BAC – Charlotte, SC Anthony Li Marissa Dyrdahl

Banking Industry Outlook Improving credit environment Deceleration on cost-cutting – Focus on growth Lower loan-loss provision Increasing adaptation to regulations

Improving Margins (BofA)

“Bank of America Corp. posted its strongest annual profit since 2007, driven by lower expenses and growth in key businesses such as consumer lending and wealth management.” BofA earns $3.44 billion in Q4 2013

BofA Highlights 10% Increase in trading revenue Q4 ’13 – only major U.S. Investment bank to report an increase Total revenue Increase to 21.7 Billion vs Billion YoY Interest income rose 4% % noninterest income rose 28% in 4Q net interest margin increased from 2.35% to 2.56% (as compared to 4Q2012) Basel III Tier 1 Capital Ratio of 9%; higher than JPM, WFC, C

Relative Stock Performance (‘05-’14)

BofA Undervalued? IndustryBACCGSJPMWFCMSUBSHSBCDBCS Trailing P/E (ttm, intraday): N/A16.58 PEG Ratio (5 yr expected): N/A Return on Assets (ttm):0.5%0.7%N/A0.8%1.5%N/A0.1%0.7%0.0%0.4% Return on Equity (ttm):4.9%7.0%10.4%8.6%13.5%5.4%1.1%9.9%-0.9%7.5% Profit Margin (ttm):13.4%20.2%23.5%18.6%26.9%9.3%1.1%26.0%-1.7%12.0% Operating Margin (ttm):29.0%20.2%28.9%37.1%27.6%43.1%26.6%7.0%39.9%19.4%20.0%

Provision for Credit Losses “Improving delinquencies and the Home Price Index” Correlates with the improvement of the economy and home prices

Executive Team CEO/PresidentBrian T. Moynihan CFOBruce R. Thompson Co-COODavid C. Darnell Co-COOThomas K. Montag Head of ComplianceGary G. Lynch

Notable Acquisitions $50 Billion $4.1 Billion

Business Segmentation Consumer and Business Banking Consumer Real Estate Services Global Wealth and Investment Management Global Banking Global Markets All Other

Consumer and Business Banking (CBB) Opportunities/Highlights Low-interest environment Increase of 6% in credit card spending Return on average allocated capital increased to 26% Q4 ‘13 from 24% Q4 ‘12 3.9M+ credit cards issued in 2013 Average deposit balances increased 9% Risks Potential litigation expense Weakness in consumer spending

Consumer Real Estate Services (CRES) Opportunities/Highlights Rises in value of real estate Decreases in credit losses and noninterest expense Growth in home loans as housing market improves Risk Risks Facing FHFA lawsuits Continued losses from legacy portfolios Rising rates

Global Wealth and Investment Management Opportunities/Highlights Record earnings of $3B in GWIM - major income source diversifier Pretax margin increased from 21.1% to 26.6% Asset management fees grew 15% 18th consecutive quarter for positive fund flows (up 81% from a year ago) Risks Increases in expenses (largely due to higher volumes) Increase in credit losses within home loan portfolios

Global Banking Opportunities/Highlights BAML maintained #2 position in global investment banking fees (up 9%) Average loan & lease balances increased 16% Average deposits grew 7% Optimistic growth in M&A & leveraged loan markets Risks Regulatory risk

Global Markets Opportunities/Highlights Sales & Trading revenues rose 19% (the only major US investment bank to report an increase) FI trading revenues increased 16% Risks Continued increases in provisions for credit losses Potential for further RMBS litigation (increased noninterest expense from $2.6B to $3.3B)

Looking Forward Improving banking environment Bank of America is undervalued PEG, NIM increase