Financials · FY2025 10‑K ↗ BAC · NYSE
Bank of America Corp /de/
Net revenue
$113B
↑ 7% vs prior year
Gross margin
N/A
Net debt
N/A
Free cash flow
N/A
1904 2025
1904 Bank of Italy founded
1930 Becomes largest U.S. bank
1958 BankAmericard created
1983 Expansion outside California begins
1986 Attempted takeover survived
1992 Acquires Security Pacific
1998 Merges with NationsBank
2004 FleetBoston acquired
2007 Subprime crisis begins impact
2008 Countrywide and Merrill Lynch acquired
2011 Countrywide settlement
2025 Strong revenue growth continues
Wikipedia history · XBRL financial data

Bank of America earns money in two main ways. First, it collects more interest on loans than it pays out on deposits, pocketing the difference. Second, it charges fees every time someone uses a credit card, trades a stock, gets help buying a company, or parks money with a wealth manager. The bank serves roughly 69 million consumer and small business clients through about 3,600 branches, 15,000 ATMs, and digital platforms with approximately 49 million active users. It also serves large corporations, governments, and investors through its Global Banking and Global Markets divisions. All four of these divisions feed money into the same machine, and the diagram below traces where that money flows.

How Bank of America Makes Money
flowchart TD A["Customer Deposits"] --> B["Loans & Investments"] C["Fee Income: Trading, Wealth, Banking"] --> D["Total Revenue $113.1B"] B --> D D --> E["Employee Compensation $42.3B, 61% of expenses"] D --> F["Operating & Compliance Costs"] E --> G["Net Income & Operating Cash"] F --> G G -->|"$12.6B FCF"| H["Capital Reserves & Regulatory Requirements"] H --> I["Shareholder Returns: Dividends & Buybacks"] I --> A H --> A B -->|"Interest Income"| D

Five years of data tell a story of steady growth with one important detour. Revenue climbed from $89.1 billion in 2021 to $113.1 billion in 2025, a gain of $24 billion over four years. Net income reached $30.5 billion in 2025, up from $27.0 billion the year before. Earnings per diluted share rose from $3.19 in 2024 to $3.81 in 2025. The bank's total assets grew to $3.4 trillion by the end of 2025, and total deposits reached $2.0 trillion.

Total Revenue 2021 to 2025 ($ billions)
2021
$89.1B
2022
$95.0B
2023
$102.8B
2024
$105.9B
2025
$113.1B
Revenue has grown every year for five consecutive years, reaching $113.1 billion in 2025.

The revenue growth rests on two pillars that moved together in 2025. Net interest income, the money earned from lending minus the cost of deposits, rose $4.0 billion to $60.1 billion. Noninterest income, which includes card fees, service charges, investment and brokerage services, and investment banking fees, rose $3.2 billion to $53.0 billion. Within noninterest income, investment and brokerage services alone reached $19.956 billion, driven by higher asset management fees and more active clients. Expenses also rose, with total noninterest expense climbing to $69.7 billion, largely due to higher compensation, technology spending, and marketing costs. Compensation and benefits alone came to $42.3 billion.

$60.1B
Net interest income in 2025, the largest single revenue component

The operating cash flow numbers in the five-year data swing dramatically from year to year, which is normal for a bank of this size. Banks move enormous sums through trading desks, securities portfolios, and lending books every quarter. What matters more for a bank is its capital strength, not its cash flow in the way a factory would report it. On that measure, the bank reported a Common Equity Tier 1 capital ratio of 11.4 percent at the end of 2025. Regulators require a minimum, and this number sits above that floor.

What is a Common Equity Tier 1 ratio?
Regulators require banks to hold a cushion of high-quality capital against the loans and other risks on their books. The Common Equity Tier 1 ratio measures that cushion as a percentage of risk-weighted assets. A higher ratio means the bank can absorb more losses before it runs into trouble. Bank of America's ratio of 11.4 percent at year-end 2025 sits above the regulatory minimums it faces.

Net charge-offs, which are loans the bank has given up trying to collect, fell from $6.0 billion in 2024 to $5.6 billion in 2025. As a share of average loans, that dropped from 0.57 percent to 0.50 percent. The allowance for loan and lease losses held at $13.2 billion. These numbers suggest the loan book was in slightly better shape at the end of 2025 than a year earlier.

2022
crisis
Rising interest rates created a hidden problem in the bond portfolio
When interest rates rose sharply starting in 2022, the value of the long-term bonds Bank of America held in its securities portfolio fell. The bank held a large amount of these bonds at their original purchase price on its books, but their market value dropped. This created unrealized losses sitting in accumulated other comprehensive income on the balance sheet. The bank did not have to sell the bonds at a loss, but the situation tied up capital and drew attention from analysts watching what happened to Silicon Valley Bank in 2023 under similar pressure. Bank of America's net interest income has since recovered and grown as fixed-rate assets gradually repriced at higher rates.

The risks the bank discloses in its filings are specific and worth naming directly. A drop in U.S. home prices would hit the large portfolio of home loans and home equity lines hard, because falling values push more borrowers underwater and raise defaults. If the Federal Reserve cuts interest rates significantly, net interest income shrinks because the bank earns less on its loans. A credit rating downgrade from agencies like Moody's or S&P would make borrowing more expensive and force the bank to post extra collateral on derivatives contracts. And because Bank of America has large exposures to other financial institutions including broker-dealers, hedge funds, and investment banks, a failure at one large firm could ripple through and create losses here too.

$5.7B
Provision for credit losses in 2025, the amount set aside in case borrowers cannot repay

There is also a structural limit on growth that comes from the bank's own size. Federal law bars Bank of America from acquiring any other bank if doing so would push its share of total U.S. insured deposits above 10 percent. As of June 30, 2025, the bank already held more than 10 percent of those deposits. That means the path to future growth runs through organic means, not large acquisitions.

Bank of America employed approximately 213,000 people at the end of both 2024 and 2025, suggesting headcount has stabilized even as revenue grew. The bank also raised its U.S. minimum hourly wage to $25 in October 2025, the final step in a commitment it made in 2021.
Why net interest income is so sensitive to rate changes
Banks borrow short and lend long. They pay depositors a rate that moves quickly when central banks act, but they earn interest on loans and bonds that were locked in at older rates. When rates rise, banks can benefit if their loan income rises faster than deposit costs. When rates fall, the reverse happens. Bank of America earned $60.1 billion in net interest income in 2025, making this the single largest line in its income statement and the one most exposed to Federal Reserve decisions.

The wealth management side of the business also matters more than it used to. The Global Wealth and Investment Management division reported client balances of $4.8 trillion. Investment and brokerage services fees reached $19.956 billion in 2025, up from $17.766 billion in 2024. This part of the business grows when markets rise and client assets grow in value, but it shrinks when markets fall.

$4.8T
Client balances in the Global Wealth and Investment Management division at year-end 2025
The Bet
Bank of America's revenue model assumes that interest rates stay high enough, for long enough, to keep net interest income near current levels while the bank's large fixed-rate bond and loan portfolio continues to reprice upward. If the Federal Reserve cuts rates faster or deeper than the bank's assets can absorb, the $60.1 billion in net interest income that anchors the whole revenue picture begins to shrink. The bank's expenses, including $42.3 billion in annual compensation and benefits, do not shrink as quickly. That gap between falling revenue and sticky costs is the central pressure point the business must navigate.
Open question
Bank of America has grown revenue for five straight years and now earns $113.1 billion annually. Its loan book is growing, its wealth management fees are rising, and net charge-offs are falling. But $60.1 billion of that revenue depends on interest rates staying where they are, and the Federal Reserve controls those rates. If rates fall materially from here, can growth in fees, card income, and wealth management make up for what net interest income loses?
Compiled · 10-K · FY2025
Total Revenue (5-year)
2021
$89B
2022
$95B
2023
$103B
2024
$106B
2025
$113B
Revenue grew from $89B in 2021 to $113B in 2025, a 27% increase over 5 years.
XBRL · Total revenue · Segment breakdown not reported separately
Gross margin is not applicable for banks, they earn through interest spread and fees, not product sales.
Operating Cash Flow (5-year)
2021
−$7.2B
2022
−$6.3B
2023
$45B
2024
−$8.8B
2025
$13B
For banks, operating cash flow reflects loan origination and funding activity, not day-to-day profitability.
Cash Conversion
0.41×
XBRL · 10-K Financial Statements · FY2025
FY2025
$86B
↑ 1358% year over year
FY2024
−$6.8B
Banks hold large amounts of debt by design, they borrow cheaply (deposits, bonds) and lend at higher rates. The gap between those two rates is how they make money. Net debt figures here reflect that funding structure, not financial stress.
XBRL · Balance Sheet · 10-K · FY2025
Brian T. Moynihan
Chief Executive Officer
$34M
Alastair M. Borthwick
Executive Vice President and Chief Financial Officer
$16M
James P. DeMare
Co-President, Bank of America
$26M
Matthew M. Koder
President, Global Corporate & Investment Banking
$19M
Dean C. Athanasia
Co-President, Bank of America
$19M
DEF 14A · Proxy Statement
Jun 11, 2026
BANK OF AMERICA CORP /DE/
$0.00M
Jun 11, 2026
BANK OF AMERICA CORP /DE/
$0.00M
Jun 11, 2026
BANK OF AMERICA CORP /DE/
$0.00M
Jun 11, 2026
BANK OF AMERICA CORP /DE/
$0.00M
Jun 11, 2026
BANK OF AMERICA CORP /DE/
$0.00M
Jun 11, 2026
BANK OF AMERICA CORP /DE/
$0.00M
May 20, 2026
BANK OF AMERICA CORP /DE/
$0.01M
May 20, 2026
BANK OF AMERICA CORP /DE/
$0.00M
May 20, 2026
BANK OF AMERICA CORP /DE/
$0.03M
May 20, 2026
BANK OF AMERICA CORP /DE/
$0.02M
141 purchases and 220 sales by insiders over the past two years.
Form 4 · SEC filings · Last 24 months
Vanguard Group
8.7%
Berkshire Hathaway
6.8%
BlackRock
6.3%
State Street
3.9%
Fidelity (FMR LLC)
2.6%
Geode Capital Management
2.1%
JPMorgan Asset Mgmt
1.8%
Morgan Stanley
1.5%
Vanguard Group is the largest institutional holder with 8.7% of shares outstanding.
13F filings
Housing Market Weakness
If the U.S. housing market declines, Bank of America could suffer major losses on its large portfolio of home loans and home equity lines of credit. Higher mortgage rates and reduced housing affordability have already hurt demand for these products, and falling home values would increase customer defaults and loan losses.
Credit Quality Deterioration
Economic downturns, high unemployment, or continued inflation could cause Bank of America's borrowers to default on loans at higher rates than expected. The bank's estimates of how much money it needs to set aside for loan losses may not be accurate if the economy worsens faster or differently than forecasted.
Interest Rate and Liquidity Risk
If the Federal Reserve cuts interest rates significantly, Bank of America's profits from lending will shrink because it earns less on loans. Additionally, sustained outflows of customer deposits or inability to access capital markets could force the bank to borrow at higher costs or sell assets at unfavorable prices.
Credit Rating Downgrade
A downgrade of Bank of America's credit rating by agencies like Moody's or S&P would make it more expensive to borrow money, limit access to short-term funding like repo financing, and require the bank to post extra collateral on derivatives contracts. This could significantly increase the bank's funding costs.
Financial Services Industry Contagion
Bank of America has major credit exposures to other financial institutions like broker-dealers, investment banks, and hedge funds. If one or more large financial firms fail or face severe stress, it could trigger defaults, market-wide liquidity problems, and substantial losses for the bank.
10-K Item 1A · Risk Factors
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Cash vs earnings
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AR growth
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Inventory
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Share dilution
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Debt trend
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One-time charges
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Goodwill
·
Customer conc.
Standard financial red-flag checks do not apply to banks, insurers, or REITs. Review regulatory capital ratios separately.
10-K · XBRL · Computed signals