 53,118 49,268 33,153
Effect of exchange rate changes on cash and cash equivalents (1,200) 2,105 240
Net increase (decrease) in cash and cash equivalents 19,970 9,696 (11,615)
Cash and cash equivalents at January 1 157,434 147,738 159,353
Cash and cash equivalents at December 31 $ 177,404 $ 157,434 $ 147,738
Supplemental cash flow disclosures
Interest paid $ 19,087 $ 12,852 $ 10,510
Income taxes paid, net 2,470 3,235 1,043

Bank of America Corporation and Subsidiaries Effective January 1, 2018, the Corporation adopted the
Notes to Consolidated Financial Statements following new accounting standards on a retrospective basis,
resulting in restatement of all prior periods presented in the
NOTE 1 Summary of Significant Accounting Consolidated Statement of Income and the Consolidated
Statement of Cash Flows. The changes in presentation are not
Principles material to the individual line items affected.
Bank of America Corporation, a bank holding company and a Presentation of Pension Costs – The new accounting standard
financial holding company, provides a diverse range of financial requires separate presentation of the service cost component
services and products throughout the U.S. and in certain of pension expense from all other components of net pension
international markets. The term “the Corporation” as used herein benefit/cost in the Consolidated Statement of Income. As a
may refer to Bank of America Corporation, individually, Bank of result, the service cost component continues to be presented
America Corporation and its subsidiaries, or certain of Bank of in personnel expense while other components of net pension
America Corporation’s subsidiaries or affiliates. benefit/cost (e.g., interest cost, actual return on plan assets,
amortization of prior service cost) are now presented in other
Principles of Consolidation and Basis of Presentation general operating expense. For additional information, see Note
The Consolidated Financial Statements include the accounts of
17 – Employee Benefit Plans.
the Corporation and its majority-owned subsidiaries and those
Classification of Cash Flows and Restricted Cash – The new
variable interest entities (VIEs) where the Corporation is the
accounting standards address the classification of certain
primary beneficiary. Intercompany accounts and transactions have
cash receipts and cash payments in the statement of cash
been eliminated. Results of operations of acquired companies are
flows as well as the presentation and disclosure of restricted
included from the dates of acquisition and for VIEs, from the dates
cash. For more information on restricted cash, see Note 10 –
that the Corporation became the primary beneficiary. Assets held
Federal Funds Sold or Purchased, Securities Financing
in an agency or fiduciary capacity are not included in the
Agreements, Short-term Borrowings and Restricted Cash.
Consolidated Financial Statements. The Corporation accounts for
investments in companies for which it owns a voting interest and Lease Accounting
for which it has the ability to exercise significant influence over On January 1, 2019, the Corporation adopted the new accounting
operating and financing decisions using the equity method of standards that require lessees to recognize operating leases on
accounting. These investments are included in other assets. Equity the Consolidated Balance Sheet as right-of-use assets and lease
method investments are subject to impairment testing, and the liabilities based on the value of the discounted future lease
Corporation’s proportionate share of income or loss is included in payments. Lessor accounting is largely unchanged. Expanded
other income. disclosures about the nature and terms of lease agreements will
The preparation of the Consolidated Financial Statements in be required prospectively. The Corporation elected to apply certain
conformity with accounting principles generally accepted in the transition elections which allow for the continued application of
United States of America (GAAP) requires management to make the previous determination of whether a contract that existed at
estimates and assumptions that affect reported amounts and transition is or contains a lease, the associated lease
disclosures. Realized results could materially differ from those classification, and the recognition of leases on January 1, 2019
estimates and assumptions. Certain prior-period amounts have through a cumulative-effect adjustment to retained earnings, with
been reclassified to conform to current-period presentation. no adjustment to comparative prior periods presented. Upon
adoption, the Corporation recognized right-of-use assets and lease
New Accounting Standards liabilities of $9.7 billion. Adoption of the standard did not have a
Effective January 1, 2018, the Corporation adopted the following significant effect on the Corporation’s regulatory capital measures.
new accounting standards on a prospective basis.
Revenue Recognition – The new accounting standard Accounting Standards Issued and Not Yet Adopted
addresses the recognition of revenue from contracts with
customers. For additional information, see Revenue Accounting for Financial Instruments -- Credit Losses
Recognition Accounting Policies in this Note, Note 2 – The Financial Accounting Standards Board issued a new
Noninterest Income and Note 23 – Business Segment accounting standard that will be effective for the Corporation on
Information. January 1, 2020. The standard replaces the existing measurement
Hedge Accounting – The new accounting standard simplifies of the allowance for credit losses that is based on management’s
and expands the ability to apply hedge accounting to certain best estimate of probable credit losses inherent in the
risk management activities. For additional information, see Corporation’s lending activities with management’s best estimate
Note 3 – Derivatives. of lifetime expected credit losses inherent in the Corporation’s
Recognition and Measurement of Financial Assets and financial assets that are recognized at amortized cost. The
Liabilities – The new accounting standard relates to the standard will also expand credit quality disclosures. While the
recognition and measurement of financial instruments, standard changes the measurement of the allowance for credit
including equity investments. For additional information, see losses, it does not change the Corporation’s credit risk of its
Note 4 – Securities and Note 22 – Fair Value of Financial lending portfolios. The credit loss estimation models and
Instruments. processes to be used in implementing the new standard have
Tax Effects in Accumulated Other Comprehensive Income – The largely been designed and developed. The validation of the models
new accounting standard addresses certain tax effects and testing of controls are in process and expected to be
stranded in accumulated other comprehensive income (OCI) completed during 2019. Currently, the impact of this new
related to the 2017 Tax Cuts and Job Act (the Tax Act). For accounting standard may be an increase in the Corporation’s
additional information, see Note 14 – Accumulated Other allowance for credit losses at the date of adoption which would
Comprehensive Income (Loss). have a resulting negative adjustment to retained earnings. The
ultimate impact will be dependent on the characteristics of the
Corporation’s portfolio at adoption date as well as the Corporation nets cash collateral received against derivative
macroeconomic conditions and forecasts as of that date. assets. The Corporation also pledges collateral on its own
derivative positions which can be applied against derivative
Significant Accounting Principles liabilities.
Cash and Cash Equivalents Trading Instruments
Cash and cash equivalents include cash on hand, cash items in Financial instruments utilized in trading activities are carried at
the process of collection, cash segregated under federal and other fair value. Fair value is generally based on quoted market prices
brokerage regulations, and amounts due from correspondent for the same or similar assets and liabilities. If these market prices
banks, the Federal Reserve Bank and certain non-U.S. central are not available, fair values are estimated based on dealer quotes,
banks. Certain cash balances are restricted as to withdrawal or pricing models, discounted cash flow methodologies, or similar
usage by legal binding contractual agreements or regulatory techniques where the determination of fair value may require
requirements. significant management judgment or estimation. Realized gains
and losses are recorded on a trade-date basis. Realized and
Securities Financing Agreements unrealized gains and losses are recognized in trading account
Securities borrowed or purchased under agreements to resell and profits.
securities loaned or sold under agreements to repurchase
(securities financing agreements) are treated as collateralized Derivatives and Hedging Activities
financing transactions except in instances where the transaction Derivatives are entered into on behalf of customers, for trading or
is required to be accounted for as individual sale and purchase to support risk management activities. Derivatives used in risk
transactions. Generally, these agreements are recorded at management activities include derivatives that are both
acquisition or sale price plus accrued interest, except for certain designated in qualifying accounting hedge relationships and
securities financing agreements that the Corporation accounts for derivatives used to hedge market risks in relationships that are
under the fair value option. Changes in the fair value of securities not designated in qualifying accounting hedge relationships
financing agreements that are accounted for under the fair value (referred to as other risk management activities). The Corporation
option are recorded in trading account profits in the Consolidated manages interest rate and foreign currency exchange rate
Statement of Income. sensitivity predominantly through the use of derivatives.
The Corporation’s policy is to monitor the market value of the Derivatives utilized by the Corporation include swaps, futures and
principal amount loaned under resale agreements and obtain forward settlement contracts, and option contracts.
collateral from or return collateral pledged to counterparties when All derivatives are recorded on the Consolidated Balance Sheet
appropriate. Securities financing agreements do not create at fair value, taking into consideration the effects of legally
material credit risk due to these collateral provisions; therefore, enforceable master netting agreements that allow the Corporation
an allowance for loan losses is not necessary. to settle positive and negative positions and offset cash collateral
In transactions where the Corporation acts as the lender in a held with the same counterparty on a net basis. For exchange-
securities lending agreement and receives securities that can be traded contracts, fair value is based on quoted market prices in
pledged or sold as collateral, it recognizes an asset on the active or inactive markets or is derived from observable market-
Consolidated Balance Sheet at fair value, representing the based pricing parameters, similar to those applied to over-the-
securities received, and a liability, representing the obligation to counter (OTC) derivatives. For non-exchange traded contracts, fair
return those securities. value is based on dealer quotes, pricing models, discounted cash
flow methodologies or similar techniques for which the
Collateral determination of fair value may require significant management
The Corporation accepts securities and loans as collateral that it judgment or estimation.
is permitted by contract or practice to sell or repledge. At December Valuations of derivative assets and liabilities reflect the value
31, 2018 and 2017, the fair value of this collateral was $599.0 of the instrument including counterparty credit risk. These values
billion and $561.9 billion, of which $508.6 billion and $476.1 also take into account the Corporation’s own credit standing.
billion were sold or repledged. The primary source of this collateral
is securities borrowed or purchased under agreements to resell. Trading Derivatives and Other Risk Management Activities
The Corporation also pledges company-owned securities and Derivatives held for trading purposes are included in derivative
loans as collateral in transactions that include repurchase assets or derivative liabilities on the Consolidated Balance Sheet
agreements, securities loaned, public and trust deposits, U.S. with changes in fair value included in trading account profits.
Treasury tax and loan notes, and short-term borrowings. This Derivatives used for other risk management activities are
collateral, which in some cases can be sold or repledged by the included in derivative assets or derivative liabilities. Derivatives
counterparties to the transactions, is parenthetically disclosed on used in other risk management activities have not been designated
the Consolidated Balance Sheet. in qualifying accounting hedge relationships because they did not
In certain cases, the Corporation has transferred assets to qualify or the risk that is being mitigated pertains to an item that
consolidated VIEs where those restricted assets serve as is reported at fair value through earnings so that the effect of
collateral for the interests issued by the VIEs. These assets are measuring the derivative instrument and the asset or liability to
included on the Consolidated Balance Sheet in Assets of which the risk exposure pertains will offset in the Consolidated
Consolidated VIEs. Statement of Income to the extent effective. The changes in the
In addition, the Corporation obtains collateral in connection fair value of derivatives that serve to mitigate certain risks
with its derivative contracts. Required collateral levels vary associated with mortgage servicing rights (MSRs), interest rate
depending on the credit risk rating and the type of counterparty. lock commitments (IRLCs) and first-lien mortgage loans held-for-
Generally, the Corporation accepts collateral in the form of cash, sale (LHFS) that are originated by the Corporation are recorded in
U.S. Treasury securities and other marketable securities. Based other income. Changes in the fair value of derivatives that serve
on provisions contained in master netting agreements, the to mitigate interest rate risk and foreign currency risk are included
in other income. Credit derivatives are also used by the Corporation securities with unrealized gains and losses net-of-tax included in
to mitigate the risk associated with various credit exposures. The accumulated OCI or carried at fair value with unrealized gains and
changes in the fair value of these derivatives are included in other losses reported in other income. HTM debt securities, which are
income. certain debt securities that management has the intent and ability
to hold to maturity, are reported at amortized cost.
Derivatives Used For Hedge Accounting Purposes The Corporation regularly evaluates each AFS and HTM debt
(Accounting Hedges) security where the value has declined below amortized cost to
For accounting hedges, the Corporation formally documents at assess whether the decline in fair value is other than temporary.
inception all relationships between hedging instruments and In determining whether an impairment is other than temporary, the
hedged items, as well as the risk management objectives and Corporation considers the severity and duration of the decline in
strategies for undertaking various accounting hedges. Additionally, fair value, the length of time expected for recovery, the financial
the Corporation primarily uses regression analysis at the inception condition of the issuer, and other qualitative factors, as well as
of a hedge and for each reporting period thereafter to assess whether the Corporation either plans to sell the security or it is
whether the derivative used in an accounting hedge transaction is more likely than not that it will be required to sell the security
expected to be and has been highly effective in offsetting changes before recovery of the amortized cost. For AFS debt securities the
in the fair value or cash flows of a hedged item or forecasted Corporation intends to hold, an analysis is performed to determine
transaction. The Corporation discontinues hedge accounting when how much of the decline in fair value is related to the issuer’s
it is determined that a derivative is not expected to be or has credit and how much is related to market factors (e.g., interest
ceased to be highly effective as a hedge, and then reflects changes rates). If any of the decline in fair value is due to credit, an other-
in fair value of the derivative in earnings after termination of the than-temporary impairment (OTTI) loss is recognized in the
hedge relationship. Consolidated Statement of Income for that amount. If any of the
Fair value hedges are used to protect against changes in the decline in fair value is related to market factors, that amount is
fair value of the Corporation’s assets and liabilities that are recognized in accumulated OCI. In certain instances, the credit
attributable to interest rate or foreign exchange volatility. Changes loss may exceed the total decline in fair value, in which case, the
in the fair value of derivatives designated as fair value hedges are difference is due to market factors and is recognized as an
recorded in earnings, together and in the same income statement unrealized gain in accumulated OCI. If the Corporation intends to
line item with changes in the fair value of the related hedged item. sell or believes it is more likely than not that it will be required to
If a derivative instrument in a fair value hedge is terminated or the sell the debt security, it is written down to fair value as an OTTI
hedge designation removed, the previous adjustments to the loss.
carrying value of the hedged asset or liability are subsequently Interest on debt securities, including amortization of premiums
accounted for in the same manner as other components of the and accretion of discounts, is included in interest income.
carrying value of that asset or liability. For interest-earning assets Premiums and discounts are amortized or accreted to interest
and interest-bearing liabilities, such adjustments are amortized to income at a constant effective yield over the contractual lives of
earnings over the remaining life of the respective asset or liability. the securities. Realized gains and losses from the sales of debt
Cash flow hedges are used primarily to minimize the variability securities are determined using the specific identification method.
in cash flows of assets and liabilities or forecasted transactions Equity securities with readily determinable fair values that are
caused by interest rate or foreign exchange rate fluctuations. not held for trading purposes are carried at fair value with
Changes in the fair value of derivatives used in cash flow hedges unrealized gains and losses included in other income. Equity
are recorded in accumulated OCI and are reclassified into the line securities that do not have readily determinable fair values are
item in the income statement in which the hedged item is recorded held at cost and evaluated for impairment. These securities are
in the same period the hedged item affects earnings. Components reported in other assets or time deposits placed and other short-
of a derivative that are excluded in assessing hedge effectiveness term investments.
are recorded in the same income statement line item as the
hedged item. Loans and Leases
Net investment hedges are used to manage the foreign Loans, with the exception of loans accounted for under the fair
exchange rate sensitivity arising from a net investment in a foreign value option, are measured at historical cost and reported at their
operation. Changes in the spot prices of derivatives that are outstanding principal balances net of any unearned income,
designated as net investment hedges of foreign operations are charge-offs, unamortized deferred fees and costs on originated
recorded as a component of accumulated OCI. The remaining loans, and for purchased loans, net of any unamortized premiums
components of these derivatives are excluded in assessing hedge or discounts. Loan origination fees and certain direct origination
effectiveness and are recorded in other income. costs are deferred and recognized as adjustments to interest
income over the lives of the related loans. Unearned income,
Securities discounts and premiums are amortized to interest income using
Debt securities are reported on the Consolidated Balance Sheet a level yield methodology. The Corporation elects to account for
at their trade date. Their classification is dependent on the purpose certain consumer and commercial loans under the fair value option
for which the securities were acquired. Debt securities purchased with changes in fair value reported in other income.
for use in the Corporation’s trading activities are reported in trading Under applicable accounting guidance, for reporting purposes,
account assets at fair value with unrealized gains and losses the loan and lease portfolio is categorized by portfolio segment
included in trading account profits. Substantially all other debt and, within each portfolio segment, by class of financing
securities purchased are used in the Corporation’s asset and receivables. A portfolio segment is defined as the level at which
liability management (ALM) activities and are reported on the an entity develops and documents a systematic methodology to
Consolidated Balance Sheet as either debt securities carried at determine the allowance for credit losses, and a class of financing
fair value or as held-to-maturity (HTM) debt securities. Debt receivables is defined as the level of disaggregation of portfolio
securities carried at fair value are either available-for-sale (AFS) segments based on the initial measurement attribute, risk

characteristics and methods for assessing risk. The Corporation’s these unfunded credit instruments based on utilization
three portfolio segments are Consumer Real Estate, Credit Card assumptions. Lending-related credit exposures deemed to be
and Other Consumer, and Commercial. The classes within the uncollectible, excluding loans carried at fair value, are charged off
Consumer Real Estate portfolio segment are residential mortgage against these accounts.
and home equity. The classes within the Credit Card and Other The Corporation performs periodic and systematic detailed
Consumer portfolio segment are U.S. credit card, direct/indirect reviews of its lending portfolios to identify credit risks and to
consumer and other consumer. The classes within the Commercial assess the overall collectability of those portfolios. The allowance
portfolio segment are U.S. commercial, non-U.S. commercial, on certain homogeneous consumer loan portfolios, which
commercial real estate, commercial lease financing and U.S. small generally consist of consumer real estate loans within the
business commercial. Consumer Real Estate portfolio segment and credit card loans
within the Credit Card and Other Consumer portfolio segment, is
Purchased Credit-impaired Loans based on aggregated portfolio segment evaluations generally by
At acquisition, purchased credit-impaired (PCI) loans are recorded product type. Loss forecast models are utilized for these portfolios
at fair value with no allowance for credit losses, and accounted which consider a variety of factors including, but not limited to,
for individually or aggregated in pools based on similar risk historical loss experience, estimated defaults or foreclosures
characteristics. The expected cash flows in excess of the amount based on portfolio trends, delinquencies, bankruptcies, economic
paid for the loans is referred to as the accretable yield and is conditions, credit scores and the amount of loss in the event of
recorded as interest income over the remaining estimated life of default.
the loan or pool of loans. The excess of the contractual principal For consumer loans secured by residential real estate, using
and interest over the expected cash flows of the PCI loans is statistical modeling methodologies, the Corporation estimates the
referred to as the nonaccretable difference. If, upon subsequent number of loans that will default based on the individual loan
valuation, the Corporation determines it is probable that the attributes aggregated into pools of homogeneous loans with
present value of the expected cash flows has decreased, a charge similar attributes. The attributes that are most significant to the
to the provision for credit losses is recorded. If it is probable that probability of default and are used to estimate defaults include
there is a significant increase in the present value of expected refreshed loan-to-value (LTV) or, in the case of a subordinated lien,
cash flows, the allowance for credit losses is reduced or, if there refreshed combined LTV (CLTV), borrower credit score, months
is no remaining allowance for credit losses related to these PCI since origination (referred to as vintage) and geography, all of which
loans, the accretable yield is increased through a reclassification are further broken down by present collection status (whether the
from nonaccretable difference, resulting in a prospective increase loan is current, delinquent, in default or in bankruptcy). The severity
in interest income. Reclassifications to or from nonaccretable or loss given default is estimated based on the refreshed LTV for
difference can also occur for changes in the estimated lives of the first-lien mortgages or CLTV for subordinated liens. The estimates
PCI loans. If a loan within a PCI pool is sold, foreclosed, forgiven are based on the Corporation’s historical experience with the loan
or the expectation of any future proceeds is remote, the loan is portfolio, adjusted to reflect an assessment of environmental
removed from the pool at its proportional carrying value. If the factors not yet reflected in the historical data underlying the loss
loan’s recovery value is less than its carrying value, the difference estimates, such as changes in real estate values, local and
is first applied against the PCI pool’s nonaccretable difference and national economies, underwriting standards and the regulatory
then against the allowance for credit losses. environment. The probability of default models also incorporate
recent experience with modification programs including re-defaults
Leases
subsequent to modification, a loan’s default history prior to
The Corporation provides equipment financing to its customers
modification and the change in borrower payments post-
through a variety of lease arrangements. Direct financing leases
modification. On home equity loans where the Corporation holds
are carried at the aggregate of lease payments receivable plus
only a second-lien position and foreclosure is not the best
estimated residual value of the leased property less unearned
alternative, the loss severity is estimated at 100 percent.
income. Leveraged leases, which are a form of financing leases,
The allowance on certain commercial loans (except business
are reported net of non-recourse debt. Unearned income on
card and certain small business loans) is calculated using loss
leveraged and direct financing leases is accreted to interest
rates delineated by risk rating and product type. Factors considered
income over the lease terms using methods that approximate the
when assessing loss rates include the value of the underlying
interest method.
collateral, if applicable, the industry of the obligor, and the obligor’s
Allowance for Credit Losses liquidity and other financial indicators along with certain qualitative
The allowance for credit losses, which includes the allowance for factors. These statistical models are updated regularly for changes
loan and lease losses and the reserve for unfunded lending in economic and business conditions. Included in the analysis of
commitments, represents management’s estimate of probable consumer and commercial loan portfolios are qualitative
incurred credit losses in the Corporation’s loan and lease portfolio estimates which are maintained to cover uncertainties that affect
excluding loans and unfunded lending commitments accounted the Corporation’s estimate of probable losses including domestic
for under the fair value option. The allowance for credit losses and global economic uncertainty and large single-name defaults.
includes both quantitative and qualitative components. The For individually impaired loans, which include nonperforming
qualitative component has a higher degree of management commercial loans as well as consumer and commercial loans and
subjectivity, and includes factors such as concentrations, leases modified in a troubled debt restructuring (TDR),
economic conditions and other considerations. The allowance for management measures impairment primarily based on the present
loan and lease losses represents the estimated probable credit value of payments expected to be received, discounted at the
losses on funded consumer and commercial loans and leases loans’ original effective contractual interest rates. Credit card
while the reserve for unfunded lending commitments, including loans are discounted at the portfolio average contractual annual
standby letters of credit (SBLCs) and binding unfunded loan percentage rate, excluding promotionally priced loans, in effect
commitments, represents estimated probable credit losses on prior to restructuring. Impaired loans and TDRs may also be

measured based on observable market prices, or for loans that 60 days of receipt of notification of filing, with the remaining
are solely dependent on the collateral for repayment, the estimated balance classified as nonperforming.
fair value of the collateral less costs to sell. If the recorded Consumer loans secured by personal property, credit card loans
investment in impaired loans exceeds this amount, a specific and other unsecured consumer loans are not placed on nonaccrual
allowance is established as part of the allowance for loan and status prior to charge-off and, therefore, are not reported as
lease losses unless these are secured consumer loans that are nonperforming loans, except for certain secured consumer loans,
solely dependent on collateral for repayment, in which case the including those that have been modified in a TDR. Personal
amount that exceeds the fair value of the collateral is charged off. property-secured loans (including auto loans) are charged off to
Generally, the Corporation initially estimates the fair value of collateral value no later than the end of the month in which the
the collateral securing these consumer real estate-secured loans account becomes 120 days past due, or upon repossession of an
using an automated valuation model (AVM). An AVM is a tool that auto or, for loans in bankruptcy, within 60 days of receipt of
estimates the value of a property by reference to market data notification of filing. Credit card and other unsecured customer
including sales of comparable properties and price trends specific loans are charged off no later than the end of the month in which
to the Metropolitan Statistical Area in which the property being the account becomes 180 days past due, within 60 days after
valued is located. In the event that an AVM value is not available, receipt of notification of death or bankruptcy, or upon confirmation
the Corporation utilizes publicized indices or if these methods of fraud.
provide less reliable valuations, the Corporation uses appraisals Commercial loans and leases, excluding business card loans,
or broker price opinions to estimate the fair value of the collateral. that are past due 90 days or more as to principal or interest, or
While there is inherent imprecision in these valuations, the where reasonable doubt exists as to timely collection, including
Corporation believes that they are representative of the portfolio loans that are individually identified as being impaired, are
in the aggregate. generally placed on nonaccrual status and classified as
In addition to the allowance for loan and lease losses, the nonperforming unless well-secured and in the process of
Corporation also estimates probable losses related to unfunded collection.
lending commitments, such as letters of credit, financial Business card loans are charged off in the same manner as
guarantees and binding unfunded loan commitments. Unfunded consumer credit card loans. These loans are not placed on
lending commitments are subject to individual reviews and are nonaccrual status prior to charge-off and, therefore, are not
analyzed and segregated by risk according to the Corporation’s reported as nonperforming loans. Other commercial loans and
internal risk rating scale. These risk classifications, in conjunction leases are generally charged off when all or a portion of the
with an analysis of historical loss experience, utilization principal amount is determined to be uncollectible.
assumptions, current economic conditions, performance trends The entire balance of a consumer loan or commercial loan or
within the portfolio and any other pertinent information, result in lease is contractually delinquent if the minimum payment is not
the estimation of the reserve for unfunded lending commitments. received by the specified due date on the customer’s billing
The allowance for credit losses related to the loan and lease statement. Interest and fees continue to accrue on past due loans
portfolio is reported separately on the Consolidated Balance Sheet and leases until the date the loan is placed on nonaccrual status,
whereas the reserve for unfunded lending commitments is if applicable. Accrued interest receivable is reversed when loans
reported on the Consolidated Balance Sheet in accrued expenses and leases are placed on nonaccrual status. Interest collections
and other liabilities. The provision for credit losses related to the on nonaccruing loans and leases for which the ultimate
loan and lease portfolio and unfunded lending commitments is collectability of principal is uncertain are applied as principal
reported in the Consolidated Statement of Income. reductions; otherwise, such collections are credited to income
when received. Loans and leases may be restored to accrual status
Nonperforming Loans and Leases, Charge-offs and when all principal and interest is current and full repayment of the
Delinquencies remaining contractual principal and interest is expected.
Nonperforming loans and leases generally include loans and PCI loans are recorded at fair value at the acquisition date.
leases that have been placed on nonaccrual status. Loans Although the PCI loans may be contractually delinquent, the
accounted for under the fair value option, PCI loans and LHFS are Corporation does not classify these loans as nonperforming as
not reported as nonperforming. the loans were written down to fair value at the acquisition date
In accordance with the Corporation’s policies, consumer real and the accretable yield is recognized in interest income over the
estate-secured loans, including residential mortgages and home remaining life of the loan. In addition, reported net charge-offs
equity loans, are generally placed on nonaccrual status and exclude write-offs on PCI loans as the fair value already considers
classified as nonperforming at 90 days past due unless repayment the estimated credit losses.
of the loan is insured by the Federal Housing Administration (FHA)
or through individually insured long-term standby agreements with Troubled Debt Restructurings
Fannie Mae (FNMA) or Freddie Mac (FHLMC) (the fully-insured Consumer and commercial loans and leases whose contractual
portfolio). Residential mortgage loans in the fully-insured portfolio terms have been restructured in a manner that grants a concession
are not placed on nonaccrual status and, therefore, are not to a borrower experiencing financial difficulties are classified as
reported as nonperforming. Junior-lien home equity loans are TDRs. Concessions could include a reduction in the interest rate
placed on nonaccrual status and classified as nonperforming when to a rate that is below market on the loan, payment extensions,
the underlying first-lien mortgage loan becomes 90 days past due forgiveness of principal, forbearance or other actions designed to
even if the junior-lien loan is current. The outstanding balance of maximize collections. Loans that are carried at fair value, LHFS
real estate-secured loans that is in excess of the estimated and PCI loans are not classified as TDRs.
property value less costs to sell is charged off no later than the Loans and leases whose contractual terms have been modified
end of the month in which the loan becomes 180 days past due in a TDR and are current at the time of restructuring may remain
unless the loan is fully insured, or for loans in bankruptcy, within on accrual status if there is demonstrated performance prior to
the restructuring and payment in full under the restructured terms

is expected. Otherwise, the loans are placed on nonaccrual status is comprised of allocated capital plus capital for the portion of
and reported as nonperforming, except for fully-insured consumer goodwill and intangibles specifically assigned to the reporting unit.
real estate loans, until there is sustained repayment performance In performing its goodwill impairment testing, the Corporation
for a reasonable period, generally six months. If accruing TDRs first assesses qualitative factors to determine whether it is more
cease to perform in accordance with their modified contractual likely than not that the fair value of a reporting unit is less than
terms, they are placed on nonaccrual status and reported as its carrying value. Qualitative factors include, among other things,
nonperforming TDRs. macroeconomic conditions, industry and market considerations,
Secured consumer loans that have been discharged in Chapter financial performance of the respective reporting unit and other
7 bankruptcy and have not been reaffirmed by the borrower are relevant entity- and reporting-unit specific considerations.
classified as TDRs at the time of discharge. Such loans are placed If the Corporation concludes it is more likely than not that the
on nonaccrual status and written down to the estimated collateral fair value of a reporting unit is less than its carrying value, a
value less costs to sell no later than at the time of discharge. If quantitative assessment is performed. If the fair value of the
these loans are contractually current, interest collections are reporting unit exceeds its carrying value, goodwill of the reporting
generally recorded in interest income on a cash basis. Consumer unit is considered not impaired; however, if the carrying value of
real estate-secured loans for which a binding offer to restructure the reporting unit exceeds its fair value, an additional step is
has been extended are also classified as TDRs. Credit card and performed to measure potential impairment.
other unsecured consumer loans that have been renegotiated in This step involves calculating an implied fair value of goodwill
a TDR generally remain on accrual status until the loan is either which is the excess of the fair value of the reporting unit, as
paid in full or charged off, which occurs no later than the end of determined in the first step, over the aggregate fair values of the
the month in which the loan becomes 180 days past due or, for assets, liabilities and identifiable intangibles as if the reporting
loans that have been placed on a fixed payment plan, 120 days unit was being acquired in a business combination. If the implied
past due. fair value of goodwill exceeds the goodwill assigned to the reporting
A loan that had previously been modified in a TDR and is unit, there is no impairment. If the goodwill assigned to a reporting
subsequently refinanced under current underwriting standards at unit exceeds the implied fair value of goodwill, an impairment
a market rate with no concessionary terms is accounted for as a charge is recorded for the excess. An impairment loss recognized
new loan and is no longer reported as a TDR. cannot exceed the amount of goodwill assigned to a reporting unit.
An impairment loss establishes a new basis in the goodwill, and
Loans Held-for-sale subsequent reversals of goodwill impairment losses are not
Loans that are intended to be sold in the foreseeable future, permitted under applicable accounting guidance.
including residential mortgages, loan syndications, and to a lesser For intangible assets subject to amortization, an impairment
degree, commercial real estate, consumer finance and other loans, loss is recognized if the carrying value of the intangible asset is
are reported as LHFS and are carried at the lower of aggregate not recoverable and exceeds fair value. The carrying value of the
cost or fair value. The Corporation accounts for certain LHFS, intangible asset is considered not recoverable if it exceeds the
including residential mortgage LHFS, under the fair value option. sum of the undiscounted cash flows expected to result from the
Loan origination costs related to LHFS that the Corporation use of the asset. Intangible assets deemed to have indefinite
accounts for under the fair value option are recognized in useful lives are not subject to amortization. An impairment loss
noninterest expense when incurred. Loan origination costs for is recognized if the carrying value of the intangible asset with an
LHFS carried at the lower of cost or fair value are capitalized as indefinite life exceeds its fair value.
part of the carrying value of the loans and recognized as a reduction
of noninterest income upon the sale of such loans. LHFS that are Variable Interest Entities
on nonaccrual status and are reported as nonperforming, as A VIE is an entity that lacks equity investors or whose equity
defined in the policy herein, are reported separately from investors do not have a controlling financial interest in the entity
nonperforming loans and leases. through their equity investments. The Corporation consolidates a
VIE if it has both the power to direct the activities of the VIE that
Premises and Equipment most significantly impact the VIE’s economic performance and an
Premises and equipment are carried at cost less accumulated obligation to absorb losses or the right to receive benefits that
depreciation and amortization. Depreciation and amortization are could potentially be significant to the VIE. On a quarterly basis,
recognized using the straight-line method over the estimated the Corporation reassesses its involvement with the VIE and
useful lives of the assets. Estimated lives range up to 40 years evaluates the impact of changes in governing documents and its
for buildings, up to 12 years for furniture and equipment, and the financial interests in the VIE. The consolidation status of the VIEs
shorter of lease term or estimated useful life for leasehold with which the Corporation is involved may change as a result of
improvements. such reassessments.
The Corporation primarily uses VIEs for its securitization
Goodwill and Intangible Assets
activities, in which the Corporation transfers whole loans or debt
Goodwill is the purchase premium after adjusting for the fair value
securities into a trust or other vehicle. When the Corporation is
of net assets acquired. Goodwill is not amortized but is reviewed
the servicer of whole loans held in a securitization trust, including
for potential impairment on an annual basis, or when events or
non-agency residential mortgages, home equity loans, credit cards,
circumstances indicate a potential impairment, at the reporting
and other loans, the Corporation has the power to direct the most
unit level. A reporting unit is a business segment or one level below
significant activities of the trust. The Corporation generally does
a business segment.
not have the power to direct the most significant activities of a
The Corporation assesses the fair value of each reporting unit
residential mortgage agency trust except in certain circumstances
against its carrying value, including goodwill, as measured by
in which the Corporation holds substantially all of the issued
allocated equity. For purposes of goodwill impairment testing, the
securities and has the unilateral right to liquidate the trust. The
Corporation utilizes allocated equity as a proxy for the carrying
power to direct the most significant activities of a commercial
value of its reporting units. Allocated equity in the reporting units
mortgage securitization trust is typically held by the special Level 1 Unadjusted quoted prices in active markets for identical
servicer or by the party holding specific subordinate securities assets or liabilities. Level 1 assets and liabilities include
which embody certain controlling rights. The Corporation debt and equity securities and derivative contracts that
consolidates a whole-loan securitization trust if it has the power are traded in an active exchange market, as well as
to direct the most significant activities and also holds securities certain U.S. Treasury securities that are highly liquid and
issued by the trust or has other contractual arrangements, other are actively traded in OTC markets.
than standard representations and warranties, that could Level 2 Observable inputs other than Level 1 prices, such as
potentially be significant to the trust. quoted prices for similar assets or liabilities, quoted
The Corporation may also transfer trading account securities prices in markets that are not active, or other inputs that
and AFS securities into municipal bond or resecuritization trusts. are observable or can be corroborated by observable
The Corporation consolidates a municipal bond or resecuritization market data for substantially the full term of the assets
trust if it has control over the ongoing activities of the trust such or liabilities. Level 2 assets and liabilities include debt
as the remarketing of the trust’s liabilities or, if there are no ongoing securities with quoted prices that are traded less
activities, sole discretion over the design of the trust, including frequently than exchange-traded instruments and
the identification of securities to be transferred in and the structure derivative contracts where fair value is determined using
of securities to be issued, and also retains securities or has a pricing model with inputs that are observable in the
liquidity or other commitments that could potentially be significant market or can be derived principally from or corroborated
to the trust. The Corporation does not consolidate a municipal by observable market data. This category generally
bond or resecuritization trust if one or a limited number of third- includes U.S. government and agency mortgage-backed
party investors share responsibility for the design of the trust or (MBS) and asset-backed securities (ABS), corporate debt
have control over the significant activities of the trust through securities, derivative contracts, certain loans and LHFS.
liquidation or other substantive rights. Level 3 Unobservable inputs that are supported by little or no
Other VIEs used by the Corporation include collateralized debt market activity and that are significant to the overall fair
obligations (CDOs), investment vehicles created on behalf of value of the assets or liabilities. Level 3 assets and
customers and other investment vehicles. The Corporation does liabilities include financial instruments for which the
not routinely serve as collateral manager for CDOs and, therefore, determination of fair value requires significant
does not typically have the power to direct the activities that most management judgment or estimation. The fair value for
significantly impact the economic performance of a CDO. However, such assets and liabilities is generally determined using
following an event of default, if the Corporation is a majority holder pricing models, discounted cash flow methodologies or
of senior securities issued by a CDO and acquires the power to similar techniques that incorporate the assumptions a
manage its assets, the Corporation consolidates the CDO. market participant would use in pricing the asset or
The Corporation consolidates a customer or other investment liability. This category generally includes retained
vehicle if it has control over the initial design of the vehicle or residual interests in securitizations, consumer MSRs,
manages the assets in the vehicle and also absorbs potentially certain ABS, highly structured, complex or long-dated
significant gains or losses through an investment in the vehicle, derivative contracts, certain loans and LHFS, IRLCs and
derivative contracts or other arrangements. The Corporation does certain CDOs where independent pricing information
not consolidate an investment vehicle if a single investor controlled cannot be obtained for a significant portion of the
the initial design of the vehicle or manages the assets in the underlying assets.
vehicles or if the Corporation does not have a variable interest
that could potentially be significant to the vehicle. Income Taxes
Retained interests in securitized assets are initially recorded There are two components of income tax expense: current and
at fair value. In addition, the Corporation may invest in debt deferred. Current income tax expense reflects taxes to be paid or
securities issued by unconsolidated VIEs. Fair values of these debt refunded for the current period. Deferred income tax expense
securities, which are classified as trading account assets, debt results from changes in deferred tax assets and liabilities between
securities carried at fair value or HTM securities, are based periods. These gross deferred tax assets and liabilities represent
primarily on quoted market prices in active or inactive markets. decreases or increases in taxes expected to be paid in the future
Generally, quoted market prices for retained residual interests are because of future reversals of temporary differences in the bases
not available; therefore, the Corporation estimates fair values of assets and liabilities as measured by tax laws and their bases
based on the present value of the associated expected future cash as reported in the financial statements. Deferred tax assets are
flows. also recognized for tax attributes such as net operating loss
carryforwards and tax credit carryforwards. Valuation allowances
Fair Value are recorded to reduce deferred tax assets to the amounts
The Corporation measures the fair values of its assets and management concludes are more likely than not to be realized.
liabilities, where applicable, in accordance with accounting Income tax benefits are recognized and measured based upon
guidance that requires an entity to base fair value on exit price. a two-step model: first, a tax position must be more likely than not
Under this guidance, an entity is required to maximize the use of to be sustained based solely on its technical merits in order to be
observable inputs and minimize the use of unobservable inputs recognized, and second, the benefit is measured as the largest
in measuring fair value. A hierarchy is established which dollar amount of that position that is more likely than not to be
categorizes fair value measurements into three levels based on sustained upon settlement. The difference between the benefit
the inputs to the valuation technique with the highest priority given recognized and the tax benefit claimed on a tax return is referred
to unadjusted quoted prices in active markets and the lowest to as an unrecognized tax benefit. The Corporation records income
priority given to unobservable inputs. The Corporation categorizes tax-related interest and penalties, if applicable, within income tax
its fair value measurements of financial instruments based on this expense.
three-level hierarchy.

Revenue Recognition Global Wealth & Investment Management (GWIM) segment and are
The following summarizes the Corporation’s revenue recognition earned over time. In addition, primarily in the Global Markets
accounting policies for certain noninterest income activities. segment, brokerage fees are earned when the Corporation fills
customer orders to buy or sell various financial products or when
Card Income it acknowledges, affirms, settles and clears transactions and/or
Card income includes annual, late and over-limit fees as well as submits trade information to the appropriate clearing broker.
fees earned from interchange, cash advances and other Certain customers pay brokerage, clearing and/or exchange fees
miscellaneous transactions and is presented net of direct costs. imposed by relevant regulatory bodies or exchanges in order to
Interchange fees are recognized upon settlement of the credit and execute or clear trades. These fees are recorded net and are not
debit card payment transactions and are generally determined on reflected in the transaction price, as the Corporation is an agent
a percentage basis for credit cards and fixed rates for debit cards for those services.
based on the corresponding payment network’s rates.
Substantially all card fees are recognized at the transaction date, Investment Banking Income
except for certain time-based fees such as annual fees, which are Investment banking income includes underwriting income and
recognized over 12 months. Fees charged to cardholders that are financial advisory services income. Underwriting consists of fees
estimated to be uncollectible are reserved in the allowance for earned for the placement of a customer’s debt or equity securities.
loan and lease losses. Included in direct cost are rewards and The revenue is generally earned based on a percentage of the
credit card partner payments. Rewards paid to cardholders are fixed number of shares or principal placed. Once the number of
related to points earned by the cardholder that can be redeemed shares or notes is determined and the service is completed, the
for a broad range of rewards including cash, travel and gift cards. underwriting fees are recognized. The Corporation incurs certain
The points to be redeemed are estimated based on past out-of-pocket expenses, such as legal costs, in performing these
redemption behavior, card product type, account transaction services. These expenses are recovered through the revenue the
activity and other historical card performance. The liability is Corporation earns from the customer and are included in operating
reduced as the points are redeemed. The Corporation also makes expenses. Syndication fees represent fees earned as the agent
payments to credit card partners. The payments are based on or lead lender responsible for structuring, arranging and
revenue-sharing agreements that are generally driven by administering a loan syndication.
cardholder transactions and partner sales volumes. As part of the Financial advisory services consist of fees earned for assisting
revenue-sharing agreements, the credit card partner provides the customers with transactions related to mergers and acquisitions
Corporation exclusive rights to market to the credit card partner’s and financial restructurings. Revenue varies depending on the size
members or customers on behalf of the Corporation. and number of services performed for each contract and is
generally contingent on successful execution of the transaction.
Service Charges Revenue is typically recognized once the transaction is completed
Service charges include deposit and lending-related fees. Deposit- and all services have been rendered. Additionally, the Corporation
related fees consist of fees earned on consumer and commercial may earn a fixed fee in merger and acquisition transactions to
deposit activities and are generally recognized when the provide a fairness opinion, with the fees recognized when the
transactions occur or as the service is performed. Consumer fees opinion is delivered to the customer.
are earned on consumer deposit accounts for account
maintenance and various transaction-based services, such as ATM Other Revenue Measurement and Recognition Policies
transactions, wire transfer activities, check and money order The Corporation did not disclose the value of any open performance
processing and insufficient funds/overdraft transactions. obligations at December 31, 2018, as its contracts with customers
Commercial deposit-related fees are from the Corporation’s Global generally have a fixed term that is less than one year, an open
Transaction Services business and consist of commercial deposit term with a cancellation period that is less than one year, or
and treasury management services, including account provisions that allow the Corporation to recognize revenue at the
maintenance and other services, such as payroll, sweep account amount it has the right to invoice.
and other cash management services. Lending-related fees
generally represent transactional fees earned from certain loan Earnings Per Common Share
commitments, financial guarantees and SBLCs. Earnings per common share (EPS) is computed by dividing net
income allocated to common shareholders by the weighted-
Investment and Brokerage Services average common shares outstanding, excluding unvested common
Investment and brokerage services consist of asset management shares subject to repurchase or cancellation. Net income allocated
and brokerage fees. Asset management fees are earned from the to common shareholders is net income adjusted for preferred
management of client assets under advisory agreements or the stock dividends including dividends declared, accretion of
full discretion of the Corporation’s financial advisors (collectively discounts on preferred stock including accelerated accretion when
referred to as assets under management (AUM)). Asset preferred stock is repaid early, and cumulative dividends related
management fees are earned as a percentage of the client’s AUM to the current dividend period that have not been declared as of
and generally range from 50 basis points (bps) to 150 bps of the period end, less income allocated to participating securities.
AUM. In cases where a third party is used to obtain a client’s Diluted EPS is computed by dividing income allocated to common
investment allocation, the fee remitted to the third party is recorded shareholders plus dividends on dilutive convertible preferred stock
net and is not reflected in the transaction price, as the Corporation and preferred stock that can be tendered to exercise warrants, by
is an agent for those services. the weighted-average common shares outstanding plus amounts
Brokerage fees include income earned from transaction-based representing the dilutive effect of stock options outstanding,
services that are performed as part of investment management restricted stock, restricted stock units (RSUs), outstanding
services and are based on a fixed price per unit or as a percentage warrants and the dilution resulting from the conversion of
of the total transaction amount. Brokerage fees also include convertible preferred stock, if applicable.
distribution fees and sales commissions that are primarily in the

Foreign Currency Translation liabilities and generally at average rates for results of operations.
Assets, liabilities and operations of foreign branches and The resulting unrealized gains and losses are reported as a
subsidiaries are recorded based on the functional currency of each component of accumulated OCI, net-of-tax. When the foreign
entity. When the functional currency of a foreign operation is the entity’s functional currency is the U.S. dollar, the resulting
local currency, the assets, liabilities and operations are translated, remeasurement gains or losses on foreign currency-denominated
for consolidation purposes, from the local currency to the U.S. assets or liabilities are included in earnings.
dollar reporting currency at period-end rates for assets and
NOTE 2 Noninterest Income

The table below presents the Corporation’s noninterest income disaggregated by revenue source for 2018, 2017 and 2016. For more
information, see Note 1 – Summary of Significant Accounting Principles. For a disaggregation of noninterest income by business segment
and All Other, see Note 23 – Business Segment Information.

Card income
Interchange fees (1) $ 4,093 $ 3,942 $ 3,960
Other card income 1,958 1,960 1,891
Total card income 6,051 5,902 5,851
Service charges
Deposit-related fees 6,667 6,708 6,545
Lending-related fees 1,100 1,110 1,093
Total service charges 7,767 7,818 7,638
Investment and brokerage services
Asset management fees 10,189 9,310 8,328
Brokerage fees 3,971 4,526 5,021
Total investment and brokerage services 14,160 13,836 13,349
Investment banking income
Underwriting income 2,722 2,821 2,585
Syndication fees 1,347 1,499 1,388
Financial advisory services 1,258 1,691 1,268
Total investment banking income 5,327 6,011 5,241
Trading account profits 8,540 7,277 6,902
Other income 1,970 1,841 3,624
Total noninterest income $ 43,815 $ 42,685 $ 42,605
(1) During 2018, 2017 and 2016, gross interchange fees were $9.5 billion, $8.8 billion and $8.2 billion and are presented net of $5.4 billion, $4.8 billion and $4.2 billion, respectively, of expenses for
rewards and partner payments.

NOTE 3 Derivatives activities, see Note 1 – Summary of Significant Accounting
Principles. The following tables present derivative instruments
Derivative Balances included on the Consolidated Balance Sheet in derivative assets
Derivatives are entered into on behalf of customers, for trading or and liabilities at December 31, 2018 and 2017. Balances are
to support risk management activities. Derivatives used in risk presented on a gross basis, prior to the application of counterparty
management activities include derivatives that may or may not be and cash collateral netting. Total derivative assets and liabilities
designated in qualifying hedge accounting relationships. are adjusted on an aggregate basis to take into consideration the
Derivatives that are not designated in qualifying hedge accounting effects of legally enforceable master netting agreements and have
relationships are referred to as other risk management derivatives. been reduced by cash collateral received or paid.
For more information on the Corporation’s derivatives and hedging
December 31, 2018

Gross Derivative Assets Gross Derivative Liabilities
Trading and Trading and
Other Risk Qualifying Other Risk Qualifying
Contract/ Management Accounting Management Accounting
(Dollars in billions) Notional (1) Derivatives Hedges Total Derivatives Hedges Total
Interest rate contracts
Swaps $ 15,977.9 $ 141.0 $ 3.2 $ 144.2 $ 138.9 $ 2.0 $ 140.9
Futures and forwards 3,656.6 4.7 — 4.7 5.0 — 5.0
Written options 1,584.9 — — — 28.6 — 28.6
Purchased options 1,614.0 30.8 — 30.8 — — —
Foreign exchange contracts
Swaps 1,704.8 38.8 1.4 40.2 42.2 2.3 44.5
Spot, futures and forwards 4,276.0 39.8 0.4 40.2 39.3 0.3 39.6
Written options 256.7 — — — 5.0 — 5.0
Purchased options 240.4 4.6 — 4.6 — — —
Equity contracts
Swaps 253.6 7.7 — 7.7 8.4 — 8.4
Futures and forwards 100.0 2.1 — 2.1 0.3 — 0.3
Written options 597.1 — — — 27.5 — 27.5
Commodity contracts
Swaps 43.1 2.7 — 2.7 4.5 — 4.5
Written options 27.5 — — — 2.2 — 2.2
Credit derivatives (2, 3)
Purchased credit derivatives:
Credit default swaps 408.1 5.3 — 5.3 4.9 — 4.9
Total return swaps/options 84.5 0.4 — 0.4 1.0 — 1.0
Written credit derivatives:
Gross derivative assets/liabilities $ 323.8 $ 5.0 $ 328.8 $ 313.2 $ 4.6 $ 317.8
Less: Legally enforceable master netting agreements (252.7) (252.7)
Less: Cash collateral received/paid (32.4) (27.2)
Total derivative assets/liabilities $ 43.7 $ 37.9
(1) Represents the total contract/notional amount of derivative assets and liabilities outstanding.
(2) The net derivative liability and notional amount of written credit derivatives for which the Corporation held purchased credit derivatives with identical underlying referenced names were $185 million
and $342.8 billion at December 31, 2018.
(3) Derivative assets and liabilities for credit default swaps (CDS) reflect a central clearing counterparty’s amendments to legally re-characterize daily cash variation margin from collateral, which secures
an outstanding exposure, to settlement, which discharges an outstanding exposure, effective in 2018.

December 31, 2017
Gross Derivative Assets Gross Derivative Liabilities
Trading and Trading and
Other Risk Qualifying Other Risk Qualifying
Contract/ Management Accounting Management Accounting
(Dollars in billions) Notional (1) Derivatives Hedges Total Derivatives Hedges Total
Swaps $ 15,416.4 $ 175.1 $ 2.9 $ 178.0 $ 172.5 $ 1.7 $ 174.2
Futures and forwards 4,332.4 0.5 — 0.5 0.5 — 0.5
Written options 1,170.5 — — — 35.5 — 35.5
Purchased options 1,184.5 37.6 — 37.6 — — —
Swaps 2,011.1 35.6 2.2 37.8 36.1 2.7 38.8
Spot, futures and forwards 3,543.3 39.1 0.7 39.8 39.1 0.8 39.9
Written options 291.8 — — — 5.1 — 5.1
Equity contracts
Swaps 265.6 4.8 — 4.8 4.4 — 4.4
Written options 480.8 — — — 23.9 — 23.9
Commodity contracts
Swaps 46.1 1.8 — 1.8 4.6 — 4.6
Written options 21.7 — — — 1.4 — 1.4
Credit derivatives (2)
Purchased credit derivatives:
Written credit derivatives:
Gross derivative assets/liabilities $ 345.8 $ 5.8 $ 351.6 $ 340.8 $ 5.2 $ 346.0
Less: Legally enforceable master netting agreements (279.2) (279.2)
Less: Cash collateral received/paid (34.6) (32.5)
Total derivative assets/liabilities $ 37.8 $ 34.3
(1) Represents the total contract/notional amount of derivative assets and liabilities outstanding.
(2) The net derivative asset and notional amount of written credit derivatives for which the Corporation held purchased credit derivatives with identical underlying referenced names were $6.4 billion and
$435.1 billion at December 31, 2017.
Offsetting of Derivatives Sheet at December 31, 2018 and 2017 by primary risk (e.g.,
The Corporation enters into International Swaps and Derivatives interest rate risk) and the platform, where applicable, on which
Association, Inc. (ISDA) master netting agreements or similar these derivatives are transacted. Balances are presented on a
agreements with substantially all of the Corporation’s derivative gross basis, prior to the application of counterparty and cash
counterparties. Where legally enforceable, these master netting collateral netting. Total gross derivative assets and liabilities are
agreements give the Corporation, in the event of default by the adjusted on an aggregate basis to take into consideration the
counterparty, the right to liquidate securities held as collateral and effects of legally enforceable master netting agreements which
to offset receivables and payables with the same counterparty. include reducing the balance for counterparty netting and cash
For purposes of the Consolidated Balance Sheet, the Corporation collateral received or paid.
offsets derivative assets and liabilities and cash collateral held For more information on offsetting of securities financing
with the same counterparty where it has such a legally enforceable agreements, see Note 10 – Federal Funds Sold or Purchased,
master netting agreement. Securities Financing Agreements, Short-term Borrowings and
The following table presents derivative instruments included Restricted Cash.
in derivative assets and liabilities on the Consolidated Balance

Offsetting of Derivatives (1)
Derivative Derivative Derivative Derivative
Assets Liabilities Assets Liabilities
(Dollars in billions) December 31, 2018 December 31, 2017
Over-the-counter $ 174.2 $ 169.4 $ 211.7 $ 206.0
Over-the-counter cleared 4.8 4.0 1.9 1.8
Over-the-counter 82.5 86.3 78.7 80.8
Equity contracts
Over-the-counter 24.6 14.6 18.3 16.2
Exchange-traded 16.1 15.1 9.1 8.5
Commodity contracts
Over-the-counter 3.5 4.5 2.9 4.4
Credit derivatives
Over-the-counter 7.7 8.2 9.1 9.6
Total gross derivative assets/liabilities, before netting
Over-the-counter 292.5 283.0 320.7 317.0
Less: Legally enforceable master netting agreements and cash collateral received/paid
Over-the-counter (264.4) (259.2) (296.9) (294.6)
Exchange-traded (13.5) (13.5) (8.6) (8.6)
Over-the-counter cleared (7.2) (7.2) (8.3) (8.5)
Derivative assets/liabilities, after netting 32.7 26.3 25.6 23.1
Other gross derivative assets/liabilities (2) 11.0 11.6 12.2 11.2
Total derivative assets/liabilities 43.7 37.9 37.8 34.3
Less: Financial instruments collateral (3) (16.3) (8.6) (11.2) (10.4)
Total net derivative assets/liabilities $ 27.4 $ 29.3 $ 26.6 $ 23.9
(1) OTC derivatives include bilateral transactions between the Corporation and a particular counterparty. OTC-cleared derivatives include bilateral transactions between the Corporation and a counterparty
where the transaction is cleared through a clearinghouse. Exchange-traded derivatives include listed options transacted on an exchange.
(2) Consists of derivatives entered into under master netting agreements where the enforceability of these agreements is uncertain under bankruptcy laws in some countries or industries.
(3) Amounts are limited to the derivative asset/liability balance and, accordingly, do not include excess collateral received/pledged. Financial instruments collateral includes securities collateral received
or pledged and cash securities held and posted at third-party custodians that are not offset on the Consolidated Balance Sheet but shown as a reduction to derive net derivative assets and liabilities.
ALM and Risk Management Derivatives Corporation also utilizes derivatives such as interest rate options,
The Corporation’s ALM and risk management activities include the interest rate swaps, forward settlement contracts and eurodollar
use of derivatives to mitigate risk to the Corporation including futures to hedge certain market risks of MSRs. For more
derivatives designated in qualifying hedge accounting information on MSRs, see Note 20 – Fair Value Measurements.
relationships and derivatives used in other risk management The Corporation uses foreign exchange contracts to manage
activities. Interest rate, foreign exchange, equity, commodity and the foreign exchange risk associated with certain foreign currency-
credit contracts are utilized in the Corporation’s ALM and risk denominated assets and liabilities, as well as the Corporation’s
management activities. investments in non-U.S. subsidiaries. Foreign exchange contracts,
The Corporation maintains an overall interest rate risk which include spot and forward contracts, represent agreements
management strategy that incorporates the use of interest rate to exchange the currency of one country for the currency of another
contracts, which are generally non-leveraged generic interest rate country at an agreed-upon price on an agreed-upon settlement
and basis swaps, options, futures and forwards, to minimize date. Exposure to loss on these contracts will increase or decrease
significant fluctuations in earnings caused by interest rate over their respective lives as currency exchange and interest rates
volatility. The Corporation’s goal is to manage interest rate fluctuate.
sensitivity and volatility so that movements in interest rates do The Corporation purchases credit derivatives to manage credit
not significantly adversely affect earnings or capital. As a result risk related to certain funded and unfunded credit exposures.
of interest rate fluctuations, hedged fixed-rate assets and liabilities Credit derivatives include CDS, total return swaps and swaptions.
appreciate or depreciate in fair value. Gains or losses on the These derivatives are recorded on the Consolidated Balance Sheet
derivative instruments that are linked to the hedged fixed-rate at fair value with changes in fair value recorded in other income.
assets and liabilities are expected to substantially offset this
unrealized appreciation or depreciation. Derivatives Designated as Accounting Hedges
Market risk, including interest rate risk, can be substantial in The Corporation uses various types of interest rate and foreign
the mortgage business. Market risk in the mortgage business is exchange derivative contracts to protect against changes in the
the risk that values of mortgage assets or revenues will be fair value of its assets and liabilities due to fluctuations in interest
adversely affected by changes in market conditions such as rates and exchange rates (fair value hedges). The Corporation also
interest rate movements. To mitigate the interest rate risk in uses these types of contracts to protect against changes in the
mortgage banking production income, the Corporation utilizes cash flows of its assets and liabilities, and other forecasted
forward loan sale commitments and other derivative instruments, transactions (cash flow hedges). The Corporation hedges its net
including purchased options, and certain debt securities. The investment in consolidated non-U.S. operations determined to
have functional currencies other than the U.S. dollar using forward
exchange contracts and cross-currency basis swaps, and by Fair Value Hedges
issuing foreign currency-denominated debt (net investment The table below summarizes information related to fair value
hedges). hedges for 2018, 2017 and 2016.
Gains and Losses on Derivatives Designated as Fair Value Hedges

Derivative Hedged Item
Interest rate risk on long-term debt (1) $ (1,538) $ (1,537) $ (1,488) $ 1,429 $ 1,045 $ 646
Interest rate and foreign currency risk on long-term debt (2) (1,187) 1,811 (941) 1,079 (1,767) 944
Interest rate risk on available-for-sale securities (3) (52) (67) 227 50 35 (286)
Total $ (2,777) $ 207 $ (2,202) $ 2,558 $ (687) $ 1,304
(1) Amounts are recorded in interest expense in the Consolidated Statement of Income. In 2017 and 2016, amounts representing hedge ineffectiveness were losses of $492 million and $842 million.
(2) In 2018, 2017 and 2016, the derivative amount includes losses of $992 million, gains of $2.2 billion and losses of $910 million, respectively, in other income and losses of $116 million, $365
million and $30 million, respectively, in interest expense. Line item totals are in the Consolidated Statement of Income.
(3) Amounts are recorded in interest income in the Consolidated Statement of Income.
The table below summarizes the carrying value of hedged assets and liabilities that are designated and qualifying in fair value
hedging relationships along with the cumulative amount of fair value hedging adjustments included in the carrying value that have been
recorded in the current hedging relationships. These fair value hedging adjustments are open basis adjustments that are not subject
to amortization as long as the hedging relationship remains designated.
Designated Fair Value Hedged Assets (Liabilities)

December 31, 2018
Cumulative Fair Value
(Dollars in millions) Carrying Value Adjustments (1)
Long-term debt $ (138,682) $ (2,117)
Available-for-sale debt securities 981 (29)
(1) For assets, increase (decrease) to carrying value and for liabilities, (increase) decrease to carrying value.
At December 31, 2018, the cumulative fair value adjustments Of the $1.0 billion after-tax net loss ($1.3 billion pretax) on
remaining on long-term debt and AFS debt securities from derivatives in accumulated OCI at December 31, 2018, $253
discontinued hedging relationships were a decrease to the related million after-tax ($332 million pretax) is expected to be reclassified
liability and related asset of $1.6 billion and $29 million, which into earnings in the next 12 months. These net losses reclassified
are being amortized over the remaining contractual life of the de- into earnings are expected to primarily reduce net interest income
designated hedged items. related to the respective hedged items. For terminated cash flow
hedges, the time period over which the majority of the forecasted
Cash Flow and Net Investment Hedges transactions are hedged is approximately 4 years, with a maximum
The following table summarizes certain information related to cash length of time for certain forecasted transactions of 17 years.
flow hedges and net investment hedges for 2018, 2017 and 2016.
Gains and Losses on Derivatives Designated as Cash Flow and Net Investment Hedges
Gains (Losses) Recognized in Gains (Losses) in Income
Accumulated OCI on Derivatives Reclassified from Accumulated OCI
(Dollars in millions, amounts pretax) 2018 2017 2016 2018 2017 2016
Cash flow hedges
Interest rate risk on variable-rate assets (1) $ (159) $ (109) $ (340) $ (165) $ (327) $ (553)
Price risk on certain restricted stock awards (2) 4 59 41 27 148 (32)
Total $ (155) $ (50) $ (299) $ (138) $ (179) $ (585)
Net investment hedges
Foreign exchange risk (3) $ 989 $ (1,588) $ 1,636 $ 411 $ 1,782 $ 3
(1) Amounts reclassified from accumulated OCI are recorded in interest income in the Consolidated Statement of Income.
(2) Amounts reclassified from accumulated OCI are recorded in personnel expense in the Consolidated Statement of Income.
(3) Amounts reclassified from accumulated OCI are recorded in other income in the Consolidated Statement of Income. Amounts excluded from effectiveness testing and recognized in other income
were gains of $47 million, $120 million and $325 million in 2018, 2017 and 2016, respectively.

Other Risk Management Derivatives the instrument rather than being charged through separate fee
Other risk management derivatives are used by the Corporation arrangements. Therefore, this revenue is recorded in trading
to reduce certain risk exposures by economically hedging various account profits as part of the initial mark to fair value. For
assets and liabilities. The gains and losses on these derivatives derivatives, the majority of revenue is included in trading account
are recognized in other income. The table below presents gains profits. In transactions where the Corporation acts as agent, which
(losses) on these derivatives for 2018, 2017 and 2016. These include exchange-traded futures and options, fees are recorded in
gains (losses) are largely offset by the income or expense that is other income.
recorded on the hedged item. The table below, which includes both derivatives and non-
derivative cash instruments, identifies the amounts in the
respective income statement line items attributable to the
Gains and Losses on Other Risk Management Derivatives Corporation’s sales and trading revenue in Global Markets,
categorized by primary risk, for 2018, 2017 and 2016. The
Interest rate risk on mortgage
difference between total trading account profits in the following
activities (1) $ (107) $ 8 $ 461 table and in the Consolidated Statement of Income represents
Credit risk on loans 9 (6) (107) trading activities in business segments other than Global Markets.
Interest rate and foreign currency This table includes debit valuation adjustment (DVA) and funding
risk on ALM activities (2) 1,010 (36) (754)
valuation adjustment (FVA) gains (losses). Global Markets results
(1) Primarily related to hedges of interest rate risk on MSRs and IRLCs to originate mortgage loans
that will be held for sale. The net gains on IRLCs, which are not included in the table but are in Note 23 – Business Segment Information are presented on a
considered derivative instruments, were $47 million, $220 million and $533 million for 2018, fully taxable-equivalent (FTE) basis. The table below is not
2017 and 2016, respectively.
(2) Primarily related to hedges of debt securities carried at fair value and hedges of foreign currency- presented on an FTE basis.
denominated debt.
Transfers of Financial Assets with Risk Retained Sales and Trading Revenue
through Derivatives Trading Net
The Corporation enters into certain transactions involving the Account Interest
Profits Income Other (1) Total
transfer of financial assets that are accounted for as sales where
(Dollars in millions) 2018
substantially all of the economic exposure to the transferred
Interest rate risk $ 1,180 $ 1,292 $ 220 $ 2,692
financial assets is retained through derivatives (e.g., interest rate
Foreign exchange risk 1,503 (7) 6 1,502
and/or credit), but the Corporation does not retain control over Equity risk 3,994 (781) 1,619 4,832
the assets transferred. As of December 31, 2018 and 2017, the Credit risk 1,063 1,853 552 3,468
Corporation had transferred $5.8 billion and $6.0 billion of non- Other risk 189 64 66 319
U.S. government-guaranteed MBS to a third-party trust and Total sales and trading
revenue $ 7,929 $ 2,421 $ 2,463 $ 12,813
retained economic exposure to the transferred assets through
2017
derivative contracts. In connection with these transfers, the
Interest rate risk $ 712 $ 1,560 $ 249 $ 2,521
Corporation received gross cash proceeds of $5.8 billion and $6.0
billion at the transfer dates. At December 31, 2018 and 2017, Equity risk 2,689 (517) 1,903 4,075
the fair value of the transferred securities was $5.5 billion and Credit risk 1,685 1,937 576 4,198
$6.1 billion. Other risk 203 45 76 324
Total sales and trading
revenue $ 6,706 $ 3,024 $ 2,811 $ 12,541
Sales and Trading Revenue
2016
The Corporation enters into trading derivatives to facilitate client
Interest rate risk $ 1,189 $ 2,002 $ 145 $ 3,336
transactions and to manage risk exposures arising from trading
account assets and liabilities. It is the Corporation’s policy to Equity risk 1,917 28 2,074 4,019
include these derivative instruments in its trading activities which Credit risk 1,674 1,956 424 4,054
include derivatives and non-derivative cash instruments. The Other risk 407 (7) 39 439
resulting risk from these derivatives is managed on a portfolio Total sales and trading
revenue $ 6,547 $ 3,969 $ 2,687 $ 13,203
basis as part of the Corporation’s Global Markets business (1) Represents amounts in investment and brokerage services and other income that are recorded
segment. The related sales and trading revenue generated within in Global Markets and included in the definition of sales and trading revenue. Includes investment
and brokerage services revenue of $1.7 billion, $2.0 billion and $2.1 billion for 2018, 2017
Global Markets is recorded in various income statement line items and 2016, respectively.
including trading account profits and net interest income as well
as other revenue categories. Credit Derivatives
Sales and trading revenue includes changes in the fair value The Corporation enters into credit derivatives primarily to facilitate
and realized gains and losses on the sales of trading and other client transactions and to manage credit risk exposures. Credit
assets, net interest income, and fees primarily from commissions derivatives derive value based on an underlying third-party
on equity securities. Revenue is generated by the difference in the referenced obligation or a portfolio of referenced obligations and
client price for an instrument and the price at which the trading generally require the Corporation, as the seller of credit protection,
desk can execute the trade in the dealer market. For equity to make payments to a buyer upon the occurrence of a predefined
securities, commissions related to purchases and sales are credit event. Such credit events generally include bankruptcy of
recorded in the “Other” column in the Sales and Trading Revenue the referenced credit entity and failure to pay under the obligation,
table. Changes in the fair value of these securities are included as well as acceleration of indebtedness and payment repudiation
in trading account profits. For debt securities, revenue, with the or moratorium. For credit derivatives based on a portfolio of
exception of interest associated with the debt securities, is referenced credits or credit indices, the Corporation may not be
typically included in trading account profits. Unlike commissions required to make payment until a specified amount of loss has
for equity securities, the initial revenue related to broker-dealer occurred and/or may only be required to make payment up to a
services for debt securities is typically included in the pricing of specified amount.

Credit derivatives are classified as investment and non- internal categorizations of investment grade and non-investment
investment grade based on the credit quality of the underlying grade consistent with how risk is managed for these instruments.
referenced obligation. The Corporation considers ratings of BBB- Credit derivative instruments where the Corporation is the
or higher as investment grade. Non-investment grade includes non- seller of credit protection and their expiration at December 31,
rated credit derivative instruments. The Corporation discloses 2018 and 2017 are summarized in the following table.
Credit Derivative Instruments

Less than One to Three to Over Five
One Year Three Years Five Years Years Total
December 31, 2018
(Dollars in millions) Carrying Value
Credit default swaps:
Investment grade $ 2 $ 44 $ 436 $ 488 $ 970
Non-investment grade 132 636 914 1,691 3,373
Total 134 680 1,350 2,179 4,343
Total return swaps/options:
Investment grade 105 — — — 105
Non-investment grade 472 21 — — 493
Total 577 21 — — 598
Total credit derivatives $ 711 $ 701 $ 1,350 $ 2,179 $ 4,941
Credit-related notes:
Investment grade $ — $ — $ 4 $ 532 $ 536
Total credit-related notes $ 1 $ 1 $ 5 $ 2,032 $ 2,039
Maximum Payout/Notional
Investment grade $ 53,758 $ 95,699 $ 95,274 $ 20,054 $ 264,785
Non-investment grade 24,297 33,881 34,530 14,426 107,134
Total 78,055 129,580 129,804 34,480 371,919
Investment grade 60,042 822 59 72 60,995
Non-investment grade 24,524 1,649 39 70 26,282
Total 84,566 2,471 98 142 87,277
Total credit derivatives $ 162,621 $ 132,051 $ 129,902 $ 34,622 $ 459,196
December 31, 2017

Carrying Value
Investment grade $ 4 $ 3 $ 61 $ 245 $ 313
Total 207 456 545 2,378 3,586
Investment grade 30 — — — 30
Non-investment grade 150 — — 3 153
Total 180 — — 3 183
Total credit derivatives $ 387 $ 456 $ 545 $ 2,381 $ 3,769
Credit-related notes:
Investment grade $ — $ — $ 7 $ 689 $ 696
Total credit-related notes $ 12 $ 4 $ 41 $ 2,237 $ 2,294
Maximum Payout/Notional
Investment grade $ 61,388 $ 115,480 $ 107,081 $ 21,579 $ 305,528
Non-investment grade 39,312 49,843 39,098 14,420 142,673
Total 100,700 165,323 146,179 35,999 448,201
Investment grade 37,394 2,581 — 143 40,118
Non-investment grade 13,751 514 143 697 15,105
Total 51,145 3,095 143 840 55,223
Total credit derivatives $ 151,845 $ 168,418 $ 146,322 $ 36,839 $ 503,424
The notional amount represents the maximum amount payable Credit-related Contingent Features and Collateral
by the Corporation for most credit derivatives. However, the The Corporation executes the majority of its derivative contracts
Corporation does not monitor its exposure to credit derivatives in the OTC market with large, international financial institutions,
based solely on the notional amount because this measure does including broker-dealers and, to a lesser degree, with a variety of
not take into consideration the probability of occurrence. As such, non-financial companies. A significant majority of the derivative
the notional amount is not a reliable indicator of the Corporation’s transactions are executed on a daily margin basis. Therefore,
exposure to these contracts. Instead, a risk framework is used to events such as a credit rating downgrade (depending on the
define risk tolerances and establish limits so that certain credit ultimate rating level) or a breach of credit covenants would typically
risk-related losses occur within acceptable, predefined limits. require an increase in the amount of collateral required of the
Credit-related notes in the table above include investments in counterparty, where applicable, and/or allow the Corporation to
securities issued by CDO, collateralized loan obligation (CLO) and take additional protective measures such as early termination of
credit-linked note vehicles. These instruments are primarily all trades. Further, as previously discussed on page 117, the
classified as trading securities. The carrying value of these Corporation enters into legally enforceable master netting
instruments equals the Corporation’s maximum exposure to loss. agreements which reduce risk by permitting closeout and netting
The Corporation is not obligated to make any payments to the of transactions with the same counterparty upon the occurrence
entities under the terms of the securities owned. of certain events.

A majority of the Corporation’s derivative contracts contain
credit risk-related contingent features, primarily in the form of ISDA Derivative Liabilities Subject to Unilateral Termination
master netting agreements and credit support documentation that Upon Downgrade at December 31, 2018
enhance the creditworthiness of these instruments compared to
One Second
other obligations of the respective counterparty with whom the
incremental incremental
Corporation has transacted. These contingent features may be for (Dollars in millions) notch notch
the benefit of the Corporation as well as its counterparties with Derivative liabilities $ 13 $ 581
respect to changes in the Corporation’s creditworthiness and the Collateral posted 1 305
mark-to-market exposure under the derivative transactions. At
December 31, 2018 and 2017, the Corporation held cash and Valuation Adjustments on Derivatives
securities collateral of $81.6 billion and $77.2 billion, and posted The Corporation records credit risk valuation adjustments on
cash and securities collateral of $56.5 billion and $59.2 billion in derivatives in order to properly reflect the credit quality of the
the normal course of business under derivative agreements, counterparties and its own credit quality. The Corporation
excluding cross-product margining agreements where clients are calculates valuation adjustments on derivatives based on a
permitted to margin on a net basis for both derivative and secured modeled expected exposure that incorporates current market risk
financing arrangements. factors. The exposure also takes into consideration credit
In connection with certain OTC derivative contracts and other mitigants such as enforceable master netting agreements and
trading agreements, the Corporation can be required to provide collateral. CDS spread data is used to estimate the default
additional collateral or to terminate transactions with certain probabilities and severities that are applied to the exposures.
counterparties in the event of a downgrade of the senior debt Where no observable credit default data is available for
ratings of the Corporation or certain subsidiaries. The amount of counterparties, the Corporation uses proxies and other market
additional collateral required depends on the contract and is data to estimate default probabilities and severity.
usually a fixed incremental amount and/or the market value of the Valuation adjustments on derivatives are affected by changes
exposure. in market spreads, non-credit related market factors such as
At December 31, 2018, the amount of collateral, calculated interest rate and currency changes that affect the expected
based on the terms of the contracts, that the Corporation and exposure, and other factors like changes in collateral
certain subsidiaries could be required to post to counterparties arrangements and partial payments. Credit spreads and non-credit
but had not yet posted to counterparties was $1.8 billion, including factors can move independently. For example, for an interest rate
$1.0 billion for Bank of America, National Association (Bank of swap, changes in interest rates may increase the expected
America, N.A. or BANA). exposure, which would increase the counterparty credit valuation
Some counterparties are currently able to unilaterally adjustment (CVA). Independently, counterparty credit spreads may
terminate certain contracts, or the Corporation or certain tighten, which would result in an offsetting decrease to CVA.
subsidiaries may be required to take other action such as find a The Corporation enters into risk management activities to
suitable replacement or obtain a guarantee. At December 31, offset market driven exposures. The Corporation often hedges the
2018 and 2017, the liability recorded for these derivative contracts counterparty spread risk in CVA with CDS. The Corporation hedges
was not significant. other market risks in both CVA and DVA primarily with currency and
The table below presents the amount of additional collateral interest rate swaps. In certain instances, the net-of-hedge amounts
that would have been contractually required by derivative contracts in the table below move in the same direction as the gross amount
and other trading agreements at December 31, 2018 if the rating or may move in the opposite direction. This movement is a
agencies had downgraded their long-term senior debt ratings for consequence of the complex interaction of the risks being hedged,
the Corporation or certain subsidiaries by one incremental notch resulting in limitations in the ability to perfectly hedge all of the
and by an additional second incremental notch. market exposures at all times.
The table below presents CVA, DVA and FVA gains (losses) on
derivatives, which are recorded in trading account profits, on a
Additional Collateral Required to be Posted Upon
gross and net of hedge basis for 2018, 2017 and 2016. CVA gains
Downgrade at December 31, 2018 reduce the cumulative CVA thereby increasing the derivative assets
One Second balance. DVA gains increase the cumulative DVA thereby
incremental incremental decreasing the derivative liabilities balance. CVA and DVA losses
(Dollars in millions) notch notch have the opposite impact. FVA gains related to derivative assets
Bank of America Corporation $ 619 $ 347 reduce the cumulative FVA thereby increasing the derivative assets
Bank of America, N.A. and subsidiaries (1) 209 268
balance. FVA gains related to derivative liabilities increase the
(1) Included in Bank of America Corporation collateral requirements in this table.
cumulative FVA thereby decreasing the derivative liabilities
The following table presents the derivative liabilities that would balance. FVA losses have the opposite impact.
be subject to unilateral termination by counterparties and the
amounts of collateral that would have been contractually required Valuation Adjustments on Derivatives (1)
at December 31, 2018 if the long-term senior debt ratings for the
Corporation or certain subsidiaries had been lower by one Gains (Losses) Gross Net Gross Net Gross Net
incremental notch and by an additional second incremental notch. (Dollars in millions) 2018 2017 2016
Derivative assets (CVA) $ 77 $ 187 $ 330 $ 98 $ 374 $ 214
Derivative assets/
liabilities (FVA) (15) 14 160 178 186 102
Derivative liabilities (DVA) (19) (55) (324) (281) 24 (141)
(1) At December 31, 2018, 2017 and 2016, cumulative CVA reduced the derivative assets balance
by $600 million, $677 million and $1.0 billion, cumulative FVA reduced the net derivatives
balance by $151 million, $136 million and $296 million, and cumulative DVA reduced the
derivative liabilities balance by $432 million, $450 million and $774 million, respectively.

NOTE 4 Securities
The table below presents the amortized cost, gross unrealized gains and losses, and fair value of AFS debt securities, other debt
securities carried at fair value and HTM debt securities at December 31, 2018 and 2017.
Debt Securities
Gross Gross
Amortized Unrealized Unrealized Fair
Cost Gains Losses Value
Available-for-sale debt securities
Mortgage-backed securities:
Agency $ 125,116 $ 138 $ (3,428) $ 121,826
Agency-collateralized mortgage obligations 5,621 19 (110) 5,530
Commercial 14,469 11 (402) 14,078
Non-agency residential (1) 1,792 136 (11) 1,917
Total mortgage-backed securities 146,998 304 (3,951) 143,351
U.S. Treasury and agency securities 56,239 62 (1,378) 54,923
Non-U.S. securities 9,307 5 (6) 9,306
Other taxable securities, substantially all asset-backed securities 4,387 29 (6) 4,410
Total taxable securities 216,931 400 (5,341) 211,990
Tax-exempt securities 17,349 99 (72) 17,376
Total available-for-sale debt securities 234,280 499 (5,413) 229,366
Other debt securities carried at fair value 8,595 172 (32) 8,735
Total debt securities carried at fair value 242,875 671 (5,445) 238,101
Held-to-maturity debt securities, substantially all U.S. agency mortgage-backed securities (2) 203,652 747 (3,964) 200,435
Total debt securities (3, 4) $ 446,527 $ 1,418 $ (9,409) $ 438,536
December 31, 2017

Available-for-sale debt securities
Agency $ 194,119 $ 506 $ (1,696) $ 192,929
Agency-collateralized mortgage obligations 6,846 39 (81) 6,804
Commercial 13,864 28 (208) 13,684
Non-agency residential (1) 2,410 267 (8) 2,669
Total mortgage-backed securities 217,239 840 (1,993) 216,086
U.S. Treasury and agency securities 54,523 18 (1,018) 53,523
Non-U.S. securities 6,669 9 (1) 6,677
Other taxable securities, substantially all asset-backed securities 5,699 73 (2) 5,770
Total taxable securities 284,130 940 (3,014) 282,056
Tax-exempt securities 20,541 138 (104) 20,575
Total available-for-sale debt securities 304,671 1,078 (3,118) 302,631
Other debt securities carried at fair value 12,273 252 (39) 12,486
Total debt securities carried at fair value 316,944 1,330 (3,157) 315,117
Held-to-maturity debt securities, substantially all U.S. agency mortgage-backed securities 125,013 111 (1,825) 123,299
Total debt securities (3, 4) $ 441,957 $ 1,441 $ (4,982) $ 438,416
Available-for-sale marketable equity securities (5) $ 27 $ — $ (2) $ 25
(1) At December 31, 2018 and 2017, the underlying collateral type included approximately 68 percent and 62 percent prime, 4 percent and 13 percent Alt-A, and 28 percent and 25 percent subprime.
(2) During 2018, the Corporation transferred AFS debt securities with an amortized cost of $64.5 billion to held to maturity.
(3) Includes securities pledged as collateral of $40.6 billion and $35.8 billion at December 31, 2018 and 2017.
(4) The Corporation had debt securities from FNMA and FHLMC that each exceeded 10 percent of shareholders’ equity, with an amortized cost of $161.2 billion and $52.2 billion, and a fair value of
$158.5 billion and $51.4 billion at December 31, 2018, and an amortized cost of $163.6 billion and $50.3 billion, and a fair value of $162.1 billion and $50.0 billion at December 31, 2017.
(5) Classified in other assets on the Consolidated Balance Sheet.
At December 31, 2018, the accumulated net unrealized loss at cost of $219 million, both of which are included in other assets.
on AFS debt securities included in accumulated OCI was $3.7 At December 31, 2018, the Corporation also held equity securities
billion, net of the related income tax benefit of $1.2 billion. The at fair value of $1.2 billion included in time deposits placed and
Corporation had nonperforming AFS debt securities of $11 million other short-term investments.
and $99 million at December 31, 2018 and 2017. The following table presents the components of other debt
Effective January 1, 2018, the Corporation adopted an securities carried at fair value where the changes in fair value are
accounting standard applicable to equity securities. For additional reported in other income. In 2018, the Corporation recorded
information, see Note 1 – Summary of Significant Accounting unrealized mark-to-market net losses of $73 million and realized
Principles. At December 31, 2018, the Corporation held equity net gains of $140 million, and unrealized mark-to-market net gains
securities at an aggregate fair value of $893 million and other of $243 million and realized net losses of $49 million in 2017.
equity securities, as valued under the measurement alternative, These amounts exclude hedge results.

The gross realized gains and losses on sales of AFS debt
Other Debt Securities Carried at Fair Value securities for 2018, 2017 and 2016 are presented in the table
below.
December 31
Mortgage-backed securities $ 1,606 $ 2,769 Gains and Losses on Sales of AFS Debt Securities
U.S. Treasury and agency securities 1,282 —
Non-U.S. securities (1) 5,844 9,488 (Dollars in millions) 2018 2017 2016
Other taxable securities, substantially all Gross gains $ 169 $ 352 $ 520
asset-backed securities 3 229 Gross losses (15) (97) (30)
Total $ 8,735 $ 12,486 Net gains on sales of AFS debt securities $ 154 $ 255 $ 490
(1) These securities are primarily used to satisfy certain international regulatory liquidity Income tax expense attributable to realized
requirements. net gains on sales of AFS debt securities $ 37 $ 97 $ 186
The table below presents the fair value and the associated gross unrealized losses on AFS debt securities and whether these
securities have had gross unrealized losses for less than 12 months or for 12 months or longer at December 31, 2018 and 2017.
Temporarily Impaired and Other-than-temporarily Impaired AFS Debt Securities

Less than Twelve Months Twelve Months or Longer Total
Gross Gross Gross
Fair Unrealized Fair Unrealized Fair Unrealized
Value Losses Value Losses Value Losses
Temporarily impaired AFS debt securities
Agency $ 14,771 $ (49) $ 99,211 $ (3,379) $ 113,982 $ (3,428)
Agency-collateralized mortgage obligations 3 — 4,452 (110) 4,455 (110)
Commercial 1,344 (8) 11,991 (394) 13,335 (402)
Non-agency residential 106 (8) 49 (3) 155 (11)
Total mortgage-backed securities 16,224 (65) 115,703 (3,886) 131,927 (3,951)
U.S. Treasury and agency securities 288 (1) 51,374 (1,377) 51,662 (1,378)
Non-U.S. securities 773 (5) 21 (1) 794 (6)
Other taxable securities, substantially all asset-backed securities 183 (1) 185 (5) 368 (6)
Total taxable securities 17,468 (72) 167,283 (5,269) 184,751 (5,341)
Tax-exempt securities 232 (2) 2,148 (70) 2,380 (72)
Total temporarily impaired AFS debt securities 17,700 (74) 169,431 (5,339) 187,131 (5,413)
Other-than-temporarily impaired AFS debt securities (1)
Non-agency residential mortgage-backed securities 131 — 3 — 134 —
Total temporarily impaired and other-than-temporarily impaired
AFS debt securities $ 17,831 $ (74) $ 169,434 $ (5,339) $ 187,265 $ (5,413)
December 31, 2017

Temporarily impaired AFS debt securities
Agency $ 73,535 $ (352) $ 72,612 $ (1,344) $ 146,147 $ (1,696)
Agency-collateralized mortgage obligations 2,743 (29) 1,684 (52) 4,427 (81)
Commercial 5,575 (50) 4,586 (158) 10,161 (208)
Non-agency residential 335 (7) — — 335 (7)
Total mortgage-backed securities 82,188 (438) 78,882 (1,554) 161,070 (1,992)
U.S. Treasury and agency securities 27,537 (251) 24,035 (767) 51,572 (1,018)
Non-U.S. securities 772 (1) — — 772 (1)
Other taxable securities, substantially all asset-backed securities — — 92 (2) 92 (2)
Total taxable securities 110,497 (690) 103,009 (2,323) 213,506 (3,013)
Tax-exempt securities 1,090 (2) 7,100 (102) 8,190 (104)
Total temporarily impaired AFS debt securities 111,587 (692) 110,109 (2,425) 221,696 (3,117)
Other-than-temporarily impaired AFS debt securities (1)
Non-agency residential mortgage-backed securities 58 (1) — — 58 (1)
Total temporarily impaired and other-than-temporarily impaired
AFS debt securities $ 111,645 $ (693) $ 110,109 $ (2,425) $ 221,754 $ (3,118)
(1) Includes other than temporarily impaired AFS debt securities on which an OTTI loss, primarily related to changes in interest rates, remains in accumulated OCI.

In 2018, 2017 and 2016, the Corporation had $33 million,
$41 million and $19 million, respectively, of credit-related OTTI Significant Assumptions
losses on AFS debt securities which were recognized in other
income. The amount of noncredit-related OTTI losses recognized Range (1)
in OCI was not significant for all periods presented. Weighted 10th 90th
average Percentile (2) Percentile (2)
The cumulative OTTI credit losses recognized in income on AFS
Prepayment speed 12.9% 3.3% 21.5%
debt securities that the Corporation does not intend to sell were
Loss severity 19.8 8.5 36.4
$120 million, $274 million and $253 million at December 31, Life default rate 16.9 1.4 64.4
2018, 2017 and 2016, respectively. (1) Represents the range of inputs/assumptions based upon the underlying collateral.
The Corporation estimates the portion of a loss on a security (2) The value of a variable below which the indicated percentile of observations will fall.
that is attributable to credit using a discounted cash flow model
Annual constant prepayment speed and loss severity rates are
and estimates the expected cash flows of the underlying collateral
projected considering collateral characteristics such as LTV,
using internal credit, interest rate and prepayment risk models
creditworthiness of borrowers as measured using Fair Isaac
that incorporate management’s best estimate of current key
Corporation (FICO) scores, and geographic concentrations. The
assumptions such as default rates, loss severity and prepayment
weighted-average severity by collateral type was 16.0 percent for
rates. Assumptions used for the underlying loans that support the
prime, 16.6 percent for Alt-A and 25.6 percent for subprime at
MBS can vary widely from loan to loan and are influenced by such
December 31, 2018. Default rates are projected by considering
factors as loan interest rate, geographic location of the borrower,
collateral characteristics including, but not limited to, LTV, FICO
borrower characteristics and collateral type. Based on these
and geographic concentration. Weighted-average life default rates
assumptions, the Corporation then determines how the underlying
by collateral type were 14.7 percent for prime, 16.6 percent for
collateral cash flows will be distributed to each MBS issued from
Alt-A and 19.1 percent for subprime at December 31, 2018.
the applicable special purpose entity. Expected principal and
The remaining contractual maturity distribution and yields of
interest cash flows on an impaired AFS debt security are
the Corporation’s debt securities carried at fair value and HTM
discounted using the effective yield of each individual impaired
debt securities at December 31, 2018 are summarized in the table
AFS debt security.
below. Actual duration and yields may differ as prepayments on
Significant assumptions used in estimating the expected cash
the loans underlying the mortgages or other ABS are passed
flows for measuring credit losses on non-agency residential
through to the Corporation.
mortgage-backed securities (RMBS) were as follows at December
31, 2018.
Maturities of Debt Securities Carried at Fair Value and Held-to-maturity Debt Securities
Due in One Due after One Year Due after Five Years Due after
Year or Less through Five Years through Ten Years Ten Years Total
(Dollars in millions) Amount Yield (1) Amount Yield (1) Amount Yield (1) Amount Yield (1) Amount Yield (1)
Amortized cost of debt securities carried at fair value
Agency $ — —% $ 114 2.42% $ 1,245 2.39% $123,757 3.34% $125,116 3.33%
Agency-collateralized mortgage obligations — — — — 30 2.50 5,591 3.17 5,621 3.17
Commercial 198 1.78 2,467 2.36 10,976 2.53 828 2.96 14,469 2.52
Non-agency residential — — — — 14 — 3,268 9.88 3,282 9.84
Total mortgage-backed securities 198 1.78 2,581 2.36 12,265 2.51 133,444 3.49 148,488 3.39
U.S. Treasury and agency securities 670 0.78 33,659 1.48 23,159 2.36 21 2.57 57,509 1.83
Non-U.S. securities 14,318 1.30 682 1.88 21 4.43 121 6.57 15,142 1.37
Other taxable securities, substantially all asset-backed
securities 1,591 3.34 2,022 3.54 688 3.48 86 5.59 4,387 3.49
Total taxable securities 16,777 1.48 38,944 1.66 36,133 2.43 133,672 3.49 225,526 2.85
Tax-exempt securities 938 2.59 7,526 2.59 6,162 2.44 2,723 2.55 17,349 2.53
Total amortized cost of debt securities carried at
fair value $ 17,715 1.54 $ 46,470 1.81 $ 42,295 2.43 $ 136,395 3.47 $ 242,875 2.83
Amortized cost of HTM debt securities (2) $ 657 5.78 $ 18 3.93 $ 1,475 2.89 $ 201,502 3.23 $ 203,652 3.24
Debt securities carried at fair value

Agency $ — $ 114 $ 1,219 $120,493 $121,826
Agency-collateralized mortgage obligations — — 29 5,501 5,530
Commercial 198 2,425 10,656 799 14,078
Non-agency residential — — 24 3,499 3,523
Total mortgage-backed securities 198 2,539 11,928 130,292 144,957
U.S. Treasury and agency securities 669 32,694 22,821 21 56,205
Non-U.S. securities 14,315 692 19 124 15,150
Other taxable securities, substantially all asset-backed
securities 1,585 2,043 698 87 4,413
Total taxable securities 16,767 37,968 35,466 130,524 220,725
Tax-exempt securities 936 7,537 6,184 2,719 17,376
Total debt securities carried at fair value $ 17,703 $ 45,505 $ 41,650 $ 133,243 $ 238,101
Fair value of HTM debt securities (2) $ 657 $ 18 $ 1,429 $ 198,331 $ 200,435
(1) The weighted average yield is computed based on a constant effective interest rate over the contractual life of each security. The average yield considers the contractual coupon and the amortization
of premiums and accretion of discounts, excluding the effect of related hedging derivatives.
(2) Substantially all U.S. agency MBS.

NOTE 5 Outstanding Loans and Leases
The following tables present total outstanding loans and leases and an aging analysis for the Consumer Real Estate, Credit Card and
Other Consumer, and Commercial portfolio segments, by class of financing receivables, at December 31, 2018 and 2017.
Total Loans
Total Past Current or Accounted
90 Days or Due 30 Less Than Purchased for Under
30-59 Days 60-89 Days More Days 30 Days Credit- the Fair Total
Past Due (1) Past Due (1) Past Due (2) or More Past Due (3) impaired (4) Value Option Outstandings
Consumer real estate
Core portfolio
Residential mortgage $ 1,188 $ 249 $ 793 $ 2,230 $ 191,465 $ 193,695
Home equity 200 85 387 672 39,338 40,010
Non-core portfolio
Residential mortgage 624 268 2,012 2,904 8,158 $ 3,800 14,862
Home equity 119 60 287 466 6,965 845 8,276
Credit card and other consumer
U.S. credit card 577 418 994 1,989 96,349 98,338
Direct/Indirect consumer (5) 317 90 40 447 90,719 91,166
Other consumer (6) — — — — 202 202
Total consumer 3,025 1,170 4,513 8,708 433,196 4,645 446,549
Consumer loans accounted for under the
fair value option (7) $ 682 682
Total consumer loans and leases 3,025 1,170 4,513 8,708 433,196 4,645 682 447,231
Commercial
U.S. commercial 594 232 573 1,399 297,878 299,277
Non-U.S. commercial 1 49 — 50 98,726 98,776
Commercial real estate (8) 29 16 14 59 60,786 60,845
Commercial lease financing 124 114 37 275 22,259 22,534
U.S. small business commercial 83 54 96 233 14,332 14,565
Total commercial 831 465 720 2,016 493,981 495,997
Commercial loans accounted for under
the fair value option (7) 3,667 3,667
Total commercial loans and leases 831 465 720 2,016 493,981 3,667 499,664
Total loans and leases (9) $ 3,856 $ 1,635 $ 5,233 $ 10,724 $ 927,177 $ 4,645 $ 4,349 $ 946,895
Percentage of outstandings 0.41% 0.17% 0.55% 1.13% 97.92% 0.49% 0.46% 100.00%
(1) Consumer real estate loans 30-59 days past due includes fully-insured loans of $637 million and nonperforming loans of $217 million. Consumer real estate loans 60-89 days past due includes
fully-insured loans of $269 million and nonperforming loans of $146 million.
(2) Consumer real estate includes fully-insured loans of $1.9 billion.
(3) Consumer real estate includes $1.8 billion and direct/indirect consumer includes $53 million of nonperforming loans.
(4) PCI loan amounts are shown gross of the valuation allowance.
(5) Total outstandings includes auto and specialty lending loans and leases of $50.1 billion, unsecured consumer lending loans of $383 million, U.S. securities-based lending loans of $37.0 billion,
non-U.S. consumer loans of $2.9 billion and other consumer loans of $746 million.
(6) Substantially all of other consumer is consumer overdrafts.
(7) Consumer loans accounted for under the fair value option includes residential mortgage loans of $336 million and home equity loans of $346 million. Commercial loans accounted for under the fair
value option includes U.S. commercial loans of $2.5 billion and non-U.S. commercial loans of $1.1 billion. For additional information, see Note 20 – Fair Value Measurements and Note 21 – Fair Value
Option.
(8) Total outstandings includes U.S. commercial real estate loans of $56.6 billion and non-U.S. commercial real estate loans of $4.2 billion.
(9) Total outstandings includes loans and leases pledged as collateral of $36.7 billion. The Corporation also pledged $166.1 billion of loans with no related outstanding borrowings to secure potential
borrowing capacity with the Federal Reserve Bank and Federal Home Loan Bank (FHLB).

Total Loans
Total Past Current or Accounted
90 Days or Due 30 Less Than Purchased for Under
30-59 Days 60-89 Days More Days 30 Days Credit- the Fair Total
Past Due (1) Past Due (1) Past Due (2) or More Past Due (3) impaired (4) Value Option Outstandings
Core portfolio
Residential mortgage $ 1,242 $ 321 $ 1,040 $ 2,603 $ 174,015 $ 176,618
Home equity 215 108 473 796 43,449 44,245
Non-core portfolio
Residential mortgage 1,028 468 3,535 5,031 14,161 $ 8,001 27,193
Home equity 224 121 572 917 9,866 2,716 13,499
U.S. credit card 542 405 900 1,847 94,438 96,285
Direct/Indirect consumer (5) 330 104 44 478 95,864 96,342
Other consumer (6) — — — — 166 166
Total consumer 3,581 1,527 6,564 11,672 431,959 10,717 454,348
Consumer loans accounted for under the
fair value option (7) $ 928 928
Total consumer loans and leases 3,581 1,527 6,564 11,672 431,959 10,717 928 455,276
Commercial
U.S. commercial 547 244 425 1,216 283,620 284,836
Non-U.S. commercial 52 1 3 56 97,736 97,792
Commercial real estate (8) 48 10 29 87 58,211 58,298
Commercial lease financing 110 68 26 204 21,912 22,116
U.S. small business commercial 95 45 88 228 13,421 13,649
Total commercial 852 368 571 1,791 474,900 476,691
Commercial loans accounted for under
the fair value option (7) 4,782 4,782
Total commercial loans and leases 852 368 571 1,791 474,900 4,782 481,473
Total loans and leases (9) $ 4,433 $ 1,895 $ 7,135 $ 13,463 $ 906,859 $ 10,717 $ 5,710 $ 936,749
Percentage of outstandings 0.48% 0.20% 0.76% 1.44% 96.81% 1.14% 0.61% 100.00%
(1) Consumer real estate loans 30-59 days past due includes fully-insured loans of $850 million and nonperforming loans of $253 million. Consumer real estate loans 60-89 days past due includes
fully-insured loans of $386 million and nonperforming loans of $195 million.
(2) Consumer real estate includes fully-insured loans of $3.2 billion.
(3) Consumer real estate includes $2.3 billion and direct/indirect consumer includes $43 million of nonperforming loans.
(4) PCI loan amounts are shown gross of the valuation allowance.
(5) Total outstandings includes auto and specialty lending loans and leases of $52.4 billion, unsecured consumer lending loans of $469 million, U.S. securities-based lending loans of $39.8 billion,
non-U.S. consumer loans of $3.0 billion and other consumer loans of $684 million.
(6) Substantially all of other consumer is consumer overdrafts.
(7) Consumer loans accounted for under the fair value option includes residential mortgage loans of $567 million and home equity loans of $361 million. Commercial loans accounted for under the fair
value option includes U.S. commercial loans of $2.6 billion and non-U.S. commercial loans of $2.2 billion. For additional information, see Note 20 – Fair Value Measurements and Note 21 – Fair Value
Option.
(8) Total outstandings includes U.S. commercial real estate loans of $54.8 billion and non-U.S. commercial real estate loans of $3.5 billion.
(9) Total outstandings includes loans and leases pledged as collateral of $40.1 billion. The Corporation also pledged $160.3 billion of loans with no related outstanding borrowings to secure potential
borrowing capacity with the Federal Reserve Bank and FHLB.
The Corporation categorizes consumer real estate loans as Nonperforming Loans and Leases
core and non-core based on loan and customer characteristics The Corporation classifies junior-lien home equity loans as
such as origination date, product type, LTV, FICO score and nonperforming when the first-lien loan becomes 90 days past due
delinquency status consistent with its current consumer and even if the junior-lien loan is performing. At December 31, 2018
mortgage servicing strategy. Generally, loans that were originated and 2017, $221 million and $330 million of such junior-lien home
after January 1, 2010, qualified under government-sponsored equity loans were included in nonperforming loans.
enterprise (GSE) underwriting guidelines, or otherwise met the The Corporation classifies consumer real estate loans that
Corporation’s underwriting guidelines in place in 2015 are have been discharged in Chapter 7 bankruptcy and not reaffirmed
characterized as core loans. All other loans are generally by the borrower as TDRs, irrespective of payment history or
characterized as non-core loans and represent runoff portfolios. delinquency status, even if the repayment terms for the loan have
The Corporation has entered into long-term credit protection not been otherwise modified. The Corporation continues to have
agreements with FNMA and FHLMC on loans totaling $6.1 billion a lien on the underlying collateral. At December 31, 2018,
and $6.3 billion at December 31, 2018 and 2017, providing full nonperforming loans discharged in Chapter 7 bankruptcy with no
credit protection on residential mortgage loans that become change in repayment terms were $185 million of which $98 million
severely delinquent. All of these loans are individually insured and were current on their contractual payments, while $70 million were
therefore the Corporation does not record an allowance for credit 90 days or more past due. Of the contractually current
losses related to these loans. nonperforming loans, 63 percent were discharged in Chapter 7
During 2018, the Corporation sold $11.6 billion of consumer bankruptcy over 12 months ago, and 55 percent were discharged
real estate loans compared to $4.0 billion in 2017. In addition to 24 months or more ago.
recurring loan sales, the 2018 amount includes sales of loans,
primarily non-core, with a carrying value of $9.6 billion and related
gains of $731 million recorded in other income in the Consolidated
Statement of Income.

During 2018, the Corporation sold nonperforming and PCI accruing past due 90 days or more at December 31, 2018 and
consumer real estate loans with a carrying value of $5.3 billion, 2017. Nonperforming LHFS are excluded from nonperforming
including $4.4 billion of PCI loans, compared to $1.3 billion, loans and leases as they are recorded at either fair value or the
including $803 million of PCI loans, in 2017. lower of cost or fair value. For more information on the criteria for
The table below presents the Corporation’s nonperforming classification as nonperforming, see Note 1 – Summary of
loans and leases including nonperforming TDRs, and loans Significant Accounting Principles.
Credit Quality
Nonperforming Loans Accruing Past Due
and Leases 90 Days or More
December 31
Core portfolio
Residential mortgage (1) $ 1,010 $ 1,087 $ 274 $ 417
Home equity 955 1,079 — —
Non-core portfolio
Residential mortgage (1) 883 1,389 1,610 2,813
Home equity 938 1,565 — —
U.S. credit card n/a n/a 994 900
Direct/Indirect consumer 56 46 38 40
Total consumer 3,842 5,166 2,916 4,170
Commercial
U.S. commercial 794 814 197 144
Non-U.S. commercial 80 299 — 3
Commercial real estate 156 112 4 4
Commercial lease financing 18 24 29 19
U.S. small business commercial 54 55 84 75
Total commercial 1,102 1,304 314 245
Total loans and leases $ 4,944 $ 6,470 $ 3,230 $ 4,415
(1)Residential mortgage loans in the core and non-core portfolios accruing past due 90 days or more are fully-insured loans. At December 31, 2018 and 2017, residential mortgage includes $1.4 billion
and $2.2 billion of loans on which interest has been curtailed by the FHA and therefore are no longer accruing interest, although principal is still insured, and $498 million and $1.0 billion of loans
on which interest is still accruing.
Credit Quality Indicators frequently. Certain borrowers (e.g., borrowers that have had debts
The Corporation monitors credit quality within its Consumer Real discharged in a bankruptcy proceeding) may not have their FICO
Estate, Credit Card and Other Consumer, and Commercial portfolio scores updated. FICO scores are also a primary credit quality
segments based on primary credit quality indicators. For more indicator for the Credit Card and Other Consumer portfolio segment
information on the portfolio segments, see Note 1 – Summary of and the business card portfolio within U.S. small business
Significant Accounting Principles. Within the Consumer Real Estate commercial. Within the Commercial portfolio segment, loans are
portfolio segment, the primary credit quality indicators are evaluated using the internal classifications of pass rated or
refreshed LTV and refreshed FICO score. Refreshed LTV measures reservable criticized as the primary credit quality indicators. The
the carrying value of the loan as a percentage of the value of the term reservable criticized refers to those commercial loans that
property securing the loan, refreshed quarterly. Home equity loans are internally classified or listed by the Corporation as Special
are evaluated using CLTV which measures the carrying value of Mention, Substandard or Doubtful, which are asset quality
the Corporation’s loan and available line of credit combined with categories defined by regulatory authorities. These assets have
any outstanding senior liens against the property as a percentage an elevated level of risk and may have a high probability of default
of the value of the property securing the loan, refreshed quarterly. or total loss. Pass rated refers to all loans not considered
FICO score measures the creditworthiness of the borrower based reservable criticized. In addition to these primary credit quality
on the financial obligations of the borrower and the borrower’s indicators, the Corporation uses other credit quality indicators for
credit history. FICO scores are typically refreshed quarterly or more certain types of loans.

The following tables present certain credit quality indicators for the Corporation’s Consumer Real Estate, Credit Card and Other
Consumer, and Commercial portfolio segments, by class of financing receivables, at December 31, 2018 and 2017.
Consumer Real Estate – Credit Quality Indicators (1)

Core Non-core Residential Non-core
Residential Residential Mortgage Core Home Home Home
Mortgage (2) Mortgage (2) PCI Equity (2) Equity (2) Equity PCI
Refreshed LTV (3)
Less than or equal to 90 percent $ 173,911 $ 6,861 $ 3,411 $ 39,246 $ 5,870 $ 608
Greater than 90 percent but less than or equal to 100 percent 2,349 340 193 354 603 112
Greater than 100 percent 817 349 196 410 958 125
Fully-insured loans (4) 16,618 3,512
Total consumer real estate $ 193,695 $ 11,062 $ 3,800 $ 40,010 $ 7,431 $ 845
Refreshed FICO score
Less than 620 $ 2,125 $ 1,264 $ 710 $ 1,064 $ 1,325 $ 178
Greater than or equal to 620 and less than 680 4,538 1,068 651 2,008 1,575 145
Greater than or equal to 680 and less than 740 23,841 1,841 1,201 7,008 1,968 220
Greater than or equal to 740 146,573 3,377 1,238 29,930 2,563 302
Total consumer real estate $ 193,695 $ 11,062 $ 3,800 $ 40,010 $ 7,431 $ 845
(1) Excludes $682 million of loans accounted for under the fair value option.
(2) Excludes PCI loans.
(3) Refreshed LTV percentages for PCI loans are calculated using the carrying value net of the related valuation allowance.
(4) Credit quality indicators are not reported for fully-insured loans as principal repayment is insured.
Credit Card and Other Consumer – Credit Quality Indicators

U.S. Credit Direct/Indirect Other
Card Consumer Consumer
Less than 620 $ 5,016 $ 1,719
Greater than or equal to 620 and less than 680 12,415 3,124
Greater than or equal to 740 45,126 36,709
Other internal credit metrics (1, 2) 40,693 $ 202
Total credit card and other consumer $ 98,338 $ 91,166 $ 202
(1) Other internal credit metrics may include delinquency status, geography or other factors.
(2) Direct/indirect consumer includes $39.9 billion of securities-based lending which is overcollateralized and therefore has minimal credit risk.
Commercial – Credit Quality Indicators (1)
Commercial U.S. Small

U.S. Non-U.S. Commercial Lease Business
Commercial Commercial Real Estate Financing Commercial (2)
Risk ratings
Pass rated $ 291,918 $ 97,916 $ 59,910 $ 22,168 $ 389
Reservable criticized 7,359 860 935 366 29
Refreshed FICO score (3)
Less than 620 264
Greater than or equal to 620 and less than 680 684
Greater than or equal to 680 and less than 740 2,072
Greater than or equal to 740 4,254
Other internal credit metrics (3, 4) 6,873
Total commercial $ 299,277 $ 98,776 $ 60,845 $ 22,534 $ 14,565
(1) Excludes $3.7 billion of loans accounted for under the fair value option.
(2) U.S. small business commercial includes $731 million of criticized business card and small business loans which are evaluated using refreshed FICO scores or internal credit metrics, including
delinquency status, rather than risk ratings. At December 31, 2018, 99 percent of the balances where internal credit metrics are used was current or less than 30 days past due.
(3) Refreshed FICO score and other internal credit metrics are applicable only to the U.S. small business commercial portfolio.
(4) Other internal credit metrics may include delinquency status, application scores, geography or other factors.

Consumer Real Estate – Credit Quality Indicators (1)
Core Non-core Residential Non-core

Residential Residential Mortgage Core Home Home Home
Mortgage (2) Mortgage (2) PCI Equity (2) Equity (2) Equity PCI
Refreshed LTV (3)
Less than or equal to 90 percent $ 153,669 $ 12,135 $ 6,872 $ 43,048 $ 7,944 $ 1,781
Greater than 90 percent but less than or equal to 100 percent 3,082 850 559 549 1,053 412
Greater than 100 percent 1,322 1,011 570 648 1,786 523
Total consumer real estate $ 176,618 $ 19,192 $ 8,001 $ 44,245 $ 10,783 $ 2,716
Less than 620 $ 2,234 $ 2,390 $ 1,941 $ 1,169 $ 2,098 $ 452
Greater than or equal to 740 128,374 6,001 2,007 32,590 3,569 1,012
Total consumer real estate $ 176,618 $ 19,192 $ 8,001 $ 44,245 $ 10,783 $ 2,716
(1) Excludes $928 million of loans accounted for under the fair value option.
(2) Excludes PCI loans.
(3) Refreshed LTV percentages for PCI loans are calculated using the carrying value net of the related valuation allowance.
(4) Credit quality indicators are not reported for fully-insured loans as principal repayment is insured.
Credit Card and Other Consumer – Credit Quality Indicators

U.S. Credit Direct/Indirect Other
Card Consumer Consumer
Less than 620 $ 4,730 $ 2,005
Greater than or equal to 740 43,477 36,445
Other internal credit metrics (1, 2) 43,457 $ 166
Total credit card and other consumer $ 96,285 $ 96,342 $ 166
(1) Other internal credit metrics may include delinquency status, geography or other factors.
(2) Direct/indirect consumer includes $42.8 billion of securities-based lending which is overcollateralized and therefore has minimal credit risk.
Commercial – Credit Quality Indicators (1)
Commercial U.S. Small

U.S. Non-U.S. Commercial Lease Business
Commercial Commercial Real Estate Financing Commercial (2)
Risk ratings
Pass rated $ 275,904 $ 96,199 $ 57,732 $ 21,535 $ 322
Reservable criticized 8,932 1,593 566 581 50
Refreshed FICO score (3)
Less than 620 223
Greater than or equal to 620 and less than 680 625
Greater than or equal to 680 and less than 740 1,875
Greater than or equal to 740 3,713
Other internal credit metrics (3, 4) 6,841
Total commercial $ 284,836 $ 97,792 $ 58,298 $ 22,116 $ 13,649
(1) Excludes $4.8 billion of loans accounted for under the fair value option.
(2) U.S. small business commercial includes $709 million of criticized business card and small business loans which are evaluated using refreshed FICO scores or internal credit metrics, including
delinquency status, rather than risk ratings. At December 31, 2017, 98 percent of the balances where internal credit metrics are used was current or less than 30 days past due.
(3) Refreshed FICO score and other internal credit metrics are applicable only to the U.S. small business commercial portfolio.
(4) Other internal credit metrics may include delinquency status, application scores, geography or other factors.

Impaired Loans and Troubled Debt Restructurings Alternatively, consumer real estate TDRs that are considered to
A loan is considered impaired when, based on current information, be dependent solely on the collateral for repayment (e.g., due to
it is probable that the Corporation will be unable to collect all the lack of income verification) are measured based on the
amounts due from the borrower in accordance with the contractual estimated fair value of the collateral and a charge-off is recorded
terms of the loan. For more information, see Note 1 – Summary if the carrying value exceeds the fair value of the collateral.
of Significant Accounting Principles. Consumer real estate loans that reached 180 days past due prior
to modification had been charged off to their net realizable value,
Consumer Real Estate less costs to sell, before they were modified as TDRs in accordance
Impaired consumer real estate loans within the Consumer Real with established policy. Therefore, modifications of consumer real
Estate portfolio segment consist entirely of TDRs. Excluding PCI estate loans that are 180 or more days past due as TDRs do not
loans, most modifications of consumer real estate loans meet the have an impact on the allowance for loan and lease losses nor
definition of TDRs when a binding offer is extended to a borrower. are additional charge-offs required at the time of modification.
Modifications of consumer real estate loans are done in Subsequent declines in the fair value of the collateral after a loan
accordance with government programs or the Corporation’s has reached 180 days past due are recorded as charge-offs. Fully-
proprietary programs. These modifications are considered to be insured loans are protected against principal loss, and therefore,
TDRs if concessions have been granted to borrowers experiencing the Corporation does not record an allowance for loan and lease
financial difficulties. Concessions may include reductions in losses on the outstanding principal balance, even after they have
interest rates, capitalization of past due amounts, principal and/ been modified in a TDR.
or interest forbearance, payment extensions, principal and/or At December 31, 2018 and 2017, remaining commitments to
interest forgiveness, or combinations thereof. lend additional funds to debtors whose terms have been modified
Prior to permanently modifying a loan, the Corporation may in a consumer real estate TDR were not significant. Consumer real
enter into trial modifications with certain borrowers under both estate foreclosed properties totaled $244 million and $236 million
government and proprietary programs. Trial modifications generally at December 31, 2018 and 2017. The carrying value of consumer
represent a three- to four-month period during which the borrower real estate loans, including fully-insured and PCI loans, for which
makes monthly payments under the anticipated modified payment formal foreclosure proceedings were in process at December 31,
terms. Upon successful completion of the trial period, the 2018 was $2.5 billion. During 2018 and 2017, the Corporation
Corporation and the borrower enter into a permanent modification. reclassified $670 million and $815 million of consumer real estate
Binding trial modifications are classified as TDRs when the trial loans to foreclosed properties or, for properties acquired upon
offer is made and continue to be classified as TDRs regardless of foreclosure of certain government-guaranteed loans (principally
whether the borrower enters into a permanent modification. FHA-insured loans), to other assets. The reclassifications
Consumer real estate loans that have been discharged in represent non-cash investing activities and, accordingly, are not
Chapter 7 bankruptcy with no change in repayment terms and not reflected in the Consolidated Statement of Cash Flows.
reaffirmed by the borrower of $858 million were included in TDRs The following table provides the unpaid principal balance,
at December 31, 2018, of which $185 million were classified as carrying value and related allowance at December 31, 2018 and
nonperforming and $344 million were loans fully insured by the 2017, and the average carrying value and interest income
FHA. For more information on loans discharged in Chapter 7 recognized in 2018, 2017 and 2016 for impaired loans in the
bankruptcy, see Nonperforming Loans and Leases in this Note. Corporation’s Consumer Real Estate portfolio segment. Certain
Consumer real estate TDRs are measured primarily based on impaired consumer real estate loans do not have a related
the net present value of the estimated cash flows discounted at allowance as the current valuation of these impaired loans
the loan’s original effective interest rate. If the carrying value of a exceeded the carrying value, which is net of previously recorded
TDR exceeds this amount, a specific allowance is recorded as a charge-offs.
component of the allowance for loan and lease losses.

Impaired Loans – Consumer Real Estate
Unpaid Unpaid
Principal Carrying Related Principal Carrying Related
Balance Value Allowance Balance Value Allowance
With no recorded allowance
Residential mortgage $ 5,396 $ 4,268 $ — $ 8,856 $ 6,870 $ —
Home equity 2,948 1,599 — 3,622 1,956 —
With an allowance recorded
Residential mortgage $ 1,977 $ 1,929 $ 114 $ 2,908 $ 2,828 $ 174
Home equity 812 760 144 972 900 174
Total (1)
Residential mortgage $ 7,373 $ 6,197 $ 114 $ 11,764 $ 9,698 $ 174
Home equity 3,760 2,359 144 4,594 2,856 174
Average Interest Average Interest Average Interest

Carrying Income Carrying Income Carrying Income
Value Recognized (2) Value Recognized (2) Value Recognized (2)
2018 2017 2016

Residential mortgage $ 5,424 $ 207 $ 7,737 $ 311 $ 10,178 $ 360
Home equity 1,894 105 1,997 109 1,906 90
Home equity 861 25 858 24 852 24
Total (1)
Home equity 2,755 130 2,855 133 2,758 114
(1) During 2018, previously impaired consumer real estate loans with a carrying value of $2.3 billion were sold.
(2) Interest income recognized includes interest accrued and collected on the outstanding balances of accruing impaired loans as well as interest cash collections on nonaccruing impaired loans for
which the principal is considered collectible.
The table below presents the December 31, 2018, 2017 and 2016 unpaid principal balance, carrying value, and average pre- and
post-modification interest rates on consumer real estate loans that were modified in TDRs during 2018, 2017 and 2016. The following
Consumer Real Estate portfolio segment tables include loans that were initially classified as TDRs during the period and also loans
that had previously been classified as TDRs and were modified again during the period.
Consumer Real Estate – TDRs Entered into During 2018, 2017 and 2016
Unpaid Pre- Post-

Principal Carrying Modification Modification
Balance Value Interest Rate Interest Rate (1)
Residential mortgage $ 774 $ 641 4.33% 4.21%
Home equity 489 358 4.46 3.74
Total $ 1,263 $ 999 4.38 4.03
December 31, 2017

Residential mortgage $ 824 $ 712 4.43% 4.16%
Home equity 764 590 4.22 3.49
Total $ 1,588 $ 1,302 4.33 3.83
December 31, 2016

Residential mortgage $ 1,130 $ 1,017 4.73% 4.16%
Home equity 849 649 3.95 2.72
Total $ 1,979 $ 1,666 4.40 3.54
(1) The post-modification interest rate reflects the interest rate applicable only to permanently completed modifications, which exclude loans that are in a trial modification period.

The table below presents the December 31, 2018, 2017 and 2016 carrying value for consumer real estate loans that were modified
in a TDR during 2018, 2017 and 2016, by type of modification.
Consumer Real Estate – Modification Programs

TDRs Entered into During
Modifications under government programs
Contractual interest rate reduction $ 19 $ 59 $ 151
Principal and/or interest forbearance — 4 13
Other modifications (1) 42 22 23
Total modifications under government programs 61 85 187
Modifications under proprietary programs
Contractual interest rate reduction 209 281 235
Capitalization of past due amounts 96 63 40
Principal and/or interest forbearance 51 38 72
Other modifications (1) 167 55 75
Total modifications under proprietary programs 523 437 422
Trial modifications 285 569 831
Loans discharged in Chapter 7 bankruptcy (2) 130 211 226
Total modifications $ 999 $ 1,302 $ 1,666
(1) Includes other modifications such as term or payment extensions and repayment plans. During 2018, this included $198 million of modifications that met the definition of a TDR related to the 2017
hurricanes. These modifications had been written down to their net realizable value less costs to sell or were fully insured as of December 31, 2018.
(2) Includes loans discharged in Chapter 7 bankruptcy with no change in repayment terms that are classified as TDRs.
The table below presents the carrying value of consumer real estate loans that entered into payment default during 2018, 2017
and 2016 that were modified in a TDR during the 12 months preceding payment default. A payment default for consumer real estate
TDRs is recognized when a borrower has missed three monthly payments (not necessarily consecutively) since modification.
Consumer Real Estate – TDRs Entering Payment Default that were Modified During the Preceding 12 Months
Modifications under government programs $ 39 $ 81 $ 262
Modifications under proprietary programs 158 138 196
Loans discharged in Chapter 7 bankruptcy (1) 64 116 158
Trial modifications (2) 107 391 824
Total modifications $ 368 $ 726 $ 1,440
(1) Includes loans discharged in Chapter 7 bankruptcy with no change in repayment terms that are classified as TDRs.
(2) Includes trial modification offers to which the customer did not respond.
Credit Card and Other Consumer borrowers working with third-party renegotiation agencies that
Impaired loans within the Credit Card and Other Consumer portfolio provide solutions to customers’ entire unsecured debt structures
segment consist entirely of loans that have been modified in TDRs. (external programs). The Corporation classifies other secured
The Corporation seeks to assist customers that are experiencing consumer loans that have been discharged in Chapter 7
financial difficulty by modifying loans while ensuring compliance bankruptcy as TDRs which are written down to collateral value and
with federal and local laws and guidelines. Credit card and other placed on nonaccrual status no later than the time of discharge.
consumer loan modifications generally involve reducing the For more information on the regulatory guidance on loans
interest rate on the account, placing the customer on a fixed discharged in Chapter 7 bankruptcy, see Nonperforming Loans and
payment plan not exceeding 60 months and canceling the Leases in this Note.
customer’s available line of credit, all of which are considered The table below provides the unpaid principal balance, carrying
TDRs. The Corporation makes loan modifications directly with value and related allowance at December 31, 2018 and 2017,
borrowers for debt held only by the Corporation (internal programs). and the average carrying value for 2018, 2017 and 2016 on TDRs
Additionally, the Corporation makes loan modifications for within the Credit Card and Other Consumer portfolio segment.

Impaired Loans – Credit Card and Other Consumer
Unpaid Unpaid
Balance Value (1) Allowance Balance Value (1) Allowance Average Carrying Value (2)
(Dollars in millions) December 31, 2018 December 31, 2017 2018 2017 2016
Direct/Indirect consumer $ 72 $ 33 $ — $ 58 $ 28 $ — $ 30 $ 21 $ 20
U.S. credit card $ 522 $ 533 $ 154 $ 454 $ 461 $ 125 $ 491 $ 464 $ 556
Non-U.S. credit card (3) n/a n/a n/a n/a n/a n/a n/a 47 111
Direct/Indirect consumer — — — 1 1 — 1 2 10
Total
U.S. credit card $ 522 $ 533 $ 154 $ 454 $ 461 $ 125 $ 491 $ 464 $ 556
Non-U.S. credit card (3) n/a n/a n/a n/a n/a n/a n/a 47 111
Direct/Indirect consumer 72 33 — 59 29 — 31 23 30
(1) Includes accrued interest and fees.
(2) The related interest income recognized, which included interest accrued and collected on the outstanding balances of accruing impaired loans as well as interest cash collections on nonaccruing
impaired loans for which the principal was considered collectible, was not significant in 2018, 2017 and 2016.
(3) In 2017, the Corporation sold its non-U.S. consumer credit card business.
The table below provides information on the Corporation’s primary modification programs for the Credit Card and Other Consumer
TDR portfolio at December 31, 2018 and 2017.
Credit Card and Other Consumer – TDRs by Program Type at December 31

U.S. Credit Card Direct/Indirect Consumer Total TDRs by Program Type
Internal programs $ 259 $ 203 $ — $ 1 $ 259 $ 204
External programs 273 257 — — 273 257
Other 1 1 33 28 34 29
Total $ 533 $ 461 $ 33 $ 29 $ 566 $ 490
Percent of balances current or less than 30 days past due 85% 87% 81% 88% 85% 87%
The table below provides information on the Corporation’s Credit Card and Other Consumer TDR portfolio including the December
31, 2018, 2017 and 2016 unpaid principal balance, carrying value, and average pre- and post-modification interest rates of loans that
were modified in TDRs during 2018, 2017 and 2016.
Credit Card and Other Consumer – TDRs Entered into During 2018, 2017 and 2016
Unpaid Pre- Post-

Principal Carrying Modification Modification
Balance Value (1) Interest Rate Interest Rate
U.S. credit card $ 278 $ 292 19.49% 5.24%
Total $ 320 $ 315 18.45 5.22
December 31, 2017

U.S. credit card $ 203 $ 213 18.47% 5.32%
Total $ 240 $ 235 17.17 5.22
December 31, 2016

U.S. credit card $ 163 $ 172 17.54% 5.47%
Non-U.S. credit card 66 75 23.99 0.52
Total $ 250 $ 260 18.73 3.93
(1) Includes accrued interest and fees.

Credit card and other consumer loans are deemed to be in concessions may also include principal forgiveness in connection
payment default during the quarter in which a borrower misses the with foreclosure, short sale or other settlement agreements
second of two consecutive payments. Payment defaults are one leading to termination or sale of the loan.
of the factors considered when projecting future cash flows in the At the time of restructuring, the loans are remeasured to reflect
calculation of the allowance for loan and lease losses for impaired the impact, if any, on projected cash flows resulting from the
credit card and other consumer loans. Based on historical modified terms. If there was no forgiveness of principal and the
experience, the Corporation estimates that 13 percent of new U.S. interest rate was not decreased, the modification may have little
credit card TDRs and 14 percent of new direct/indirect consumer or no impact on the allowance established for the loan. If a portion
TDRs may be in payment default within 12 months after of the loan is deemed to be uncollectible, a charge-off may be
modification. recorded at the time of restructuring. Alternatively, a charge-off
may have already been recorded in a previous period such that no
Commercial Loans charge-off is required at the time of modification. For more
Impaired commercial loans include nonperforming loans and TDRs information on modifications for the U.S. small business
(both performing and nonperforming). Modifications of loans to commercial portfolio, see Credit Card and Other Consumer in this
commercial borrowers that are experiencing financial difficulty are Note.
designed to reduce the Corporation’s loss exposure while providing At December 31, 2018 and 2017, remaining commitments to
the borrower with an opportunity to work through financial lend additional funds to debtors whose terms have been modified
difficulties, often to avoid foreclosure or bankruptcy. Each in a commercial loan TDR were $297 million and $205 million.
modification is unique and reflects the individual circumstances The table below provides information on impaired loans in the
of the borrower. Modifications that result in a TDR may include Commercial loan portfolio segment including the unpaid principal
extensions of maturity at a concessionary (below market) rate of balance, carrying value and related allowance at December 31,
interest, payment forbearances or other actions designed to 2018 and 2017, and the average carrying value for 2018, 2017
benefit the customer while mitigating the Corporation’s risk and 2016. Certain impaired commercial loans do not have a
exposure. Reductions in interest rates are rare. Instead, the related allowance because the valuation of these impaired loans
interest rates are typically increased, although the increased rate exceeded the carrying value, which is net of previously recorded
may not represent a market rate of interest. Infrequently, charge-offs.
Impaired Loans – Commercial
Unpaid Unpaid
Balance Value Allowance Balance Value Allowance Average Carrying Value (1)
(Dollars in millions) December 31, 2018 December 31, 2017 2018 2017 2016
U.S. commercial $ 638 $ 616 $ — $ 576 $ 571 $ — $ 655 $ 772 $ 787
Non-U.S. commercial 93 93 — 14 11 — 43 46 34
Commercial real estate — — — 83 80 — 44 69 67
Commercial lease financing — — — — — — 3 — —
U.S. commercial $ 1,437 $ 1,270 $ 121 $ 1,393 $ 1,109 $ 98 $ 1,162 $ 1,260 $ 1,569
Non-U.S. commercial 155 149 30 528 507 58 327 463 409
Commercial real estate 247 162 16 133 41 4 46 73 92
Commercial lease financing 71 71 — 20 18 3 42 8 2
U.S. small business commercial (2) 83 72 29 84 70 27 73 73 87
Total
U.S. commercial $ 2,075 $ 1,886 $ 121 $ 1,969 $ 1,680 $ 98 $ 1,817 $ 2,032 $ 2,356
Non-U.S. commercial 248 242 30 542 518 58 370 509 443
Commercial real estate 247 162 16 216 121 4 90 142 159
Commercial lease financing 71 71 — 20 18 3 45 8 2
U.S. small business commercial (2) 83 72 29 84 70 27 73 73 87
(1) The related interest income recognized, which included interest accrued and collected on the outstanding balances of accruing impaired loans as well as interest cash collections on nonaccruing
impaired loans for which the principal was considered collectible, was not significant in 2018, 2017 and 2016.
(2) Includes U.S. small business commercial renegotiated TDR loans and related allowance.

The table below presents the December 31, 2018, 2017 and million for U.S. commercial and $3 million, $19 million and $34
2016 unpaid principal balance and carrying value of commercial million for commercial real estate at December 31, 2018, 2017
loans that were modified as TDRs during 2018, 2017 and 2016. and 2016, respectively.
The table below includes loans that were initially classified as
TDRs during the period and also loans that had previously been Purchased Credit-impaired Loans
classified as TDRs and were modified again during the period. The table below shows activity for the accretable yield on PCI loans,
which includes the Countrywide Financial Corporation
(Countrywide) portfolio and loans repurchased in connection with
Commercial – TDRs Entered into During 2018, 2017 and the 2013 settlement with FNMA. The amount of accretable yield
2016 is affected by changes in credit outlooks, including metrics such
as default rates and loss severities, prepayment speeds, which
Unpaid can change the amount and period of time over which interest
Principal Carrying
Balance Value
payments are expected to be received, and the interest rates on
variable rate loans. The reclassifications from nonaccretable
U.S. commercial $ 1,154 $ 1,098 difference during 2018 and 2017 were primarily due to an increase
Non-U.S. commercial 166 165 in the expected principal and interest cash flows due to lower
Commercial real estate 115 115 default estimates and the rising interest rate environment.
Commercial lease financing 68 68
U.S. small business commercial (1) 9 8
Total $ 1,512 $ 1,454 Rollforward of Accretable Yield
(Dollars in millions)
December 31, 2017
U.S. commercial $ 1,033 $ 922 Accretable yield, January 1, 2017 $ 3,805
Non-U.S. commercial 105 105 Accretion (601)
Commercial real estate 35 24 Disposals/transfers (634)
Commercial lease financing 20 17 Reclassifications from nonaccretable difference 219
U.S. small business commercial (1) 13 13 Accretable yield, December 31, 2017 2,789
Total $ 1,206 $ 1,081 Accretion (457)
Disposals/transfers (1,456)
December 31, 2016 Reclassifications from nonaccretable difference 368
U.S. commercial $ 1,556 $ 1,482 Accretable yield, December 31, 2018 $ 1,244
Non-U.S. commercial 255 253
Commercial real estate 77 77 During 2018 and 2017, the Corporation sold PCI loans with a
Commercial lease financing 6 4 carrying value of $4.4 billion and $803 million. For more
U.S. small business commercial (1) 1 1 information on PCI loans, see Note 1 – Summary of Significant
Total $ 1,895 $ 1,817
Accounting Principles and for the carrying value and valuation
(1) U.S. small business commercial TDRs are comprised of renegotiated small business card loans.
allowance for PCI loans, see Note 6 – Allowance for Credit Losses.
A commercial TDR is generally deemed to be in payment default
when the loan is 90 days or more past due, including delinquencies Loans Held-for-sale
that were not resolved as part of the modification. U.S. small The Corporation had LHFS of $10.4 billion and $11.4 billion at
business commercial TDRs are deemed to be in payment default December 31, 2018 and 2017. Cash and non-cash proceeds from
during the quarter in which a borrower misses the second of two sales and paydowns of loans originally classified as LHFS were
consecutive payments. Payment defaults are one of the factors $29.2 billion, $41.3 billion and $32.6 billion for 2018, 2017 and
considered when projecting future cash flows, along with 2016, respectively. Cash used for originations and purchases of
observable market prices or fair value of collateral when measuring LHFS totaled $28.1 billion, $43.5 billion and $33.1 billion for
the allowance for loan and lease losses. TDRs that were in payment 2018, 2017 and 2016, respectively.
default had a carrying value of $150 million, $64 million and $140

NOTE 6 Allowance for Credit Losses
The table below summarizes the changes in the allowance for credit losses by portfolio segment for 2018, 2017 and 2016.
Consumer Credit Card and

Real Estate (1) Other Consumer Commercial Total
Allowance for loan and lease losses, January 1 $ 1,720 $ 3,663 $ 5,010 $ 10,393
Loans and leases charged off (690) (4,037) (675) (5,402)
Recoveries of loans and leases previously charged off 664 823 152 1,639
Net charge-offs (26) (3,214) (523) (3,763)
Write-offs of PCI loans (2) (273) — — (273)
Provision for loan and lease losses (492) 3,441 313 3,262
Other (3) (1) (16) (1) (18)
Allowance for loan and lease losses, December 31 928 3,874 4,799 9,601
Reserve for unfunded lending commitments, January 1 — — 777 777
Provision for unfunded lending commitments — — 20 20
Reserve for unfunded lending commitments, December 31 — — 797 797
Allowance for credit losses, December 31 $ 928 $ 3,874 $ 5,596 $ 10,398
2017
Loans and leases charged off (770) (3,774) (1,075) (5,619)
Net charge-offs (113) (2,965) (901) (3,979)
Provision for loan and lease losses (710) 3,437 654 3,381
Other (3) — (38) (1) (39)
Allowance for loan and lease losses, December 31 1,720 3,663 5,010 10,393
Allowance for credit losses, December 31 $ 1,720 $ 3,663 $ 5,787 $ 11,170
2016
Loans and leases charged off (1,155) (3,553) (740) (5,448)
Net charge-offs (536) (2,783) (502) (3,821)
Provision for loan and lease losses (258) 2,826 1,013 3,581
Other (3) (30) (42) (102) (174)
Total allowance for loan and lease losses, December 31 2,750 3,472 5,258 11,480
Less: Allowance included in assets of business held for sale (4) — (243) — (243)
Allowance for loan and lease losses, December 31 2,750 3,229 5,258 11,237
Other (3) — — 100 100
Allowance for credit losses, December 31 $ 2,750 $ 3,229 $ 6,020 $ 11,999
(1) Includes valuation allowance associated with the PCI loan portfolio.
(2) Includes write-offs associated with the sale of PCI loans of $167 million, $87 million and $60 million in 2018, 2017 and 2016, respectively.
(4) Represents allowance for loan and lease losses related to the non-U.S. consumer credit card loan portfolio, which was sold in 2017.

The table below presents the allowance and the carrying value of outstanding loans and leases by portfolio segment at December
31, 2018 and 2017.
Allowance and Carrying Value by Portfolio Segment

Consumer Credit Card and
Real Estate Other Consumer Commercial Total
Impaired loans and troubled debt restructurings (1)
Allowance for loan and lease losses $ 258 $ 154 $ 196 $ 608
Carrying value (2) 8,556 566 2,433 11,555
Allowance as a percentage of carrying value 3.02% 27.21% 8.06% 5.26%
Loans collectively evaluated for impairment
Allowance for loan and lease losses $ 579 $ 3,720 $ 4,603 $ 8,902
Carrying value (2, 3) 243,642 189,140 493,564 926,346
Allowance as a percentage of carrying value (3) 0.24% 1.97% 0.93% 0.96%
Purchased credit-impaired loans
Valuation allowance $ 91 n/a n/a $ 91
Carrying value gross of valuation allowance 4,645 n/a n/a 4,645
Valuation allowance as a percentage of carrying value 1.96% n/a n/a 1.96%
Total
Allowance for loan and lease losses $ 928 $ 3,874 $ 4,799 $ 9,601
Carrying value (2, 3) 256,843 189,706 495,997 942,546
December 31, 2017

Impaired loans and troubled debt restructurings (1)
Allowance for loan and lease losses $ 348 $ 125 $ 190 $ 663
Carrying value (2) 12,554 490 2,407 15,451
Allowance as a percentage of carrying value 2.77% 25.51% 7.89% 4.29%
Loans collectively evaluated for impairment
Allowance for loan and lease losses $ 1,083 $ 3,538 $ 4,820 $ 9,441
Carrying value (2, 3) 238,284 192,303 474,284 904,871
Purchased credit-impaired loans
Valuation allowance $ 289 n/a n/a $ 289
Carrying value gross of valuation allowance 10,717 n/a n/a 10,717
Valuation allowance as a percentage of carrying value 2.70% n/a n/a 2.70%
Total
Allowance for loan and lease losses $ 1,720 $ 3,663 $ 5,010 $ 10,393
Carrying value (2, 3) 261,555 192,793 476,691 931,039
(1) Impaired loans include nonperforming commercial loans and all TDRs, including both commercial and consumer TDRs. Impaired loans exclude nonperforming consumer loans unless they are TDRs,
and all consumer and commercial loans accounted for under the fair value option.
(2) Amounts are presented gross of the allowance for loan and lease losses.
(3) Outstanding loan and lease balances and ratios do not include loans accounted for under the fair value option of $4.3 billion and $5.7 billion at December 31, 2018 and 2017.
NOTE 7 Securitizations and Other Variable The tables in this Note present the assets and liabilities of
consolidated and unconsolidated VIEs at December 31, 2018 and
Interest Entities 2017 in situations where the Corporation has continuing
The Corporation utilizes VIEs in the ordinary course of business involvement with transferred assets or if the Corporation
to support its own and its customers’ financing and investing otherwise has a variable interest in the VIE. The tables also
needs. The Corporation routinely securitizes loans and debt present the Corporation’s maximum loss exposure at December
securities using VIEs as a source of funding for the Corporation 31, 2018 and 2017 resulting from its involvement with
and as a means of transferring the economic risk of the loans or consolidated VIEs and unconsolidated VIEs in which the
debt securities to third parties. The assets are transferred into a Corporation holds a variable interest. The Corporation’s maximum
trust or other securitization vehicle such that the assets are legally loss exposure is based on the unlikely event that all of the assets
isolated from the creditors of the Corporation and are not available in the VIEs become worthless and incorporates not only potential
to satisfy its obligations. These assets can only be used to settle losses associated with assets recorded on the Consolidated
obligations of the trust or other securitization vehicle. The Balance Sheet but also potential losses associated with off-
Corporation also administers, structures or invests in other VIEs balance sheet commitments, such as unfunded liquidity
including CDOs, investment vehicles and other entities. For more commitments and other contractual arrangements. The
information on the Corporation’s use of VIEs, see Note 1 – Corporation’s maximum loss exposure does not include losses
Summary of Significant Accounting Principles. previously recognized through write-downs of assets.

The Corporation invests in ABS issued by third-party VIEs with unconsolidated VIEs of $218 million and $442 million at
which it has no other form of involvement and enters into certain December 31, 2018 and 2017.
commercial lending arrangements that may also incorporate the
use of VIEs, for example to hold collateral. These securities and First-lien Mortgage Securitizations
loans are included in Note 4 – Securities or Note 5 – Outstanding As part of its mortgage banking activities, the Corporation
Loans and Leases. In addition, the Corporation has used VIEs such securitizes a portion of the first-lien residential mortgage loans it
as trust preferred securities trusts in connection with its funding originates or purchases from third parties, generally in the form
activities. In 2018, the Corporation redeemed trust preferred of RMBS guaranteed by government-sponsored enterprises, FNMA
securities with a total carrying value of $3.1 billion resulting in and FHLMC (collectively the GSEs), or the Government National
the extinguishment of the related junior subordinated notes Mortgage Association (GNMA) primarily in the case of FHA-insured
issued by the Corporation. In connection therewith, the and U.S. Department of Veterans Affairs (VA)-guaranteed
Corporation recorded a charge to other income of $729 million mortgage loans. Securitization usually occurs in conjunction with
primarily due to the difference between the carrying and or shortly after origination or purchase, and the Corporation may
redemption values of the trust preferred securities, the majority also securitize loans held in its residential mortgage portfolio. In
of which relates to the discount on the junior subordinated notes addition, the Corporation may, from time to time, securitize
resulting from prior acquisitions. For more information on trust commercial mortgages it originates or purchases from other
preferred securities, see Note 11 – Long-term Debt. These VIEs, entities. The Corporation typically services the loans it securitizes.
which are generally not consolidated by the Corporation, as Further, the Corporation may retain beneficial interests in the
applicable, are not included in the tables herein. securitization trusts including senior and subordinate securities
The Corporation did not provide financial support to and equity tranches issued by the trusts. Except as described in
consolidated or unconsolidated VIEs during 2018, 2017 and Note 12 – Commitments and Contingencies, the Corporation does
2016 that it was not previously contractually required to provide, not provide guarantees or recourse to the securitization trusts
nor does it intend to do so. other than standard representations and warranties.
The Corporation had liquidity commitments, including written The table below summarizes select information related to first-
put options and collateral value guarantees, with certain lien mortgage securitizations for 2018, 2017 and 2016.
First-lien Mortgage Securitizations

Residential Mortgage - Agency Commercial Mortgage
Cash proceeds from new securitizations (1) $ 5,369 $ 14,467 $ 24,201 $ 6,713 $ 5,641 $ 3,887
Gains on securitizations (2) 62 158 370 101 91 38
Repurchases from securitization trusts (3) 1,485 2,713 3,611 — — —
(1) The Corporation transfers residential mortgage loans to securitizations sponsored by the GSEs or GNMA in the normal course of business and receives RMBS in exchange which may then be sold
into the market to third-party investors for cash proceeds.
(2) A majority of the first-lien residential mortgage loans securitized are initially classified as LHFS and accounted for under the fair value option. Gains recognized on these LHFS prior to securitization,
which totaled $71 million, $243 million and $487 million, net of hedges, during 2018, 2017 and 2016, respectively, are not included in the table above.
(3) The Corporation may have the option to repurchase delinquent loans out of securitization trusts, which reduces the amount of servicing advances it is required to make. The Corporation may also
repurchase loans from securitization trusts to perform modifications. Repurchased loans include FHA-insured mortgages collateralizing GNMA securities.
In addition to cash proceeds as reported in the table above, There were no significant deconsolidations of agency
the Corporation received securities with an initial fair value of residential mortgage securitizations in 2018 or 2017. During
$711 million, $1.9 billion and $4.2 billion in connection with first- 2016, the Corporation deconsolidated agency residential
lien mortgage securitizations in 2018, 2017 and 2016, mortgage securitization vehicles with total assets of $3.8 billion
respectively. Substantially all of these securities are classified as and total liabilities of $628 million following the sale of retained
Level 2 assets within the fair value hierarchy. interests to third parties, after which the Corporation no longer
The Corporation recognizes consumer MSRs from the sale or had the unilateral ability to liquidate the vehicles. Of the balances
securitization of consumer real estate loans. The unpaid principal deconsolidated in 2016, $706 million of assets and $628 million
balance of loans serviced for investors, including residential of liabilities represent non-cash investing and financing activities
mortgage and home equity loans, totaled $226.6 billion and and, accordingly, are not reflected on the Consolidated Statement
$277.6 billion at December 31, 2018 and 2017. Servicing fee of Cash Flows. A gain on sale of $125 million in 2016 related to
and ancillary fee income on serviced loans was $710 million, the deconsolidation was recorded in other income in the
$893 million and $1.2 billion in 2018, 2017 and 2016, Consolidated Statement of Income.
respectively. Servicing advances on serviced loans, including The following table summarizes select information related to
loans serviced for others and loans held for investment, were first-lien mortgage securitization trusts in which the Corporation
$3.3 billion and $4.5 billion at December 31, 2018 and 2017. held a variable interest at December 31, 2018 and 2017.
For more information on MSRs, see Note 20 – Fair Value
Measurements.

First-lien Mortgage VIEs
Residential Mortgage
Non-agency
Agency Prime Subprime Alt-A Commercial Mortgage
December 31
(Dollars in millions) 2018 2017 2018 2017 2018 2017 2018 2017 2018 2017
Unconsolidated VIEs
Maximum loss exposure (1) $ 16,011 $ 19,110 $ 448 $ 689 $ 1,897 $ 2,643 $ 217 $ 403 $ 767 $ 585
On-balance sheet assets
Senior securities:
Trading account assets $ 460 $ 716 $ 30 $ 6 $ 36 $ 10 $ 90 $ 50 $ 97 $ 108
Debt securities carried at fair
value 9,381 15,036 246 477 1,470 2,221 125 351 — —
Held-to-maturity securities 6,170 3,348 — — — — — — 528 274
All other assets — 10 3 5 37 38 2 2 40 88
Total retained positions $ 16,011 $ 19,110 $ 279 $ 488 $ 1,543 $ 2,269 $ 217 $ 403 $ 665 $ 470
Principal balance outstanding (2) $ 187,512 $ 232,761 $ 8,954 $ 10,549 $ 8,719 $ 10,254 $ 23,467 $ 28,129 $ 43,593 $ 26,504
Consolidated VIEs
Maximum loss exposure (1) $ 13,296 $ 14,502 $ 7 $ 571 $ — $ — $ — $ — $ 76 $ —
Trading account assets $ 1,318 $ 232 $ 150 $ 571 $ — $ — $ — $ — $ 76 $ —
Loans and leases, net 11,858 14,030 — — — — — — — —
All other assets 143 240 — — — — — — — —
Total assets $ 13,319 $ 14,502 $ 150 $ 571 $ — $ — $ — $ — $ 76 $ —
Total liabilities $ 26 $ 3 $ 143 $ — $ — $ — $ — $ — $ — $ —
(1) Maximum loss exposure includes obligations under loss-sharing reinsurance and other arrangements for non-agency residential mortgage and commercial mortgage securitizations, but excludes
the reserve for representations and warranties obligations and corporate guarantees and also excludes servicing advances and other servicing rights and obligations. For additional information,
see Note 12 – Commitments and Contingencies and Note 20 – Fair Value Measurements.
(2) Principal balance outstanding includes loans where the Corporation was the transferor to securitization VIEs with which it has continuing involvement, which may include servicing the loans.
Other Asset-backed Securitizations

The table below summarizes select information related to home equity, credit card and other asset-backed VIEs in which the Corporation
held a variable interest at December 31, 2018 and 2017.
Home Equity Loan, Credit Card and Other Asset-backed VIEs

Home Equity (1) Credit Card (2, 3) Resecuritization Trusts Municipal Bond Trusts
December 31
(Dollars in millions) 2018 2017 2018 2017 2018 2017 2018 2017
Unconsolidated VIEs
Maximum loss exposure $ 908 $ 1,522 $ — $ — $ 7,647 $ 8,204 $ 2,150 $ 1,631
Senior securities (4):
Trading account assets $ — $ — $ — $ — $ 1,419 $ 869 $ 26 $ 33
Debt securities carried at fair value 27 36 — — 1,337 1,661 — —
Held-to-maturity securities — — — — 4,891 5,644 — —
All other assets (4) — — — — — 30 — —
Total retained positions $ 27 $ 36 $ — $ — $ 7,647 $ 8,204 $ 26 $ 33
Total assets of VIEs (5) $ 1,813 $ 2,432 $ — $ — $ 16,949 $ 19,281 $ 2,829 $ 2,287
Consolidated VIEs
Maximum loss exposure $ 85 $ 112 $ 18,800 $ 24,337 $ 128 $ 628 $ 1,540 $ 1,453
Trading account assets $ — $ — $ — $ — $ 366 $ 1,557 $ 1,553 $ 1,452
Loans and leases 133 177 29,906 32,554 — — — —
Allowance for loan and lease losses (5) (9) (901) (988) — — — —
All other assets 4 6 136 1,385 — — 1 1
Total assets $ 132 $ 174 $ 29,141 $ 32,951 $ 366 $ 1,557 $ 1,554 $ 1,453
On-balance sheet liabilities
Short-term borrowings $ — $ — $ — $ — $ — $ — $ 742 $ 312
Long-term debt 55 76 10,321 8,598 238 929 12 —
All other liabilities — — 20 16 — — — —
Total liabilities $ 55 $ 76 $ 10,341 $ 8,614 $ 238 $ 929 $ 754 $ 312
(1) For unconsolidated home equity loan VIEs, the maximum loss exposure includes outstanding trust certificates issued by trusts in rapid amortization, net of recorded reserves. For both consolidated
and unconsolidated home equity loan VIEs, the maximum loss exposure excludes the reserve for representations and warranties obligations and corporate guarantees. For additional information,
see Note 12 – Commitments and Contingencies.
(2) At December 31, 2018 and 2017, loans and leases in the consolidated credit card trust included $11.0 billion and $15.6 billion of seller’s interest.
(3) At December 31, 2018 and 2017, all other assets in the consolidated credit card trust included certain short-term investments and unbilled accrued interest and fees.
(4) All other assets includes subordinate securities. The retained senior and subordinate securities were valued using quoted market prices or observable market inputs (Level 2 of the fair value
hierarchy).
(5) Total assets of VIEs includes loans the Corporation transferred with which it has continuing involvement, which may include servicing the loan.

Home Equity Loans securities with specific characteristics. Generally, there are no
The Corporation retains interests in home equity securitization significant ongoing activities performed in a resecuritization trust,
trusts, primarily senior securities, to which it transferred home and no single investor has the unilateral ability to liquidate the
equity loans. In addition, the Corporation may be obligated to trust.
provide subordinate funding to the trusts during a rapid The Corporation resecuritized $22.8 billion, $25.1 billion and
amortization event. This obligation is included in the maximum $23.4 billion of securities in 2018, 2017 and 2016, respectively.
loss exposure in the table above. The charges that will ultimately Securities transferred into resecuritization VIEs were measured
be recorded as a result of the rapid amortization events depend at fair value with changes in fair value recorded in trading account
on the undrawn portion of the home equity lines of credit (HELOCs), profits prior to the resecuritization and no gain or loss on sale
performance of the loans, the amount of subsequent draws and was recorded. During 2018, 2017 and 2016, resecuritization
the timing of related cash flows. proceeds included securities with an initial fair value of $4.1
billion, $3.3 billion and $3.3 billion, respectively. Substantially all
Credit Card Securitizations of the other securities received as resecuritization proceeds were
The Corporation securitizes originated and purchased credit card classified as trading securities and were categorized as Level 2
loans. The Corporation’s continuing involvement with the within the fair value hierarchy.
securitization trust includes servicing the receivables, retaining
an undivided interest (seller’s interest) in the receivables, and Municipal Bond Trusts
holding certain retained interests including subordinate interests The Corporation administers municipal bond trusts that hold
in accrued interest and fees on the securitized receivables and highly-rated, long-term, fixed-rate municipal bonds. The trusts
cash reserve accounts. obtain financing by issuing floating-rate trust certificates that
During 2018, 2017 and 2016, new senior debt securities reprice on a weekly or other short-term basis to third-party
issued to third-party investors from the credit card securitization investors.
trust were $4.0 billion, $3.1 billion and $750 million, respectively. The Corporation’s liquidity commitments to unconsolidated
At December 31, 2018 and 2017, the Corporation held municipal bond trusts, including those for which the Corporation
subordinate securities issued by the credit card securitization was transferor, totaled $2.1 billion and $1.6 billion at December
trust with a notional principal amount of $7.7 billion and $7.4 31, 2018 and 2017. The weighted-average remaining life of bonds
billion. These securities serve as a form of credit enhancement held in the trusts at December 31, 2018 was 7.3 years. There
to the senior debt securities and have a stated interest rate of were no material write-downs or downgrades of assets or issuers
zero percent. During 2018, 2017 and 2016, the credit card during 2018, 2017 and 2016.
securitization trust issued $650 million, $500 million and $121
million, respectively, of these subordinate securities. Other Variable Interest Entities
The table below summarizes select information related to other
Resecuritization Trusts VIEs in which the Corporation held a variable interest at December
The Corporation transfers securities, typically MBS, into 31, 2018 and 2017.
resecuritization VIEs at the request of customers seeking
Other VIEs
Consolidated Unconsolidated Total Consolidated Unconsolidated Total

December 31
Maximum loss exposure $ 4,177 $ 24,498 $ 28,675 $ 4,660 $ 19,785 $ 24,445
Trading account assets $ 2,335 $ 860 $ 3,195 $ 2,709 $ 346 $ 3,055
Debt securities carried at fair value — 84 84 — 160 160
Loans and leases 1,949 3,940 5,889 2,152 3,596 5,748
Allowance for loan and lease losses (2) (30) (32) (3) (32) (35)
All other assets 53 18,885 18,938 89 15,216 15,305
Total $ 4,335 $ 23,739 $ 28,074 $ 4,947 $ 19,286 $ 24,233
On-balance sheet liabilities
Long-term debt $ 152 $ — $ 152 $ 270 $ — $ 270
All other liabilities 7 4,231 4,238 18 3,417 3,435
Total $ 159 $ 4,231 $ 4,390 $ 288 $ 3,417 $ 3,705
Total assets of VIEs $ 4,335 $ 94,746 $ 99,081 $ 4,947 $ 69,746 $ 74,693
Customer VIEs net of losses previously recorded, and the Corporation’s

Customer VIEs include credit-linked, equity-linked and commodity- investment, if any, in securities issued by the VIEs.
linked note VIEs, repackaging VIEs and asset acquisition VIEs,
which are typically created on behalf of customers who wish to Collateralized Debt Obligation VIEs
obtain market or credit exposure to a specific company, index, The Corporation receives fees for structuring CDO VIEs, which
commodity or financial instrument. hold diversified pools of fixed-income securities, typically
The Corporation’s maximum loss exposure to consolidated corporate debt or ABS, which the CDO VIEs fund by issuing multiple
and unconsolidated customer VIEs totaled $2.1 billion and $2.3 tranches of debt and equity securities. CDOs are generally
billion at December 31, 2018 and 2017, including the notional managed by third-party portfolio managers. The Corporation
amount of derivatives to which the Corporation is a counterparty, typically transfers assets to these CDOs, holds securities issued
by the CDOs and may be a derivative counterparty to the CDOs.
The Corporation’s maximum loss exposure to consolidated and
unconsolidated CDOs totaled $421 million and $358 million at Tax Credit VIEs
December 31, 2018 and 2017. The Corporation holds investments in unconsolidated limited
partnerships and similar entities that construct, own and operate
Investment VIEs affordable housing, wind and solar projects. An unrelated third
The Corporation sponsors, invests in or provides financing, which party is typically the general partner or managing member and
may be in connection with the sale of assets, to a variety of has control over the significant activities of the VIE. The
investment VIEs that hold loans, real estate, debt securities or Corporation earns a return primarily through the receipt of tax
other financial instruments and are designed to provide the credits allocated to the projects. The maximum loss exposure
desired investment profile to investors or the Corporation. At included in the Other VIEs table was $17.0 billion and $13.8
December 31, 2018 and 2017, the Corporation’s consolidated billion at December 31, 2018 and 2017. The Corporation’s risk
investment VIEs had total assets of $270 million and $249 of loss is generally mitigated by policies requiring that the project
million. The Corporation also held investments in unconsolidated qualify for the expected tax credits prior to making its investment.
VIEs with total assets of $37.7 billion and $20.3 billion at The Corporation’s investments in affordable housing
December 31, 2018 and 2017. The Corporation’s maximum loss partnerships, which are reported in other assets on the
exposure associated with both consolidated and unconsolidated Consolidated Balance Sheet, totaled $8.9 billion and $8.0 billion,
investment VIEs totaled $7.2 billion and $5.7 billion at December including unfunded commitments to provide capital contributions
31, 2018 and 2017 comprised primarily of on-balance sheet of $3.8 billion and $3.1 billion at December 31, 2018 and 2017.
assets less non-recourse liabilities. The unfunded commitments are expected to be paid over the next
five years. During 2018, 2017 and 2016, the Corporation
Leveraged Lease Trusts
recognized tax credits and other tax benefits from investments in
The Corporation’s net investment in consolidated leveraged lease
affordable housing partnerships of $981 million, $1.0 billion and
trusts totaled $1.8 billion and $2.0 billion at December 31, 2018
$1.1 billion and reported pretax losses in other income of $798
and 2017. The trusts hold long-lived equipment such as rail cars,
million, $766 million and $789 million, respectively. Tax credits
power generation and distribution equipment, and commercial
are recognized as part of the Corporation’s annual effective tax
aircraft. The Corporation structures the trusts and holds a
rate used to determine tax expense in a given quarter. Accordingly,
significant residual interest. The net investment represents the
the portion of a year’s expected tax benefits recognized in any
Corporation’s maximum loss exposure to the trusts in the unlikely
given quarter may differ from 25 percent. The Corporation may
event that the leveraged lease investments become worthless.
from time to time be asked to invest additional amounts to support
Debt issued by the leveraged lease trusts is non-recourse to the
a troubled affordable housing project. Such additional
Corporation.
investments have not been and are not expected to be significant.
NOTE 8 Goodwill and Intangible Assets

Goodwill
The table below presents goodwill balances by reporting unit and All Other at December 31, 2018 and 2017. The reporting units
utilized for goodwill impairment testing are the operating segments or one level below.
Goodwill
December 31
Deposits $ 18,414 $ 18,414
Consumer Lending 11,709 11,709
Consumer Banking 30,123 30,123
U.S. Trust 2,917 2,917
Merrill Lynch Global Wealth Management 6,760 6,760
Global Wealth & Investment Management 9,677 9,677
Global Commercial Banking 16,146 16,146
Global Corporate and Investment Banking 6,231 6,231
Business Banking 1,546 1,546
Global Banking 23,923 23,923
Global Markets 5,182 5,182
All Other 46 46
Total goodwill $ 68,951 $ 68,951
During 2018, the Corporation completed its annual goodwill impairment test as of June 30, 2018 using qualitative assessments
for all applicable reporting units. Based on the results of the annual goodwill impairment test, the Corporation determined there was
no impairment. For more information on the use of qualitative assessments, see Note 1 – Summary of Significant Accounting Principles.

Intangible Assets
The table below presents the gross and net carrying values and accumulated amortization for intangible assets at December 31,
2018 and 2017.
Intangible Assets (1, 2)

Gross Accumulated Net Gross Accumulated Net
Carrying Value Amortization Carrying Value Carrying Value Amortization Carrying Value
Purchased credit card and affinity relationships $ 5,919 $ 5,759 $ 160 $ 5,919 $ 5,604 $ 315
Core deposit and other intangibles (3) 3,835 2,221 1,614 3,835 2,140 1,695
Customer relationships — — — 3,886 3,584 302
Total intangible assets $ 9,754 $ 7,980 $ 1,774 $ 13,640 $ 11,328 $ 2,312
(1) Excludes fully amortized intangible assets.
(2) At December 31, 2018 and 2017, none of the intangible assets were impaired.
(3) Includes $1.6 billion at both December 31, 2018 and 2017 of intangible assets associated with trade names that have an indefinite life and, accordingly, are not amortized.
Amortization of intangibles expense was $538 million, $621 million and $730 million for 2018, 2017 and 2016, respectively. The
Corporation estimates aggregate amortization expense will be $105 million for 2019, $55 million for 2020 and none for the years
thereafter.
NOTE 9 Deposits
The table below presents information about the Corporation’s time deposits of $100 thousand or more at December 31, 2018 and
2017. The Corporation also had aggregate time deposits of $16.4 billion and $17.0 billion in denominations that met or exceeded
the Federal Deposit Insurance Corporation (FDIC) insurance limit at December 31, 2018 and 2017.
Time Deposits of $100 Thousand or More

December 31
December 31, 2018 2017
Over Three
Three Months Months to
(Dollars in millions) or Less Twelve Months Thereafter Total Total
U.S. certificates of deposit and other time deposits $ 14,441 $ 11,855 $ 3,209 $ 29,505 $ 25,192
Non-U.S. certificates of deposit and other time deposits 7,317 2,655 820 10,792 15,472
The scheduled contractual maturities for total time deposits at December 31, 2018 are presented in the table below.
Contractual Maturities of Total Time Deposits

(Dollars in millions) U.S. Non-U.S. Total
Due in 2019 $ 43,452 $ 10,030 $ 53,482
Due in 2020 4,580 164 4,744
Due in 2021 725 8 733
Due in 2022 560 11 571
Due in 2023 270 632 902
Thereafter 570 37 607
Total time deposits $ 50,157 $ 10,882 $ 61,039
NOTE 10 Federal Funds Sold or Purchased, Securities Financing Agreements, Short-term Borrowings
and Restricted Cash
The table below presents federal funds sold or purchased, securities financing agreements (which include securities borrowed or
purchased under agreements to resell and securities loaned or sold under agreements to repurchase) and short-term borrowings. The
Corporation elects to account for certain securities financing agreements and short-term borrowings under the fair value option. For
more information on the fair value option, see Note 21 – Fair Value Option.
Amount Rate Amount Rate

Federal funds sold and securities borrowed or purchased under agreements to resell
Average during year $ 251,328 1.26% $ 222,818 0.81%
Maximum month-end balance during year 279,350 n/a 237,064 n/a
Federal funds purchased and securities loaned or sold under agreements to repurchase
Average during year $ 193,681 1.80% $ 199,501 1.30%
Short-term borrowings
Average during year 36,021 2.69 37,337 2.48

Bank of America, N.A. maintains a global program to offer up in the event of default by the counterparty, the right to liquidate
to a maximum of $75 billion outstanding at any one time, of bank securities held and to offset receivables and payables with the
notes with fixed or floating rates and maturities of at least seven same counterparty. The Corporation offsets securities financing
days from the date of issue. Short-term bank notes outstanding transactions with the same counterparty on the Consolidated
under this program totaled $12.1 billion and $14.2 billion at Balance Sheet where it has such a legally enforceable master
December 31, 2018 and 2017. These short-term bank notes, netting agreement and the transactions have the same maturity
along with FHLB advances, U.S. Treasury tax and loan notes, and date.
term federal funds purchased, are included in short-term The Securities Financing Agreements table presents securities
borrowings on the Consolidated Balance Sheet. financing agreements included on the Consolidated Balance Sheet
in federal funds sold and securities borrowed or purchased under
Offsetting of Securities Financing Agreements agreements to resell, and in federal funds purchased and
The Corporation enters into securities financing agreements to securities loaned or sold under agreements to repurchase at
accommodate customers (also referred to as “matched-book December 31, 2018 and 2017. Balances are presented on a gross
transactions”), obtain securities to cover short positions, and to basis, prior to the application of counterparty netting. Gross assets
finance inventory positions. Substantially all of the Corporation’s and liabilities are adjusted on an aggregate basis to take into
securities financing activities are transacted under legally consideration the effects of legally enforceable master netting
enforceable master repurchase agreements or legally enforceable agreements. For more information on the offsetting of derivatives,
master securities lending agreements that give the Corporation, see Note 3 – Derivatives.
Securities Financing Agreements

Gross Assets/ Net Balance Financial Net Assets/
Liabilities (1) Amounts Offset Sheet Amount Instruments (2) Liabilities
Securities borrowed or purchased under agreements to resell (3) $ 366,274 $ (106,865) $ 259,409 $ (240,790) $ 18,619
Securities loaned or sold under agreements to repurchase $ 293,853 $ (106,865) $ 186,988 $ (176,740) $ 10,248
Other (4) 19,906 — 19,906 (19,906) —
Total $ 313,759 $ (106,865) $ 206,894 $ (196,646) $ 10,248
December 31, 2017

Securities borrowed or purchased under agreements to resell (3) $ 348,472 $ (135,725) $ 212,747 $ (165,720) $ 47,027
Securities loaned or sold under agreements to repurchase $ 312,582 $ (135,725) $ 176,857 $ (146,205) $ 30,652
Other (4) 22,711 — 22,711 (22,711) —
Total $ 335,293 $ (135,725) $ 199,568 $ (168,916) $ 30,652
(1) Includes activity where uncertainty exists as to the enforceability of certain master netting agreements under bankruptcy laws in some countries or industries.
(2) Includes securities collateral received or pledged under repurchase or securities lending agreements where there is a legally enforceable master netting agreement. These amounts are not offset
on the Consolidated Balance Sheet, but are shown as a reduction to derive a net asset or liability. Securities collateral received or pledged where the legal enforceability of the master netting
agreements is uncertain is excluded from the table.
(3) Excludes repurchase activity of $11.5 billion and $10.2 billion reported in loans and leases on the Consolidated Balance Sheet at December 31, 2018 and 2017.
(4) Balance is reported in accrued expenses and other liabilities on the Consolidated Balance Sheet and relates to transactions where the Corporation acts as the lender in a securities lending agreement
and receives securities that can be pledged as collateral or sold. In these transactions, the Corporation recognizes an asset at fair value, representing the securities received, and a liability, representing
the obligation to return those securities.
Repurchase Agreements and Securities Loaned securities lending agreement and receives securities that can be
pledged as collateral or sold. Certain agreements contain a right
Transactions Accounted for as Secured Borrowings
to substitute collateral and/or terminate the agreement prior to
The following tables present securities sold under agreements to
maturity at the option of the Corporation or the counterparty. Such
repurchase and securities loaned by remaining contractual term
agreements are included in the table below based on the remaining
to maturity and class of collateral pledged. Included in “Other” are
contractual term to maturity.
transactions where the Corporation acts as the lender in a
Remaining Contractual Maturity

Overnight and After 30 Days Greater than
Continuous 30 Days or Less Through 90 Days 90 Days (1) Total
Securities sold under agreements to repurchase $ 139,017 $ 81,917 $ 34,204 $ 21,476 $ 276,614
Securities loaned 7,753 4,197 1,783 3,506 17,239
Other 19,906 — — — 19,906
Total $ 166,676 $ 86,114 $ 35,987 $ 24,982 $ 313,759
December 31, 2017

Securities sold under agreements to repurchase $ 125,956 $ 79,913 $ 46,091 $ 38,935 $ 290,895
Securities loaned 9,853 5,658 2,043 4,133 21,687
Other 22,711 — — — 22,711
Total $ 158,520 $ 85,571 $ 48,134 $ 43,068 $ 335,293
(1) No agreements have maturities greater than three years.

Class of Collateral Pledged
Securities Sold
Under Agreements Securities
to Repurchase Loaned Other Total
U.S. government and agency securities $ 164,664 $ — $ — $ 164,664
Corporate securities, trading loans and other 11,400 2,163 287 13,850
Equity securities 14,090 10,869 19,572 44,531
Non-U.S. sovereign debt 81,329 4,207 47 85,583
Mortgage trading loans and ABS 5,131 — — 5,131
Total $ 276,614 $ 17,239 $ 19,906 $ 313,759
December 31, 2017

U.S. government and agency securities $ 158,299 $ — $ 409 $ 158,708
Corporate securities, trading loans and other 12,787 2,669 624 16,080
Equity securities 23,975 13,523 21,628 59,126
Non-U.S. sovereign debt 90,857 5,495 50 96,402
Mortgage trading loans and ABS 4,977 — — 4,977
Total $ 290,895 $ 21,687 $ 22,711 $ 335,293
Under repurchase agreements, the Corporation is required to group of counterparties, providing a range of securities collateral
post collateral with a market value equal to or in excess of the and pursuing longer durations, when appropriate.
principal amount borrowed. For securities loaned transactions, the
Corporation receives collateral in the form of cash, letters of credit Restricted Cash
or other securities. To determine whether the market value of the At December 31, 2018 and 2017, the Corporation held restricted
underlying collateral remains sufficient, collateral is generally cash included within cash and cash equivalents on the
valued daily, and the Corporation may be required to deposit Consolidated Balance Sheet of $22.6 billion and $18.8 billion,
additional collateral or may receive or return collateral pledged predominantly related to cash held on deposit with the Federal
when appropriate. Repurchase agreements and securities loaned Reserve Bank and non-U.S. central banks to meet reserve
transactions are generally either overnight, continuous (i.e., no requirements and cash segregated in compliance with securities
stated term) or short-term. The Corporation manages liquidity risks regulations.
related to these agreements by sourcing funding from a diverse

NOTE 11 Long-term Debt
Long-term debt consists of borrowings having an original maturity of one year or more. The table below presents the balance of long-
term debt at December 31, 2018 and 2017, and the related contractual rates and maturity dates as of December 31, 2018.
Weighted- December 31
(Dollars in millions) average Rate Interest Rates Maturity Dates 2018 2017
Notes issued by Bank of America Corporation
Senior notes:
Fixed 3.39 % 0.39 - 8.40 % 2019 - 2049 $ 120,548 $ 119,548
Floating 2.09 0.06 - 7.26 2019 - 2044 25,574 21,048
Senior structured notes (1) 13,768 15,460
Subordinated notes:
Fixed 4.91 2.94 - 8.57 2019 - 2045 20,843 22,004
Floating 2.16 1.14 - 3.55 2019 - 2026 1,742 4,058
Junior subordinated notes (2):
Fixed 6.71 6.45 - 8.05 2027 - 2066 732 3,282
Floating 3.54 3.54 2056 1 553
Total notes issued by Bank of America Corporation 183,208 185,953
Notes issued by Bank of America, N.A.
Senior notes:
Fixed — 4,686
Floating 2.96 2.90 - 2.96 2020 - 2041 1,770 1,033
Subordinated notes 6.00 6.00 2036 1,617 1,679
Advances from Federal Home Loan Banks:
Fixed 5.10 0.01 - 7.72 2019 - 2034 130 146
Floating 2.49 2.24 - 2.80 2019 - 2020 14,751 5,000
Securitizations and other BANA VIEs (3) 10,326 8,641
Other 442 433
Total notes issued by Bank of America, N.A. 29,036 21,618
Other debt
Structured liabilities 16,478 18,574
Nonbank VIEs (3) 618 1,232
Other — 25
Total other debt 17,096 19,831
Total long-term debt $ 229,340 $ 227,402
(1) Includes total loss-absorbing capacity compliant debt.
(2) Includes amounts related to trust preferred securities. For additional information, see Trust Preferred Securities in this Note.
(3) Represents the total long-term debt included in the liabilities of consolidated VIEs on the Consolidated Balance Sheet.
Bank of America Corporation and Bank of America, N.A. Debt outstanding of $3.8 billion at December 31, 2018 was
maintain various U.S. and non-U.S. debt programs to offer both issued by BofA Finance LLC, a 100 percent owned finance
senior and subordinated notes. The notes may be denominated subsidiary of Bank of America Corporation, the parent company,
in U.S. dollars or foreign currencies. At December 31, 2018 and and is fully and unconditionally guaranteed by the parent company.
2017, the amount of foreign currency-denominated debt translated During 2018, the Corporation had total long-term debt
into U.S. dollars included in total long-term debt was $48.6 billion maturities and redemptions in the aggregate of $53.3 billion
and $51.8 billion. Foreign currency contracts may be used to consisting of $29.8 billion for Bank of America Corporation, $11.2
convert certain foreign currency-denominated debt into U.S. billion for Bank of America, N.A. and $12.3 billion of other debt.
dollars. During 2017, the Corporation had total long-term debt maturities
At December 31, 2018, long-term debt of consolidated VIEs in and redemptions in the aggregate of $48.8 billion consisting of
the table above included debt from credit card and all other VIEs $29.1 billion for Bank of America Corporation, $13.3 billion for
of $10.3 billion and $623 million. Long-term debt of VIEs is Bank of America, N.A. and $6.4 billion of other debt.
collateralized by the assets of the VIEs. For additional information, The following table shows the carrying value for aggregate
see Note 7 – Securitizations and Other Variable Interest Entities. annual contractual maturities of long-term debt as of December
The weighted-average effective interest rates for total long-term 31, 2018. Included in the table are certain structured notes issued
debt (excluding senior structured notes), total fixed-rate debt and by the Corporation that contain provisions whereby the borrowings
total floating-rate debt were 3.29 percent, 3.66 percent and 2.26 are redeemable at the option of the holder (put options) at specified
percent, respectively, at December 31, 2018, and 3.44 percent, dates prior to maturity. Other structured notes have coupon or
3.87 percent and 1.49 percent, respectively, at December 31, repayment terms linked to the performance of debt or equity
2017. The Corporation’s ALM activities maintain an overall interest securities, indices, currencies or commodities, and the maturity
rate risk management strategy that incorporates the use of may be accelerated based on the value of a referenced index or
interest rate contracts to manage fluctuations in earnings that are security. In both cases, the Corporation or a subsidiary may be
caused by interest rate volatility. The Corporation’s goal is to required to settle the obligation for cash or other securities prior
manage interest rate sensitivity so that movements in interest to the contractual maturity date. These borrowings are reflected
rates do not significantly adversely affect earnings and capital. in the table as maturing at their contractual maturity date.
The weighted-average rates are the contractual interest rates on
the debt and do not reflect the impacts of derivative transactions.

Long-term Debt by Maturity
(Dollars in millions) 2019 2020 2021 2022 2023 Thereafter Total
Senior notes $ 14,831 $ 10,308 $ 15,883 $ 14,882 $ 22,570 $ 67,648 $ 146,122
Senior structured notes 1,337 875 482 1,914 323 8,837 13,768
Subordinated notes 1,501 — 346 364 — 20,374 22,585
Junior subordinated notes — — — — — 733 733
Total Bank of America Corporation 17,669 11,183 16,711 17,160 22,893 97,592 183,208
Bank of America, N.A.
Senior notes — 1,750 — — — 20 1,770
Subordinated notes — — — — — 1,617 1,617
Advances from Federal Home Loan Banks 11,762 3,010 2 3 1 103 14,881
Securitizations and other Bank VIEs (1) 3,200 3,100 4,022 — — 4 10,326
Other 224 83 — 2 133 — 442
Total Bank of America, N.A. 15,186 7,943 4,024 5 134 1,744 29,036
Other debt
Structured liabilities 5,085 2,712 1,112 558 830 6,181 16,478
Nonbank VIEs (1) 35 — — — 23 560 618
Total other debt 5,120 2,712 1,112 558 853 6,741 17,096
Total long-term debt $ 37,975 $ 21,838 $ 21,847 $ 17,723 $ 23,880 $ 106,077 $ 229,340
(1) Represents the total long-term debt included in the liabilities of consolidated VIEs on the Consolidated Balance Sheet.
Trust Preferred Securities Credit Extension Commitments

Trust preferred securities (Trust Securities) are primarily issued by The Corporation enters into commitments to extend credit such
trust companies (the Trusts) that are not consolidated. These Trust as loan commitments, SBLCs and commercial letters of credit to
Securities are mandatorily redeemable preferred security meet the financing needs of its customers. The following table
obligations of the Trusts. The sole assets of the Trusts generally includes the notional amount of unfunded legally binding lending
are junior subordinated deferrable interest notes of the commitments net of amounts distributed (i.e., syndicated or
Corporation or its subsidiaries (the Notes). The Trusts generally participated) to other financial institutions. The distributed
are 100 percent owned finance subsidiaries of the Corporation. amounts were $10.7 billion and $11.0 billion at December 31,
Periodic cash payments and payments upon liquidation or 2018 and 2017. At December 31, 2018, the carrying value of
redemption with respect to Trust Securities are guaranteed by the these commitments, excluding commitments accounted for under
Corporation or its subsidiaries to the extent of funds held by the the fair value option, was $813 million, including deferred revenue
Trusts (the Preferred Securities Guarantee). The Preferred of $16 million and a reserve for unfunded lending commitments
Securities Guarantee, when taken together with the Corporation’s of $797 million. At December 31, 2017, the comparable amounts
other obligations including its obligations under the Notes, were $793 million, $16 million and $777 million, respectively. The
generally will constitute a full and unconditional guarantee, on a carrying value of these commitments is classified in accrued
subordinated basis, by the Corporation of payments due on the expenses and other liabilities on the Consolidated Balance Sheet.
Trust Securities. Legally binding commitments to extend credit generally have
During 2018, the Corporation redeemed Trust Securities of 11 specified rates and maturities. Certain of these commitments have
Trusts with a carrying value of $3.1 billion. At December 31, 2018, adverse change clauses that help to protect the Corporation
the Corporation had one remaining floating-rate junior against deterioration in the borrower’s ability to pay.
subordinated note held in trust. The table below also includes the notional amount of
commitments of $3.1 billion and $4.8 billion at December 31,
NOTE 12 Commitments and Contingencies 2018 and 2017 that are accounted for under the fair value option.
In the normal course of business, the Corporation enters into a However, the following table excludes cumulative net fair value of
number of off-balance sheet commitments. These commitments $169 million and $120 million at December 31, 2018 and 2017
expose the Corporation to varying degrees of credit and market on these commitments, which is classified in accrued expenses
risk and are subject to the same credit and market risk limitation and other liabilities. For more information regarding the
reviews as those instruments recorded on the Consolidated Corporation’s loan commitments accounted for under the fair value
Balance Sheet. option, see Note 21 – Fair Value Option.

Credit Extension Commitments
Expire After One Expire After Three
Expire in One Year Through Years Through Expire After
Year or Less Three Years Five Years Five Years Total
Notional amount of credit extension commitments
Loan commitments $ 84,910 $ 142,271 $ 155,298 $ 22,683 $ 405,162
Home equity lines of credit 2,578 2,249 3,530 34,702 43,059
Standby letters of credit and financial guarantees (1) 22,571 9,702 2,457 1,074 35,804
Letters of credit (2) 1,168 84 69 57 1,378
Legally binding commitments 111,227 154,306 161,354 58,516 485,403
Credit card lines (3) 371,658 — — — 371,658
Total credit extension commitments $ 482,885 $ 154,306 $ 161,354 $ 58,516 $ 857,061
December 31, 2017

Notional amount of credit extension commitments
Loan commitments $ 85,804 $ 140,942 $ 147,043 $ 21,342 $ 395,131
Home equity lines of credit 6,172 4,457 2,288 31,250 44,167
Standby letters of credit and financial guarantees (1) 19,976 11,261 3,420 1,144 35,801
Letters of credit 1,291 117 129 87 1,624
Legally binding commitments 113,243 156,777 152,880 53,823 476,723
Credit card lines (3) 362,030 — — — 362,030
Total credit extension commitments $ 475,273 $ 156,777 $ 152,880 $ 53,823 $ 838,753
(1) The notional amounts of SBLCs and financial guarantees classified as investment grade and non-investment grade based on the credit quality of the underlying reference name within the instrument
were $28.3 billion and $7.1 billion at December 31, 2018, and $27.3 billion and $8.1 billion at December 31, 2017. Amounts in the table include consumer SBLCs of $372 million and $421 million
at December 31, 2018 and 2017.
(2) At December 31, 2018, included letters of credit of $422 million related to certain liquidity commitments of VIEs. For additional information, see Note 7 – Securitizations and Other Variable Interest
Entities.
(3) Includes business card unused lines of credit.
Other Commitments $10.4 billion. At December 31, 2018 and 2017, the Corporation’s
At December 31, 2018 and 2017, the Corporation had maximum exposure related to these guarantees totaled $1.5
commitments to purchase loans (e.g., residential mortgage and billion and $1.6 billion, with estimated maturity dates between
commercial real estate) of $329 million and $344 million, which 2033 and 2039.
upon settlement will be included in loans or LHFS, and
Indemnifications
commitments to purchase commercial loans of $463 million and
In the ordinary course of business, the Corporation enters into
$994 million, which upon settlement will be included in trading
various agreements that contain indemnifications, such as tax
account assets.
indemnifications, whereupon payment may become due if certain
At December 31, 2018 and 2017, the Corporation had
external events occur, such as a change in tax law. The
commitments to purchase commodities, primarily liquefied natural
indemnification clauses are often standard contractual terms and
gas, of $1.3 billion and $1.5 billion, which upon settlement will
were entered into in the normal course of business based on an
be included in trading account assets.
assessment that the risk of loss would be remote. These
At December 31, 2018 and 2017, the Corporation had
agreements typically contain an early termination clause that
commitments to enter into resale and forward-dated resale and
permits the Corporation to exit the agreement upon these events.
securities borrowing agreements of $59.7 billion and $56.8 billion,
The maximum potential future payment under indemnification
and commitments to enter into forward-dated repurchase and
agreements is difficult to assess for several reasons, including
securities lending agreements of $21.2 billion and $34.3 billion.
the occurrence of an external event, the inability to predict future
These commitments expire primarily within the next 12 months.
changes in tax and other laws, the difficulty in determining how
At both December 31, 2018 and 2017, the Corporation had a
such laws would apply to parties in contracts, the absence of
commitment to originate or purchase up to $3.0 billion, on a rolling
exposure limits contained in standard contract language and the
12-month basis, of auto loans and leases from a strategic partner.
timing of any early termination clauses. Historically, any payments
This commitment extends through November 2022 and can be
made under these guarantees have been de minimis. The
terminated with 12 months prior notice.
Corporation has assessed the probability of making such
The Corporation is a party to operating leases for certain of its
payments in the future as remote.
premises and equipment. Commitments under these leases are
approximately $2.4 billion, $2.2 billion, $2.0 billion, $1.7 billion Merchant Services
and $1.3 billion for 2019 and the years through 2023, respectively, In accordance with credit and debit card association rules, the
and $6.2 billion in the aggregate for all years thereafter. Corporation sponsors merchant processing servicers that process
credit and debit card transactions on behalf of various merchants.
Other Guarantees If the merchant processor fails to meet its obligation to reimburse
Bank-owned Life Insurance Book Value Protection the cardholder for disputed transactions, then the Corporation, as
The Corporation sells products that offer book value protection to the sponsor, could be held liable for the disputed amount. In 2018
insurance carriers who offer group life insurance policies to and 2017, the sponsored entities processed and settled $874.3
corporations, primarily banks. At December 31, 2018 and 2017, billion and $812.2 billion of transactions and recorded losses of
the notional amount of these guarantees totaled $9.8 billion and $31 million and $28 million. A significant portion of this activity
was processed by a joint venture in which the Corporation holds
a 49 percent ownership. The carrying value of the Corporation’s Corporation recorded an obligation to indemnify the purchaser for
investment in the merchant services joint venture was $2.8 billion substantially all payment protection insurance exposure above
and $2.9 billion at December 31, 2018 and 2017, and is recorded reserves assumed by the purchaser.
in other assets on the Consolidated Balance Sheet and in All Other.
At December 31, 2018 and 2017, the maximum potential Representations and Warranties Obligations and
exposure for sponsored transactions totaled $348.1 billion and Corporate Guarantees
$346.4 billion. However, the Corporation believes that the The Corporation securitizes first-lien residential mortgage loans
maximum potential exposure is not representative of the actual generally in the form of RMBS guaranteed by the GSEs or by GNMA
potential loss exposure and does not expect to make material in the case of FHA-insured, VA-guaranteed and Rural Housing
payments in connection with these guarantees. Service-guaranteed mortgage loans, and sells pools of first-lien
residential mortgage loans in the form of whole loans. In addition,
Exchange and Clearing House Member Guarantees in prior years, legacy companies and certain subsidiaries sold
The Corporation is a member of various securities and derivative pools of first-lien residential mortgage loans and home equity loans
exchanges and clearinghouses, both in the U.S. and other as private-label securitizations or in the form of whole loans. In
countries. As a member, the Corporation may be required to pay connection with these transactions, the Corporation or certain of
a pro-rata share of the losses incurred by some of these its subsidiaries or legacy companies make and have made various
organizations as a result of another member default and under representations and warranties. Breaches of these
other loss scenarios. The Corporation’s potential obligations may representations and warranties have resulted in and may continue
be limited to its membership interests in such exchanges and to result in the requirement to repurchase mortgage loans or to
clearinghouses, to the amount (or multiple) of the Corporation’s otherwise make whole or provide indemnification or other remedies
contribution to the guarantee fund or, in limited instances, to the to sponsors, investors, securitization trusts, guarantors, insurers
full pro-rata share of the residual losses after applying the or other parties (collectively, repurchases).
guarantee fund. The Corporation’s maximum potential exposure
under these membership agreements is difficult to estimate; Unresolved Repurchase Claims
however, the Corporation has assessed the probability of making Unresolved representations and warranties repurchase claims
any such payments as remote. represent the notional amount of repurchase claims made by
counterparties, typically the outstanding principal balance or the
Prime Brokerage and Securities Clearing Services unpaid principal balance at the time of default. In the case of first-
In connection with its prime brokerage and clearing businesses, lien mortgages, the claim amount is often significantly greater than
the Corporation performs securities clearance and settlement the expected loss amount due to the benefit of collateral and, in
services with other brokerage firms and clearinghouses on behalf some cases, mortgage insurance or mortgage guarantee
of its clients. Under these arrangements, the Corporation stands payments. Claims received from a counterparty remain
ready to meet the obligations of its clients with respect to securities outstanding until the underlying loan is repurchased, the claim is
transactions. The Corporation’s obligations in this respect are rescinded by the counterparty, the Corporation determines that
secured by the assets in the clients’ accounts and the accounts the applicable statute of limitations has expired, or
of their customers as well as by any proceeds received from the representations and warranties claims with respect to the
transactions cleared and settled by the firm on behalf of clients applicable trust are settled, and fully and finally released.
or their customers. The Corporation’s maximum potential exposure The notional amount of unresolved repurchase claims at
under these arrangements is difficult to estimate; however, the December 31, 2018 and 2017 was $14.4 billion and $17.6 billion.
potential for the Corporation to incur material losses pursuant to This balance included $6.2 billion and $6.9 billion of claims related
these arrangements is remote. to loans in specific private-label securitization groups or tranches
where the Corporation owns substantially all of the outstanding
Other Guarantees
securities or will otherwise realize the benefit of any repurchase
The Corporation has entered into additional guarantee agreements
claims paid. The balance also includes $1.5 billion of repurchase
and commitments, including sold risk participation swaps, liquidity
claims related to a single monoline insurer and is the subject of
facilities, lease-end obligation agreements, partial credit
litigation.
guarantees on certain leases, real estate joint venture guarantees,
During 2018, the Corporation received $283 million in new
divested business commitments and sold put options that require
repurchase claims, including $201 million in claims that were
gross settlement. The maximum potential future payment under
deemed time-barred. During 2018, $3.5 billion in claims were
these agreements was approximately $5.9 billion at both
resolved, including $2.2 billion of claims that were deemed time-
December 31, 2018 and 2017. The estimated maturity dates of
barred and $1.1 billion related to settlements. Although the pace
these obligations extend up to 2040. The Corporation has made
of new claims has declined, it is possible the Corporation will
no material payments under these guarantees. For more
receive additional claims or file requests in the future.
information on maximum potential future payments under VIE-
related liquidity commitments at December 31, 2018, see Note 7 Reserve and Related Provision
– Securitizations and Other Variable Interest Entities. The reserve for representations and warranties obligations and
In the normal course of business, the Corporation periodically corporate guarantees at December 31, 2018 and 2017 was $2.0
guarantees the obligations of its affiliates in a variety of billion and $1.9 billion and is included in accrued expenses and
transactions including ISDA-related transactions and non-ISDA other liabilities on the Consolidated Balance Sheet and the related
related transactions such as commodities trading, repurchase provision is included in other income in the Consolidated
agreements, prime brokerage agreements and other transactions. Statement of Income. The representations and warranties reserve
represents the Corporation’s best estimate of probable incurred
Payment Protection Insurance
losses. This reserve considers a number of provisional
On June 1, 2017, the Corporation sold its non-U.S. consumer credit
settlements with sponsors, investors and trustees, some of which
card business. Included in the calculation of the gain on sale, the

are subject to trustee approval processes, which may include court such an estimate of the range of possible loss may not be possible.
proceedings. Future representations and warranties losses may For such matters disclosed in this Note, where an estimate of the
occur in excess of the amounts recorded for these exposures; range of possible loss is possible, as well as for representations
however, the Corporation does not expect such amounts to be and warranties exposures, management currently estimates the
material. Future provisions for representations and warranties may aggregate range of reasonably possible loss for these exposures
be significantly impacted if actual experiences are different from is $0 to $1.9 billion in excess of the accrued liability, if any. This
the Corporation’s assumptions in predictive models. The estimated range of possible loss is based upon currently available
Corporation has combined the range of reasonably possible losses information and is subject to significant judgment and a variety of
that are in excess of the representations and warranties reserve assumptions and known and unknown uncertainties. The matters
with the litigation range of possible loss in excess of litigation underlying the estimated range will change from time to time, and
reserves, as discussed in Litigation and Regulatory Matters in this actual results may vary significantly from the current estimate.
Note. This is consistent with the reduction in outstanding Therefore, this estimated range of possible loss represents what
representations and warranties exposure in comparison to prior the Corporation believes to be an estimate of possible loss only
periods resulting from the resolution of prior matters along with for certain matters meeting these criteria. It does not represent
changes in the Corporation’s business model. the Corporation’s maximum loss exposure.
The reserve for representations and warranties exposures Information is provided below regarding the nature of the
does not consider certain losses related to servicing, including litigation contingencies and, where specified, the amount of the
foreclosure and related costs, fraud, indemnity, or claims (including claim associated with these loss contingencies. Based on current
for RMBS) related to securities law or monoline insurance knowledge, management does not believe that loss contingencies
litigation. Losses with respect to one or more of these matters arising from pending matters, including the matters described
could be material to the Corporation’s results of operations or herein, will have a material adverse effect on the consolidated
liquidity for any particular reporting period. financial position or liquidity of the Corporation. However, in light
of the inherent uncertainties involved in these matters, some of
Litigation and Regulatory Matters which are beyond the Corporation’s control, and the very large or
In the ordinary course of business, the Corporation and its indeterminate damages sought in some of these matters, an
subsidiaries are routinely defendants in or parties to many pending adverse outcome in one or more of these matters could be material
and threatened legal, regulatory and governmental actions and to the Corporation’s results of operations or liquidity for any
proceedings. In view of the inherent difficulty of predicting the particular reporting period.
outcome of such matters, particularly where the claimants seek
very large or indeterminate damages or where the matters present Ambac Bond Insurance Litigation
novel legal theories or involve a large number of parties, the Ambac Assurance Corporation and the Segregated Account of
Corporation generally cannot predict the eventual outcome of the Ambac Assurance Corporation (together, Ambac) have filed four
pending matters, timing of the ultimate resolution of these matters, separate lawsuits against the Corporation and its subsidiaries
or eventual loss, fines or penalties related to each pending matter. relating to bond insurance policies Ambac provided on certain
In accordance with applicable accounting guidance, the securitized pools of HELOCs, first-lien subprime home equity loans,
Corporation establishes an accrued liability when those matters fixed-rate second-lien mortgage loans and negative amortization
present loss contingencies that are both probable and estimable. pay option adjustable-rate mortgage loans. Ambac alleges that
In such cases, there may be an exposure to loss in excess of any they have paid or will pay claims as a result of defaults in the
amounts accrued. As a matter develops, the Corporation, in underlying loans and asserts that the defendants misrepresented
conjunction with any outside counsel handling the matter, the characteristics of the underlying loans and/or breached certain
evaluates on an ongoing basis whether such matter presents a contractual representations and warranties regarding the
loss contingency that is probable and estimable. Once the loss underwriting and servicing of the loans. In those actions where
contingency is deemed to be both probable and estimable, the the Corporation is named as a defendant, Ambac contends the
Corporation will establish an accrued liability and record a Corporation is liable on various successor and vicarious liability
corresponding amount of litigation-related expense. The theories.
Corporation continues to monitor the matter for further
Ambac v. Countrywide I
developments that could affect the amount of the accrued liability
The Corporation, Countrywide and other Countrywide entities are
that has been previously established. Excluding expenses of
named as defendants in an action filed on September 28, 2010
internal and external legal service providers, litigation-related
in New York Supreme Court. Ambac asserts claims for fraudulent
expense of $469 million and $753 million was recognized in 2018
inducement as well as breach of contract and seeks damages in
and 2017.
excess of $2.2 billion, plus punitive damages.
For a limited number of the matters disclosed in this Note for
On May 16, 2017, the First Department issued its decisions
which a loss, whether in excess of a related accrued liability or
on the parties’ cross-appeals of the trial court’s October 22, 2015
where there is no accrued liability, is reasonably possible in future
summary judgment rulings. Ambac appealed the First
periods, the Corporation is able to estimate a range of possible
Department’s rulings requiring Ambac to prove all of the elements
loss. In determining whether it is possible to estimate a range of
of its fraudulent inducement claim, including justifiable reliance
possible loss, the Corporation reviews and evaluates its matters
and loss causation; restricting Ambac’s sole remedy for its breach
on an ongoing basis, in conjunction with any outside counsel
of contract claims to the repurchase protocol of cure, repurchase
handling the matter, in light of potentially relevant factual and legal
or substitution of any materially defective loan; and dismissing
developments. With respect to the matters disclosed in this Note,
Ambac’s claim for reimbursements of attorneys’ fees. On June 27,
in cases in which the Corporation possesses sufficient appropriate
2018, the New York Court of Appeals affirmed the First Department
information to estimate a range of possible loss, that estimate is
rulings that Ambac appealed.
aggregated and disclosed below. There may be other disclosed
matters for which a loss is probable or reasonably possible but

Ambac v. Countrywide II settlement with the representatives of the putative Rule 23(b)(3)
On December 30, 2014, Ambac filed a complaint in New York damages class to contribute an additional $900 million to the
Supreme Court against the same defendants, claiming fraudulent approximately $5.3 billion held in escrow from the prior settlement.
inducement against Countrywide, and successor and vicarious The Corporation’s additional contribution is not material to the
liability against the Corporation. Ambac seeks damages in excess Corporation. The District Court granted preliminary approval of the
of $600 million, plus punitive damages. On December 19, 2016, settlement with the putative Rule 23(b)(3) damages class in
the Court granted in part and denied in part Countrywide’s motion January 2019.
to dismiss the complaint. In addition, the putative Rule 23(b)(2) class action seeking
injunctive relief is pending, and a number of individual merchant
Ambac v. Countrywide IV actions continue against the defendants, including one against
On July 21, 2015, Ambac filed an action in New York Supreme the Corporation. As a result of various loss-sharing agreements,
Court against Countrywide asserting the same claims for however, the Corporation remains liable for a portion of any
fraudulent inducement that Ambac asserted in the now-dismissed settlement or judgment in individual suits where it is not named
Ambac v. Countrywide III. The complaint seeks damages in excess as a defendant.
of $350 million, plus punitive damages.
LIBOR, Other Reference Rates, Foreign Exchange (FX) and
Ambac v. First Franklin
On April 16, 2012, Ambac filed an action against BANA, First
Bond Trading Matters
Government authorities in the U.S. and various international
Franklin and various Merrill Lynch entities, including Merrill Lynch,
jurisdictions continue to conduct investigations, to make inquiries
Pierce, Fenner & Smith Incorporated (MLPF&S), in New York
of, and to pursue proceedings against, the Corporation and its
Supreme Court relating to guaranty insurance Ambac provided on
subsidiaries regarding FX and other reference rates as well as
a First Franklin securitization sponsored by Merrill Lynch. The
government, sovereign, supranational and agency bonds in
complaint alleges fraudulent inducement and breach of contract,
connection with conduct and systems and controls. The
including breach of contract claims against BANA based upon its
Corporation is cooperating with these inquiries and investigations
servicing of the loans in the securitization. Ambac seeks as
and responding to the proceedings.
damages hundreds of millions of dollars that Ambac alleges it has
paid or will pay in claims. Foreign Exchange (FX)
The Corporation, BANA and MLPF&S were named as defendants
Deposit Insurance Assessment
along with other FX market participants in a putative class action
On January 9, 2017, the FDIC filed suit against BANA in U.S. District
filed in the U.S. District Court for the Southern District of New York,
Court for the District of Columbia alleging failure to pay a December
in which plaintiffs allege that they sustained losses as a result of
15, 2016 invoice for additional deposit insurance assessments
the defendants’ alleged conspiracy to manipulate the prices of
and interest in the amount of $542 million for the quarters ending
OTC FX transactions and FX transactions on an exchange. Plaintiffs
June 30, 2013 through December 31, 2014. On April 7, 2017, the
assert antitrust claims and claims for violations of the Commodity
FDIC amended its complaint to add a claim for additional deposit
Exchange Act (CEA) and seek compensatory and treble damages,
insurance and interest in the amount of $583 million for the
as well as declaratory and injunctive relief. On October 1, 2015,
quarters ending March 31, 2012 through March 31, 2013. The
the Corporation, BANA and MLPF&S executed a final settlement
FDIC asserts these claims based on BANA’s alleged underreporting
agreement, in which they agreed to pay participating class
of counterparty exposures that resulted in underpayment of
members $187.5 million to settle the litigation. In 2018, the
assessments for those quarters. BANA disagrees with the FDIC’s
District Court granted final approval to the settlement.
interpretation of the regulations as they existed during the relevant
time period and is defending itself against the FDIC’s claims. LIBOR
Pending final resolution, BANA has pledged security satisfactory The Corporation, BANA and certain Merrill Lynch entities have been
to the FDIC related to the disputed additional assessment named as defendants along with most of the other London
amounts. InterBank Offered Rate (LIBOR) panel banks in a number of
On March 27, 2018, the U.S. District Court for the District of individual and putative class actions by persons alleging they
Columbia denied BANA’s partial motion to dismiss certain of the sustained losses on U.S. dollar LIBOR-based financial instruments
FDIC’s claims. as a result of collusion or manipulation by defendants regarding
the setting of U.S. dollar LIBOR. Plaintiffs assert a variety of claims,
Interchange and Related Litigation including antitrust, CEA, Racketeer Influenced and Corrupt
In 2005, a group of merchants filed a series of putative class Organizations (RICO), Securities Exchange Act of 1934, common
actions and individual actions directed at interchange fees law fraud and breach of contract claims, and seek compensatory,
associated with Visa and MasterCard payment card transactions. treble and punitive damages, and injunctive relief. All cases naming
These actions, which were consolidated in the U.S. District Court the Corporation and its affiliates relating to U.S. dollar LIBOR are
for the Eastern District of New York under the caption In re Payment pending in the U.S. District Court for the Southern District of New
Card Interchange Fee and Merchant Discount Anti-Trust Litigation York.
(Interchange), named Visa, MasterCard and several banks and The District Court has dismissed all RICO claims, and
bank holding companies, including the Corporation, as defendants. dismissed all manipulation claims based on alleged trader conduct
Plaintiffs alleged that defendants conspired to fix the level of against Bank of America entities. The District Court has also
default interchange rates and that certain rules of Visa and substantially limited the scope of antitrust, CEA and various other
MasterCard were unreasonable restraints of trade. Plaintiffs claims, including by dismissing in their entirety certain individual
sought compensatory and treble damages and injunctive relief. and putative class plaintiffs’ antitrust claims for lack of standing
On October 19, 2012, defendants reached a settlement with and/or personal jurisdiction. Plaintiffs whose antitrust claims were
respect to the putative class actions that the U.S. Court of Appeals dismissed by the District Court are pursuing appeals in the Second
for the Second Circuit rejected. In 2018, defendants reached a Circuit. Certain individual and putative class actions remain
pending in the District Court against the Corporation, BANA and compensatory and/or rescissory damages, unspecified costs and
certain Merrill Lynch entities. legal fees and generally alleged false and misleading statements.
On February 28, 2018, the District Court denied certification The indemnification claims include claims from underwriters of
of proposed classes of lending institutions and persons that MBS that were issued by these entities, and from underwriters
transacted in eurodollar futures, and the U.S. Court of Appeals for and issuers of MBS backed by loans originated by these entities.
the Second Circuit subsequently denied petitions filed by those
plaintiffs for interlocutory appeals of those rulings. Also on Mortgage Repurchase Litigation
February 28, 2018, the District Court granted certification of a U.S. Bank - Harborview Repurchase Litigation
class of persons that purchased OTC swaps and notes that On August 29, 2011, U.S. Bank, National Association (U.S. Bank),
referenced U.S. dollar LIBOR from one of the U.S. dollar LIBOR as trustee for the HarborView Mortgage Loan Trust 2005-10 (the
panel banks, limited to claims under Section 1 of the Sherman Trust), a mortgage pool backed by loans originated by Countrywide
Act. The U.S. Court of Appeals for the Second Circuit subsequently Home Loans, Inc. (CHL), filed a complaint in New York Supreme
denied a petition filed by the defendants for interlocutory appeal Court against the Corporation and various subsidiaries alleging
of that ruling. breaches of representations and warranties. This litigation has
Mortgage Appraisal Litigation been stayed since March 23, 2017, pending finalization of the
The Corporation and certain subsidiaries are named as defendants settlement discussed below.
in two putative class action lawsuits filed in U.S. District Court for On December 5, 2016, the defendants and certain certificate-
the Central District of California (Waldrup and Williams, et al.). In holders in the Trust agreed to settle the litigation in an amount
November 2016, the actions were consolidated for pre-trial not material to the Corporation, subject to acceptance by U.S.
purposes. Plaintiffs allege that in fulfilling orders made by Bank.
Countrywide for residential mortgage appraisal services, a former U.S. Bank - SURF/OWNIT Repurchase Litigation
Countrywide subsidiary, LandSafe Appraisal Services, Inc., On August 29, 2014 and September 2, 2014, U.S. Bank, as trustee
arranged for and completed appraisals that were not in compliance for seven securitization trusts (the Trusts), served seven
with applicable laws and appraisal standards. Plaintiffs seek, summonses with notice commencing actions against various
among other forms of relief, compensatory and treble damages. subsidiaries of the Corporation in New York Supreme Court. The
On February 8, 2018, the District Court granted plaintiffs’ summonses advance breach of contract claims alleging that
motion for class certification. On May 22, 2018, the U.S. Court of defendants breached representations and warranties related to
Appeals for the Ninth Circuit denied Defendants’ petition for loans securitized in the Trusts. The summonses allege that
permission to file an interlocutory appeal of the District Court’s defendants failed to repurchase breaching mortgage loans from
ruling granting class certification. the Trusts, and seek specific performance of defendants’ alleged
obligation to repurchase breaching loans, declaratory judgment,
Mortgage-backed Securities Litigation
compensatory, rescissory and other damages, and indemnity.
The Corporation and its affiliates, Countrywide entities and their
U.S. Bank has served complaints regarding six of the seven
affiliates, and Merrill Lynch entities and their affiliates have been
Trusts. In 2018, for those six Trusts, the defendants and certain
named as defendants in cases relating to their various roles in
certificate-holders agreed to settle the respective litigations in
MBS offerings and, in certain instances, have received claims for
amounts not material to the Corporation, subject to acceptance
contractual indemnification related to the MBS securities actions.
by U.S. Bank.
Plaintiffs in these cases generally sought unspecified

NOTE 13 Shareholders’ Equity satisfy tax withholding obligations, repurchased 29 million shares
of its common stock. At December 31, 2018, the Corporation had
Common Stock reserved 781 million unissued shares of common stock for future
issuances under employee stock plans, common stock warrants,
convertible notes and preferred stock.
Declared Quarterly Cash Dividends on Common Stock (1)
Preferred Stock
Dividend
Declaration Date Record Date Payment Date Per Share
The cash dividends declared on preferred stock were $1.5 billion,
January 30, 2019 March 1, 2019 March 29, 2019 $ 0.15
$1.6 billion and $1.7 billion for 2018, 2017 and 2016,
October 24, 2018 December 7, 2018 December 28, 2018 0.15 respectively.
July 26, 2018 September 7, 2018 September 28, 2018 0.15 On March 15, 2018, the Corporation issued 94,000 shares of
April 25, 2018 June 1, 2018 June 29, 2018 0.12 5.875% Fixed-to-Floating Rate Non-Cumulative Preferred Stock,
January 31, 2018 March 2, 2018 March 30, 2018 0.12 Series FF for $2.35 billion. On May 16, 2018, the Corporation
(1) In 2018, and through February 26, 2019. issued 54,000 shares of 6.000% Fixed Rate Non-Cumulative
Preferred Stock, Series GG for $1.35 billion. On July 24, 2018,
The cash dividends paid per share of common stock were
the Corporation issued 34,160 shares of 5.875% Non-Cumulative
$0.54, $0.39 and $0.25 for 2018, 2017 and 2016, respectively.
Preferred Stock, Series HH for $854 million.
The following table summarizes common stock repurchases
In 2018, the Corporation fully redeemed Series D, Series I,
during 2018, 2017 and 2016.
Series K, Series M and Series 3 preferred stock for a total of $4.5
billion.
Common Stock Repurchase Summary All series of preferred stock in the Preferred Stock Summary
table have a par value of $0.01 per share, are not subject to the
(in millions) 2018 2017 2016 operation of a sinking fund, have no participation rights, and with
Total share repurchases, including CCAR the exception of the Series L Preferred Stock, are not convertible.
capital plan repurchases 676 509 333
The holders of the Series B Preferred Stock and Series 1 through
Purchase price of shares repurchased and
5 Preferred Stock have general voting rights and vote together with
retired (1) the common stock. The holders of the other series included in the
CCAR capital plan repurchases $ 16,754 $ 9,347 $ 4,312 table have no general voting rights. All outstanding series of
Other authorized repurchases 3,340 3,467 800 preferred stock of the Corporation have preference over the
Total shares repurchased $ 20,094 $12,814 $ 5,112 Corporation’s common stock with respect to the payment of
(1) Represents reductions to shareholders’ equity due to common stock repurchases. dividends and distribution of the Corporation’s assets in the event
of a liquidation or dissolution. With the exception of the Series B,
On June 28, 2018, following the non-objection of the Board of
F, G and T Preferred Stock, if any dividend payable on these series
Governors of the Federal Reserve System (Federal Reserve) to the
is in arrears for three or more semi-annual or six or more quarterly
Corporation’s 2018 Comprehensive Capital Analysis and Review
dividend periods, as applicable (whether consecutive or not), the
(CCAR) capital plan, the Board of Directors (Board) authorized the
holders of these series and any other class or series of preferred
repurchase of approximately $20.6 billion in common stock from
stock ranking equally as to payment of dividends and upon which
July 1, 2018 through June 30, 2019, which includes approximately
equivalent voting rights have been conferred and are exercisable
$600 million in repurchases to offset shares awarded under equity-
(voting as a single class) will be entitled to vote for the election
based compensation plans during the same period. The common
of two additional directors. These voting rights terminate when the
stock repurchase authorization includes both common stock and
Corporation has paid in full dividends on these series for at least
warrants.
two semi-annual or four quarterly dividend periods, as applicable,
During 2018, the Corporation repurchased $20.1 billion of
following the dividend arrearage.
common stock in connection with the 2018 and 2017 CCAR capital
The 7.25% Non-Cumulative Perpetual Convertible Preferred
plans and pursuant to a December 5, 2017 authorization to
Stock, Series L (Series L Preferred Stock) does not have early
repurchase an additional $5.0 billion in common stock.
redemption/call rights. Each share of the Series L Preferred Stock
At December 31, 2018, the Corporation had warrants
may be converted at any time, at the option of the holder, into 20
outstanding and exercisable to purchase 121 million shares of
shares of the Corporation’s common stock plus cash in lieu of
common stock. These warrants, substantially all of which were
fractional shares. The Corporation may cause some or all of the
exercised on or before the expiration date of January 16, 2019,
Series L Preferred Stock, at its option, at any time or from time to
were originally issued in connection with a preferred stock
time, to be converted into shares of common stock at the then-
issuance to the U.S. Department of the Treasury in 2009 and were
applicable conversion rate if, for 20 trading days during any period
listed on the New York Stock Exchange.
of 30 consecutive trading days, the closing price of common stock
On August 24, 2017, the holders of the Corporation’s Series
exceeds 130 percent of the then-applicable conversion price of
T 6% Non-cumulative preferred stock (Series T) exercised warrants
the Series L Preferred Stock. If a conversion of Series L Preferred
to acquire 700 million shares of the Corporation’s common stock.
Stock occurs at the option of the holder, subsequent to a dividend
The carrying value of the preferred stock was $2.9 billion and,
record date but prior to the dividend payment date, the Corporation
upon conversion, was recorded as additional paid-in capital. For
will still pay any accrued dividends payable.
more information, see Note 15 – Earnings Per Common Share.
The table on the following page presents a summary of
In connection with employee stock plans, in 2018, the
perpetual preferred stock outstanding at December 31, 2018.
Corporation issued 75 million shares of its common stock and, to

Preferred Stock Summary
(Dollars in millions, except as noted)
Liquidation
Initial Total Preference Dividend per
Issuance Shares per Share Carrying Per Annum Share Annual
Series Description Date Outstanding (in dollars) Value Dividend Rate (in dollars) Dividend Redemption Period (1)
7% Cumulative June
Series B Redeemable 1997 7,110 $ 100 $ 1 7.00% $ 7.00 $ — n/a
Floating Rate Non- November On or after
Series E (2) Cumulative 2006 12,691 25,000 317 3-mo. LIBOR + 35 bps (3) 1.01 13 November 15, 2011
Floating Rate Non- March On or after
Series F Cumulative 2012 1,409 100,000 141 3-mo. LIBOR + 40 bps (3) 4,055.56 6 March 15, 2012
Adjustable Rate Non- March On or after
Series G Cumulative 2012 4,926 100,000 493 3-mo. LIBOR + 40 bps (3) 4,055.56 20 March 15, 2012
7.25% Non-
Cumulative Perpetual January
Series L Convertible 2008 3,080,182 1,000 3,080 7.25% 72.50 223 n/a
September
Series T 6% Non-cumulative 2011 354 100,000 35 6.00% 6,000.00 2 After May 7, 2019
5.2% to, but excluding,
Fixed-to-Floating Rate May 6/1/23; 3-mo. LIBOR + On or after
Series U (4) Non-Cumulative 2013 40,000 25,000 1,000 313.5 bps thereafter 52.00 52 June 1, 2023
Fixed-to-Floating Rate June 6/17/19; 3-mo. LIBOR + On or after
Series V (4) Non-Cumulative 2014 60,000 25,000 1,500 338.7 bps thereafter 51.25 77 June 17, 2019
6.625% Non- September On or after
Series W (2) Cumulative 2014 44,000 25,000 1,100 6.625% 1.66 73 September 9, 2019
Fixed-to-Floating Rate September 9/5/24; 3-mo. LIBOR + On or after
Series X (4) Non-Cumulative 2014 80,000 25,000 2,000 370.5 bps thereafter 62.50 125 September 5, 2024
6.500% Non- January On or after
Series Y (2) Cumulative 2015 44,000 25,000 1,100 6.500% 1.63 72 January 27, 2020
Fixed-to-Floating Rate October 10/23/24; 3-mo. LIBOR + On or after
Series Z (4) Non-Cumulative 2014 56,000 25,000 1,400 417.4 bps thereafter 65.00 91 October 23, 2024
Fixed-to-Floating Rate March 3/17/25; 3-mo. LIBOR + On or after
Series AA (4) Non-Cumulative 2015 76,000 25,000 1,900 389.8 bps thereafter 61.00 116 March 17, 2025
6.200% Non- January On or after
Series CC (2) Cumulative 2016 44,000 25,000 1,100 6.200% 1.55 68 January 29, 2021
Series DD (4) Non-Cumulative 2016 40,000 25,000 1,000 455.3 bps thereafter 63.00 63 March 10, 2026
6.000% Non- April On or after
Series EE (2) Cumulative 2016 36,000 25,000 900 6.000% 1.50 54 April 25, 2021

Series FF (4) Non-Cumulative 2018 94,000 25,000 2,350 293.1 bps thereafter 29.38 69 March 15, 2028
6.000% Non- May On or after
Series GG (2) Cumulative 2018 54,000 25,000 1,350 6.000% 0.75 41 May 16, 2023
5.875% Non- July On or after
Series HH (2) Cumulative 2018 34,160 25,000 854 5.875% 0.73 25 July 24, 2023
Series 1 (5) Cumulative 2004 3,275 30,000 98 3-mo. LIBOR + 75 bps (6) 0.76 3 November 28, 2009
Series 5 (5) Cumulative 2007 14,056 30,000 422 3-mo. LIBOR + 50 bps (3) 1.01 17 May 21, 2012
Issuance costs and certain adjustments (324)
Total 3,843,140 $ 22,326
(1) The Corporation may redeem series of preferred stock on or after the redemption date, in whole or in part, at its option, at the liquidation preference plus declared and unpaid dividends. Series B
and Series L Preferred Stock do not have early redemption/call rights.
(2) Ownership is held in the form of depositary shares, each representing a 1/1,000th interest in a share of preferred stock, paying a quarterly cash dividend, if and when declared.
(3) Subject to 4.00% minimum rate per annum.
(4) Ownership is held in the form of depositary shares, each representing a 1/25th interest in a share of preferred stock, paying a semi-annual cash dividend, if and when declared, until the first
redemption date at which time, it adjusts to a quarterly cash dividend, if and when declared, thereafter.
(5) Ownership is held in the form of depositary shares, each representing a 1/1,200th interest in a share of preferred stock, paying a quarterly cash dividend, if and when declared.
(6) Subject to 3.00% minimum rate per annum.

NOTE 14 Accumulated Other Comprehensive Income (Loss)
The table below presents the changes in accumulated OCI after-tax for 2016, 2017 and 2018.
Debt and Debit Valuation Employee Foreign

(Dollars in millions) Equity Securities Adjustments Derivatives Benefit Plans Currency Total
Balance, December 31, 2015 $ 78 $ (611) $ (1,077) $ (2,956) $ (792) $ (5,358)
Net change (1,345) (156) 182 (524) (87) (1,930)
Balance, December 31, 2016 $ (1,267) $ (767) $ (895) $ (3,480) $ (879) $ (7,288)
Net change 61 (293) 64 288 86 206
Balance, December 31, 2017 $ (1,206) $ (1,060) $ (831) $ (3,192) $ (793) $ (7,082)
Accounting change related to certain tax effects (1) (393) (220) (189) (707) 239 (1,270)
Cumulative adjustment for hedge accounting change (2) — — 57 — — 57
Net change (3,953) 749 (53) (405) (254) (3,916)
Balance, December 31, 2018 $ (5,552) $ (531) $ (1,016) $ (4,304) $ (808) $ (12,211)
(1) Effective January 1, 2018, the Corporation adopted the accounting standard on tax effects in accumulated OCI related to the Tax Act. Accordingly, certain tax effects were reclassified from accumulated
OCI to retained earnings. For additional information, see Note 1 – Summary of Significant Accounting Principles.
(2) Reflects the Corporation’s adoption of the new hedge accounting standard. For additional information, see Note 1 – Summary of Significant Accounting Principles.
The table below presents the net change in fair value recorded in accumulated OCI, net realized gains and losses reclassified into
earnings and other changes for each component of OCI pre- and after-tax for 2018, 2017 and 2016.
Changes in OCI Components Pre- and After-tax

Tax After- Tax After- Tax After-
Pretax effect tax Pretax effect tax Pretax effect tax
Debt and equity securities:
Net increase (decrease) in fair value $ (5,189) $ 1,329 $ (3,860) $ 240 $ 14 $ 254 $ (1,694) $ 641 $ (1,053)
Net realized (gains) reclassified into earnings (1) (123) 30 (93) (304) 111 (193) (471) 179 (292)
Net change (5,312) 1,359 (3,953) (64) 125 61 (2,165) 820 (1,345)
Debit valuation adjustments:
Net increase (decrease) in fair value 952 (224) 728 (490) 171 (319) (271) 104 (167)
Net realized losses reclassified into earnings (1) 26 (5) 21 42 (16) 26 17 (6) 11
Net change 978 (229) 749 (448) 155 (293) (254) 98 (156)
Derivatives:
Net (decrease) in fair value (232) 74 (158) (50) 1 (49) (299) 113 (186)
Reclassifications into earnings:
Net interest income 165 (40) 125 327 (122) 205 553 (205) 348
Personnel expense (27) 7 (20) (148) 56 (92) 32 (12) 20
Net realized losses reclassified into earnings 138 (33) 105 179 (66) 113 585 (217) 368
Net change (94) 41 (53) 129 (65) 64 286 (104) 182
Employee benefit plans:
Net increase (decrease) in fair value (703) 164 (539) 223 (55) 168 (921) 329 (592)
Net actuarial losses and other reclassified into earnings (2) 171 (46) 125 179 (61) 118 97 (36) 61
Settlements, curtailments and other 11 (2) 9 3 (1) 2 15 (8) 7
Net change (521) 116 (405) 405 (117) 288 (809) 285 (524)
Foreign currency:
Net (decrease) in fair value (8) (195) (203) (439) 430 (9) 514 (601) (87)
Net realized (gains) losses reclassified into earnings (1) (149) 98 (51) (606) 701 95 — — —
Net change (157) (97) (254) (1,045) 1,131 86 514 (601) (87)
Total other comprehensive income (loss) $ (5,106) $ 1,190 $ (3,916) $ (1,023) $ 1,229 $ 206 $ (2,428) $ 498 $ (1,930)
(1) Reclassifications of pretax debt and equity securities, DVA and foreign currency (gains) losses are recorded in other income in the Consolidated Statement of Income.
(2) Reclassifications of pretax employee benefit plan costs are recorded in other general operating expense in the Consolidated Statement of Income.

NOTE 15 Earnings Per Common Share
The calculation of EPS and diluted EPS for 2018, 2017 and 2016 is presented below. For more information on the calculation of EPS,
see Note 1 – Summary of Significant Accounting Principles.
(In millions, except per share information) 2018 2017 2016

Earnings per common share
Net income $ 28,147 $ 18,232 $ 17,822
Preferred stock dividends (1,451) (1,614) (1,682)
Earnings per common share $ 2.64 $ 1.63 $ 1.57
Diluted earnings per common share

Add preferred stock dividends due to assumed conversions (1) — 186 300
Net income allocated to common shareholders $ 26,696 $ 16,804 $ 16,440
Dilutive potential common shares (2) 140.4 582.8 762.7
Total diluted average common shares issued and outstanding 10,236.9 10,778.4 11,046.8
Diluted earnings per common share $ 2.61 $ 1.56 $ 1.49
(1) Represents the Series T dividends under the “if-converted” method prior to conversion.
(2) Includes incremental dilutive shares from RSUs, restricted stock and warrants.
The Corporation previously issued warrants to purchase 700 NOTE 16 Regulatory Requirements and
million shares of the Corporation’s common stock to the holders Restrictions
of the Series T 6% Non-cumulative preferred stock (Series T) at The Federal Reserve, Office of the Comptroller of the Currency
an exercise price of $7.142857 per share. On August 24, 2017, (OCC) and FDIC (collectively, U.S. banking regulators) jointly
the Series T holders exercised the warrants and acquired the 700 establish regulatory capital adequacy guidelines, including Basel
million shares of the Corporation’s common stock using the Series 3, for U.S. banking organizations. As a financial holding company,
T preferred stock as consideration for the exercise price, which the Corporation is subject to capital adequacy rules issued by the
increased common shares outstanding, but had no effect on Federal Reserve. The Corporation’s banking entity affiliates are
diluted earnings per share as this conversion was included in the subject to capital adequacy rules issued by the OCC.
Corporation’s diluted earnings per share calculation under the The Corporation and its primary banking entity affiliate, BANA,
applicable accounting guidance. For 2016, the average dilutive are Advanced approaches institutions under Basel 3. As Advanced
impact of the 700 million potential common shares was included approaches institutions, the Corporation and its banking entity
in the diluted share count under the “if-converted” method. affiliates are required to report regulatory risk-based capital ratios
For 2018, 2017 and 2016, 62 million average dilutive potential and risk-weighted assets under both the Standardized and
common shares associated with the Series L preferred stock were Advanced approaches. The approach that yields the lower ratio is
not included in the diluted share count because the result would used to assess capital adequacy, including under the Prompt
have been antidilutive under the “if-converted” method. For 2018, Corrective Action (PCA) framework. At December 31, 2018,
2017 and 2016, average options to purchase 4 million, 21 million Common equity tier 1 and Tier 1 capital ratios were lower under
and 45 million shares of common stock, respectively, were the Standardized approach whereas the Advanced approaches
outstanding but not included in the computation of EPS because yielded a lower result for the Total capital ratio. All three ratios
the result would have been antidilutive under the treasury stock were lower under the Advanced approaches method at December
method. For 2017 and 2016, average warrants to purchase 122 31, 2017.
million shares of common stock were outstanding but not included Effective January 1, 2018, the Corporation is required to
in the computation of EPS because the result would have been maintain a minimum supplementary leverage ratio (SLR) of 3.0
antidilutive under the treasury stock method. These warrants percent plus a leverage buffer of 2.0 percent in order to avoid
expired on October 29, 2018. For 2018, 2017 and 2016, average certain restrictions on capital distributions and discretionary
warrants to purchase 136 million, 143 million and 150 million bonus payments. The Corporation’s insured depository institution
shares of common stock, respectively, were included in the diluted subsidiaries are required to maintain a minimum 6.0 percent SLR
EPS calculation under the treasury stock method. Substantially all to be considered well capitalized under the PCA framework.
of the outstanding warrants were exercised on or before the The following table presents capital ratios and related
expiration date of January 16, 2019. information in accordance with Basel 3 Standardized and
Advanced approaches as measured at December 31, 2018 and
2017 for the Corporation and BANA.

Regulatory Capital under Basel 3 (1)
Bank of America Corporation Bank of America, N.A.
Standardized Advanced Regulatory Standardized Advanced Regulatory
Approach Approaches Minimum (2) Approach Approaches Minimum (3)
(Dollars in millions, except as noted) December 31, 2018
Common equity tier 1 capital $ 167,272 $ 167,272 $ 149,824 $ 149,824
Tier 1 capital 189,038 189,038 149,824 149,824
Total capital (4) 221,304 212,878 161,760 153,627
Risk-weighted assets (in billions) 1,437 1,409 1,195 959
Common equity tier 1 capital ratio 11.6% 11.9% 8.25% 12.5% 15.6% 6.5%
Tier 1 capital ratio 13.2 13.4 9.75 12.5 15.6 8.0
Total capital ratio 15.4 15.1 11.75 13.5 16.0 10.0
Adjusted quarterly average assets (in billions) (5) $ 2,258 $ 2,258 $ 1,719 $ 1,719
Tier 1 leverage ratio 8.4% 8.4% 4.0 8.7% 8.7% 5.0
SLR leverage exposure (in billions) $ 2,791 $ 2,112

SLR 6.8% 5.0 7.1% 6.0
December 31, 2017

Common equity tier 1 capital $ 171,063 $ 171,063 $ 150,552 $ 150,552
Tier 1 capital 191,496 191,496 150,552 150,552
Total capital (4) 227,427 218,529 163,243 154,675
Risk-weighted assets (in billions) 1,434 1,449 1,201 1,007
Common equity tier 1 capital ratio 11.9% 11.8% 7.25% 12.5% 14.9% 6.5%
Tier 1 capital ratio 13.4 13.2 8.75 12.5 14.9 8.0
Total capital ratio 15.9 15.1 10.75 13.6 15.4 10.0
Adjusted quarterly average assets (in billions) (5) $ 2,224 $ 2,224 $ 1,672 $ 1,672
Tier 1 leverage ratio 8.6% 8.6% 4.0 9.0% 9.0% 5.0
(1) Regulatory capital metrics at December 31, 2017 reflect Basel 3 transition provisions for regulatory capital adjustments and deductions, which were fully phased-in as of January 1, 2018.
(2) The December 31, 2018 and 2017 amounts include a transition capital conservation buffer of 1.875 percent and 1.25 percent and a transition global systemically important bank surcharge of
1.875 percent and 1.5 percent. The countercyclical capital buffer for both periods is zero.
(3) Percent required to meet guidelines to be considered “well capitalized” under the PCA framework.
(4) Total capital under the Advanced approaches differs from the Standardized approach due to differences in the amount permitted in Tier 2 capital related to the qualifying allowance for credit losses.
(5) Reflects adjusted average total assets for the three months ended December 31, 2018 and 2017.
The capital adequacy rules issued by the U.S. banking addition, at December 31, 2018 and 2017, the Corporation had
regulators require institutions to meet the established minimums cash deposited with clearing organizations of $8.1 billion and
outlined in the table above. Failure to meet the minimum $11.9 billion primarily recorded in other assets on the
requirements can lead to certain mandatory and discretionary Consolidated Balance Sheet.
actions by regulators that could have a material adverse impact
on the Corporation’s financial position. At December 31, 2018 and Bank Subsidiary Distributions
2017, the Corporation and its banking entity affiliates were “well The primary sources of funds for cash distributions by the
capitalized.” Corporation to its shareholders are capital distributions received
from its bank subsidiaries, BANA and Bank of America California,
Other Regulatory Matters N.A. In 2018, the Corporation received dividends of $26.1 billion
The Federal Reserve requires the Corporation’s bank subsidiaries from BANA and $320 million from Bank of America California, N.A.
to maintain reserve requirements based on a percentage of certain In addition, Bank of America California, N.A. returned capital of
deposit liabilities. The average daily reserve balance requirements, $1.4 billion to the Corporation in 2018.
in excess of vault cash, maintained by the Corporation with the The amount of dividends that a subsidiary bank may declare
Federal Reserve Bank were $11.4 billion and $8.9 billion for 2018 in a calendar year without OCC approval is the subsidiary bank’s
and 2017. At December 31, 2018 and 2017, the Corporation had net profits for that year combined with its retained net profits for
cash and cash equivalents in the amount of $5.8 billion and $4.1 the preceding two years. Retained net profits, as defined by the
billion, and securities with a fair value of $16.6 billion and $17.3 OCC, consist of net income less dividends declared during the
billion that were segregated in compliance with securities period. In 2019, BANA can declare and pay dividends of
regulations. Cash held on deposit with the Federal Reserve Bank approximately $3.1 billion to the Corporation plus an additional
to meet reserve requirements and cash and cash equivalents amount equal to its retained net profits for 2019 up to the date
segregated in compliance with securities regulations are of any such dividend declaration. Bank of America California, N.A.
components of restricted cash. For additional information, see can pay dividends of $40 million in 2019 plus an additional amount
Note 10 – Federal Funds Sold or Purchased, Securities Financing equal to its retained net profits for 2019 up to the date of any
Agreements, Short-term Borrowings and Restricted Cash. In such dividend declaration.

NOTE 17 Employee Benefit Plans In addition to retirement pension benefits, certain benefits-
eligible employees may become eligible to continue participation
Pension and Postretirement Plans as retirees in health care and/or life insurance plans sponsored
The Corporation sponsors a qualified noncontributory trusteed by the Corporation. These plans are referred to as the
pension plan (Qualified Pension Plan), a number of noncontributory Postretirement Health and Life Plans. During 2017, the
nonqualified pension plans, and postretirement health and life Corporation established and funded a Voluntary Employees’
plans that cover eligible employees. Non-U.S. pension plans Beneficiary Association trust in the amount of $300 million for the
sponsored by the Corporation vary based on the country and local Postretirement Health and Life Plans.
practices. The Pension and Postretirement Plans table summarizes the
The Qualified Pension Plan has a balance guarantee feature changes in the fair value of plan assets, changes in the projected
for account balances with participant-selected investments, benefit obligation (PBO), the funded status of both the
applied at the time a benefit payment is made from the plan that accumulated benefit obligation (ABO) and the PBO, and the
effectively provides principal protection for participant balances weighted-average assumptions used to determine benefit
transferred and certain compensation credits. The Corporation is obligations for the pension plans and postretirement plans at
responsible for funding any shortfall on the guarantee feature. December 31, 2018 and 2017. The estimate of the Corporation’s
Benefits earned under the Qualified Pension Plan have been PBO associated with these plans considers various actuarial
frozen. Thereafter, the cash balance accounts continue to earn assumptions, including assumptions for mortality rates and
investment credits or interest credits in accordance with the terms discount rates. The discount rate assumptions are derived from
of the plan document. a cash flow matching technique that utilizes rates that are based
The Corporation has an annuity contract that guarantees the on Aa-rated corporate bonds with cash flows that match estimated
payment of benefits vested under a terminated U.S. pension plan benefit payments of each of the plans. The increases in the
(Other Pension Plan). The Corporation, under a supplemental weighted-average discount rates in 2018 resulted in decreases to
agreement, may be responsible for, or benefit from actual the PBO of approximately $1.3 billion at December 31, 2018. The
experience and investment performance of the annuity assets. decreases in the weighted-average discount rates in 2017 resulted
The Corporation made no contribution under this agreement in in increases to the PBO of approximately $1.1 billion at December
2018 or 2017. Contributions may be required in the future under 31, 2017. Significant gains and losses related to changes in the
this agreement. PBO for 2018 and 2017 primarily resulted from changes in the
The Corporation’s noncontributory, nonqualified pension plans discount rate.
are unfunded and provide supplemental defined pension benefits
to certain eligible employees.
Pension and Postretirement Plans (1)

Qualified Non-U.S. Nonqualified and Other Postretirement
Pension Plan Pension Plans Pension Plans Health and Life Plans
(Dollars in millions) 2018 2017 2018 2017 2018 2017 2018 2017
Fair value, January 1 $ 19,708 $ 18,239 $ 2,943 $ 2,789 $ 2,724 $ 2,744 $ 300 $ —
Actual return on plan assets (550) 2,285 (181) 118 8 128 5 —
Company contributions — — 22 23 91 98 43 393
Plan participant contributions — — 1 1 — — 115 125
Settlements and curtailments — — (107) (190) — — — —
Benefits paid (980) (816) (52) (54) (239) (246) (214) (230)
Federal subsidy on benefits paid n/a n/a n/a n/a n/a n/a 3 12
Foreign currency exchange rate changes n/a n/a (165) 256 n/a n/a n/a n/a
Fair value, December 31 $ 18,178 $ 19,708 $ 2,461 $ 2,943 $ 2,584 $ 2,724 $ 252 $ 300
Change in projected benefit obligation
Projected benefit obligation, January 1 $ 15,706 $ 14,982 $ 2,814 $ 2,763 $ 3,047 $ 3,047 $ 1,056 $ 1,125
Service cost — — 19 24 1 1 6 6
Interest cost 563 606 65 72 105 117 36 43
Plan participant contributions — — 1 1 — — 115 125
Plan amendments — — 13 — — — — (19)
Settlements and curtailments — — (107) (200) — — — —
Actuarial loss (gain) (1,145) 934 (29) (26) (135) 128 (73) (7)
Benefits paid (980) (816) (52) (54) (239) (246) (214) (230)
Federal subsidy on benefits paid n/a n/a n/a n/a n/a n/a 3 12
Foreign currency exchange rate changes n/a n/a (135) 234 n/a n/a (1) 1
Projected benefit obligation, December 31 $ 14,144 $ 15,706 $ 2,589 $ 2,814 $ 2,779 $ 3,047 $ 928 $ 1,056
Amounts recognized on Consolidated Balance Sheet
Other assets $ 4,034 $ 4,002 $ 316 $ 610 $ 754 $ 730 $ — $ —
Accrued expenses and other liabilities — — (444) (481) (949) (1,053) (676) (756)
Net amount recognized, December 31 $ 4,034 $ 4,002 $ (128) $ 129 $ (195) $ (323) $ (676) $ (756)
Funded status, December 31
Accumulated benefit obligation $ 14,144 $ 15,706 $ 2,542 $ 2,731 $ 2,778 $ 3,046 n/a n/a
Overfunded (unfunded) status of ABO 4,034 4,002 (81) 212 (194) (322) n/a n/a
Provision for future salaries — — 47 83 1 1 n/a n/a
Projected benefit obligation 14,144 15,706 2,589 2,814 2,779 3,047 $ 928 $ 1,056
Weighted-average assumptions, December 31
Discount rate 4.32% 3.68% 2.60% 2.39% 4.26% 3.58% 4.25% 3.58%
Rate of compensation increase n/a n/a 4.49 4.31 4.00 4.00 n/a n/a
Interest-crediting rate 5.18 5.08 1.47 1.49 4.50 4.53 n/a n/a
(1) The measurement date for the Qualified Pension Plan, Non-U.S. Pension Plans, Nonqualified and Other Pension Plans, and Postretirement Health and Life Plans was December 31 of each year
reported.

The Corporation’s estimate of its contributions to be made to minimum funding amount required by the Employee Retirement
the Non-U.S. Pension Plans, Nonqualified and Other Pension Plans, Income Security Act of 1974 (ERISA).
and Postretirement Health and Life Plans in 2019 is $21 million, Pension Plans with ABO and PBO in excess of plan assets as
$91 million and $15 million, respectively. The Corporation does of December 31, 2018 and 2017 are presented in the table below.
not expect to make a contribution to the Qualified Pension Plan in For these plans, funding strategies vary due to legal requirements
2019. It is the policy of the Corporation to fund no less than the and local practices.
Plans with ABO and PBO in Excess of Plan Assets
Nonqualified
Non-U.S. and Other
Pension Plans Pension Plans
PBO $ 615 $ 671 $ 950 $ 1,054
ABO 605 644 949 1,053
Fair value of plan assets 173 191 1 1
Components of Net Periodic Benefit Cost

Qualified Pension Plan Non-U.S. Pension Plans
Components of net periodic benefit cost (income)
Service cost $ — $ — $ — $ 19 $ 24 $ 25
Interest cost 563 606 634 65 72 86
Expected return on plan assets (1,136) (1,068) (1,038) (126) (136) (123)
Amortization of net actuarial loss 147 154 139 10 8 6
Other — — — 12 (7) 2
Net periodic benefit cost (income) $ (426) $ (308) $ (265) $ (20) $ (39) $ (4)
Weighted-average assumptions used to determine net cost for years ended December 31
Discount rate 3.68% 4.16% 4.51% 2.39% 2.56% 3.59%
Expected return on plan assets 6.00 6.00 6.00 4.37 4.73 4.84
Rate of compensation increase n/a n/a n/a 4.31 4.51 4.67
Nonqualified and Postretirement Health

Other Pension Plans and Life Plans
Components of net periodic benefit cost (income)
Service cost $ 1 $ 1 $ — $ 6 $ 6 $ 7
Interest cost 105 117 127 36 43 47
Expected return on plan assets (84) (95) (101) (6) — —
Amortization of net actuarial loss (gain) 43 34 25 (27) (21) (81)
Other — — 3 (3) 4 4
Net periodic benefit cost (income) $ 65 $ 57 $ 54 $ 6 $ 32 $ (23)
Weighted-average assumptions used to determine net cost for years ended December 31
Discount rate 3.58% 4.01% 4.34% 3.58% 3.99% 4.32%
Expected return on plan assets 3.19 3.50 3.66 2.00 n/a n/a
Rate of compensation increase 4.00 4.00 4.00 n/a n/a n/a
The asset valuation method used to calculate the expected Assumed health care cost trend rates affect the postretirement
return on plan assets component of net periodic benefit cost for benefit obligation and benefit cost reported for the Postretirement
the Qualified Pension Plan recognizes 60 percent of the prior year’s Health and Life Plans. The assumed health care cost trend rate
market gains or losses at the next measurement date with the used to measure the expected cost of benefits covered by the
remaining 40 percent spread equally over the subsequent four Postretirement Health and Life Plans is 6.50 percent for 2019,
years. reducing in steps to 5.00 percent in 2023 and later years.
Gains and losses for all benefit plans except postretirement The Corporation’s net periodic benefit cost (income) recognized
health care are recognized in accordance with the standard for the plans is sensitive to the discount rate and expected return
amortization provisions of the applicable accounting guidance. Net on plan assets. For the Qualified Pension Plan, Non-U.S. Pension
periodic postretirement health and life expense was determined Plans, Nonqualified and Other Pension Plans, and Postretirement
using the “projected unit credit” actuarial method. For the Health and Life Plans, a 25 bp decline in discount rates and
Postretirement Health and Life Plans, 50 percent of the expected return on assets would not have a significant impact on
unrecognized gain or loss at the beginning of the fiscal year (or at the net periodic benefit cost for 2018.
subsequent remeasurement) is recognized on a level basis during
the year.

Pretax Amounts included in Accumulated OCI
Nonqualified Postretirement
Qualified Non-U.S. and Other Health and
Pension Plan Pension Plans Pension Plans Life Plans Total
Net actuarial loss (gain) $ 4,386 $ 3,992 $ 454 $ 196 $ 912 $ 1,014 $ (75) $ (30) $ 5,677 $ 5,172
Prior service cost (credits) — — 18 4 — — (9) (11) 9 (7)
Amounts recognized in accumulated OCI $ 4,386 $ 3,992 $ 472 $ 200 $ 912 $ 1,014 $ (84) $ (41) $ 5,686 $ 5,165
Pretax Amounts Recognized in OCI
Pension Plan Pension Plans Pension Plans Life Plans Total
Current year actuarial loss (gain) $ 541 $ (283) $ 270 $ (12) $ (59) $ 95 $ (73) $ (7) $ 679 $ (207)
Amortization of actuarial gain (loss) and
prior service cost (147) (154) (11) (8) (43) (34) 30 21 (171) (175)
Current year prior service cost (credit) — — 13 — — — — (23) 13 (23)
Amounts recognized in OCI $ 394 $ (437) $ 272 $ (20) $ (102) $ 61 $ (43) $ (9) $ 521 $ (405)
Plan Assets of the plan’s liabilities. The selected asset allocation strategy is
The Qualified Pension Plan has been established as a retirement designed to achieve a higher return than the lowest risk strategy.
vehicle for participants, and trusts have been established to The expected rate of return on plan assets assumption was
secure benefits promised under the Qualified Pension Plan. The developed through analysis of historical market returns, historical
Corporation’s policy is to invest the trust assets in a prudent asset class volatility and correlations, current market conditions,
manner for the exclusive purpose of providing benefits to anticipated future asset allocations, the funds’ past experience,
participants and defraying reasonable expenses of administration. and expectations on potential future market returns. The expected
The Corporation’s investment strategy is designed to provide a return on plan assets assumption is determined using the
total return that, over the long term, increases the ratio of assets calculated market-related value for the Qualified Pension Plan and
to liabilities. The strategy attempts to maximize the investment the Other Pension Plan and the fair value for the Non-U.S. Pension
return on assets at a level of risk deemed appropriate by the Plans and Postretirement Health and Life Plans. The expected
Corporation while complying with ERISA and any applicable return on plan assets assumption represents a long-term average
regulations and laws. The investment strategy utilizes asset view of the performance of the assets in the Qualified Pension
allocation as a principal determinant for establishing the risk/ Plan, the Non-U.S. Pension Plans, the Other Pension Plan, and
return profile of the assets. Asset allocation ranges are Postretirement Health and Life Plans, a return that may or may not
established, periodically reviewed and adjusted as funding levels be achieved during any one calendar year. The Other Pension Plan
and liability characteristics change. Active and passive investment is invested solely in an annuity contract which is primarily invested
managers are employed to help enhance the risk/return profile of in fixed-income securities structured such that asset maturities
the assets. An additional aspect of the investment strategy used match the duration of the plan’s obligations.
to minimize risk (part of the asset allocation plan) includes The target allocations for 2019 by asset category for the
matching the exposure of participant-selected investment Qualified Pension Plan, Non-U.S. Pension Plans, and Nonqualified
measures. and Other Pension Plans are presented in the following table.
The assets of the Non-U.S. Pension Plans are primarily Equity securities for the Qualified Pension Plan include common
attributable to a U.K. pension plan. This U.K. pension plan’s assets stock of the Corporation in the amounts of $221 million (1.22
are invested prudently so that the benefits promised to members percent of total plan assets) and $261 million (1.33 percent of
are provided with consideration given to the nature and the duration total plan assets) at December 31, 2018 and 2017.
2019 Target Allocation

Percentage
Nonqualified
Qualified Non-U.S. and Other
Asset Category Pension Plan Pension Plans Pension Plans
Equity securities 20-50 5-35 0-5
Debt securities 45-75 40-80 95-100
Real estate 0-10 0-15 0-5
Other 0-5 5-30 0-5

Fair Value Measurements
For more information on fair value measurements, including descriptions of Level 1, 2 and 3 of the fair value hierarchy and the valuation
methods employed by the Corporation, see Note 1 – Summary of Significant Accounting Principles and Note 20 – Fair Value Measurements.
Combined plan investment assets measured at fair value by level and in total at December 31, 2018 and 2017 are summarized in the
Fair Value Measurements table.

Level 1 Level 2 Level 3 Total
Cash and short-term investments
Money market and interest-bearing cash $ 1,530 $ — $ — $ 1,530
Cash and cash equivalent commingled/mutual funds — 644 — 644
Fixed income
U.S. government and agency securities 3,637 805 9 4,451
Corporate debt securities — 2,852 — 2,852
Asset-backed securities — 2,119 — 2,119
Non-U.S. debt securities 539 961 — 1,500
Fixed income commingled/mutual funds 933 1,177 — 2,110
Equity
Common and preferred equity securities 4,414 — — 4,414
Equity commingled/mutual funds 288 1,275 — 1,563
Public real estate investment trusts 104 — — 104
Real estate
Private real estate — — 5 5
Real estate commingled/mutual funds — 13 885 898
Limited partnerships — 158 82 240
Other investments (1) 93 364 588 1,045
Total plan investment assets, at fair value $ 11,538 $ 10,368 $ 1,569 $ 23,475
December 31, 2017

Cash and short-term investments
Money market and interest-bearing cash $ 2,190 $ — $ — $ 2,190
Cash and cash equivalent commingled/mutual funds — 1,004 — 1,004
Fixed income
U.S. government and agency securities 3,331 854 9 4,194
Corporate debt securities — 2,417 — 2,417
Asset-backed securities — 1,832 — 1,832
Non-U.S. debt securities 693 898 — 1,591
Fixed income commingled/mutual funds 775 1,676 — 2,451
Equity
Common and preferred equity securities 5,833 — — 5,833
Equity commingled/mutual funds 271 1,753 — 2,024
Public real estate investment trusts 138 — — 138
Real estate
Private real estate — — 93 93
Real estate commingled/mutual funds — 13 831 844
Limited partnerships — 155 85 240
Other investments (1) 101 649 74 824
Total plan investment assets, at fair value $ 13,332 $ 11,251 $ 1,092 $ 25,675
(1) Other investments include commodity and balanced funds of $305 million and $451 million, insurance annuity contracts of $562 million and $50 million and other various investments of $178
million and $323 million at December 31, 2018 and 2017.

The Level 3 Fair Value Measurements table presents a reconciliation of all plan investment assets measured at fair value using
significant unobservable inputs (Level 3) during 2018, 2017 and 2016.
Level 3 Fair Value Measurements

Actual Return on
Plan Assets Still
Balance Held at the Purchases, Sales Balance
January 1 Reporting Date and Settlements December 31
Fixed income
U.S. government and agency securities $ 9 $ — $ — $ 9
Real estate
Private real estate 93 (7) (81) 5
Real estate commingled/mutual funds 831 52 2 885
Limited partnerships 85 (12) 9 82
Other investments 74 — 514 588
Total $ 1,092 $ 33 $ 444 $ 1,569
2017
Fixed income
U.S. government and agency securities $ 10 $ — $ (1) $ 9
Real estate
Private real estate 150 8 (65) 93
Real estate commingled/mutual funds 748 63 20 831
Limited partnerships 38 14 33 85
Other investments 83 5 (14) 74
Total $ 1,029 $ 90 $ (27) $ 1,092
2016
Fixed income
U.S. government and agency securities $ 11 $ — $ (1) $ 10
Real estate
Private real estate 144 1 5 150
Real estate commingled/mutual funds 731 21 (4) 748
Limited partnerships 49 (2) (9) 38
Other investments 102 4 (23) 83
Total $ 1,037 $ 24 $ (32) $ 1,029
Projected Benefit Payments

Benefit payments projected to be made from the Qualified Pension Plan, Non-U.S. Pension Plans, Nonqualified and Other Pension Plans,
and Postretirement Health and Life Plans are presented in the table below.
Projected Benefit Payments
(Dollars in millions) Pension Plan (1) Pension Plans (2) Pension Plans (2) Life Plans (3)
2019 $ 905 $ 98 $ 241 $ 85
2020 932 103 244 82
2021 920 110 239 79
2022 925 119 234 77
2023 915 125 228 74
2024 - 2028 4,451 671 1,046 323
(1) Benefit payments expected to be made from the plan’s assets.
(2) Benefit payments expected to be made from a combination of the plans’ and the Corporation’s assets.
(3) Benefit payments (net of retiree contributions) expected to be made from a combination of the plans’ and the Corporation’s assets.
Defined Contribution Plans common stock were held by these plans. Payments to the plans
The Corporation maintains qualified and non-qualified defined for dividends on common stock were $115 million, $86 million
contribution retirement plans. The Corporation recorded expense and $60 million in 2018, 2017 and 2016, respectively.
of $1.0 billion in each of 2018, 2017, and 2016 related to the Certain non-U.S. employees are covered under defined
qualified defined contribution plans. At December 31, 2018 and contribution pension plans that are separately administered in
2017, 212 million and 218 million shares of the Corporation’s accordance with local laws.

NOTE 18 Stock-based Compensation Plans Restricted Stock/Units
The Corporation administers a number of equity compensation The table below presents the status at December 31, 2018 of the
plans, with awards being granted predominantly from the Bank of share-settled restricted stock/units and changes during 2018.
America Key Employee Equity Plan (KEEP). Under this plan, 450
million shares of the Corporation’s common stock are authorized
Stock-settled Restricted Stock/Units
to be used for grants of awards.
During 2018 and 2017, the Corporation granted 71 million and Weighted-
85 million RSU awards to certain employees under the KEEP. The average Grant
RSUs were authorized to settle predominantly in shares of common Shares/Units Date Fair Value
stock of the Corporation. Certain RSUs will be settled in cash or Outstanding at January 1, 2018 179,273,243 $ 17.53
contain settlement provisions that subject these awards to variable Granted 68,899,627 30.53
accounting whereby compensation expense is adjusted to fair Vested (74,357,624) 16.31
Canceled (8,194,000) 22.84
value based on changes in the share price of the Corporation’s
Outstanding at December 31, 2018 165,621,246 23.22
common stock up to the settlement date. Of the RSUs granted in
2018 and 2017, 63 million and 85 million will vest in one-third
The table below presents the status at December 31, 2018 of
increments on each of the first three anniversaries of the grant
the cash-settled RSUs granted under the KEEP and changes during
date provided that the employee remains continuously employed
2018.
with the Corporation during that time, and will be expensed ratably
over the vesting period, net of estimated forfeitures, for non-
retirement eligible employees based on the grant-date fair value Cash-settled Restricted Units
of the shares. Additionally, eight million of the RSUs granted in
2018 will vest in one-fourth increments on each of the first four Units
anniversaries of the grant date provided that the employee remains Outstanding at January 1, 2018 42,209,626
Granted 2,195,025
continuously employed with the Corporation during that time, and
Vested (41,434,793)
will be expensed ratably over the vesting period, net of estimated
Canceled (360,736)
forfeitures, based on the grant-date fair value of the shares. Awards Outstanding at December 31, 2018 2,609,122
granted in years prior to 2016 were predominantly cash settled.
Effective October 1, 2017, the Corporation changed its At December 31, 2018, there was an estimated $1.1 billion of
accounting method for determining when stock-based total unrecognized compensation cost related to certain share-
compensation awards granted to retirement-eligible employees are based compensation awards that is expected to be recognized
deemed authorized, changing from the grant date to the beginning over a period of up to four years, with a weighted-average period
of the year preceding the grant date when the incentive award of 1.9 years. The total fair value of restricted stock vested in 2018,
plans are generally approved. As a result, the estimated value of 2017 and 2016 was $2.3 billion, $1.3 billion and $358 million,
the awards is expensed ratably over the year preceding the grant respectively. In 2018, 2017 and 2016, the amount of cash paid
date. The compensation cost for all periods prior to this change to settle equity-based awards for all equity compensation plans
presented herein has been restated. was $1.3 billion, $1.9 billion and $1.7 billion, respectively.
The compensation cost for the stock-based plans was $1.8
billion, $2.2 billion and $2.2 billion and the related income tax Stock Options
benefit was $433 million, $829 million and $835 million for 2018, Of the 16.6 million stock options with a weighted-average exercise
2017 and 2016, respectively. price of $43.44 outstanding at January 1, 2018, 2.1 million and
14.5 million were exercised and forfeited during 2018 at weighted-
average exercise prices of $30.71 and $45.29. There were no
outstanding stock options at December 31, 2018.
NOTE 19 Income Taxes

The components of income tax expense for 2018, 2017 and 2016 are presented in the table below.
Income Tax Expense

Current income tax expense
U.S. federal $ 816 $ 1,310 $ 302
U.S. state and local 1,377 557 120
Non-U.S. 1,203 939 984
Total current expense 3,396 2,806 1,406
Deferred income tax expense
U.S. federal 2,579 7,238 5,416
U.S. state and local 240 835 (279)
Non-U.S. 222 102 656
Total deferred expense 3,041 8,175 5,793
Total income tax expense $ 6,437 $ 10,981 $ 7,199

Total income tax expense does not reflect the tax effects of On December 22, 2017, the President signed into law the Tax
items that are included in OCI each period. For more information, Act which made significant changes to federal income tax law
see Note 14 – Accumulated Other Comprehensive Income (Loss). including, among other things, reducing the statutory corporate
Other tax effects included in OCI each period resulted in a benefit income tax rate to 21 percent from 35 percent and changing the
of $1.2 billion, $1.2 billion and $498 million in 2018, 2017 and taxation of the Corporation’s non-U.S. business activities. The
2016, respectively. In addition, prior to 2017, total income tax impact on net income in 2017 was $2.9 billion, driven by $2.3
expense did not reflect tax effects associated with the billion in income tax expense, largely from a lower valuation of
Corporation’s employee stock plans which decreased common certain U.S. deferred tax assets and liabilities. The change in the
stock and additional paid-in capital $41 million in 2016. statutory tax rate also impacted the Corporation’s tax-advantaged
Income tax expense for 2018, 2017 and 2016 varied from the energy investments, resulting in a downward valuation adjustment
amount computed by applying the statutory income tax rate to of $946 million recorded in other income and a related income
income before income taxes. The Corporation’s federal statutory tax benefit of $347 million, which when netted against the $2.3
tax rate was 21 percent for 2018 and 35 percent for 2017 and billion, resulted in a net impact on income tax expense of $1.9
2016. A reconciliation of the expected U.S. federal income tax billion. The Corporation has completed its analysis and accounting
expense, calculated by applying the federal statutory tax rate, to under Staff Accounting Bulletin No. 118 for the effects of the Tax
the Corporation’s actual income tax expense, and the effective tax Act.
rates for 2018, 2017 and 2016 are presented in the table below.
Reconciliation of Income Tax Expense

Amount Percent Amount Percent Amount Percent
Expected U.S. federal income tax expense $ 7,263 21.0% $ 10,225 35.0% $ 8,757 35.0%
Increase (decrease) in taxes resulting from:
State tax expense, net of federal benefit 1,367 4.0 881 3.0 420 1.7
Affordable housing/energy/other credits (1,888) (5.5) (1,406) (4.8) (1,203) (4.8)
Tax-exempt income, including dividends (413) (1.2) (672) (2.3) (562) (2.2)
Share-based compensation (257) (0.7) (236) (0.8) — —
Nondeductible expenses 302 0.9 97 0.3 180 0.7
Changes in prior-period UTBs, including interest 144 0.4 133 0.5 (328) (1.3)
Rate differential on non-US earnings 98 0.3 (272) (0.9) (307) (1.2)
Tax law changes (1) — — 2,281 7.8 348 1.4
Other (179) (0.6) (50) (0.2) (106) (0.5)
Total income tax expense $ 6,437 18.6% $ 10,981 37.6% $ 7,199 28.8%
(1) Amounts for 2016 are for non-U.S. tax law changes.
The reconciliation of the beginning unrecognized tax benefits (UTB) balance to the ending balance is presented in the following
table.
Reconciliation of the Change in Unrecognized Tax Benefits

Balance, January 1 $ 1,773 $ 875 $ 1,095
Increases related to positions taken during the current year 395 292 104
Increases related to positions taken during prior years 406 750 1,318
Decreases related to positions taken during prior years (371) (122) (1,091)
Settlements (6) (17) (503)
Expiration of statute of limitations — (5) (48)
Balance, December 31 $ 2,197 $ 1,773 $ 875
At December 31, 2018, 2017 and 2016, the balance of the summarizes the status of examinations by major jurisdiction for
Corporation’s UTBs which would, if recognized, affect the the Corporation and various subsidiaries at December 31, 2018.
Corporation’s effective tax rate was $1.6 billion, $1.2 billion and
$0.6 billion, respectively. Included in the UTB balance are some Tax Examination Status
items the recognition of which would not affect the effective tax
rate, such as the tax effect of certain temporary differences, the Status at
portion of gross state UTBs that would be offset by the tax benefit Years under December 31
of the associated federal deduction and the portion of gross non- Examination (1) 2018
U.S. UTBs that would be offset by tax reductions in other United States 2012 – 2013 IRS Appeals
United States 2014 – 2016 Field examination
jurisdictions.
New York 2015 Field examination
The Corporation files income tax returns in more than 100 state
United Kingdom 2017 To begin in 2019
and non-U.S. jurisdictions each year. The IRS and other tax (1) All tax years subsequent to the years shown remain subject to examination.
authorities in countries and states in which the Corporation has
significant business operations examine tax returns periodically It is reasonably possible that the UTB balance may decrease
(continuously in some jurisdictions). The following table by as much as $1.2 billion during the next 12 months, since

resolved items will be removed from the balance whether their consist primarily of NOLs, are expected to be realized by certain
resolution results in payment or recognition. subsidiaries over an extended number of years. Management’s
The Corporation recognized interest expense of $43 million, $1 conclusion is supported by financial results, profit forecasts for
million and $56 million in 2018, 2017 and 2016, respectively. At the relevant entities and the indefinite period to carry forward
December 31, 2018 and 2017, the Corporation’s accrual for NOLs. However, a material change in those estimates could lead
interest and penalties that related to income taxes, net of taxes management to reassess such valuation allowance conclusions.
and remittances, was $218 million and $185 million. At December 31, 2018, U.S. federal income taxes had not been
Significant components of the Corporation’s net deferred tax provided on approximately $5 billion of temporary differences
assets and liabilities at December 31, 2018 and 2017 are associated with investments in non-U.S. subsidiaries that are
presented in the following table. essentially permanent in duration. If the Corporation were to
record the associated deferred tax liability, the amount would be
approximately $1 billion.
Deferred Tax Assets and Liabilities
December 31
NOTE 20 Fair Value Measurements
(Dollars in millions) 2018 2017 Under applicable accounting standards, fair value is defined as
Deferred tax assets the exchange price that would be received for an asset or paid to
Net operating loss carryforwards $ 7,993 $ 8,506 transfer a liability (an exit price) in the principal or most
Allowance for credit losses 2,400 2,598 advantageous market for the asset or liability in an orderly
Accrued expenses 1,875 2,021 transaction between market participants on the measurement
Available-for-sale securities 1,854 510 date. The Corporation determines the fair values of its financial
Security, loan and debt valuations 1,818 2,939 instruments under applicable accounting standards that require
Employee compensation and retirement benefits 1,564 1,705 an entity to maximize the use of observable inputs and minimize
Credit carryforwards 623 1,793 the use of unobservable inputs. The Corporation categorizes its
Other 1,037 1,034
financial instruments into three levels based on the established
Gross deferred tax assets 19,164 21,106
fair value hierarchy. The Corporation conducts a review of its fair
Valuation allowance (1,569) (1,644)
value hierarchy classifications on a quarterly basis. Transfers into
Total deferred tax assets, net of valuation
allowance 17,595 19,462 or out of fair value hierarchy classifications are made if the
significant inputs used in the financial models measuring the fair
Deferred tax liabilities values of the assets and liabilities became unobservable or
Equipment lease financing 2,684 2,492 observable in the current marketplace. For more information
Fixed assets 1,104 840 regarding the fair value hierarchy and how the Corporation
Tax credit investments 940 734 measures fair value, see Note 1 – Summary of Significant
Other 2,126 2,771 Accounting Principles. The Corporation accounts for certain
Gross deferred tax liabilities 6,854 6,837
financial instruments under the fair value option. For additional
Net deferred tax assets, net of valuation
allowance $ 10,741 $ 12,625
information, see Note 21 – Fair Value Option.
The table below summarizes the deferred tax assets and

Valuation Techniques
The following sections outline the valuation methodologies for the
related valuation allowances recognized for the net operating loss
Corporation’s assets and liabilities. While the Corporation believes
(NOL) and tax credit carryforwards at December 31, 2018.
its valuation methods are appropriate and consistent with other
market participants, the use of different methodologies or
Net Operating Loss and Tax Credit Carryforward Deferred assumptions to determine the fair value of certain financial
Tax Assets instruments could result in a different estimate of fair value at the
Net reporting date.
Deferred Valuation Deferred First Year
(Dollars in millions) Tax Asset Allowance Tax Asset Expiring
During 2018, there were no changes to valuation approaches
Net operating losses -
or techniques that had, or are expected to have, a material impact
U.S. $ 592 $ — $ 592 After 2027 on the Corporation’s consolidated financial position or results of
Net operating losses - operations.
U.K. (1) 5,294 — 5,294 None
Net operating losses -
Trading Account Assets and Liabilities and Debt Securities
other non-U.S. 633 (517) 116 Various The fair values of trading account assets and liabilities are primarily
Net operating losses - based on actively traded markets where prices are based on either
U.S. states (2) 1,474 (517) 957 Various direct market quotes or observed transactions. The fair values of
General business credits 612 — 612 After 2038 debt securities are generally based on quoted market prices or
Foreign tax credits 11 (11) — n/a market prices for similar assets. Liquidity is a significant factor in
(1)Represents U.K. broker-dealer net operating losses that may be carried forward indefinitely. the determination of the fair values of trading account assets and
(2)The net operating losses and related valuation allowances for U.S. states before considering
the benefit of federal deductions were $1.9 billion and $654 million. liabilities and debt securities. Market price quotes may not be
n/a = not applicable readily available for some positions such as positions within a
market sector where trading activity has slowed significantly or
Management concluded that no valuation allowance was
ceased. Some of these instruments are valued using a discounted
necessary to reduce the deferred tax assets related to the U.K.
cash flow model, which estimates the fair value of the securities
NOL carryforwards and U.S. NOL and general business credit
using internal credit risk, interest rate and prepayment risk models
carryforwards since estimated future taxable income will be
that incorporate management’s best estimate of current key
sufficient to utilize these assets prior to their expiration. The
assumptions such as default rates, loss severity and prepayment
majority of the Corporation’s U.K. net deferred tax assets, which
rates. Principal and interest cash flows are discounted using an Loans Held-for-sale
observable discount rate for similar instruments with adjustments The fair values of LHFS are based on quoted market prices, where
that management believes a market participant would consider in available, or are determined by discounting estimated cash flows
determining fair value for the specific security. Other instruments using interest rates approximating the Corporation’s current
are valued using a net asset value approach which considers the origination rates for similar loans adjusted to reflect the inherent
value of the underlying securities. Underlying assets are valued credit risk. The borrower-specific credit risk is embedded within
using external pricing services, where available, or matrix pricing the quoted market prices or is implied by considering loan
based on the vintages and ratings. Situations of illiquidity generally performance when selecting comparables.
are triggered by the market’s perception of credit uncertainty
regarding a single company or a specific market sector. In these Short-term Borrowings and Long-term Debt
instances, fair value is determined based on limited available The Corporation issues structured liabilities that have coupons or
market information and other factors, principally from reviewing repayment terms linked to the performance of debt or equity
the issuer’s financial statements and changes in credit ratings securities, indices, currencies or commodities. The fair values of
made by one or more rating agencies. these structured liabilities are estimated using quantitative
models for the combined derivative and debt portions of the notes.
Derivative Assets and Liabilities These models incorporate observable and, in some instances,
The fair values of derivative assets and liabilities traded in the unobservable inputs including security prices, interest rate yield
OTC market are determined using quantitative models that utilize curves, option volatility, currency, commodity or equity rates and
multiple market inputs including interest rates, prices and indices correlations among these inputs. The Corporation also considers
to generate continuous yield or pricing curves and volatility factors the impact of its own credit spread in determining the discount
to value the position. The majority of market inputs are actively rate used to value these liabilities. The credit spread is determined
quoted and can be validated through external sources, including by reference to observable spreads in the secondary bond market.
brokers, market transactions and third-party pricing services.
When third-party pricing services are used, the methods and Securities Financing Agreements
assumptions are reviewed by the Corporation. Estimation risk is The fair values of certain reverse repurchase agreements,
greater for derivative asset and liability positions that are either repurchase agreements and securities borrowed transactions are
option-based or have longer maturity dates where observable determined using quantitative models, including discounted cash
market inputs are less readily available, or are unobservable, in flow models that require the use of multiple market inputs including
which case, quantitative-based extrapolations of rate, price or interest rates and spreads to generate continuous yield or pricing
index scenarios are used in determining fair values. The fair values curves, and volatility factors. The majority of market inputs are
of derivative assets and liabilities include adjustments for market actively quoted and can be validated through external sources,
liquidity, counterparty credit quality and other instrument-specific including brokers, market transactions and third-party pricing
factors, where appropriate. In addition, the Corporation services.
incorporates within its fair value measurements of OTC derivatives
a valuation adjustment to reflect the credit risk associated with
Deposits
The fair values of deposits are determined using quantitative
the net position. Positions are netted by counterparty, and fair
models, including discounted cash flow models that require the
value for net long exposures is adjusted for counterparty credit
use of multiple market inputs including interest rates and spreads
risk while the fair value for net short exposures is adjusted for the
to generate continuous yield or pricing curves, and volatility factors.
Corporation’s own credit risk. The Corporation also incorporates
The majority of market inputs are actively quoted and can be
FVA within its fair value measurements to include funding costs
validated through external sources, including brokers, market
on uncollateralized derivatives and derivatives where the
transactions and third-party pricing services. The Corporation
Corporation is not permitted to use the collateral it receives. An
considers the impact of its own credit spread in the valuation of
estimate of severity of loss is also used in the determination of
these liabilities. The credit risk is determined by reference to
fair value, primarily based on market data.
observable credit spreads in the secondary cash market.
Loans and Loan Commitments
The fair values of loans and loan commitments are based on
Asset-backed Secured Financings
The fair values of asset-backed secured financings are based on
market prices, where available, or discounted cash flow analyses
external broker bids, where available, or are determined by
using market-based credit spreads of comparable debt
discounting estimated cash flows using interest rates
instruments or credit derivatives of the specific borrower or
approximating the Corporation’s current origination rates for
comparable borrowers. Results of discounted cash flow analyses
similar loans adjusted to reflect the inherent credit risk.
may be adjusted, as appropriate, to reflect other market conditions
or the perceived credit risk of the borrower.
Recurring Fair Value
Mortgage Servicing Rights Assets and liabilities carried at fair value on a recurring basis at
The fair values of MSRs are primarily determined using an option- December 31, 2018 and 2017, including financial instruments
adjusted spread (OAS) valuation approach, which factors in which the Corporation accounts for under the fair value option, are
prepayment risk to determine the fair value of MSRs. This approach summarized in the following tables.
consists of projecting servicing cash flows under multiple interest
rate scenarios and discounting these cash flows using risk-
adjusted discount rates.

December 31, 2018
Netting Assets/Liabilities
(Dollars in millions) Level 1 Level 2 Level 3 Adjustments (1) at Fair Value
Assets
Time deposits placed and other short-term investments $ 1,214 $ — $ — $ — $ 1,214
agreements to resell — 56,399 — — 56,399
Trading account assets:
U.S. Treasury and agency securities (2) 53,131 1,593 — — 54,724
Corporate securities, trading loans and other — 24,630 1,558 — 26,188
Equity securities 53,840 23,163 276 — 77,279
Non-U.S. sovereign debt 5,818 19,210 465 — 25,493
Mortgage trading loans, MBS and ABS:
U.S. government-sponsored agency guaranteed — 19,586 — — 19,586
Mortgage trading loans, ABS and other MBS — 9,443 1,635 — 11,078
Total trading account assets (3) 112,789 97,625 3,934 — 214,348
Derivative assets 9,967 315,413 3,466 (285,121) 43,725
AFS debt securities:
U.S. Treasury and agency securities 53,663 1,260 — — 54,923
Agency — 121,826 — — 121,826
Agency-collateralized mortgage obligations — 5,530 — — 5,530
Non-agency residential — 1,320 597 — 1,917
Commercial — 14,078 — — 14,078
Non-U.S. securities — 9,304 2 — 9,306
Other taxable securities — 4,403 7 — 4,410
Tax-exempt securities — 17,376 — — 17,376
Total AFS debt securities 53,663 175,097 606 — 229,366
Other debt securities carried at fair value:
U.S. Treasury and agency securities 1,282 — — — 1,282
Non-agency residential — 1,434 172 — 1,606
Non-U.S. securities 490 5,354 — — 5,844
Other taxable securities — 3 — — 3
Total other debt securities carried at fair value 1,772 6,791 172 — 8,735
Loans and leases — 4,011 338 — 4,349
Loans held-for-sale — 2,400 542 — 2,942
Other assets (4) 15,032 1,775 2,932 — 19,739
Total assets (5) $ 194,437 $ 659,511 $ 11,990 $ (285,121) $ 580,817
Liabilities
Interest-bearing deposits in U.S. offices $ — $ 492 $ — $ — $ 492
Federal funds purchased and securities loaned or sold under
agreements to repurchase — 28,875 — — 28,875
Trading account liabilities:
U.S. Treasury and agency securities 7,894 761 — — 8,655
Equity securities 33,739 4,070 — — 37,809
Non-U.S. sovereign debt 7,452 9,182 — — 16,634
Corporate securities and other — 5,104 18 — 5,122
Total trading account liabilities 49,085 19,117 18 — 68,220
Derivative liabilities 9,931 303,441 4,401 (279,882) 37,891
Short-term borrowings — 1,648 — — 1,648
Accrued expenses and other liabilities 18,096 1,979 — — 20,075
Long-term debt — 26,820 817 — 27,637
Total liabilities (5) $ 77,112 $ 382,372 $ 5,236 $ (279,882) $ 184,838
(1) Amounts represent the impact of legally enforceable master netting agreements and also cash collateral held or placed with the same counterparties.
(2) Includes $20.2 billion of GSE obligations.
(3) Includes securities with a fair value of $16.6 billion that were segregated in compliance with securities regulations or deposited with clearing organizations. This amount is included in the parenthetical
disclosure on the Consolidated Balance Sheet.
(4) Includes MSRs of $2.0 billion which are classified as Level 3 assets.
(5) Total recurring Level 3 assets were 0.51 percent of total consolidated assets, and total recurring Level 3 liabilities were 0.25 percent of total consolidated liabilities.

December 31, 2017
Netting Assets/Liabilities
(Dollars in millions) Level 1 Level 2 Level 3 Adjustments (1) at Fair Value
Assets
Time deposits placed and other short-term investments $ 2,234 $ — $ — $ — $ 2,234
agreements to resell — 52,906 — — 52,906
U.S. Treasury and agency securities (2) 38,720 1,922 — — 40,642
Corporate securities, trading loans and other — 28,714 1,864 — 30,578
Equity securities 60,747 23,958 235 — 84,940
Non-U.S. sovereign debt 6,545 15,839 556 — 22,940
Mortgage trading loans, MBS and ABS:
U.S. government-sponsored agency guaranteed — 20,586 — — 20,586
Mortgage trading loans, ABS and other MBS — 8,174 1,498 — 9,672
Total trading account assets (3) 106,012 99,193 4,153 — 209,358
Derivative assets 6,305 341,178 4,067 (313,788) 37,762
U.S. Treasury and agency securities 51,915 1,608 — — 53,523
Agency — 192,929 — — 192,929
Agency-collateralized mortgage obligations — 6,804 — — 6,804
Non-agency residential — 2,669 — — 2,669
Commercial — 13,684 — — 13,684
Non-U.S. securities 772 5,880 25 — 6,677
Other taxable securities — 5,261 509 — 5,770
Tax-exempt securities — 20,106 469 — 20,575
Total AFS debt securities 52,687 248,941 1,003 — 302,631
Other debt securities carried at fair value:
Non-agency residential — 2,769 — — 2,769
Non-U.S. securities 8,191 1,297 — — 9,488
Other taxable securities — 229 — — 229
Total other debt securities carried at fair value 8,191 4,295 — — 12,486
Loans and leases — 5,139 571 — 5,710
Loans held-for-sale — 1,466 690 — 2,156
Other assets (4) 19,367 789 2,425 — 22,581
Total assets (5) $ 194,796 $ 753,907 $ 12,909 $ (313,788) $ 647,824
Liabilities
Interest-bearing deposits in U.S. offices $ — $ 449 $ — $ — $ 449
Federal funds purchased and securities loaned or sold under
agreements to repurchase — 36,182 — — 36,182
Trading account liabilities:
U.S. Treasury and agency securities 17,266 734 — — 18,000
Equity securities 33,019 3,885 — — 36,904
Non-U.S. sovereign debt 11,976 7,382 — — 19,358
Corporate securities and other — 6,901 24 — 6,925
Total trading account liabilities 62,261 18,902 24 — 81,187
Derivative liabilities 6,029 334,261 5,781 (311,771) 34,300
Short-term borrowings — 1,494 — — 1,494
Accrued expenses and other liabilities 21,887 945 8 — 22,840
Long-term debt — 29,923 1,863 — 31,786
Total liabilities (5) $ 90,177 $ 422,156 $ 7,676 $ (311,771) $ 208,238
(1) Amounts represent the impact of legally enforceable master netting agreements and also cash collateral held or placed with the same counterparties.
(2) Includes $21.3 billion of GSE obligations.
(3) Includes securities with a fair value of $16.8 billion that were segregated in compliance with securities regulations or deposited with clearing organizations. This amount is included in the parenthetical
disclosure on the Consolidated Balance Sheet.
(4) Includes MSRs of $2.3 billion which are classified as Level 3 assets.
(5) Total recurring Level 3 assets were 0.57 percent of total consolidated assets, and total recurring Level 3 liabilities were 0.38 percent of total consolidated liabilities.

The following tables present a reconciliation of all assets and liabilities measured at fair value on a recurring basis using significant
unobservable inputs (Level 3) during 2018, 2017 and 2016, including net realized and unrealized gains (losses) included in earnings
and accumulated OCI.
Level 3 – Fair Value Measurements in 2018 (1)
Change in
Unrealized
Total Gains
Realized/ (Losses) in
Unrealized Net Income
Gains Gross Gross Related to
Balance (Losses) in Gains Transfers Transfers Balance Financial
January 1 Net (Losses) Gross into out of December 31 Instruments
(Dollars in millions) 2018 Income (2) in OCI (3) Purchases Sales Issuances Settlements Level 3 Level 3 2018 Still Held (2)
Corporate securities, trading loans and other $ 1,864 $ (32) $ (1) $ 436 $ (403) $ 5 $ (568) $ 804 $ (547) $ 1,558 $ (117)
Equity securities 235 (17) — 44 (11) — (4) 78 (49) 276 (22)
Non-U.S. sovereign debt 556 47 (44) 13 (57) — (30) 117 (137) 465 48
Mortgage trading loans, ABS and other MBS 1,498 148 3 585 (910) — (158) 705 (236) 1,635 97
Total trading account assets 4,153 146 (42) 1,078 (1,381) 5 (760) 1,704 (969) 3,934 6
Net derivative assets (4) (1,714) 106 — 531 (1,179) — 778 39 504 (935) (116)
Non-agency residential MBS — 27 (33) — (71) — (25) 774 (75) 597 —
Non-U.S. securities 25 — (1) — (10) — (15) 3 — 2 —
Other taxable securities 509 1 (3) — (23) — (11) 60 (526) 7 —
Tax-exempt securities 469 — — — — — (1) 1 (469) — —
Total AFS debt securities (5) 1,003 28 (37) — (104) — (52) 838 (1,070) 606 —
Other debt securities carried at fair value –
Non-agency residential MBS — (18) — — (8) — (34) 365 (133) 172 (18)
Loans and leases (6, 7) 571 (16) — — (134) — (83) — — 338 (9)
Loans held-for-sale (6) 690 44 (26) 71 — 1 (201) 23 (60) 542 31
Other assets (5, 7, 8) 2,425 414 (38) 2 (69) 96 (792) 929 (35) 2,932 149
Trading account liabilities – Corporate
securities and other (24) 11 — 9 (12) (2) — — — (18) (7)
Accrued expenses and other liabilities (6) (8) — — — — — 8 — — — —
Long-term debt (6) (1,863) 103 4 9 — (141) 486 (262) 847 (817) 95
(1) Assets (liabilities). For assets, increase (decrease) to Level 3 and for liabilities, (increase) decrease to Level 3.
(2) Includes gains (losses) reported in earnings in the following income statement line items: Trading account assets/liabilities - predominantly trading account profits; Net derivative assets - primarily
trading account profits and other income; Other debt securities carried at fair value - other income; Loans and leases - other income; Loans held-for-sale - other income; Other assets - primarily other
income related to MSRs; Long-term debt - primarily trading account profits. For MSRs, the amounts reflect the changes in modeled MSR fair value due to observed changes in interest rates, volatility,
spreads and the shape of the forward swap curve, and periodic adjustments to the valuation model to reflect changes in the modeled relationships between inputs and projected cash flows, as well
as changes in cash flow assumptions including cost to service.
(3) Includes unrealized gains (losses) in OCI on AFS debt securities, foreign currency translation adjustments and the impact of changes in the Corporation’s credit spreads on long-term debt accounted
for under the fair value option. Total gains (losses) in OCI include net unrealized losses of $105 million related to financial instruments still held at December 31, 2018. For additional information,
see Note 1 – Summary of Significant Accounting Principles.
(4) Net derivative assets include derivative assets of $3.5 billion and derivative liabilities of $4.4 billion.
(5) Transfers out of AFS debt securities and into other assets primarily relate to the reclassification of certain securities.
(6) Amounts represent instruments that are accounted for under the fair value option.
(7) Issuances represent loan originations and MSRs recognized following securitizations or whole-loan sales.
(8) Settlements primarily represent the net change in fair value of the MSR asset due to the recognition of modeled cash flows and the passage of time.
Transfers into Level 3, primarily due to decreased price on the value of the embedded derivative in relation to the
observability, during 2018 included $1.7 billion of trading account instrument as a whole.
assets, $838 million of AFS debt securities, $365 million of other Transfers out of Level 3, primarily due to increased price
debt securities carried at fair value and $262 million of long-term observability, during 2018 included $969 million of trading account
debt. Transfers occur on a regular basis for long-term debt assets, $504 million of net derivatives assets, $1.1 billion of AFS
instruments due to changes in the impact of unobservable inputs debt securities and $847 million of long-term debt.

Change in
Unrealized
Total Gains
Gains Gross Gross Related to
Balance (Losses) in Gains Transfers Transfers Balance Financial
January 1 Net (Losses) Gross into out of December 31 Instruments
Corporate securities, trading loans and other $ 2,777 $ 229 $ — $ 547 $ (702) $ 5 $ (666) $ 728 $(1,054) $ 1,864 $ 2
Equity securities 281 18 — 55 (70) — (10) 146 (185) 235 (1)
Non-U.S. sovereign debt 510 74 (8) 53 (59) — (73) 72 (13) 556 70
Mortgage trading loans, ABS and other MBS 1,211 165 (2) 1,210 (990) — (233) 218 (81) 1,498 72
Total trading account assets 4,779 486 (10) 1,865 (1,821) 5 (982) 1,164 (1,333) 4,153 143
Net derivative assets (4) (1,313) (984) — 664 (979) — 949 48 (99) (1,714) (409)
Non-U.S. securities 229 2 16 49 — — (271) — — 25 —
Other taxable securities 594 4 8 5 — — (42) 34 (94) 509 —
Tax-exempt securities 542 1 3 14 (70) — (11) 35 (45) 469 —
Total AFS debt securities 1,365 7 27 68 (70) — (324) 69 (139) 1,003 —
Non-agency residential MBS 25 (1) — — (21) — (3) — — — —
Loans and leases (5) 720 15 — 3 (34) — (126) — (7) 571 11
Loans held-for-sale (5, 6) 656 100 (3) 3 (189) — (346) 501 (32) 690 14
Other assets (6, 7) 2,986 144 (57) 2 (214) 258 (758) 64 — 2,425 (226)
Federal funds purchased and securities loaned
or sold under agreements to repurchase (5) (359) (5) — — — (12) 171 (58) 263 — —
securities and other (27) 14 — 8 (17) (2) — — — (24) 2
Accrued expenses and other liabilities (5) (9) — — — — — 1 — — (8) —
Long-term debt (5) (1,514) (135) (31) 84 — (288) 514 (711) 218 (1,863) (196)
(2) Includes gains (losses) reported in earnings in the following income statement line items: Trading account assets/liabilities - predominantly trading account profits; Net derivative assets - primarily
trading account profits and other income; Other debt securities carried at fair value - other income; Loans and leases - other income; Loans held-for-sale - other income; Other assets - primarily other
income related to MSRs; Long-term debt - trading account profits. For MSRs, the amounts reflect the changes in modeled MSR fair value due to observed changes in interest rates, volatility, spreads
and the shape of the forward swap curve, and periodic adjustments to the valuation model to reflect changes in the modeled relationships between inputs and projected cash flows, as well as
changes in cash flow assumptions including cost to service.
(3) Includes unrealized gains (losses) in OCI on AFS debt securities, foreign currency translation adjustments and the impact of changes in the Corporation’s credit spreads on long-term debt accounted
for under the fair value option. For additional information, see Note 1 – Summary of Significant Accounting Principles.
(4) Net derivative assets include derivative assets of $4.1 billion and derivative liabilities of $5.8 billion.
(7) Settlements primarily represent the net change in fair value of the MSR asset due to the recognition of modeled cash flows and the passage of time.
Transfers into Level 3, primarily due to decreased price Transfers out of Level 3, primarily due to increased price
observability, during 2017 included $1.2 billion of trading account observability, during 2017 included $1.3 billion of trading account
assets, $501 million of LHFS and $711 million of long-term debt. assets, $139 million of AFS debt securities, $263 million of federal
Transfers occur on a regular basis for long-term debt instruments funds purchased and securities loaned or sold under agreements
due to changes in the impact of unobservable inputs on the value to repurchase and $218 million of long-term debt.
of the embedded derivative in relation to the instrument as a whole.

Change in
Unrealized
Total Gains/
Gains/ Related to
Gross Gross
Balance (Losses) in Gains/ Transfers Transfers Balance Financial
January 1 Net (Losses) Gross December 31 Instruments
into out of
Corporate securities, trading loans and other $ 2,838 $ 78 $ 2 $ 1,508 $ (847) $ — $ (725) $ 728 $ (805) $ 2,777 $ (82)
Equity securities 407 74 — 73 (169) — (82) 70 (92) 281 (59)
Non-U.S. sovereign debt 521 122 91 12 (146) — (90) — — 510 120
Mortgage trading loans, ABS and other MBS 1,868 188 (2) 988 (1,491) — (344) 158 (154) 1,211 64
Total trading account assets 5,634 462 91 2,581 (2,653) — (1,241) 956 (1,051) 4,779 43
Net derivative assets (4) (441) 285 — 470 (1,155) — 76 (186) (362) (1,313) (376)
Non-agency residential MBS 106 — — — (106) — — — — — —
Non-U.S. securities — — (6) 584 (92) — (263) 6 — 229 —
Other taxable securities 757 4 (2) — — — (83) — (82) 594 —
Tax-exempt securities 569 — (1) 1 — — (2) 10 (35) 542 —
Total AFS debt securities 1,432 4 (9) 585 (198) — (348) 16 (117) 1,365 —
Non-agency residential MBS 30 (5) — — — — — — — 25 —
Loans and leases (5, 6) 1,620 (44) — 69 (553) 50 (194) 6 (234) 720 17
Loans held-for-sale (5) 787 79 50 22 (256) — (93) 173 (106) 656 70
Other assets (6, 7) 3,461 136 — 38 (191) 411 (872) 3 — 2,986 (143)
Federal funds purchased and securities loaned
or sold under agreements to repurchase (5) (335) (11) — — — (22) 27 (19) 1 (359) 4
securities and other (21) 5 — — (11) — — — — (27) 4
Short-term borrowings (5) (30) 1 — — — — 29 — — — —
Accrued expenses and other liabilities (5) (9) — — — — — — — — (9) —
Long-term debt (5) (1,513) (74) (20) 140 — (521) 948 (939) 465 (1,514) (184)
(2) Includes gains/losses reported in earnings in the following income statement line items: Trading account assets/liabilities - trading account profits; Net derivative assets - primarily trading account
profits and other income; Other debt securities carried at fair value - other income; Loans and leases - other income; Loans held-for-sale - other income; Other assets - primarily other income related
to MSRs; Long-term debt - predominantly trading account profits. For MSRs, the amounts reflect the changes in modeled MSR fair value due to observed changes in interest rates, volatility, spreads
and the shape of the forward swap curve, and periodic adjustments to the valuation model to reflect changes in the modeled relationships between inputs and projected cash flows, as well as
changes in cash flow assumptions including cost to service.
(3) Includes unrealized gains/losses in OCI on AFS debt securities, foreign currency translation adjustments and the impact of changes in the Corporation’s credit spreads on long-term debt accounted
for under the fair value option. For more information, see Note 1 – Summary of Significant Accounting Principles.
(4) Net derivatives include derivative assets of $3.9 billion and derivative liabilities of $5.2 billion.
(7) Settlements represent the net change in fair value of the MSR asset due to the recognition of modeled cash flows and the passage of time.
Transfers into Level 3, primarily due to decreased price Transfers out of Level 3, primarily due to increased price
observability, during 2016 included $956 million of trading account observability, during 2016 included $1.1 billion of trading account
assets, $186 million of net derivative assets, $173 million of LHFS assets, $362 million of net derivative assets, $117 million of AFS
and $939 million of long-term debt. Transfers occur on a regular debt securities, $234 million of loans and leases, $106 million
basis for long-term debt instruments due to changes in the impact of LHFS and $465 million of long-term debt.
of unobservable inputs on the value of the embedded derivative
in relation to the instrument as a whole.

The following tables present information about significant unobservable inputs related to the Corporation’s material categories of
Level 3 financial assets and liabilities at December 31, 2018 and 2017.
Quantitative Information about Level 3 Fair Value Measurements at December 31, 2018
(Dollars in millions) Inputs
Fair Valuation Significant Unobservable Ranges of Weighted

Financial Instrument Value Technique Inputs Inputs Average (1)
Loans and Securities (2)
Instruments backed by residential real estate assets $ 1,536 Yield 0% to 25% 8%

Trading account assets – Mortgage trading loans, ABS and other MBS 419 Prepayment speed 0% to 21% CPR 12%
Loans and leases 338 Discounted cash Default rate 0% to 3% CDR 1%
flow, Market
Loans held-for-sale 1 comparables Loss severity 0% to 51% 17%
AFS debt securities, primarily non-agency residential 606 Price $0 to $128 $72
Other debt securities carried at fair value - Non-agency residential 172
Instruments backed by commercial real estate assets $ 291 Yield 0% to 25% 7%
Discounted cash
Trading account assets – Corporate securities, trading loans and other 200 Price $0 to $100 $79
flow
Trading account assets – Mortgage trading loans, ABS and other MBS 91
Commercial loans, debt securities and other $ 3,489 Yield 1% to 18% 13%
Trading account assets – Corporate securities, trading loans and other 1,358 Discounted cash Prepayment speed 10% to 20% 15%
Trading account assets – Non-U.S. sovereign debt 465 flow, Market Default rate 3% to 4% 4%
comparables
Trading account assets – Mortgage trading loans, ABS and other MBS 1,125 Loss severity 35% to 40% 38%
Loans held-for-sale 541 Price $0 to $141 $68
Other assets, primarily auction rate securities $ 890 Discounted cash Price $10 to $100 $95
flow, Market
comparables
MSRs $ 2,042 Weighted-average life, fixed rate (5) 0 to 14 years 5 years

Discounted cash Weighted-average life, variable rate (5) 0 to 10 years 3 years
flow Option-adjusted spread, fixed rate 7% to 14% 9%
Option-adjusted spread, variable rate 9% to 15% 12%
Structured liabilities
Long-term debt $ (817) Discounted cash Equity correlation 11% to 100% 67%
flow, Market Long-dated equity volatilities 4% to 84% 32%
comparables,
Industry standard Yield 7% to 18% 16%
derivative pricing (3) Price $0 to $100 $72
Net derivative assets
Credit derivatives $ (565) Yield 0% to 5% 4%
Upfront points 0 points to 100 points 70 points
Discounted cash Credit correlation 70% n/a
flow, Stochastic
Prepayment speed 15% to 20% CPR 15%
recovery correlation
model Default rate 1% to 4% CDR 2%
Loss severity 35% n/a
Price $0 to $138 $93
Equity derivatives $ (348) Industry standard Equity correlation 11% to 100% 67%
derivative pricing (3) Long-dated equity volatilities 4% to 84% 32%
Commodity derivatives $ 10 Discounted cash Natural gas forward price $1/MMBtu to $12/MMBtu $3/MMBtu
flow, Industry
Correlation 38% to 87% 71%
standard derivative
pricing (3) Volatilities 15% to 132% 38%
Interest rate derivatives $ (32) Correlation (IR/IR) 15% to 70% 61%
Industry standard Correlation (FX/IR) 0% to 46% 1%
derivative pricing (4) Long-dated inflation rates -20% to 38% 2%
Long-dated inflation volatilities 0% to 1% 1%
Total net derivative assets $ (935)
(1) For loans and securities, structured liabilities and net derivative assets, the weighted average is calculated based upon the absolute fair value of the instruments.
(2) The categories are aggregated based upon product type which differs from financial statement classification. The following is a reconciliation to the line items in the table on page 167: Trading
account assets – Corporate securities, trading loans and other of $1.6 billion, Trading account assets – Non-U.S. sovereign debt of $465 million, Trading account assets – Mortgage trading loans,
ABS and other MBS of $1.6 billion, AFS debt securities of $606 million, Other debt securities carried at fair value - Non-agency residential of $172 million, Other assets, including MSRs, of $2.9
billion, Loans and leases of $338 million and LHFS of $542 million.
(3) Includes models such as Monte Carlo simulation and Black-Scholes.
(4) Includes models such as Monte Carlo simulation, Black-Scholes and other methods that model the joint dynamics of interest, inflation and foreign exchange rates.
(5) The weighted-average life is a product of changes in market rates of interest, prepayment rates and other model and cash flow assumptions.
CPR = Constant Prepayment Rate

CDR = Constant Default Rate
MMBtu = Million British thermal units
IR = Interest Rate
FX = Foreign Exchange

Quantitative Information about Level 3 Fair Value Measurements at December 31, 2017
(Dollars in millions) Inputs
Fair Valuation Significant Unobservable Ranges of Weighted

Loans and Securities (2)
Instruments backed by residential real estate assets $ 871 Yield 0% to 25% 6%

Trading account assets – Mortgage trading loans, ABS and other MBS 298 Discounted cash Prepayment speed 0% to 22% CPR 12%
Loans and leases 570 flow Default rate 0% to 3% CDR 1%
Loans held-for-sale 3 Loss severity 0% to 53% 17%
Instruments backed by commercial real estate assets $ 286 Yield 0% to 25% 9%
Discounted cash
Trading account assets – Corporate securities, trading loans and other 244 Price $0 to $100 $67
flow
Trading account assets – Mortgage trading loans, ABS and other MBS 42
Commercial loans, debt securities and other $ 4,023 Yield 0% to 12% 5%
Trading account assets – Corporate securities, trading loans and other 1,613 Prepayment speed 10% to 20% 16%
Trading account assets – Non-U.S. sovereign debt 556 Discounted cash Default rate 3% to 4% 4%
Trading account assets – Mortgage trading loans, ABS and other MBS 1,158 flow, Market Loss severity 35% to 40% 37%
comparables
AFS debt securities – Other taxable securities 8 Price $0 to $145 $63
Loans and leases 1
Loans held-for-sale 687
Auction rate securities $ 977 Price $10 to $100 $94
Trading account assets – Corporate securities, trading loans and other 7 Discounted cash
flow, Market
AFS debt securities – Other taxable securities 501 comparables
AFS debt securities – Tax-exempt securities 469
MSRs $ 2,302 Weighted-average life, fixed rate (5) 0 to 14 years 5 years
Discounted cash Weighted-average life, variable rate (5) 0 to 10 years 3 years
flow Option-adjusted spread, fixed rate 9% to 14% 10%
Option-adjusted spread, variable rate 9% to 15% 12%
Structured liabilities
Long-term debt $ (1,863) Discounted cash Equity correlation 15% to 100% 63%
flow, Market Long-dated equity volatilities 4% to 84% 22%
comparables,
Industry standard Yield 7.5% n/a
derivative pricing (3) Price $0 to $100 $66
Net derivative assets
Credit derivatives $ (282) Yield 1% to 5% 3%
Upfront points 0 points to 100 points 71 points
Discounted cash Credit correlation 35% to 83% 42%
flow, Stochastic
Prepayment speed 15% to 20% CPR 16%
recovery correlation
model Default rate 1% to 4% CDR 2%
Loss severity 35% n/a
Price $0 to $102 $82
Equity derivatives $ (2,059) Industry standard Equity correlation 15% to 100% 63%
derivative pricing (3) Long-dated equity volatilities 4% to 84% 22%
Commodity derivatives $ (3) Discounted cash Natural gas forward price $1/MMBtu to $5/MMBtu $3/MMBtu
flow, Industry Correlation 71% to 87% 81%
standard derivative
pricing (3) Volatilities 26% to 132% 57%
Interest rate derivatives $ 630 Correlation (IR/IR) 15% to 92% 50%
Industry standard Correlation (FX/IR) 0% to 46% 1%
derivative pricing (4) Long-dated inflation rates -14% to 38% 4%
Long-dated inflation volatilities 0% to 1% 1%
Total net derivative assets $ (1,714)
(1) For loans and securities, structured liabilities and net derivative assets, the weighted average is calculated based upon the absolute fair value of the instruments.
(2) The categories are aggregated based upon product type which differs from financial statement classification. The following is a reconciliation to the line items in the table on page 168: Trading
account assets – Corporate securities, trading loans and other of $1.9 billion, Trading account assets – Non-U.S. sovereign debt of $556 million, Trading account assets – Mortgage trading loans,
ABS and other MBS of $1.5 billion, AFS debt securities – Other taxable securities of $509 million, AFS debt securities – Tax-exempt securities of $469 million, Loans and leases of $571 million and
LHFS of $690 million.
(3) Includes models such as Monte Carlo simulation and Black-Scholes.
(4) Includes models such as Monte Carlo simulation, Black-Scholes and other methods that model the joint dynamics of interest, inflation and foreign exchange rates.
(5) The weighted-average life is a product of changes in market rates of interest, prepayment rates and other model and cash flow assumptions.
CPR = Constant Prepayment Rate

CDR = Constant Default Rate
MMBtu = Million British thermal units
IR = Interest Rate
FX = Foreign Exchange

In the previous tables, instruments backed by residential and dependence among credit default rates within a credit portfolio
commercial real estate assets include RMBS, commercial MBS, that underlies a credit derivative instrument. The sensitivity of this
whole loans and mortgage CDOs. Commercial loans, debt input on the fair value varies depending on the level of
securities and other include corporate CLOs and CDOs, subordination of the tranche. For senior tranches that are net
commercial loans and bonds, and securities backed by non-real purchases of protection, a significant increase in default
estate assets. Structured liabilities primarily include equity-linked correlation would have resulted in a significantly higher fair value.
notes that are accounted for under the fair value option. Net short protection positions would have been impacted in a
The Corporation uses multiple market approaches in valuing directionally opposite way.
certain of its Level 3 financial instruments. For example, market For equity derivatives, commodity derivatives, interest rate
comparables and discounted cash flows are used together. For a derivatives and structured liabilities, a significant change in long-
given product, such as corporate debt securities, market dated rates and volatilities and correlation inputs (i.e., the degree
comparables may be used to estimate some of the unobservable of correlation between an equity security and an index, between
inputs and then these inputs are incorporated into a discounted two different commodities, between two different interest rates,
cash flow model. Therefore, the balances disclosed encompass or between interest rates and foreign exchange rates) would have
both of these techniques. resulted in a significant impact to the fair value; however, the
The level of aggregation and diversity within the products magnitude and direction of the impact depend on whether the
disclosed in the tables results in certain ranges of inputs being Corporation is long or short the exposure. For structured liabilities,
wide and unevenly distributed across asset and liability categories. a significant increase in yield or decrease in price would have
resulted in a significantly lower fair value. A significant decrease
Uncertainty of Fair Value Measurements from in duration would have resulted in a significantly higher fair value.
Unobservable Inputs
Sensitivity of Fair Value Measurements for Mortgage
Loans and Securities Servicing Rights
A significant increase in market yields, default rates, loss The weighted-average lives and fair value of MSRs are sensitive
severities or duration would have resulted in a significantly lower to changes in modeled assumptions. The weighted-average life is
fair value for long positions. Short positions would have been a product of changes in market rates of interest, prepayment rates
impacted in a directionally opposite way. The impact of changes and other model and cash flow assumptions. The weighted-average
in prepayment speeds would have resulted in differing impacts life represents the average period of time that the MSRs’ cash
depending on the seniority of the instrument and, in the case of flows are expected to be received. Absent other changes, an
CLOs, whether prepayments can be reinvested. A significant increase (decrease) to the weighted-average life would generally
increase in price would have resulted in a significantly higher fair result in an increase (decrease) in the fair value of the MSRs. For
value for long positions, and short positions would have been example, a 10 percent or 20 percent decrease in prepayment rates,
impacted in a directionally opposite way. which impacts the weighted-average life, could result in an increase
in fair value of $64 million or $133 million, while a 10 percent or
Structured Liabilities and Derivatives
20 percent increase in prepayment rates could result in a decrease
For credit derivatives, a significant increase in market yield, upfront
in fair value of $59 million or $115 million. A 100 bp or 200 bp
points (i.e., a single upfront payment made by a protection buyer
decrease in OAS levels could result in an increase in fair value of
at inception), credit spreads, default rates or loss severities would
$63 million or $131 million, while a 100 bp or 200 bp increase
have resulted in a significantly lower fair value for protection sellers
in OAS levels could result in a decrease in fair value of $59 million
and higher fair value for protection buyers. The impact of changes
or $115 million. These sensitivities are hypothetical and actual
in prepayment speeds would have resulted in differing impacts
amounts may vary materially.
depending on the seniority of the instrument.
Structured credit derivatives are impacted by credit correlation.
Default correlation is a parameter that describes the degree of

Nonrecurring Fair Value
The Corporation holds certain assets that are measured at fair value, but only in certain situations (e.g., impairment) and these
measurements are referred to herein as nonrecurring. The amounts below represent assets still held as of the reporting date for which
a nonrecurring fair value adjustment was recorded during 2018, 2017 and 2016.
Assets Measured at Fair Value on a Nonrecurring Basis

(Dollars in millions) Level 2 Level 3 Level 2 Level 3
Assets
Loans held-for-sale $ 274 $ — $ — $ 2
Loans and leases (1) — 474 — 894
Foreclosed properties (2, 3) — 42 — 83
Other assets 331 14 425 —
Gains (Losses)
2018 2017 2016
Assets
Loans held-for-sale $ (18) $ (6) $ (54)
Loans and leases (1) (202) (336) (458)
Foreclosed properties (24) (41) (41)
Other assets (64) (124) (74)
(1) Includes $83 million, $135 million and $150 million of losses on loans that were written down to a collateral value of zero during 2018, 2017 and 2016, respectively.
(2) Amounts are included in other assets on the Consolidated Balance Sheet and represent the carrying value of foreclosed properties that were written down subsequent to their initial classification
as foreclosed properties. Losses on foreclosed properties include losses recorded during the first 90 days after transfer of a loan to foreclosed properties.
(3) Excludes $488 million and $801 million of properties acquired upon foreclosure of certain government-guaranteed loans (principally FHA-insured loans) at December 31, 2018 and 2017.
The table below presents information about significant unobservable inputs related to the Corporation’s nonrecurring Level 3 financial
assets and liabilities at December 31, 2018 and 2017. Loans and leases backed by residential real estate assets represent residential
mortgages where the loan has been written down to the fair value of the underlying collateral.
Quantitative Information about Nonrecurring Level 3 Fair Value Measurements

Inputs
Significant
Fair Valuation Unobservable Ranges of Weighted
Loans and leases backed by residential real estate assets $ 474 Market comparables OREO discount 13% to 59% 25%
Costs to sell 8% to 26% 9%
December 31, 2017

Loans and leases backed by residential real estate assets $ 894 Market comparables OREO discount 15% to 58% 23%
Costs to sell 5% to 49% 7%
(1) The weighted average is calculated based upon the fair value of the loans.
NOTE 21 Fair Value Option Loans Held-for-sale

The Corporation elects to account for residential mortgage LHFS,
Loans and Loan Commitments commercial mortgage LHFS and certain other LHFS under the fair
The Corporation elects to account for certain loans and loan value option with interest income on these LHFS recorded in other
commitments that exceed the Corporation’s single-name credit interest income. These loans are actively managed and monitored
risk concentration guidelines under the fair value option. Lending and, as appropriate, certain market risks of the loans may be
commitments are actively managed and, as appropriate, credit risk mitigated through the use of derivatives. The Corporation has
for these lending relationships may be mitigated through the use elected not to designate the derivatives as qualifying accounting
of credit derivatives, with the Corporation’s public side credit view hedges and therefore they are carried at fair value with changes
and market perspectives determining the size and timing of the in fair value recorded in other income. The changes in fair value
hedging activity. These credit derivatives do not meet the of the loans are largely offset by changes in the fair value of the
requirements for designation as accounting hedges and therefore derivatives. The fair value option allows the Corporation to reduce
are carried at fair value with changes in fair value recorded in other the accounting volatility that would otherwise result from the
income. The fair value option allows the Corporation to carry these asymmetry created by accounting for the financial instruments at
loans and loan commitments at fair value, which is more consistent the lower of cost or fair value and the derivatives at fair value. The
with management’s view of the underlying economics and the Corporation has not elected to account for certain other LHFS
manner in which they are managed. In addition, the fair value option under the fair value option primarily because these loans are
allows the Corporation to reduce the accounting volatility that floating-rate loans that are not hedged using derivative
would otherwise result from the asymmetry created by accounting instruments.
for the financial instruments at historical cost and the credit
derivatives at fair value.

Loans Reported as Trading Account Assets the accounting volatility that would otherwise result from the
The Corporation elects to account for certain loans that are held asymmetry created by accounting for the financial instruments at
for the purpose of trading and are risk-managed on a fair value historical cost and the derivatives at fair value. The Corporation
basis under the fair value option. has not elected to carry other long-term deposits at fair value
because they are not hedged using derivatives.
Other Assets
The Corporation elects to account for certain long-term fixed-rate Short-term Borrowings
margin loans that are hedged with derivatives under the fair value The Corporation elects to account for certain short-term
option. Election of the fair value option allows the Corporation to borrowings, primarily short-term structured liabilities, under the
reduce the accounting volatility that would otherwise result from fair value option because this debt is risk-managed on a fair value
the asymmetry created by accounting for the financial instruments basis.
at historical cost and the derivatives at fair value. The Corporation elects to account for certain asset-backed
secured financings, which are also classified in short-term
Securities Financing Agreements borrowings, under the fair value option. Election of the fair value
The Corporation elects to account for certain securities financing option allows the Corporation to reduce the accounting volatility
agreements, including resale and repurchase agreements, under that would otherwise result from the asymmetry created by
the fair value option based on the tenor of the agreements, which accounting for the asset-backed secured financings at historical
reflects the magnitude of the interest rate risk. The majority of cost and the corresponding mortgage LHFS securing these
securities financing agreements collateralized by U.S. government financings at fair value.
securities are not accounted for under the fair value option as
these contracts are generally short-dated and therefore the Long-term Debt
interest rate risk is not significant. The Corporation elects to account for certain long-term debt,
primarily structured liabilities, under the fair value option. This long-
Long-term Deposits term debt is either risk-managed on a fair value basis or the related
The Corporation elects to account for certain long-term fixed-rate hedges do not qualify for hedge accounting.
and rate-linked deposits that are hedged with derivatives that do
not qualify for hedge accounting under the fair value option. Fair Value Option Elections
Election of the fair value option allows the Corporation to reduce The table below provides information about the fair value carrying
amount and the contractual principal outstanding of assets and
liabilities accounted for under the fair value option at December
31, 2018 and 2017.
Fair Value Option Elections

Fair Value Fair Value
Fair Value Contractual Carrying Fair Value Contractual Carrying
Carrying Principal Amount Less Carrying Principal Amount Less
(Dollars in millions) Amount Outstanding Unpaid Principal Amount Outstanding Unpaid Principal
Federal funds sold and securities borrowed or
purchased under agreements to resell $ 56,399 $ 56,376 $ 23 $ 52,906 $ 52,907 $ (1)
Loans reported as trading account assets (1) 6,195 13,088 (6,893) 5,735 11,804 (6,069)
Trading inventory – other 13,778 n/a n/a 12,027 n/a n/a
Consumer and commercial loans 4,349 4,399 (50) 5,710 5,744 (34)
Loans held-for-sale (1) 2,942 4,749 (1,807) 2,156 3,717 (1,561)
Other assets 3 n/a n/a 3 n/a n/a
Long-term deposits 492 454 38 449 421 28
Federal funds purchased and securities loaned or
sold under agreements to repurchase 28,875 28,881 (6) 36,182 36,187 (5)
Short-term borrowings 1,648 1,648 — 1,494 1,494 —
Unfunded loan commitments 169 n/a n/a 120 n/a n/a
Long-term debt (2) 27,637 29,147 (1,510) 31,786 31,512 274
(1)A significant portion of the loans reported as trading account assets and LHFS are distressed loans that were purchased at a deep discount to par, and the remainder are loans with a fair value near
contractual principal outstanding.
(2)Includes structured liabilities with a fair value of $27.3 billion and $31.4 billion, and contractual principal outstanding of $28.8 billion and $31.1 billion at December 31, 2018 and 2017.

The following tables provide information about where changes in the fair value of assets and liabilities accounted for under the fair
value option are included in the Consolidated Statement of Income for 2018, 2017 and 2016.
Gains (Losses) Relating to Assets and Liabilities Accounted for Under the Fair Value Option
Trading Account Other
Profits Income Total
Loans reported as trading account assets (1) $ 8 $ — $ 8
Trading inventory – other (2) 1,750 — 1,750
Consumer and commercial loans (1) (422) (53) (475)
Loans held-for-sale (1, 3) 1 24 25
Unfunded loan commitments — (49) (49)
Long-term debt (4, 5) 2,157 (93) 2,064
Other (6) 8 18 26
Total $ 3,502 $ (153) $ 3,349
2017
Trading inventory – other (2) 3,821 — 3,821
Consumer and commercial loans (1) (9) 35 26
Loans held-for-sale (1, 3) — 298 298
Unfunded loan commitments — 36 36
Long-term debt (4, 5) (1,044) (146) (1,190)
Other (6) (93) 13 (80)
Total $ 2,993 $ 236 $ 3,229
2016
Trading inventory – other (2) 57 — 57
Consumer and commercial loans (1) 49 (37) 12
Loans held-for-sale (1, 3) 11 524 535
Unfunded loan commitments — 487 487
Long-term debt (4, 5) (489) (97) (586)
Other (6) (85) 53 (32)
Total $ (156) $ 930 $ 774
(1) Gains (losses) related to borrower-specific credit risk were not significant.
(2) The gains in trading account profits are primarily offset by losses on trading liabilities that hedge these assets.
(3) Includes the value of IRLCs on funded loans, including those sold during the period.
(4) The majority of the net gains (losses) in trading account profits relate to the embedded derivatives in structured liabilities and are offset by gains (losses) on derivatives and securities that hedge
these liabilities.
(5) For the cumulative impact of changes in the Corporation’s own credit spreads and the amount recognized in accumulated OCI, see Note 14 – Accumulated Other Comprehensive Income (Loss). For
more information on how the Corporation’s own credit spread is determined, see Note 20 – Fair Value Measurements.
(6) Includes gains (losses) on federal funds sold and securities borrowed or purchased under agreements to resell, other assets, long-term deposits, federal funds purchased and securities loaned or
sold under agreements to repurchase and short-term borrowings.
NOTE 22 Fair Value of Financial Instruments approximates the fair value of these instruments. These financial
Financial instruments are classified within the fair value hierarchy instruments generally expose the Corporation to limited credit risk
using the methodologies described in Note 20 – Fair Value and have no stated maturities or have short-term maturities and
Measurements. Certain loans, deposits, long-term debt and carry interest rates that approximate market. The Corporation
unfunded lending commitments are accounted for under the fair accounts for certain resale and repurchase agreements under the
value option. For additional information, see Note 21 – Fair Value fair value option.
Option. The following disclosures include financial instruments Under the fair value hierarchy, cash and cash equivalents are
that are not carried at fair value or only a portion of the ending classified as Level 1. Time deposits placed and other short-term
balance is carried at fair value on the Consolidated Balance Sheet. investments, such as U.S. government securities and short-term
commercial paper, are classified as Level 1 or Level 2. Federal
Short-term Financial Instruments funds sold and purchased are classified as Level 2. Resale and
The carrying value of short-term financial instruments, including repurchase agreements are classified as Level 2 because they
cash and cash equivalents, certain time deposits placed and other are generally short-dated and/or variable-rate instruments
short-term investments, federal funds sold and purchased, certain collateralized by U.S. government or agency securities. Short-term
resale and repurchase agreements and short-term borrowings, borrowings are classified as Level 2.

Fair Value of Financial Instruments management, trust and banking needs, including specialty asset
The carrying values and fair values by fair value hierarchy of certain management services.
financial instruments where only a portion of the ending balance
was carried at fair value at December 31, 2018 and 2017 are Global Banking
presented in the following table. Global Banking provides a wide range of lending-related products
and services, integrated working capital management and treasury
solutions, and underwriting and advisory services through the
Fair Value of Financial Instruments Corporation’s network of offices and client relationship teams.
Global Banking also provides investment banking products to
Fair Value
clients. The economics of certain investment banking and
Carrying
Value Level 2 Level 3 Total
underwriting activities are shared primarily between Global Banking
and Global Markets under an internal revenue-sharing
Financial assets arrangement. Global Banking clients generally include middle-
Loans $ 911,520 $ 58,228 $ 859,160 $ 917,388 market companies, commercial real estate firms, not-for-profit
Loans held-for-sale 10,367 9,592 775 10,367 companies, large global corporations, financial institutions,
Financial liabilities leasing clients, and mid-sized U.S.-based businesses requiring
Deposits (1) 1,381,476 1,381,239 — 1,381,239 customized and integrated financial advice and solutions.
Long-term debt 229,340 229,967 817 230,784
Commercial Global Markets
unfunded lending Global Markets offers sales and trading services and research
commitments (2) 966 169 5,558 5,727
services to institutional clients across fixed-income, credit,
December 31, 2017
currency, commodity and equity businesses. Global Markets
Financial assets provides market-making, financing, securities clearing, settlement
Loans $ 904,399 $ 68,586 $ 849,576 $ 918,162 and custody services globally to institutional investor clients in
Loans held-for-sale 11,430 10,521 909 11,430 support of their investing and trading activities. Global Markets
Financial liabilities product coverage includes securities and derivative products in
Deposits (1) 1,309,545 1,309,398 — 1,309,398 both the primary and secondary markets. Global Markets also
Long-term debt 227,402 235,126 1,863 236,989 works with commercial and corporate clients to provide risk
Commercial management products. As a result of market-making activities,
unfunded lending Global Markets may be required to manage risk in a broad range
commitments (2) 897 120 3,908 4,028
of financial products. In addition, the economics of certain
(1) Includes demand deposits of $531.9 billion and $519.6 billion with no stated maturities at investment banking and underwriting activities are shared primarily
December 31, 2018 and 2017.
(2) The carrying value of commercial unfunded lending commitments is included in accrued between Global Markets and Global Banking under an internal
expenses and other liabilities on the Consolidated Balance Sheet. The Corporation does not revenue-sharing arrangement.
estimate the fair value of consumer unfunded lending commitments because, in many instances,
the Corporation can reduce or cancel these commitments by providing notice to the borrower.
For more information on commitments, see Note 12 – Commitments and Contingencies. All Other
All Other consists of ALM activities, equity investments, non-core
NOTE 23 Business Segment Information mortgage loans and servicing activities, the net impact of periodic
The Corporation reports its results of operations through the revisions to the MSR valuation model for core and non-core MSRs
following four business segments: Consumer Banking, GWIM, and the related economic hedge results, liquidating businesses
Global Banking and Global Markets, with the remaining operations and residual expense allocations. ALM activities encompass
recorded in All Other. certain residential mortgages, debt securities, interest rate and
foreign currency risk management activities, the impact of certain
Consumer Banking allocation methodologies and hedge ineffectiveness. The results
Consumer Banking offers a diversified range of credit, banking and of certain ALM activities are allocated to the business segments.
investment products and services to consumers and small Equity investments include the merchant services joint venture as
businesses. Consumer Banking product offerings include well as a portfolio of equity, real estate and other alternative
traditional savings accounts, money market savings accounts, CDs investments.
and IRAs, checking accounts, and investment accounts and
products, as well as credit and debit cards, residential mortgages Basis of Presentation
and home equity loans, and direct and indirect loans to consumers The management accounting and reporting process derives
and small businesses in the U.S. Consumer Banking includes the segment and business results by utilizing allocation
impact of servicing residential mortgages and home equity loans methodologies for revenue and expense. The net income derived
in the core portfolio. for the businesses is dependent upon revenue and cost allocations
using an activity-based costing model, funds transfer pricing, and
Global Wealth & Investment Management other methodologies and assumptions management believes are
GWIM provides a high-touch client experience through a network appropriate to reflect the results of the business.
of financial advisors focused on clients with over $250,000 in Total revenue, net of interest expense, includes net interest
total investable assets, including tailored solutions to meet income on an FTE basis and noninterest income. The adjustment
clients’ needs through a full set of investment management, of net interest income to an FTE basis results in a corresponding
brokerage, banking and retirement products. GWIM also provides increase in income tax expense. The segment results also reflect
comprehensive wealth management solutions targeted to high net certain revenue and expense methodologies that are utilized to
worth and ultra high net worth clients, as well as customized determine net income. The net interest income of the businesses
solutions to meet clients’ wealth structuring, investment includes the results of a funds transfer pricing process that

matches assets and liabilities with similar interest rate sensitivity fluctuate based on the performance of the ALM activities. ALM
and maturity characteristics. In segments where the total of activities include external product pricing decisions including
liabilities and equity exceeds assets, which are generally deposit- deposit pricing strategies, the effects of the Corporation’s internal
taking segments, the Corporation allocates assets to match funds transfer pricing process and the net effects of other ALM
liabilities. Net interest income of the business segments also activities.
includes an allocation of net interest income generated by certain Certain expenses not directly attributable to a specific
of the Corporation’s ALM activities. business segment are allocated to the segments. The costs of
The Corporation’s ALM activities include an overall interest rate certain centralized or shared functions are allocated based on
risk management strategy that incorporates the use of various methodologies that reflect utilization.
derivatives and cash instruments to manage fluctuations in The following table presents net income (loss) and the
earnings and capital that are caused by interest rate volatility. The components thereto (with net interest income on an FTE basis for
Corporation’s goal is to manage interest rate sensitivity so that the business segments, All Other and the total Corporation) for
movements in interest rates do not significantly adversely affect 2018, 2017 and 2016, and total assets at December 31, 2018
earnings and capital. The results of a majority of the Corporation’s and 2017 for each business segment, as well as All Other.
ALM activities are allocated to the business segments and
Results of Business Segments and All Other

At and for the year ended December 31 Total Corporation (1) Consumer Banking
Net interest income $ 48,042 $ 45,592 $ 41,996 $ 27,123 $ 24,307 $ 21,290
Noninterest income 43,815 42,685 42,605 10,400 10,214 10,441
Total revenue, net of interest expense 91,857 88,277 84,601 37,523 34,521 31,731
Provision for credit losses 3,282 3,396 3,597 3,664 3,525 2,715
Noninterest expense 53,381 54,743 55,083 17,713 17,795 17,664
Income before income taxes 35,194 30,138 25,921 16,146 13,201 11,352
Income tax expense 7,047 11,906 8,099 4,117 4,999 4,186
Net income $ 28,147 $ 18,232 $ 17,822 $ 12,029 $ 8,202 $ 7,166
Year-end total assets $ 2,354,507 $ 2,281,234 $ 768,877 $ 749,325
Global Wealth &

Investment Management Global Banking
2018 2017 2016 2018 2017 2016
Net interest income $ 6,294 $ 6,173 $ 5,759 $ 10,881 $ 10,504 $ 9,471
Noninterest income 13,044 12,417 11,891 8,763 9,495 8,974
Total revenue, net of interest expense 19,338 18,590 17,650 19,644 19,999 18,445
Provision for credit losses 86 56 68 8 212 883
Income before income taxes 5,475 4,978 4,416 11,045 11,191 9,076
Income tax expense 1,396 1,885 1,635 2,872 4,238 3,347
Net income $ 4,079 $ 3,093 $ 2,781 $ 8,173 $ 6,953 $ 5,729
Year-end total assets $ 305,906 $ 284,321 $ 441,477 $ 424,533
Global Markets All Other

2018 2017 2016 2018 2017 2016
Net interest income $ 3,171 $ 3,744 $ 4,557 $ 573 $ 864 $ 919
Noninterest income 12,892 12,207 11,533 (1,284) (1,648) (234)
Total revenue, net of interest expense 16,063 15,951 16,090 (711) (784) 685
Provision for credit losses — 164 31 (476) (561) (100)
Income (loss) before income taxes 5,377 5,056 5,888 (2,849) (4,288) (4,811)
Income tax expense (benefit) 1,398 1,763 2,071 (2,736) (979) (3,140)
Net income (loss) $ 3,979 $ 3,293 $ 3,817 $ (113) $ (3,309) $ (1,671)
Year-end total assets $ 641,922 $ 629,013 $ 196,325 $ 194,042
(1) There were no material intersegment revenues.

The table below presents noninterest income and the components thereto for 2018, 2017 and 2016 for each business segment,
as well as All Other. For more information, see Note 1 – Summary of Significant Accounting Principles and Note 2 – Noninterest Income.
Noninterest Income by Business Segment and All Other

Global Wealth &
Total Corporation Consumer Banking Investment Management
(Dollars in millions) 2018 2017 2016 2018 2017 2016 2018 2017 2016
Card income
Interchange fees $ 4,093 $ 3,942 $ 3,960 $ 3,383 $ 3,224 $ 3,271 $ 82 $ 109 $ 106
Other card income 1,958 1,960 1,891 1,906 1,846 1,664 46 44 44
Total card income 6,051 5,902 5,851 5,289 5,070 4,935 128 153 150
Service charges
Deposit-related fees 6,667 6,708 6,545 4,300 4,266 4,142 73 76 74
Lending-related fees 1,100 1,110 1,093 — — — — — —
Total service charges 7,767 7,818 7,638 4,300 4,266 4,142 73 76 74
Asset management fees 10,189 9,310 8,328 147 133 120 10,042 9,177 8,208
Brokerage fees 3,971 4,526 5,021 172 184 200 1,917 2,217 2,666
Total investment and brokerage
services 14,160 13,836 13,349 319 317 320 11,959 11,394 10,874
Underwriting income 2,722 2,821 2,585 (1) — 2 335 316 225
Syndication fees 1,347 1,499 1,388 — — — — — 1
Financial advisory services 1,258 1,691 1,268 — — — 2 2 1
Total investment banking income 5,327 6,011 5,241 (1) — 2 337 318 227
Trading account profits 8,540 7,277 6,902 8 3 — 112 144 175
Other income 1,970 1,841 3,624 485 558 1,042 435 332 391
Total noninterest income $ 43,815 $ 42,685 $ 42,605 $ 10,400 $ 10,214 $ 10,441 $ 13,044 $ 12,417 $ 11,891
Global Banking Global Markets All Other (1)

2018 2017 2016 2018 2017 2016 2018 2017 2016
Card income
Interchange fees $ 533 $ 506 $ 483 $ 95 $ 94 $ 79 $ — $ 9 $ 21
Other card income 8 12 20 (2) (2) (5) — 60 168
Total card income 541 518 503 93 92 74 — 69 189
Service charges
Deposit-related fees 2,111 2,197 2,170 161 147 143 22 22 16
Lending-related fees 916 928 924 184 182 169 — — —
Total service charges 3,027 3,125 3,094 345 329 312 22 22 16
Asset management fees — — — — — — — — —
Brokerage fees 94 97 74 1,780 2,049 2,102 8 (21) (21)
Total investment and brokerage
services 94 97 74 1,780 2,049 2,102 8 (21) (21)
Underwriting income 502 511 426 2,084 2,249 2,100 (198) (255) (168)
Syndication fees 1,237 1,403 1,302 109 95 85 1 1 —
Financial advisory services 1,152 1,557 1,156 103 132 111 1 — —
Total investment banking income 2,891 3,471 2,884 2,296 2,476 2,296 (196) (254) (168)
Trading account profits 260 134 133 7,932 6,710 6,550 228 286 44
Other income 1,950 2,150 2,286 446 551 199 (1,346) (1,750) (294)
Total noninterest income $ 8,763 $ 9,495 $ 8,974 $ 12,892 $ 12,207 $ 11,533 $ (1,284) $ (1,648) $ (234)
(1) All Other includes eliminations of intercompany transactions.
The tables below present a reconciliation of the four business segments’ total revenue, net of interest expense, on an FTE basis,
and net income to the Consolidated Statement of Income, and total assets to the Consolidated Balance Sheet.

Segments’ total revenue, net of interest expense $ 92,568 $ 89,061 $ 83,916
Adjustments (1):
ALM activities 588 312 (299)
Liquidating businesses, eliminations and other (1,299) (1,096) 984
FTE basis adjustment (610) (925) (900)
Consolidated revenue, net of interest expense $ 91,247 $ 87,352 $ 83,701
Segments’ total net income 28,260 21,541 19,493
Adjustments, net-of-tax (1):
ALM activities (46) (355) (651)
Liquidating businesses, eliminations and other (67) (2,954) (1,020)
Consolidated net income $ 28,147 $ 18,232 $ 17,822
(1) Adjustments include consolidated income, expense and asset amounts not specifically allocated to individual business segments.

December 31
Segments’ total assets $ 2,158,182 $ 2,087,192
Adjustments (1):
ALM activities, including securities portfolio 670,057 625,483
Elimination of segment asset allocations to match liabilities (540,801) (520,448)
Other 67,069 89,007
Consolidated total assets $ 2,354,507 $ 2,281,234
(1) Adjustments include consolidated income, expense and asset amounts not specifically allocated to individual business segments.
NOTE 24 Parent Company Information

The following tables present the Parent Company-only financial information. This financial information is presented in accordance with
bank regulatory reporting requirements.
Condensed Statement of Income

Income
Dividends from subsidiaries:
Bank holding companies and related subsidiaries $ 28,575 $ 12,088 $ 4,127
Nonbank companies and related subsidiaries 91 202 77
Interest from subsidiaries 8,425 7,043 2,996
Other income (loss) (1,025) 28 111
Total income 36,066 19,361 7,311
Expense
Interest on borrowed funds from related subsidiaries 235 189 969
Other interest expense 6,425 5,555 5,096
Noninterest expense 1,600 1,672 2,704
Total expense 8,260 7,416 8,769
Income (loss) before income taxes and equity in undistributed earnings of subsidiaries 27,806 11,945 (1,458)
Income tax expense (benefit) (281) 950 (2,311)
Income before equity in undistributed earnings of subsidiaries 28,087 10,995 853
Equity in undistributed earnings (losses) of subsidiaries:
Bank holding companies and related subsidiaries 306 8,725 16,817
Nonbank companies and related subsidiaries (246) (1,488) 152
Total equity in undistributed earnings of subsidiaries 60 7,237 16,969
Net income $ 28,147 $ 18,232 $ 17,822
Condensed Balance Sheet

December 31
Assets
Cash held at bank subsidiaries (1) $ 5,141 $ 4,747
Securities 628 596
Receivables from subsidiaries:
Bank holding companies and related subsidiaries 152,905 146,566
Banks and related subsidiaries 195 146
Nonbank companies and related subsidiaries 969 4,745
Investments in subsidiaries:
Bank holding companies and related subsidiaries 293,045 296,506
Nonbank companies and related subsidiaries 3,432 5,225
Other assets 14,696 14,554
Total assets $ 471,011 $ 473,085
Liabilities and shareholders’ equity
Accrued expenses and other liabilities $ 8,828 $ 10,286
Payables to subsidiaries:
Banks and related subsidiaries 349 359
Nonbank companies and related subsidiaries 13,301 9,341
Long-term debt 183,208 185,953
Total liabilities 205,686 205,939
Shareholders’ equity 265,325 267,146
Total liabilities and shareholders’ equity $ 471,011 $ 473,085
(1) Balance includes third-party cash held of $389 million and $193 million at December 31, 2018 and 2017.

Condensed Statement of Cash Flows
Operating activities
Net income $ 28,147 $ 18,232 $ 17,822
Reconciliation of net income to net cash used in operating activities:
Equity in undistributed earnings of subsidiaries (60) (7,237) (16,969)
Other operating activities, net (3,706) (2,593) (2,860)
Net cash provided by (used in) operating activities 24,381 8,402 (2,007)
Investing activities
Net sales of securities 51 312 —
Net payments to subsidiaries (2,262) (7,087) (65,481)
Other investing activities, net 48 (1) (308)
Net cash used in investing activities (2,163) (6,776) (65,789)
Financing activities
Net decrease in short-term borrowings — — (136)
Net increase (decrease) in other advances 3,867 (6,672) (44)
Proceeds from issuance of long-term debt 30,708 37,704 27,363
Retirement of long-term debt (29,413) (29,645) (30,804)
Proceeds from issuance of preferred stock 4,515 — 2,947
Redemption of preferred stock (4,512) — —
Common stock repurchased (20,094) (12,814) (5,112)
Cash dividends paid (6,895) (5,700) (4,194)
Net cash used in financing activities (21,824) (17,127) (9,980)
Net increase (decrease) in cash held at bank subsidiaries 394 (15,501) (77,776)
Cash held at bank subsidiaries at January 1 4,747 20,248 98,024
Cash held at bank subsidiaries at December 31 $ 5,141 $ 4,747 $ 20,248
NOTE 25 Performance by Geographical Area

The Corporation’s operations are highly integrated with operations in both U.S. and non-U.S. markets. The non-U.S. business activities
are largely conducted in Europe, the Middle East and Africa and in Asia. The Corporation identifies its geographic performance based
on the business unit structure used to manage the capital or expense deployed in the region as applicable. This requires certain
judgments related to the allocation of revenue so that revenue can be appropriately matched with the related capital or expense deployed
in the region. Certain asset, liability, income and expense amounts have been allocated to arrive at total assets, total revenue, net of
interest expense, income before income taxes and net income by geographic area as presented below.
Total Revenue,
Total Assets at Net of Interest Income Before
(Dollars in millions) Year End (1) Expense (2) Income Taxes Net Income
U.S. (3) 2018 $ 2,051,182 $ 81,004 $ 31,904 $ 26,407
2017 1,965,490 74,830 25,108 15,550
2016 72,418 22,282 16,183
Asia 2018 94,865 3,507 865 520
2017 103,255 3,405 676 464
2016 3,365 674 488
Europe, Middle East and Africa 2018 185,285 5,632 1,543 1,126
2017 189,661 7,907 2,990 1,926
2016 6,608 1,705 925
Latin America and the Caribbean 2018 23,175 1,104 272 94
2017 22,828 1,210 439 292
2016 1,310 360 226
Total Non-U.S. 2018 303,325 10,243 2,680 1,740
2017 315,744 12,522 4,105 2,682
2016 11,283 2,739 1,639
Total Consolidated 2018 $ 2,354,507 $ 91,247 $ 34,584 $ 28,147
2017 2,281,234 87,352 29,213 18,232
2016 83,701 25,021 17,822
(1) Total assets include long-lived assets, which are primarily located in the U.S.
(2) There were no material intercompany revenues between geographic regions for any of the periods presented.
(3) Substantially reflects the U.S.

Glossary
Alt-A Mortgage – A type of U.S. mortgage that is considered riskier Margin Receivable – An extension of credit secured by eligible
than A-paper, or “prime,” and less risky than “subprime,” the securities in certain brokerage accounts.
riskiest category. Typically, Alt-A mortgages are characterized by
borrowers with less than full documentation, lower credit scores Matched Book – Repurchase and resale agreements or securities
and higher LTVs. borrowed and loaned transactions where the overall asset and
liability position is similar in size and/or maturity. Generally, these
Assets Under Management (AUM) – The total market value of are entered into to accommodate customers where the
assets under the investment advisory and/or discretion of GWIM Corporation earns the interest rate spread.
which generate asset management fees based on a percentage
of the assets’ market values. AUM reflects assets that are Mortgage Servicing Rights (MSR) – The right to service a mortgage
generally managed for institutional, high net worth and retail loan when the underlying loan is sold or securitized. Servicing
clients, and are distributed through various investment products includes collections for principal, interest and escrow payments
including mutual funds, other commingled vehicles and separate from borrowers and accounting for and remitting principal and
accounts. interest payments to investors.
Banking Book – All on- and off-balance sheet financial instruments Net Interest Yield – Net interest income divided by average total
of the Corporation except for those positions that are held for interest-earning assets.
trading purposes. Nonperforming Loans and Leases – Includes loans and leases that
Brokerage and Other Assets – Non-discretionary client assets have been placed on nonaccrual status, including nonaccruing
which are held in brokerage accounts or held for safekeeping. loans whose contractual terms have been restructured in a manner
that grants a concession to a borrower experiencing financial
Committed Credit Exposure – Any funded portion of a facility plus difficulties.
the unfunded portion of a facility on which the lender is legally
bound to advance funds during a specified period under prescribed Operating Margin – Income before income taxes divided by total
conditions. revenue, net of interest expense.
Credit Derivatives – Contractual agreements that provide Prompt Corrective Action (PCA) – A framework established by the
protection against a specified credit event on one or more U.S. banking regulators requiring banks to maintain certain levels
referenced obligations. of regulatory capital ratios, comprised of five categories of
capitalization: “well capitalized,” “adequately capitalized,”
Credit Valuation Adjustment (CVA) – A portfolio adjustment required “undercapitalized,” “significantly undercapitalized” and “critically
to properly reflect the counterparty credit risk exposure as part of undercapitalized.” Insured depository institutions that fail to meet
the fair value of derivative instruments. certain of these capital levels are subject to increasingly strict
limits on their activities, including their ability to make capital
Debit Valuation Adjustment (DVA) – A portfolio adjustment required distributions, pay management compensation, grow assets and
to properly reflect the Corporation’s own credit risk exposure as take other actions.
part of the fair value of derivative instruments and/or structured
liabilities. Subprime Loans – Although a standard industry definition for
subprime loans (including subprime mortgage loans) does not
Funding Valuation Adjustment (FVA) – A portfolio adjustment exist, the Corporation defines subprime loans as specific product
required to include funding costs on uncollateralized derivatives offerings for higher risk borrowers.
and derivatives where the Corporation is not permitted to use the
collateral it receives. Troubled Debt Restructurings (TDRs) – Loans whose contractual
terms have been restructured in a manner that grants a concession
Interest Rate Lock Commitment (IRLC) – Commitment with a loan to a borrower experiencing financial difficulties. Certain consumer
applicant in which the loan terms are guaranteed for a designated loans for which a binding offer to restructure has been extended
period of time subject to credit approval. are also classified as TDRs.
Letter of Credit – A document issued on behalf of a customer to Value-at-Risk (VaR) – VaR is a model that simulates the value of
a third party promising to pay the third party upon presentation of a portfolio under a range of hypothetical scenarios in order to
specified documents. A letter of credit effectively substitutes the generate a distribution of potential gains and losses. VaR
issuer’s credit for that of the customer. represents the loss the portfolio is expected to experience with a
Loan-to-value (LTV) – A commonly used credit quality metric. LTV given confidence level based on historical data. A VaR model is
is calculated as the outstanding carrying value of the loan divided an effective tool in estimating ranges of potential gains and losses
by the estimated value of the property securing the loan. on our trading portfolios.

Acronyms
ABS Asset-backed securities HTM Held-to-maturity
AFS Available-for-sale ICAAP Internal Capital Adequacy Assessment Process
ALM Asset and liability management IRM Independent Risk Management
AUM Assets under management IRLC Interest rate lock commitment
AVM Automated valuation model ISDA International Swaps and Derivatives Association,
BANA Bank of America, National Association Inc.
BHC Bank holding company LCR Liquidity Coverage Ratio
bps basis points LGD Loss given default
CCAR Comprehensive Capital Analysis and Review LHFS Loans held-for-sale
CDO Collateralized debt obligation LIBOR London InterBank Offered Rate
CDS Credit default swap LTV Loan-to-value
CET1 Common equity tier 1 MBS Mortgage-backed securities
CGA Corporate General Auditor MD&A Management’s Discussion and Analysis of
CLO Collateralized loan obligation Financial Condition and Results of Operations
MLGWM Merrill Lynch Global Wealth Management
CLTV Combined loan-to-value
MLI Merrill Lynch International
CVA Credit valuation adjustment
MLPCC Merrill Lynch Professional Clearing Corp
DVA Debit valuation adjustment
MLPF&S Merrill Lynch, Pierce, Fenner & Smith
EAD Exposure at default
Incorporated
EPS Earnings per common share MRC Management Risk Committee
ERC Enterprise Risk Committee MSA Metropolitan Statistical Area
EU European Union MSR Mortgage servicing right
FCA Financial Conduct Authority NSFR Net Stable Funding Ratio
FDIC Federal Deposit Insurance Corporation OAS Option-adjusted spread
FHA Federal Housing Administration OCC Office of the Comptroller of the Currency
FHLB Federal Home Loan Bank OCI Other comprehensive income
FHLMC Freddie Mac OREO Other real estate owned
FICC Fixed-income, currencies and commodities OTC Over-the-counter
FICO Fair Isaac Corporation (credit score) OTTI Other-than-temporary impairment
FLUs Front line units PCA Prompt Corrective Action
FNMA Fannie Mae PCI Purchased credit-impaired
FTE Fully taxable-equivalent RMBS Residential mortgage-backed securities
FVA Funding valuation adjustment RSU Restricted stock unit
GAAP Accounting principles generally accepted in the SBLC Standby letter of credit
United States of America
SCCL Single-counterparty credit limits
GLS Global Liquidity Sources
SEC Securities and Exchange Commission
GM&CA Global Marketing and Corporate Affairs
SLR Supplementary leverage ratio
GNMA Government National Mortgage Association
TDR Troubled debt restructurings
GSE Government-sponsored enterprise
TLAC Total loss-absorbing capacity
G-SIB Global systemically important bank
VA U.S. Department of Veterans Affairs
GWIM Global Wealth & Investment Management
VaR Value-at-Risk
HELOC Home equity line of credit
VIE Variable interest entity
HQLA High Quality Liquid Assets

Disclosure Controls and Procedures
As of the end of the period covered by this report and pursuant to Rule 13a-15 of the Securities Exchange Act of 1934, as amended
(Exchange Act), Bank of America’s management, including the Chief Executive Officer and Chief Financial Officer, conducted an evaluation
of the effectiveness and design of our disclosure controls and procedures (as that term is defined in Rule 13a-15(e) of the Exchange
Act). Based upon that evaluation, Bank of America’s Chief Executive Officer and Chief Financial Officer concluded that Bank of America’s
disclosure controls and procedures were effective, as of the end of the period covered by this report.

Executive Management Team and Management Committee
Bank of America
Executive
Executive CorporationTeam
Management
Management Team
andand Management
Committee
BankBank of America
of America Corporation
Corporation
Executive Management Team Management Committee**
Brian
Executive T.Management
Executive Moynihan*
Management Team Team Michael C. Ankrom
Management
Management Jr.
Committee**
Committee** Lauren A. Mogensen
Chairman of the Board and Global Banking Chief Risk Officer Global Compliance and
BrianBrian T. Moynihan*
T. Moynihan* Michael
Michael C. Ankrom
C. Ankrom Jr. Jr. Lauren
Lauren A. Mogensen
A. Mogensen
Chief Executive Officer and Enterprise Credit Risk Executive Operational Risk Executive
Chairman
Chairman of theofBoard
the Board
and and Global
Global Banking
Banking ChiefChief Risk Officer
Risk Officer Global
Global Compliance
Compliance and and
ChiefDean
Chief C. Athanasia*
Executive
Executive Officer
Officer Keith T. Banks
and Enterprise
and Enterprise CreditCredit Risk Executive
Risk Executive Tram
Operational V.Risk
Nguyen
Operational Risk Executive
Executive
President, Retail and Preferred Vice Chairman, Wealth Global Corporate Strategy
DeanDean C. Athanasia*
C. Athanasia* KeithKeith T. Banks
T. Banks TramTram V. Nguyen
V. Nguyen
& Small Business Banking Management and Head Executive and Head of Wealth
President,
President, RetailRetail and Preferred
and Preferred Vice Chairman,
Vice Chairman, WealthWealth Global
Global Corporate
Corporate Strategy
Strategy
of Investment Solutions Group Management Banking Products
Catherine
& Small
& Small Business P.Banking
Bessant*
Business Banking Management
Management and Head
and Head Executive
Executive and Head
and Head of Wealth
of Wealth
Chief Operations and Alexandre
of Investment
of Investment Bettamio
Solutions
Solutions GroupGroup Lorna
Management R.Banking
Management SabbiaBanking Products
Products
Catherine
Catherine P. Bessant*
P. Bessant*
Technology Officer President, Latin America Head of Retirement and
ChiefChief Operations
Operations and and Alexandre
Alexandre Bettamio
Bettamio LornaLorna R. Sabbia
R. Sabbia
Personal Wealth Solutions
Sheri B.
Technology
Technology Bronstein*
Officer
Officer Rudolf A. Latin
President,
President, Latin Bless America
America HeadHead of Retirement
of Retirement and and
Chief Human Resources Officer Chief Accounting Officer Robert
Personal
Personal A.Wealth
Wealth Schleusner
Solutions.
Solutions.
SheriSheri B. Bronstein*
B. Bronstein* Rudolf
Rudolf A. Bless
A. Bless
Head of Wholesale Credit
ChiefPaul
Chief
HumanM. Donofrio*
Human Resources
Resources Officer
Officer ChiefD. Steve
Chief Boland
Accounting
Accounting Officer
Officer Robert
Robert A. Schleusner
A. Schleusner
Chief Financial Officer Head of Consumer Lending HeadThomas
Head M. Scrivener
of Wholesale
of Wholesale CreditCredit
Paul Paul M. Donofrio*
M. Donofrio* D. Steve
D. Steve BolandBoland
Global Real Estate and
ChiefAnne
Chief M. Finucane
Financial
Financial Officer
Officer HeadAlastair
Head M. Borthwick
of Consumer
of Consumer Lending
Lending Thomas
Thomas M. Scrivener
M. Scrivener
Enterprise Initiative Executive
Vice Chairman, Head of Global Commercial Banking Global
Global Real Estate
Real Estate and and
AnneAnne M. Finucane
M. Finucane Alastair
Alastair M. Borthwick
M. Borthwick
Bank of America Jiro
EnterpriseSeguchi
Enterprise Initiative
Initiative Executive
Executive
Vice Chairman,
Vice Chairman, HeadCandace
Head
of Global E.
of GlobalBrowning-Platt
Commercial
Commercial Banking
Banking
Co-President, Asia Pacific and
BankGeoffrey
Bank
of America S. Greener*
of America Head of Global Research
Candace
Candace E. Browning-Platt
E. Browning-Platt
Jiro Seguchi
Jiro Seguchi
Head of Asia Pacific Corporate
Chief Risk Officer Co-President,
Co-President, Asia Pacific
Asia Pacific and and
Geoffrey
Geoffrey S. Greener*
S. Greener* HeadJames
Head ofP.Global
of Global DeMare Research
Research and Investment Banking;
HeadHead of Pacific
of Asia Asia Pacific Corporate
Corporate
ChiefChristine
Chief P. Katziff
Risk Officer
Risk Officer Co-Head of Global Fixed Income,
James P. DeMare Country Executive, Japan
James P. DeMare and Investment
and Investment Banking;
Banking;
Chief Audit Executive Currencies & Commodities Trading
Christine
Christine P. Katziff
P. Katziff Co-Head
Co-Head of Global
of Global FixedFixed Income,
Income, Jin Su
Country
Country Executive,
Executive, JapanJapan
ChiefKathleen
Chief
AuditAudit A.Executive
Knox*
Executive Fabrizio
Currencies
Currencies Gallo
& Commodities
& Commodities Trading
Trading Co-President, Asia Pacific and
President, U.S. Trust Head of Global Equities Jin Su
Jin Su
Kathleen
Kathleen A. Knox*
A. Knox* Fabrizio
Fabrizio GalloGallo Co-Head of Asia Pacific
Co-President,
Co-President, Asia Pacific
Asia Pacific and and
David
President, G. Leitch*
President,
U.S. U.S. Trust
Trust HeadMatthew
Head M. Koder
of Global
of Global Equities
Equities Fixed Income, Currencies & Commodities
Co-Head
Co-Head of Pacific
of Asia Asia Pacific
Global General Counsel Head of Global Corporate FixedDavid
Fixed C. Currencies
TyrieCurrencies
Income,
Income, & Commodities
& Commodities
DavidDavid G. Leitch*
G. Leitch* Matthew
Matthew M. Koder
M. Koder
Thomas K. Montag* and Investment Banking Head of Advanced Solutions
Global
Global General
General Counsel
Counsel HeadHead of Global
of Global Corporate
Corporate DavidDavid C. Tyrie
C. Tyrie
Chief Operating Officer Aron D. Levine
and Investment
and Investment Banking
Banking and Digital Banking
Thomas
Thomas K. Montag*
K. Montag* HeadHead of Advanced
of Advanced Solutions
Solutions
Head of Consumer Banking Anne Walker
and Digital
and Digital BankingBanking
ChiefThong
Chief M. Nguyen*
Operating
Operating Officer
Officer AronAron D. Levine
D. Levine
Vice Chairman, and Investments CFO Chief Operating Officer
ThongThong M. Nguyen*
M. Nguyen* HeadHead of Consumer
of Consumer Banking
Banking AnneAnne
WalkerWalker
Bank of America Bernard A. Mensah
and Investments
and Investments and Corporate Financial
Vice Chairman,
Vice Chairman, CFO, CFO,
ChiefChief Operating
Operating Officer
Officer
President of Europe, Middle East Planning Executive
BankAndrew
Bank M. Sieg*
of America
of America Bernard
Bernard A. Mensah
A. Mensah and Corporate
and Corporate Financial
Financial
President, Merrill Lynch and Asia and Co-Head of Global Ather
Planning
Planning Williams
Executive
Executive III
Andrew M. Sieg* President
President of Europe,
of Europe, Middle
Middle East East
Andrew M. Sieg* Fixed Income, Currencies &
Wealth Management and and
and Asia AsiaCo-Head
and Co-Head of Global
of Global Head of Business Banking
President,
President, Merrill
Merrill LynchLynch Commodities Trading AtherAther Williams
Williams III III
Andrea
Wealth
Wealth B. Smith*
Management
Management FixedFixed Income,
Income, Currencies
Currencies & & HeadSanaz
Head ofZaimi
Business
of Business Banking
Banking
Chief Administrative Officer Sharon
Commodities L.
Commodities Miller
Trading
Trading Head of Global
Andrea
Andrea B. Smith*
B. Smith* Head of Small Business SanazSanaz
ZaimiZaimi
Sharon
Sharon L. Miller
L. Miller Fixed Income, Currencies & Commodities
ChiefBruce
Chief R. Thompson
Administrative
Administrative Officer
Officer HeadHead of Global
of Global
HeadAndrei
Head of Magasiner
of Small Small Business
Business Sales and Country Executive, France
Vice Chairman FixedFixed Income,
Income, Currencies
Currencies & Commodities
& Commodities
BruceBruce R. Thompson
R. Thompson Treasurer
Andrei
Andrei Magasiner
Magasiner SalesSales and Country
and Country Executive,
Executive, France
France
Vice Chairman
Vice Chairman
E. Lee McEntire
Treasurer
Treasurer
Investor Relations Executive
E. McEntire
E. Lee Lee McEntire
Investor
Investor Relations
Relations Executive
Executive
* Executive Officer
** All members of the Executive Management Team are also members of the Management Committee
* Executive
* Executive OfficerOfficer
** All members
** All members of the of the Executive
Executive Management
Management Team
Team are aremembers
also also members
of the of the Management
Committee
186 186 Bank

Bank of of America
America 2018 2018
Disclosure Controls and Procedures
Board of Directors
Bank
Bank ofofAmerica
AmericaCorporation and Subsidiaries
Corporation
Board of Directors
AsBank
of theofend of the period
America covered by this report and pursuant to Rule 13a-15 of the Securities Exchange Act of 1934, as amended
Corporation
(Exchange Act), Bank of America’s management, including the Chief Executive Officer and Chief Financial Officer, conducted an evaluation
Board
of of Directors
the effectiveness and design of our disclosure controls and procedures (as that term is defined in Rule 13a-15(e) of the Exchange
Act).
BrianBased
T. upon that evaluation, Bank of America’s
Moynihan Chief
Monica C.Executive
Lozano Officer and Chief Financial Officer concluded that Bank of America’s
Board of Directors
disclosure
Chairman of controls and and
the Board procedures were effective,
Chiefas of the end
Executive of the period covered by this report.
Officer,
Brian T. Moynihan Monica C. Lozano
Chief Executive Officer, College Futures Foundation;
Chairman of the Board and Chief Executive Officer,
Bank of America Corporation Former Chairman,
Chief Executive Officer, College Futures Foundation;
US Hispanic Media Inc.
Jack
BankO.ofBovender, Jr.
America Corporation Former Chairman,
Lead Independent Director, Thomas J. May
US Hispanic Media Inc.
Jack O. Bovender, Jr.
Bank of America Corporation; Chairman, Viacom, Inc.;
Lead Independent Director, Thomas J. May
Former Chairman Former Chairman, President,
Bank of America Corporation; Chairman, Viacom, Inc.;
and Chief Executive Officer, and Chief Executive Officer,
Former Chairman Former Chairman, President,
HCA Inc. Eversource Energy
and Chief Executive Officer, and Chief Executive Officer,
Sharon
HCA Inc.L. Allen Lionel L. Nowell,
Eversource EnergyIII
Former Chairman, Former Senior Vice President
Sharon L. Allen Lionel L. Nowell, III
Deloitte LLP and Treasurer, PepsiCo, Inc.
Former Chairman, Former Senior Vice President
Susan
DeloitteS. LLP
Bies Clayton S. Rose
and Treasurer, PepsiCo, Inc.
Former Member, President, Bowdoin College
Susan S. Bies Clayton S. Rose
Board of Governors of the Michael D. Bowdoin
White College
Former Member, President,
Federal Reserve System Former Chairman, President, and
Board of Governors of the Michael D. White
Frank
FederalP. Reserve
Bramble, Sr.
System Chief Executive Officer, DIRECTV
Former Chairman, President, and
Former Executive Vice Chairman, Thomas D. Woods
Frank P. Bramble, Sr. Chief Executive Officer, DIRECTV
MBNA Corporation Chairman, Hydro One Limited;
Former Executive Vice Chairman, Thomas D. Woods
Pierre
MBNAJ.P. de Weck
Corporation Former Vice Chairman and
Chairman, Hydro One Limited;
Former Chairman and Senior Executive Vice President,
Pierre J.P. de Weck Former Vice Chairman and
Global Head of Private Canadian Imperial Bank of Commerce
Former Chairman and Senior Executive Vice President,
Wealth Management, R.Canadian
David Yost
Global Head of Private Imperial Bank of Commerce
Deutsche Bank AG Former Chief Executive Officer,
Wealth Management, R. David Yost
Arnold
DeutscheW. Bank
Donald AG AmerisourceBergen Corporation
Former Chief Executive Officer,
President and Maria T. Zuber
Arnold W. Donald AmerisourceBergen Corporation
Chief Executive Officer, Vice President for Research and
President and Maria T. Zuber
Carnival Corporation and E.A. Griswold Professor of Geophysics,
Chief Executive Officer, Vice President for Research and
Carnival plc Massachusetts Institute of Technology
Carnival Corporation and E.A. Griswold Professor of Geophysics,
Linda P. Hudson
Carnival plc Massachusetts Institute of Technology
Chairman and Chief Executive Officer,
Linda P. Hudson
The Cardea Group, LLC;
Chairman and Chief Executive Officer,
Former President and
The Cardea Group, LLC;
Chief Executive Officer,
Former President and
BAE Systems, Inc.
Chief Executive Officer,
BAE Systems, Inc.
* Executive Officer
* Executive Officer
Bankof
Bank ofAmerica
America2018
2018 187
185
Corporate Information
Corporate Information
Headquarters Annual Report on Form 10-K
Headquarters
The principal executive offices of Bank of America Corporation Annual Report on Form
The Corporation’s 10-K Report on Form 10-K is available
2018 Annual
(the Corporation) are located in the Bank of America Corporate at http://investor.bankofamerica.com. The Corporation also will
The principal executive offices of Bank of America Corporation The Corporation’s 2018 Annual Report on Form 10-K is available
Center, 100 North
(the Corporation) Tryon in
are located Street, Charlotte,
the Bank NC 28255.
of America Corporate provide a copy of the 2018 AnnualThe
at http://investor.bankofamerica.com. Report on Formalso
Corporation 10-K (without
will
exhibits) upon written request addressed to:
Center, 100 North Tryon Street, Charlotte, NC 28255. provide a copy of the 2018 Annual Report on Form 10-K (without
Stock Listing
Bankupon
exhibits) of America
written Corporation
request addressed to:
Stock TheListing
Corporation’s common stock is listed on the New York Office of the Corporate Secretary
Stock Exchange (NYSE)stock
underisthe symbol BAC. TheYork
stock is Bank of America Corporation
The Corporation’s common listed on the New Hearst
of theTower, 214 North Tryon Street
typically listed as BankAm in newspapers. As of December 31, Office Corporate
NC1-027-20-05
Secretary
Stock Exchange (NYSE) under the symbol BAC. The stock is Hearst Tower, 214 North Tryon Street
2018, there were 171,372 registered holders of the Corporation’s Charlotte, NC 28255
typically listed as BankAm in newspapers. As of December 31, NC1-027-20-05
common stock.
2018, there were 171,372 registered holders of the Corporation’s Charlotte, NC 28255
common stock. Shareholder Inquiries
Investor Relations
For inquiries
Shareholder concerning dividend checks, electronic deposit of
Inquiries
Investor Relations
Analysts, portfolio managers and other investors seeking dividends, dividend reinvestment, tax statements, electronic
additional information about Bank of America stock should For inquiries concerning dividend checks, electronic deposit of
Analysts, portfolio managers and other investors seeking delivery, transferring ownership, address changes or lost or
contact our Equityabout
Investor Relations group at 1.704.386.5681 dividends, dividend reinvestment, tax statements, electronic
additional information Bank of America stock should stolen
delivery, stock certificates,
transferring ownership, contact
addressBank of America
changes or lostShareholder
or
or [email protected]. For additional information about Services at Computershare Trust Company, N.A., via the Internet
contact our Equity Investor Relations group at 1.704.386.5681 stolen stock certificates, contact Bank of America Shareholder
Bank of America from a credit perspective, including debt and at www.computershare.com/bac; call 1.800.642.9855; or write
or [email protected]. For additional information about
preferred securities, contact our Fixed Income Investor RelationsServices at Computershare Trust Company, N.A., via the Internet
to P.O. Box 505005, Louisville, KY 40233. For general shareholder
Bank of America from a credit perspective, including debt and at www.computershare.com/bac; call 1.800.642.9855; or write
groupsecurities,
preferred at 1.866.607.1234 or [email protected].
contact our Fixed Income Investor Relations information, contact BankKY of 40233.
AmericaFor Office of the Corporate
Visit the Investor Relations area of the Bank of America website,to P.O. Box 505005, Louisville, general shareholder
Secretary at 1.800.521.3984. Shareholders outside of the United
group at 1.866.607.1234 or [email protected]. information, contact Bank of America Office of the Corporate
http://investor.bankofamerica.com, for stock and dividend States and Canada may call 1.781.575.2621.
Visit the Investor Relations area of the Bank of America website,
information, financial news releases, links to Bank of America Secretary at 1.800.521.3984. Shareholders outside of the United
http://investor.bankofamerica.com, for stock and dividend
SEC filings,
information, electronic
financial news versions
releases,of ourto
links annual
Bank reports and other States
of America
and Canada may call 1.781.575.2621.
Electronic Delivery
items of interest to the Corporation’s shareholders.
SEC filings, electronic versions of our annual reports and other As part of
Electronic Deliveryour ongoing commitment to reduce paper
items of interest to the Corporation’s shareholders. consumption, we offer electronic methods for customer
Customers As part of our ongoing commitment to reduce paper
communications and transactions. Customers can sign up to
For assistance with Bank of America products and services, consumption, we offer electronic methods for customer
Customers receive online statements through their Bank of America or
call 1.800.432.1000, or visit the Bank of America website communications and transactions. Customers can sign up to
For assistance with Bank of America products and services, Merrill Lynch account website. In 2012, we adopted the SEC’s
at www.bankofamerica.com. Additional toll-free numbers for receive online statements through their Bank of America or
call 1.800.432.1000, or visit the Bank of America website Notice and Access rule, which allows certain issuers to inform
specific products and services are listed on our website at Merrill Lynch account website. In 2012, we adopted the SEC’s
at www.bankofamerica.com. Additional toll-free numbers for shareholders of the electronic availability of Proxy materials,
www.bankofamerica.com/contact. Notice and Access rule, which allows certain issuers to inform
specific products and services are listed on our website at including the Annual Report, which significantly reduced the
shareholders of the electronic availability of Proxy materials,
www.bankofamerica.com/contact. number of printed copies we produce and mail to shareholders.
News Media including the Annual Report, which significantly reduced the
Shareholders still receiving printed copies can join our efforts
News media seeking information should visit our online number of printed copies we produce and mail to shareholders.
News Media by electing
Shareholders stilltoreceiving
receive an electronic
printed copiescopy
canof theour
join Annual
effortsReport
newsroom at http://newsroom.bankofamerica.com for news and Proxy materials. If you have an account maintained in your
News media seeking information should visit our online by electing to receive an electronic copy of the Annual Report
releases, press kits and other items relating to the Corporation, name at Computershare Investor Services, you may sign up
newsroom at http://newsroom.bankofamerica.com for news
including a complete list of the Corporation’s media relations and Proxy materials. If you have an account maintained in your
for this service at www.computershare.com/bac. If your shares
releases, press kits and other items relating to the Corporation, name at Computershare Investor Services, you may sign up
specialists grouped by business specialty or geography. areservice
held byata www.computershare.com/bac.
broker, bank or other nominee, If you may elect
including a complete list of the Corporation’s media relations for this your shares
specialists grouped by business specialty or geography. to receive an electronic copy of the Proxy materials online at
are held by a broker, bank or other nominee, you may elect
www.proxyvote.com, or contact your broker.
to receive an electronic copy of the Proxy materials online at
www.proxyvote.com, or contact your broker.

Investment products:
Are Not FDIC Insured Are Not Bank Guaranteed May Lose Value
“Bank of America Merrill Lynch” is the marketing name for the global banking and global markets businesses of Bank of America Corporation.
Lending, derivatives and other commercial banking activities are performed globally by banking affiliates of Bank of America Corporation,
including Bank of America, N.A., Member FDIC. Securities, strategic advisory, and other investment banking activities are performed globally
by investment banking affiliates of Bank of America Corporation (“Investment Banking Affiliates”), including, in the United States, Merrill
Lynch, Pierce, Fenner & Smith Incorporated and Merrill Lynch Professional Clearing Corp., both of which are registered as broker-dealers and
Members of SIPC, and, in other jurisdictions, by locally registered entities. Merrill Lynch, Pierce, Fenner & Smith Incorporated and Merrill
Lynch Professional Clearing Corp. are registered as futures commission merchants with the CFTC and are members of the NFA.
Global Wealth and Investment Management is a division of Bank of America Corporation (“BofA Corp.”). Merrill Lynch Wealth Management,
Merrill Edge®, U.S. Trust, and Bank of America Merrill Lynch are affiliated sub-divisions within Global Wealth and Investment Management.
Merrill Lynch makes available products and services offered by Merrill Lynch, Pierce, Fenner & Smith Incorporated (“MLPF&S”) and other
subsidiaries of BofA Corp. Merrill Edge is available through MLPF&S, and consists of the Merrill Edge Advisory Center (investment guid-
ance) and self-directed online investing.
U.S. Trust, Bank of America Private Wealth Management operates through Bank of America, N.A., and other subsidiaries of BofA Corp.
Bank of America Merrill Lynch is a marketing name for the Retirement Services businesses of BofA Corp. Banking products are provided
by Bank of America, N.A., and affiliated banks, Members FDIC and wholly owned subsidiaries of BofA Corp.
Please review the Merrill Guided Investing Program Brochure (PDF) at merrilledge.com/guided-investingprogram-brochure (PDF) for import-
ant information including pricing, rebalancing and the details of the investment advisory program. Your recommended investment strategy
will be based solely on the information you provide to us for this specific investment goal and is separate from any other advisory program
offered with us. If there are multiple owners on this account, the information you provide should reflect the views and circumstances of all
owners on the account. If you are the custodian of this account for the benefit of another person, please keep in mind that these assets will
be invested for the benefit of the other person. Guided Investing is offered with and without an advisor. Merrill, Merrill Lynch, and/or Merrill
Edge investment advisory programs are offered by Merrill Lynch, Pierce, Fenner and Smith Incorporated (“MLPF&S”). MLPF&S and Managed
Account Advisors LLC (“MAA”) are registered investment advisors. Investment advisor registration does not imply a certain level of skill or
training. https://www.merrilledge.com/guided-investing
BofA Merrill Lynch Global Research is research produced by Merrill Lynch, Pierce, Fenner & Smith Incorporated (“MLPF&S”) and/or one
or more of its affiliates.
Case studies are intended to illustrate brokerage products and services available at Merrill and banking products and services available
at Bank of America. You should not consider these as an endorsement of Merrill as an investment adviser or as a testimonial about a
client’s experiences with us as an investment adviser. Case Studies do not necessarily represent the experiences of other clients, nor do
they indicate future performance. Investment results may vary. The investment strategies discussed are not appropriate for every inves-
tor and should be considered given a person’s investment objectives, financial situation and particular needs. Clients should review with
their Merrill Lynch Wealth Management Advisor the terms, conditions and risks involved with specific products and services.
Zelle should only be used to send money to friends, family or others you trust.
We recommend that you do not use Zelle to send money to persons that you do not know. Transfers require enrollment in the service and
must be made from an eligible Bank of America consumer deposit account to a domestic bank account or debit card. Recipients have
14 days to enroll to receive money or the transfer will be canceled. Transactions typically occur in minutes when the recipient’s email address
or U.S. mobile number is already enrolled with Zelle. We will send you an email alert with delivery details immediately after you schedule
the transfer. Dollar and frequency limits apply. See the Online Banking Service Agreement at bankofamerica.com/serviceagreement for
details, including cut-off and delivery times. Payment requests to persons not already enrolled in Zelle must be sent to a U.S. email address.
Data connection required. Message and data rates may apply. Neither Bank of A merica nor Zelle offers a protection program for any
Design by Addison www.addison.com
authorized payments made with Zelle.

Zelle and the Zelle related marks are wholly owned by Early Warning Services, LLC and are used herein under license.
The ranking or ratings shown herein may not be representative of all client experiences because they reflect an average or sampling of
the client experiences. These rankings or ratings are not indicative of any future performance or investment outcome.
Please recycle. The annual report is printed on 30% post-consumer waste (PCW) recycled paper.
© 2019 Bank of America Corporation. All rights reserved.
© 2019 Bank of America Corporation
00-04-1376B 3/2019

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What would you like

the power to do?

2018 Annual Report

Our culture of careful expense management has resulted 53.8%

BANK OF AMERICA 2018 | 1

External recognition What would you like the power to do?

2 | BANK OF AMERICA 2018

Recognition Highlights Fortune

Euromoney Military Times Investing in Greenwich Associates Barron’s

J.D. Power J.D. Power Kiplinger The Banker Forbes

BANK OF AMERICA 2018 | 3

Net income Average loans

47% over 2017 Average deposits up

Global Banking Global Markets

Net income Average loans

*Presented on a fully taxable-equivalent basis.

4 | BANK OF AMERICA 2018

Responsible Growth has four tenets

Grow Grow Grow Grow

BANK OF AMERICA 2018 | 5

I have mentioned some of the areas in which we are

team, even as we maintain At Bank of America, we realize there is a significant gap

8 | BANK OF AMERICA 2018

Thank you for being a shareholder

I am proud to work with my 200,000-plus teammates who are listening for

2014 2015 2016 2017 2018

What would you like

10 | BANK OF AMERICA 2018

BANK OF AMERICA 2018 | 11

Exceptional client service is

12 | BANK OF AMERICA 2018

BANK OF AMERICA 2018 | 13

14 | BANK OF AMERICA 2018

A: Clients want a bank that is committed to helping improve their financial

Q: WHICH CURRENT INNOVATIONS BEST DEMONSTRATE

A: We continue to invest and innovate because clients expect us to be at the

Q: WILL THE FUTURE OF BANKING LEAN MORE TOWARD

A: Clients want to be able to accomplish their everyday banking conveniently

When Fidelia retired from her successful career as

16 | BANK OF AMERICA 2018

BANK OF AMERICA 2018 | 17

18 | BANK OF AMERICA 2018

$8.6 billion A leading Rated #1

BANK OF AMERICA 2018 | 19

For more than 15 years, Bank of America has provided

20 | BANK OF AMERICA 2018

Caviar & Caviar USA

BANK OF AMERICA 2018 | 21

Today, the world is facing monumental challenges, and it is clear that

22 | BANK OF AMERICA 2018

We also provided a $250,000 grant

BANK OF AMERICA 2018 | 23

24 | BANK OF AMERICA 2018

“We understand the unique challenges clients in LMI neighborhoods

BANK OF AMERICA 2018 | 25

Investing in young people

Celebrating 15 years of Neighborhood Builders

26 | BANK OF AMERICA 2018

Global Ambassadors Tory Burch Foundation

BANK OF AMERICA 2018 | 27

Capital deployment ESG client balances Better Money

28 | BANK OF AMERICA 2018

Being an inclusive workplace Creating opportunities Recognizing and