How does Bank of America (BAC) make money?

Bank of America (BAC) generates revenue primarily from Consumer Banking Segment, which accounted for 36.7% of total revenue in TTM through Q2 2026. The company reported $178B in revenue and converted 19% of it into net profit, equivalent to roughly $33.7B in net income — what's left after the cost of revenue, operating expenses, interest, and income taxes.

What is the gross profit margin of Bank of America (BAC)?

Bank of America (BAC) reported a gross profit margin of 65.2% in TTM through Q2 2026, equivalent to $116B in gross profit on $178B in revenue. Gross margin measures how much of each dollar of revenue remains after the direct cost of producing or delivering the product — a higher figure typically signals pricing power, scale, or a less capital-intensive business model.

What is the operating profit margin of Bank of America (BAC)?

Bank of America (BAC) reported an operating profit margin of 24.7% in TTM through Q2 2026, equivalent to $43.9B in operating income. Operating margin captures profitability after research & development, sales & marketing, and general & administrative expenses — but before interest, taxes, and one-off items — and is the cleanest single read on the underlying business's efficiency.

What is the net profit margin of Bank of America (BAC)?

Bank of America (BAC) reported a net profit margin of 19% in TTM through Q2 2026, equivalent to $33.7B in net income. Net margin is the bottom-line share of revenue that survives every expense — operating costs, interest, and income taxes — and is the figure that flows directly into earnings per share.

Is Bank of America (BAC) profitable?

Yes. Bank of America (BAC) reported $33.7B in net income for TTM through Q2 2026, with a net profit margin of 19%. The company earned more from its operations than it paid out in costs, interest, and income taxes, leaving positive earnings on the bottom line.

How much does Bank of America (BAC) invest in research and development?

Bank of America (BAC) invested $2.02B in research and development during TTM through Q2 2026, roughly 1.1% of total revenue. R&D spending funds the company's future product pipeline and is expensed in full on the income statement rather than capitalised, which makes the operating margin sensitive to how aggressively management chooses to reinvest in innovation.

How much free cash flow does Bank of America (BAC) generate?

Bank of America (BAC) generated $56.6B in free cash flow during TTM through Q2 2026, a free-cash-flow margin of 31.9%. Free cash flow is the cash left after capital expenditures and represents the discretionary pool the company can use to pay dividends, repurchase shares, repay debt, or fund acquisitions without raising external capital.

What is the effective tax rate of Bank of America (BAC)?

Bank of America (BAC) had an effective tax rate of 23.3% in TTM through Q2 2026. The effective rate is the actual share of pre-tax income paid as income taxes and can differ materially from the statutory rate due to foreign earnings mix, tax credits (such as R&D), share-based compensation deductions, and one-off discrete items.

What are the main business segments of Bank of America (BAC)?

Bank of America (BAC) reports revenue across 4 reportable product segments, led by Consumer Banking at 36.7% of total revenue in TTM through Q2 2026. See the revenue-by-segment table on this page for the full breakdown and how each segment feeds into the income-statement waterfall above.

How Bank of America Makes Money: 2026 Visual Revenue Map

Bank of America (BAC) Income Statement Flow — TTM through Q2 2026

Calculated from the four most recent reported quarters, ending June 30, 2026 (reported July 14, 2026).

Bank of America discloses geographic revenue only in annual filings. to view the full breakdown.

Bank of America (BAC) Revenue by Product Segment — TTM through Q2 2026

Aggregated from the four quarterly disclosures behind this TTM. Minor differences vs the company's annual filing can occur if reported segments changed mid-year.

Revenue contribution by product segment for Bank of America (BAC), TTM through Q2 2026.
Segment	Revenue (USD)	% of total
Consumer Banking	$65.3B	36.7%
Wealth & Investment	$38.1B	21.5%
Global Markets	$37.5B	21.1%
Global Banking	$36.7B	20.7%
Total	$178B	100%

Consumer Banking$65.3B
Wealth & Investment$38.1B
Global Markets$37.5B
Global Banking$36.7B
Total$178B

Revenue Breakdown — TTM through Q2 2026

In TTM through Q2 2026, Bank of America (BAC) reports revenue across 4 reportable product segments; the largest segment was Consumer Banking at 36.7%, followed by Wealth & Investment (21.5%) and Global Markets (21.1%).

Frequently asked questions

Data & methodology

Bank of America (BAC) Key Financials

Charts, filings, and peer comparison for every metric

Income Statement

Balance Sheet

Profitability

Cash Flow

Capital Return

Forecast & Valuation

Operations

Employees213.0K

Trains Company Knowledge

Explore more

Deep-dives across the income statement, cash flow, capital return, and valuation

Overview

BAC Overview

Counters