Bank of America : Subsidiary Information 2025 (MLBV Financials 31.12.2025 ADA)

Published: 2026-05-14 12:58:08 ET BAC

Published on 05/14/2026 at 12:58 pm EDT

MERRILL LYNCH B.V.

L.R. Whitley

P.O. Box 71730, 1008 DE Amsterdam

Krijgsman 9, 1186 DM Amstelveen The Netherlands

Page(s)

Directors' report 1 - 5

‌The directors present their report and the audited financial statements of Merrill Lynch B.V. ("MLBV", the "Company") for the year ended 31 December 2025.

The directors are responsible for preparing the Directors' Report and the financial statements in accordance with applicable laws and regulations.

The directors confirm that to the best of their knowledge:

the financial statements give a true and fair view of the state of the Company's affairs as at 31 December 2025 and of its profit and cash flows for the year then ended; and

the directors' report gives a true and fair view of the Company's situation as at the reporting date, the events that occurred during 2025, future outlook, events after the reporting date and the risks to which the Company is exposed.

The Dutch Civil Code requires the directors to prepare financial statements for each financial year. Under that law the directors have prepared the financial statements in accordance with International Financial Reporting Standards as adopted by the European Union ("IFRS as adopted by the EU") and the additional requirements of Title 9 Book 2 of the Netherlands Civil Code in accordance with article 362 section 8 and 9 of the Netherlands Civil Code.

In preparing these financial statements, the directors are required to:

select suitable accounting policies and then apply them consistently;

make judgements and accounting estimates that are reasonable;

state whether applicable IFRS's as adopted by the EU have been followed, subject to any material departures disclosed and explained in the financial statements; and

prepare the financial statements on a going concern basis unless the directors either intend to liquidate the Company or to cease operations, or have no realistic alternative but to do so.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and enable them to ensure that the financial statements comply with IFRS as adopted by the EU and the additional requirements of Title 9 Book 2 of the Netherlands Civil Code in accordance with article 362 section 8 and 9 of the Netherlands Civil Code. They are also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

The directors are responsible for ensuring that the Company's financial statements are provided for inclusion on the website of the Company's ultimate parent undertaking, Bank of America Corporation ("BAC"). The work carried out by the auditors does not involve consideration of these matters and accordingly, the auditors accept no responsibility for any changes that may have occurred to the financial statements since they were initially presented on the website.

The principal activities of the Company are the issuance of structured and vanilla notes, certificates and warrants (collectively "Structured Issuances"), and economically hedging these instruments through derivatives with affiliated companies. In addition, the Company grants intercompany loans to affiliated companies.

All material assets of MLBV are obligations of one or more affiliated companies. If any such affiliated company incurs losses with respect to any of its activities (irrespective of whether those activities relate to MLBV or not) the ability of such company to fulfil its obligations to MLBV could be impaired, thereby exposing holders of instruments issued by MLBV to a risk of loss.

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Details about the Company's incorporation and the parent of the Company are disclosed in Note 1 Corporate information and basis of preparation.

Outlook

During 2025, global macroeconomic conditions remained challenging, with elevated trade-related uncertainty and geopolitical tensions contributing to market volatility. Tariff actions across major economies impacted global trade flows and introduced inflationary pressures, particularly in commodities. These developments influenced investor sentiment and contributed to shifts in asset allocation and risk appetite.

Across Europe, macroeconomic performance remained mixed, with persistent inflation undershoot and limited growth momentum. Central Bank policy remained accommodative, while fiscal measures in select jurisdictions provided targeted support. Market participants continued to monitor trade dynamics and policy developments, which remain key sources of uncertainty.

In the United States, economic indicators remained broadly resilient, supported by consumer spending and strong corporate earnings. However, elevated tariffs and policy uncertainty have introduced inflationary risks and contributed to volatility across asset classes. The Federal Reserve reduced rates during the year, citing labour market risks and demand-side concerns.

Geopolitical tensions, including ongoing conflicts and energy security concerns, have continued to influence market behaviour. Volatility in energy and agricultural markets, alongside financial sanctions, has impacted pricing and risk management across sectors. Heightened uncertainty in early 2026 surrounding developments in the Middle East, including Iran, contributed to increased market volatility as well as repricing across equity markets as investors assessed the potential for a more extended conflict and broader regional impacts.

The Company is exposed to numerous geopolitical, economic, and other risks in the jurisdictions in which it operates. Economic or geopolitical stress in individual countries or regions may adversely impact global market activity and economic output. The Company's results may be impacted by currency fluctuations, financial, social or judicial instability, electoral outcomes, changes in governmental policies or policies of central banks, price controls, high inflation, protectionist trade policies, continued trade tensions and changes in legislation. The businesses and revenue of the Company are also at risk of losses as tariffs continue to rise and other restrictive actions are taken that weigh heavily on regional trade volumes and domestic demand through falling business sentiment and lower consumer confidence. These risks are especially elevated in the emerging markets.

The Company continues to actively monitor macroeconomic conditions and relevant forward looking information when assessing the recoverability of its financial assets. No expected credit loss allowance has been recognised. The Company will continue to monitor solvency and liquidity on an ongoing basis.

Overview of 2025

The directors are satisfied with the Company's performance for the financial year ended 31 December 2025 and financial position at the end of the year. The Company's profitability is primarily derived from the issuance of the Structured Issuances and related intercompany assets.

Results

The statement of profit or loss and other comprehensive income for the year is set out on page 6. The Company reported a profit before tax of $112,943,000 (2024: $119,271,000) and profit after tax of $83,885,000 (2024:

$93,125,000). Year on year profit before tax decreased as the increase in net operating revenue was more than offset by higher administrative expenses under the new transfer pricing framework.

Net operating revenue was $129,811,000 (2024: $120,107,000) comprised of net interest income of

$1,113,660,000 (2024: $912,012,000), partially offset by a net fair value loss $984,816,000 (2024: $794,059,000). The increase in net interest income aligns with expanded lending to affiliates, while the increase in fair value

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Disclaimer

Bank of America Corporation published this content on May 14, 2026, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on May 14, 2026 at 16:57 UTC.