Bank of America Corporation
BACBusiness Overview
ticker: BAC step: 01 generated: 2026-05-11 source: quick-research
Bank of America Corporation (BAC) — Business Overview
Business Description
Bank of America is the second-largest U.S. bank by assets and a global financial services franchise. It serves ~69M consumer and small-business clients and has a Top-3 position in nearly every major business line: U.S. retail deposits, U.S. wealth management (Merrill), global investment banking, and global trading. Brian Moynihan has been CEO since 2010 and has rebuilt the company from the 2008-09 crisis into one of the most capital-strong and deposit-rich franchises in the industry.
Revenue Model
- Net Interest Income (~55% of revenue): Largest U.S. deposit base (~$2T) provides low-cost funding for loans and securities. NII reached $60.1B in 2025 (+7% YoY).
- Markets / Trading (~17%): FICC + equities; ~$2-3B per quarter
- Investment Banking (~5%): M&A advisory + ECM/DCM underwriting
- Wealth Management (~12%): Merrill + Private Bank fees; ~$4.8T in client balances
- Service charges / card / other (~11%): Deposit account fees, interchange, mortgage servicing
Products & Services
- Consumer Banking: Checking/savings, credit cards (BankAmericard, Cash Rewards, Customized Cash), mortgages, auto loans, small-business banking, digital banking (Erica AI assistant)
- Global Wealth & Investment Management: Merrill Lynch wealth management (broker-dealer), Bank of America Private Bank (HNW/UHNW), retirement services
- Global Banking: Commercial/middle-market lending, treasury services, working capital management, M&A advisory, ECM/DCM
- Global Markets: Sales & trading across FICC, equities; prime brokerage; research
Customer Base & Go-to-Market
- Consumers: ~69M consumer + small business clients
- Wealth: Merrill serves mass-affluent through HNW; Private Bank for UHNW ($10M+)
- Mid-market companies: ~5,000 mid-market banking relationships
- Large corporates: Most Fortune 1000 are banking relationships
- Institutional: Asset managers, hedge funds, pensions, sovereign wealth via Markets
- Geographic: ~90% US revenue; significant international Markets + Banking presence
Competitive Position
BAC's primary moat is its $2T+ deposit base — the largest in the U.S. and overwhelmingly low-cost consumer/retail deposits, providing structurally cheaper funding than wholesale-funded competitors. Other moats: (1) Merrill platform with $4.8T AUM, (2) ~$13B annual tech spend (#2 in banking), (3) leading digital adoption (54M+ digital banking customers, Erica AI), (4) AA-/A+ credit ratings. Competitors: JPM (#1 in most categories), WFC, C in universal banking; GS, MS in trading + wealth.
Key Facts
- Founded: 1904 (Bank of Italy → Bank of America via 1928 reorganization)
- Headquarters: Charlotte, NC
- Employees: ~213,000
- Exchange: NYSE
- Sector / Industry: Financials / Diversified Banks
- Market Cap: ~$340B (May 2026)
- CEO: Brian Moynihan (since 2010)
- Dividend: $1.04 annual (~$0.26 quarterly)
- Warren Buffett's Berkshire stake reduced to <9% (continued multi-year exit from peak ~13%)
- Total Assets: ~$3.3T
Financial Snapshot
ticker: BAC step: 04 generated: 2026-05-11 source: quick-research
Bank of America Corporation (BAC) — Financial Snapshot
Income Statement Summary
| Metric | FY2023 | FY2024 | FY2025 | YoY |
|---|---|---|---|---|
| Revenue | $171.9B | $192.4B | $191.6B | -0.4% |
| Net Interest Income | $56.0B | $56.1B | $60.1B | +7% |
| Noninterest Income | $46.6B | $48.7B | $50.5B | +4% |
| Operating Expenses | $66.8B | $67.8B | $68.5B | +1% |
| Net Income | $26.5B | $27.1B | $28.5B | +5% |
| EPS (diluted) | $3.08 | $3.21 | $3.50 | +9% |
| Return on Tangible Common Equity | 13.0% | 12.7% | 13.5% | +0.8pp |
Q1 2026 Highlights (most recent reported)
| Metric | Q1 2026 | YoY |
|---|---|---|
| Revenue | ~$27.5B | +6% |
| Net Income | $8.6B | +12% |
| EPS | $1.05 | +12% |
| NII | $15.9B | +9% |
| Trading Revenue | ~$5.1B (record) | +9% |
| Net Charge-off Rate | 0.48% | -6bps |
Segment Performance Q1 2026
| Segment | Net Income | YoY Change | ROAC |
|---|---|---|---|
| Consumer Banking | $3.1B | +21% | 27% |
| Global Wealth & Investment Mgmt | $1.3B | +32% | 24% |
| Global Banking | $2.1B | +8% | 16% |
| Global Markets | $2.0B | +3% | 15% |
Balance Sheet & Capital (Q1 2026)
| Metric | Value |
|---|---|
| Total Assets | $3.3T |
| Total Deposits | $2.0T (consumer + commercial) |
| Consumer Deposits | $952B (6 consecutive quarters of growth) |
| Total Loans | $1.1T |
| CET1 Capital Ratio | ~11.7% (well above 10.6% required) |
| Tangible Book Value/Share | ~$28 |
Key Ratios (approximate, May 2026)
- P/E (forward): ~12x | P/TBV: ~1.6x | Dividend Yield: ~2.3%
- ROTCE: ~13.5% (vs. JPM at ~22%)
- Efficiency Ratio: ~62%
- Net Charge-off Rate: 0.48% (declining)
Growth Profile
BAC is in a steady-execution phase. FY2025 EPS +9% as NII rebounded (+7%) and credit normalized. Consumer deposits have grown six consecutive quarters, validating Moynihan's "responsible growth" strategy. Q1 2026 trading revenue hit a record $5.1B, and consumer banking ROAC reached 27% — exceptional. The bull narrative now hinges on (1) Basel III Endgame relief unlocking $40B+ buybacks, and (2) continued deposit/wealth flywheel.
Forward Estimates
- 2026E Revenue: ~$200B (+5%)
- 2026E EPS: ~$3.85-4.00 (consensus, +10-15%)
- 2026E Net Income: ~$31B
- 2027E EPS: ~$4.50 (assuming Basel relief + continued NII growth)
Capital Return
- Regular dividend
$1.04/share annual ($8B paid annually) - Share buybacks: 2025 ~$12B; 2026 potential $25-40B post-Basel III "mulligan"
- Total return: ~6-7% combined yield potential if buybacks materialize
- Berkshire stake: reduced to <9% (was ~13% at peak)
Deeper Financial Analysis
The fundamental tier adds 9 additional research dimensions for $BAC.