Bk Of America — Business Overview
What does Bank of America do?
Bank of America is one of the largest financial institutions in the world, offering banking, investing, and asset management services to individuals, businesses, and governments. The company operates through four main business segments, plus a catch-all "All Other" category:
| Segment | What it does |
|---|---|
| Consumer Banking | Everyday banking for individuals and small businesses — checking accounts, savings accounts, mortgages, credit cards, auto loans, and branch/ATM services |
| Global Wealth & Investment Management (GWIM) | Wealth management, brokerage, and retirement services, primarily through Merrill Lynch and Bank of America Private Bank |
| Global Banking | Lending, treasury management, and investment banking for mid-size and large corporations, as well as governments |
| Global Markets | Sales and trading of securities (equities, bonds, currencies, derivatives) and related services for institutional clients (large investors, hedge funds, etc.) |
The company employs approximately 213,000 people globally, with 77% based in the United States. Compensation and benefits alone cost $42.3 billion in 2025, representing 61% of total noninterest expense.
How does Bank of America make money?
Bank of America earns money through a mix of interest income and fee-based services across its four segments. Like all banks, a core source of income is the spread between what it pays depositors and what it charges borrowers — this is called net interest income. Beyond that, the company earns fees from wealth management (typically a percentage of assets managed), investment banking (advisory and underwriting fees), trading revenues in Global Markets, and service charges on consumer accounts.
What market does Bank of America operate in?
Bank of America competes across the broad U.S. and global financial services industry, which includes retail banking, investment banking, wealth management, and capital markets. These are large, mature markets in developed economies, though wealth management and capital markets can be more cyclical — meaning revenues rise and fall with interest rates and market activity. The filing notes that the banking sector is subject to ongoing and extensive regulation, which itself shapes competitive dynamics.
Several structural forces are reshaping the industry. Rising competition from purely digital banks and fintech (financial technology) companies — including those offering services based on digital assets — is increasing pressure on traditional banks. Meanwhile, evolving rules around capital requirements, cybersecurity, artificial intelligence, and consumer privacy are adding compliance costs. Interest rate movements also heavily influence profitability in consumer and commercial lending.
Who are Bank of America's main competitors?
The competitive landscape is wide and fragmented, spanning traditional banks, investment firms, insurers, and technology-driven newcomers. The filing lists competitors including other major banks, thrifts, credit unions, investment banks, brokerage firms, insurance companies, mortgage lenders, mutual fund companies, hedge funds, private equity firms, and e-commerce or internet-based financial companies. This means Bank of America is not just competing with JPMorgan Chase or Wells Fargo — it is also competing with firms like Fidelity in brokerage, or emerging fintech platforms for digital banking customers.
Bank of America's competitive advantages, as described in the filing, are scale, relationships, product breadth, technology, and reputation. Competing on customer service, pricing, range of products, lending capacity, technology quality, and the ability to attract and retain talented employees are all cited as key factors. Its sheer size — holding over 10% of all insured deposits in the U.S. as of mid-2025 — reflects its dominant position, though that same size triggers regulatory caps on further deposit-taking acquisitions.
Where does Bank of America operate?
Bank of America is primarily a U.S.-based institution, but it has a meaningful international presence, particularly in Europe and Asia. About 77% of its roughly 213,000 employees are located in the United States. The company operates banking and nonbank subsidiaries both domestically and in international markets.
In Europe, the company is regulated in the United Kingdom (by the Prudential Regulatory Authority and Financial Conduct Authority), in Ireland (by the European Central Bank and Central Bank of Ireland), and in France (by the ECB and French regulators). These are primarily institutional and capital markets operations rather than consumer banking branches.
Outside Europe, Bank of America has operations relevant enough for local resolution planning in Mexico, Hong Kong, Indonesia, the Philippines, and Malaysia. These international presences expose the company to a range of foreign regulations, resolution requirements, sanctions programs, and geopolitical risks — all of which the filing flags as factors that could lead to restructuring of certain business units or increased operating costs over time.