Bank of America Corporation

Hello and welcome, everyone, joining today's Bank of America earnings announcement. At this time, all participants are in a listen-only mode. Later, you will have the opportunity to ask questions during the question and answer session. To register to ask a question at any time, please press star 1 on your telephone keypad. Please note this call is being recorded. We are standing by if you should need any assistance. It is now my pleasure to turn the meeting over to Lee McEntire. Bank of America. Please go ahead.

Thank you. Good morning everyone and thank you for joining us to talk through our second quarter results in what is a busy bank earnings day. As always, the earnings release and presentation are posted on the investor relations section of bankofamerica.com and we'll reference those materials during the call. Before we begin, a quick reminder that during the call, We may make forward-looking statements and refer to non-GAAP financial measures. These measures reflect management's current views and are subject to risk and uncertainties, which are outlined along with the relevant GAAP reconciliations in our earnings materials and our SEC filings on our website. With that, I'll turn the call over to Brian Moynihan, our CEO.

Good morning, and thank you for joining us. Once again, our team delivered strong second quarter results. Our revenue grew 15% year-over-year to $31.6 billion. Our net income was $9.1 billion, up 27% from last year. Our EPS increased 34% to $1.21 a share. Our results show organic growth, operating leverage, and efficiency ratio improvement in every business segment. Along the bottom of slide two, you can see the progress against several Several of our key financial metrics for the firm. For the quarter, we delivered 6.6% operating leverage, and our efficiency ratio improved to 59%. We generated return on tangible common equity of 17%. In short, organic growth was broad-based and coupled with operating leverage, which translated into stronger returns on both equity and assets. Slide 3 shows the contributions and growth of each business segment. Every business segment contributed to our year-over-year growth. Average deposits and loan balances continued to grow, supported by healthy client engagement. Revenue and net income increased in every business segment. Each segment generated operating leverage. Each segment improved its efficiency ratio. And each segment demonstrated the benefits of its scale. Together, those results drive stronger returns across the company. Let me touch on a few earnings highlights from slide four, starting with revenue. Revenue growth was broad-based, led by NII, investment banking, wealth management fees, and sales and trading revenue. First, net interest income. It continued to perform well. On an FTE basis, NII was approximately $16.2 billion, up 9% over last year's second quarter. This is driven by the strength of our core lending and deposit-gathering franchises. It also includes our lending in our global markets business and the impact thereof. We also have added the benefit of ongoing pricing with lower yielding assets and a repayment of higher cost funding. Second, our fee-based businesses delivered exceptional results translating into 22% non-interest income growth. Wealth management, investment banking, and markets all benefited from healthy client activity in favorable capital markets conditions. Merrill and the private bank advisors drove the 18% growth in investment brokerage fees. Invest in banking fees increased 50% year-over-year to more than $2.1 billion, while sales and trading generated $7.2 billion in revenue, up 33%. Third, we managed costs while we continued to invest in a franchise. Our brand, our people, our technology, and our AI enabled productivity. Ask quality also remains stable and consistent with a strong line of writing discipline that has characterized our company for many years. Finally, capital generation and capital returns to investors remain strong. We've returned $8 billion to you through dividends and share repurchases this quarter. We ended the quarter with common equity Tier 1 capital of nearly $202 billion and a common equity Tier 1 ratio of 11.2%. The economic backdrop remains very constructive, as slide 5 illustrates. Last week, our research team raised the 2026 U.S. GDP growth forecast to 2.2%. They also have global growth expected to remain steady at 3.2% in 26 and grow to 3.5% in 27. As noted on the slide, consumer spending has recently expanded and continued to outperform our expectations. While the slide reflects 5% growth in year-over-year spending for the first half, the spending picked up during the second quarter and now is running at 6% plus year-over-year comparisons. So overall, the U.S. economy has proved more durable than expected, supported by the strong consumer, ongoing AI-driven investments across the board, and easing energy costs, though inflation and tighter monetary policy remain key risks. Before I turn it over to Alastair, I want to bring your attention to a couple slides. First, we have our digital slides in the appendix. In addition, we added a slide on AI, slide 20, which shows how our over... 200,000 teammates are actively using AI-enabled capabilities across our company. These range from productivity tools to more advanced agentic workflows and coding support. Our associates are generating more than 400,000 prompts a day, and as of last week, we had over 300 AI use cases approved, all of which have good economics, of which 114 are live generative AI use cases. 34 of those cases are fully implemented, and we see new capabilities coming on every week. These tools are designed to help our customer relationship management prepare more thoroughly for the client meetings. Our bankers automate the research and presentation materials. Our developers code more efficiently and all our teammates improve productivity, consistency and client service while creating significant opportunities ahead of us. I'm going to turn it over to Alastair. Alastair?