The Trading Floors: Seven Point Six Percent of the PoolNarrow moat

Bank of America (BAC) — moat facet

Bank of America leads American consumer deposits and trails on the trading floor, where it has 7.6% of the pool and wants 9%.

Bank of America's deposit franchise is where it leads; its trading and investment banking businesses are where it chases. At the November 2025 investor day the bank said it had a 7.6% share of the industry trading revenue pool and targeted 9% in the medium term, along with a gain of 50 to 100 basis points in investment banking fee share1. It ranked third in investment banking fees for 2025, citing Dealogic2.

Share of industry trading revenue pool (%)7.6%Current9%Medium-term targetKitco/Reuters on the Bank of America investor day, November 2025
A challenger with a target.

The markets business is growing. Global Markets revenue was $19,533 million in 2023 and $24,096 million in 20253, and sales and trading revenue was $7,098 million in the second quarter of 2026, the 17th consecutive quarter of year-over-year growth4. Equities revenue rose 70% to $3.6 billion in that quarter5.

This is a competition decided by balance sheet, relationships and people, and the rivals are the other large dealers. It is also the most cyclical revenue Bank of America has. Global Markets earns most of its revenue from fees and trading rather than interest: $18,406 million of noninterest income against $5,690 million of net interest income in 20256.

The segment returned 20% on its allocated capital in the second quarter of 20267, respectable but below the consumer bank's 29%.

The business took the market's good years well. The bank reported record sales and trading revenue and record equities sales and trading revenue for 20258. A record in a strong market says the bank kept pace; the share target asks it to beat the market.

The share target is the measure. Moving from 7.6% toward 9% of the pool would show the challenger winning; a share that stalled while record markets lifted every dealer would mean the growth was the market's, not the bank's.

Moat trajectory: Widening

17 consecutive quarters of trading growth; equities +70% in Q2 2026.

The number that tests this moat
Reported
Sales and trading revenue, latest quarter
$7,098M, 17th consecutive quarter of growth (Q2 2026)

The challenger's progress in markets; a decline while rivals grew would say the share gains were market-driven.

Source: Bank of America Q2 2026 earnings release ↗
References
  1. Third-party estimateAt the November 2025 investor day the bank said it had a 7.6% share of the industry trading revenue pool and targeted 9% in the medium term, along with a gain of 50 to 100 basis points in investment banking fee share.
    Kitco (Reuters), Bank of America raises return target at its investor day - ROTCE 16-18%, trading share 7.6% against a 9% target, six new markets. — November 2025 · publ. 5 November 2025 · source ↗
  2. ReportedIt ranked third in investment banking fees for 2025, citing Dealogic.
    Bank of America fourth-quarter 2025 earnings release, Form 8-K exhibit 99.1. — Q4 2025 · publ. 14 January 2026 · source ↗
  3. ReportedGlobal Markets revenue was $19,533 million in 2023 and $24,096 million in 2025, and sales and trading revenue was $7,098 million in the second quarter of 2026, the 17th consecutive quarter of year-over-year growth.
    Bank of America Form 10-K for fiscal 2025 - business segment note and segment key statistics. — FY2025 · publ. 25 February 2026 · source ↗
  4. ReportedGlobal Markets revenue was $19,533 million in 2023 and $24,096 million in 2025, and sales and trading revenue was $7,098 million in the second quarter of 2026, the 17th consecutive quarter of year-over-year growth.
    Bank of America second-quarter 2026 earnings release, Form 8-K exhibit 99.1 - segment results, returns on allocated capital and business highlights. — Q2 2026 · publ. 14 July 2026 · source ↗
  5. ReportedEquities revenue rose 70% to $3.6 billion in that quarter.
    Bank of America second-quarter 2026 earnings release, Form 8-K exhibit 99.1 - segment results, returns on allocated capital and business highlights. — Q2 2026 · publ. 14 July 2026 · source ↗
  6. ReportedGlobal Markets earns most of its revenue from fees and trading rather than interest: $18,406 million of noninterest income against $5,690 million of net interest income in 2025.
    Bank of America Form 10-K for fiscal 2025 - business segment note and segment key statistics. — FY2025 · publ. 25 February 2026 · source ↗
  7. ReportedThe segment returned 20% on its allocated capital in the second quarter of 2026, respectable but below the consumer bank's 29%.
    Bank of America second-quarter 2026 earnings release, Form 8-K exhibit 99.1 - segment results, returns on allocated capital and business highlights. — Q2 2026 · publ. 14 July 2026 · source ↗
  8. ReportedThe bank reported record sales and trading revenue and record equities sales and trading revenue for 2025.
    Bank of America fourth-quarter 2025 earnings presentation, Form 8-K exhibit 99.2 - the 2026 outlook. — Q4 2025 · publ. 14 January 2026 · source ↗
Sources
Generated September 25, 2026