2018 Guide to Effective Proxies

2.17.3 Business strategy | 285 6 TH EDITION | GUIDE TO EFFECTIVE PROXIES Proxy Statement Summary Strategic Objectives Responsible Growth • We must grow and win in the market — no excuses • We must grow with our customer-focused strategy • We must grow within our Risk Framework • We must grow in a sustainable manner Eight lines of business needs of people, companies and institutional investors through eight lines of business Serving the core financial Our values • Deliver together • Act responsibly • Realize the power of our people • Trust the team Our purpose better, through the power of To help make financial lives every connection Consumer Banking GWIM Global Banking Global Markets Our Eight Lines of Business People Companies Institutions Retail Preferred & Small Business U.S. Trust Merrill Lynch Business Banking Global Commercial Banking Global Markets Global Corporate & Investment Banking At Bank of America, we live our values, deliver our purpose and drive Responsible Growth through our eight lines of business. 2017 Company Performance / Responsible Growth ($ in billions, unless otherwise indicated) Grow and win in the market – no excuses 2017 2016 Net Income (1) $18.2 $17.8 Net income, excluding impact of Tax Cuts and Jobs Act (2) $21.1 — Net income in segments representing eight lines of business: Consumer Banking $8.2 $7.2 Global Wealth & Investment Management (GWIM) $3.1 $2.8 Global Banking $7.0 $5.7 Global Markets $3.3 $3.8 Grow with our customer-focused strategy 2017 2016 Average total loans and leases (3) $918.7 $900.4 Average deposits $1,269.8 $1,222.6 Total client balances $2,751.9 $2,508.6 Business referrals 6.4 million 5.5 million Grow within our Risk Framework 2017 2016 Net charge-off ratio 0.44% 0.43% Net charge-offs $4.0 $3.8 Risk-weighted assets $1,449 $1,530 Average market risk VaR for trading (4) $45 million $48 million Grow in a sustainable manner 2017 2016 Fully phased-in G-SIB capital buffer 2.5% 2.5% Total net share repurchases and common dividends (5) $15.9 $6.6 Common equity tier 1 regulatory capital $171.1 $168.9 Resolution plan enhancements to resolvability Total Stockholder Return (TSR) (6) Bank of America Primary Competitor Group average US G-SIB average All G-SIB average S&P 500 Index 168.1% 137.2% 138.9% 74.9% 108.1% 5-Year 72.2% 45.4% 46.4% 23.9% 38.3% 1-Year 3-Year 35.7% 20.3% 22.6% 17.5% 21.8% (1) Net income includes net income for the segments listed, plus a net loss for “All Other”, which was $(3.3) billion in 2017 and $(1.7) billion in 2016. Net income for 2016 has been restated to reflect the change in the company’s accounting method for certain stock-based compensation awards. (2) Excludes the $2.9 billion charge related to the Tax Cuts and Jobs Act incurred in the fourth quarter of 2017, and represents a non-GAAP financial measure. See Appendix A for a reconciliation of GAAP and non-GAAP financial measures. The initial impact of the Tax Cuts and Jobs Act was recorded in All Other. (3) Includes assets of the company’s non-U.S. consumer credit card business, which are included in assets of business held for sale on the company’s Consolidated Balance Sheet at December 31, 2016. The sale was completed on June 1, 2017. (4) VaR model uses historical simulation approach based on three years of historical data and an expected shortfall methodology equivalent to a 99% confidence level. (5) Represents common stock dividends and common stock repurchases totaling $16.8 billion and $7.7 billion in 2017 and 2016, less common stock issued under employee plans of $932 million and $1.1 billion in the same periods. (6) As of December 31, 2017. See page 49 for a list of the companies in our primary competitor group. “G-SIBs” are global systemically important banks designated by the Financial Stability Board as of November 21, 2017. ii Bank of America Corporation 2018 Proxy Statement BANK OF AMERICA CORPORATION