The #2 US bank, running on the interest-rate clock
Bank of America
Bank of America is the second-largest US bank by assets and the fifth-largest credit card issuer, serving roughly 69 million consumer and small-business clients. Its profit engine is net interest income, the spread between what it earns on loans and securities and what it pays on deposits, which makes the whole franchise unusually rate-sensitive. A large low-yield bond book built up in the zero-rate era sits underwater when yields rise, the defining risk of the node.
BAC Updated Jul 10, 2026 3 AI consumers
Per the valuechain.wiki graph, Bank of America is directly linked to 2 companies (2 supply, 0 revenue relationships) and reaches 2 companies within two hops; the links are backed by 4 dated sources, 1 of them primary filings (as of 2026-07-10).
Financials & Segments
- Total revenue · #2 US bank by assets. FY2025 total net revenue $113.1B, net interest income (NII) $60.1B, net income $30.5B. ~69M consumer clients.
- Customer concentration · NII is 53% of revenue, so it runs on the rate clock. Unrealized losses on its zero-rate-era HTM book (~$568B) are the emblem of bank rate risk. AI exposure is indirect via corporate lending.
- Segments · Consumer Banking · GWIM (Wealth & Investment Mgmt) · Global Banking · Global Markets
Revenue from
- 순이자수익 (예대마진) High confidence· Revenue 60,096$M · FY2025 · net interest income (GAAP)
Net interest income FY2025 $60.1B, 53% of revenue, the rate-clock core. - 자산관리 수수료 (GWIM) High confidence· Revenue 24,883$M · FY2025 · GWIM revenue
Global Wealth & Investment Management (Merrill, Private Bank) fee revenue ~$24.9B FY2025.
Pays to
- 예금 이자비용 High confidence
Interest paid on deposits and borrowings (the paid side of NII); its low-yield HTM book (~$568B) carries large unrealized losses. - 임직원 보상 High confidence
Employee compensation and benefits, the largest noninterest expense. - Visa Inc Medium confidence
5th-largest US card issuer (the top five account for 69% of card spending). Issues Visa-network cards, paying Visa network/assessment fees.Confirms EN Nilson Report Published May 1, 2025: Top 50 US Visa and Mastercard Credit Card Issuers 2024Confirms EN Nilson Report Published Mar 6, 2025: JP Morgan Tops Nilson Report Ranking of US Credit Card Issuers - Mastercard Inc Medium confidence
A top-five issuer of both Visa- and Mastercard-network cards, paying Mastercard assessment fees.Confirms EN Nilson Report Published May 1, 2025: Top 50 US Visa and Mastercard Credit Card Issuers 2024
Value-chain ripple (2 tiers)
Following node-to-node links up to 2 tiers; each firm is shown once, at its nearest tier.
| Company | Chain | '21 | '22 | '23 | '24 | '25 | YTD |
|---|---|---|---|---|---|---|---|
| Bank of America | node | +49.6 | -23.8 | +4.8 | +33.9 | +28 | +9.7 |
| Visa Inc | benef1 | -0.3 | -3.4 | +26.3 | +22.3 | +11.8 | -0.1 |
| Mastercard Inc | benef1 | +1.2 | -2.7 | +23.4 | +24.2 | +9 | -7.3 |
YTD as of 2026-07-10 · source: Yahoo Finance
Bank of America operates across The #2 US bank, running on the interest-rate clock. It stayed steadily positive in recent years and is +8.3% in 2026. The stock (+8.3%) and its supply side (avg -4.1%) are moving in step. Among connected nodes the furthest ahead is Visa Inc (-0.3%) and the furthest behind is Mastercard Inc (-7.9%). If chain logic explains the gap, the laggard is the next propagation candidate; if not, the link itself deserves a second look. A large low-yield bond book built up in the zero-rate era sits underwater when yields rise, the defining risk of the node.
Analysis generated from returns as of 2026-07-09Analyst ratings
Consensus: Buy 3 · Hold 0 · Sell 0 · Avg. target $67 · Price $59.67 (07-10) · Upside +12%
| Broker | Rating | Target | Published | |
|---|---|---|---|---|
| UBS | Buy | $68 | Jul 9, 2026 | Report ↗ |
| Morgan Stanley · Manan Gosalia | Overweight | $67 | Jun 29, 2026 | Report ↗ |
| Citi | Buy | $66 | Jun 23, 2026 | Report ↗ |
Ahead of an expected stronger Q2 2026 and after passing the stress test, UBS, Morgan Stanley and Citi raised targets into the mid-to-high $60s in June-July (Buy consensus, ~$63.6 average target).
Analyses covering this node
- Capital that funds the boom runs on the rate clock: banks, asset managers, Berkshire Jul 9, 2026
- Clocks that haven't run and clocks that ran hardest Jul 5, 2026