Bank of America

Bank of America provides consumer and business banking, wealth management, investment banking and markets services. Its customers include individuals, companies, institutional investors and public-sector organisations.

Its four reporting segments are Consumer Banking, Global Wealth and Investment Management, Global Banking, and Global Markets. The wealth business includes Merrill and Bank of America Private Bank. Across these activities, the group combines lending and deposit relationships with payments, advice, investment services and access to financial markets.

How Does Bank of America Make Money?

Bank of America makes money from net interest income and fees or other noninterest revenue. Its income combines the return on lending and other assets with payments for banking, investment and markets services.

The group also reports certain remaining activities within All Other, outside the four main business segments.

How deposit and lending relationships generate income

The bank earns interest on loans and securities while paying interest on deposits and other funding. The difference contributes net interest income. Customer deposits are funding liabilities, and loan principal is an amount advanced; neither should be mistaken for the bank's revenue simply because it moves through an account.

Why wealth management creates a different payment model

A Merrill or private banking customer can pay for advice, investment management, brokerage or other services. Fees may depend on assets, activity and contracted terms. The client's portfolio remains distinct from the bank's own revenue, even when its value influences the fee charged.

Where repeat income comes from

Customers maintain accounts, borrow, make payments and continue using investment services. Companies return for financing, treasury and markets support. Funding expenses, operating costs and credit losses affect the profit that remains, so interest received and total fees should not be treated as amounts the bank retains without associated costs.