How does Bank of America (BAC) make money?

Bank of America (BAC) primarily makes money through Consumer Banking Segment, which accounts for 37.4% of total revenue. For TTM through Q1 2026, Bank of America generated $174.85B in total revenue with a net profit margin of 18.1%.

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

Bank of America (BAC) reported a gross profit margin of 63.2% for TTM through Q1 2026, equivalent to $110.47B in gross profit. This means Bank of America retains 63.2% of each revenue unit after direct costs of production.

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

Bank of America (BAC) reported an operating profit margin of 22.9% for TTM through Q1 2026, equivalent to $39.98B in operating profit. This reflects profitability after operating expenses such as R&D, sales, and administration, but before taxes and non-operating items.

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

Bank of America (BAC) reported a net profit margin of 18.1% for TTM through Q1 2026, equivalent to $31.70B in net profit. This is the share of revenue that remains as profit after all expenses, taxes, and non-operating items.

How much does Bank of America (BAC) invest in R&D?

Bank of America (BAC) invested $2.02B in research and development in TTM through Q1 2026 (1.2% of total revenue). R&D spending reflects investment in future products, services, and technologies.

What is Bank of America (BAC) free cash flow?

Bank of America (BAC) generated $12.61B in free cash flow for TTM through Q1 2026 (7.2% of total revenue). Free cash flow is the cash remaining after capital expenditures and represents the company's ability to fund growth, pay dividends, or reduce debt.

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

Bank of America (BAC) had an effective tax rate of 20.7% for TTM through Q1 2026. This is the actual percentage of pre-tax income paid as income taxes.

How Bank of America (BAC) Makes Money: A Visual Guide

Bank of America (BAC) generated $174.85B in revenue, earning $31.70B in net profit (18.1% margin). Its largest revenue source is Consumer Banking Segment (37.4% of revenue). Below is an interactive breakdown of how revenue flows through the income statement.

Bank of America (BAC) Income Statement Flow — TTM through Q1 2026

Calculated from the four most recent reported quarters, ending March 31, 2026 (reported April 15, 2026).

Frequently asked questions

How does Bank of America (BAC) make money?: Bank of America (BAC) primarily makes money through Consumer Banking Segment, which accounts for 37.4% of total revenue. For TTM through Q1 2026, Bank of America generated $174.85B in total revenue with a net profit margin of 18.1%.
What is Bank of America (BAC) gross profit margin?: Bank of America (BAC) reported a gross profit margin of 63.2% for TTM through Q1 2026, equivalent to $110.47B in gross profit. This means Bank of America retains 63.2% of each revenue unit after direct costs of production.
What is Bank of America (BAC) operating profit margin?: Bank of America (BAC) reported an operating profit margin of 22.9% for TTM through Q1 2026, equivalent to $39.98B in operating profit. This reflects profitability after operating expenses such as R&D, sales, and administration, but before taxes and non-operating items.
What is Bank of America (BAC) net profit margin?: Bank of America (BAC) reported a net profit margin of 18.1% for TTM through Q1 2026, equivalent to $31.70B in net profit. This is the share of revenue that remains as profit after all expenses, taxes, and non-operating items.
How much does Bank of America (BAC) invest in R&D?: Bank of America (BAC) invested $2.02B in research and development in TTM through Q1 2026 (1.2% of total revenue). R&D spending reflects investment in future products, services, and technologies.
What is Bank of America (BAC) free cash flow?: Bank of America (BAC) generated $12.61B in free cash flow for TTM through Q1 2026 (7.2% of total revenue). Free cash flow is the cash remaining after capital expenditures and represents the company's ability to fund growth, pay dividends, or reduce debt.
What is Bank of America (BAC) effective tax rate?: Bank of America (BAC) had an effective tax rate of 20.7% for TTM through Q1 2026. This is the actual percentage of pre-tax income paid as income taxes.

Data & methodology

What is a Sankey diagram?: A Sankey diagram shows how money flows through a company from revenue to net profit. The width of each flow represents its proportion.
How is the data calculated?: We use the income statement from company filings. For TTM (Trailing Twelve Months), we use a pre-aggregated twelve-month view aligned with our latest four quarterly periods. Revenue flows to cost of revenue and gross profit, then to operating expenses (R&D, S&M, G&A) and operating profit.
When was this data last updated?: Based on company filings through TTM through Q1 2026.