The Corporate Treasurer and $652 BillionNarrow moat

Bank of America (BAC) — moat facet

Bank of America holds $652 billion for corporate treasurers who could move it faster than any household.

The corporate treasurer is Bank of America's most valuable and least loyal client. Global Banking held average deposits of $656.1 billion in the fourth quarter of 2025 and $651.9 billion in the second quarter of 202612. The bank has relationships with 78% of the Global Fortune 500 and 96% of the U.S. Fortune 1,0003.

Global Banking net income ($M)10,07220237,98420247,7932025Bank of America Form 10-K FY2025, segment note
Profit fell as corporate deposits lost value.

These deposits are mostly operating money: payroll, supplier payments and cash management. They sit with the bank because it runs the company's payments, which is sticky. But they are large and uninsured, and a treasurer can move them faster than any household.

The business pays well without holding much risk. Global Banking produced $24,108 million of revenue in 2025, about half from net interest income and half from fees, including investment banking4. Its net income was $7,793 million, down from $10,072 million in 20235, a fall of about 23%6.

The segment's return on allocated capital was 15% in the second quarter of 20267, the lowest of the four businesses.

The segment's loan book is where commercial credit risk sits. The bank's U.S. commercial real estate loans averaged $60.4 billion in 20258, a fraction of total loans, and commercial reservable criticized exposure fell $5.8 billion in the year to June 20269.

Corporate deposit balances are the figure to watch. A quarter in which Global Banking deposits fell sharply while markets were calm would say treasurers were choosing another bank for their operating cash, the first loss this franchise would feel.

Moat trajectory: Holding steady

Global Banking deposits $656.1bn (Q4 2025) to $651.9bn (Q2 2026).

The number that tests this moat
Reported
Global Banking average deposits, latest quarter
$651.9bn (Q2 2026) vs $656.1bn (Q4 2025)

Corporate operating cash; a sharp fall in calm markets would mean treasurers were moving it.

Source: Bank of America Q2 2026 earnings release ↗
References
  1. ReportedGlobal Banking held average deposits of $656.1 billion in the fourth quarter of 2025 and $651.9 billion in the second quarter of 2026.
    Bank of America fourth-quarter 2025 earnings release, Form 8-K exhibit 99.1. — Q4 2025 · publ. 14 January 2026 · source ↗
  2. ReportedGlobal Banking held average deposits of $656.1 billion in the fourth quarter of 2025 and $651.9 billion in the second quarter of 2026.
    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 ↗
  3. ReportedThe bank has relationships with 78% of the Global Fortune 500 and 96% of the U.S. Fortune 1,000.
    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 ↗
  4. ReportedGlobal Banking produced $24,108 million of revenue in 2025, about half from net interest income and half from fees, including investment banking.
    Bank of America Form 10-K for fiscal 2025 - business segment note and segment key statistics. — FY2025 · publ. 25 February 2026 · source ↗
  5. ReportedIts net income was $7,793 million, down from $10,072 million in 2023, a fall of about 23%.
    Bank of America Form 10-K for fiscal 2025 - financial highlights, income statement, capital and shareholders' equity. — FY2025 · publ. 25 February 2026 · source ↗
  6. Moat Explorer calcIts net income was $7,793 million, down from $10,072 million in 2023, a fall of about 23%.
    Moat Explorer calculation from Bank of America's reported figures ($ millions unless stated). Deposits: cost of total deposits = interest on interest-bearing deposits / (average interest-bearing + average noninterest-bearing deposits): 2019 7,188 / 1,380,326 = 0.52%; 2021 537 / 1,914,286 = 0.03%; 2022 4,718 / 1,986,158 = 0.24%; 2023 26,163 / 1,887,541 = 1.39%; 2024 38,442 / 1,924,106 = 2.00%; 2025 34,513 / 1,984,182 = 1.74% (1,469,705 + 514,477 = 1,984,182, about $1.98 trillion). Average total deposits 2015 1,155,860; 2021 1,914,286; 2022 1,986,158 (about $1.99 trillion); 2015 to 2025 1,984,182 / 1,155,860 - 1 = 72%. Noninterest-bearing share 744,035 / 1,914,286 = 38.9% (2021); 514,477 / 1,984,182 = 25.9% (2025). Noninterest-bearing decline 751,470 - 514,477 = 236,993 (about $237 billion). JPMorgan comparison: deposit cost gap 1.80% - 1.74% = 0.06 points; 0.0006 x 1,984,182 = about 1,190 (about $1.2 billion). JPMorgan revenue per dollar of average deposits 182,447 / 2,506,565 = 7.3 cents; Bank of America 113,097 / 1,984,182 = 5.7 cents. JPMorgan year-end deposits 2,559,320 / 2,018,729 - 1 = 27%; revenue 182,447 / 113,097 - 1 = 61%; market value 935.79 / 391.80 = 2.4 times. Net income margin JPMorgan 57,048 / 182,447 = 31.3%; Bank of America 30,509 / 113,097 = 27.0%. Efficiency gap 61.65% - 52% = 9.65 points x 113,097 = about 10,914 (about $10.9 billion). Loans to deposits 1,185,700 / 2,018,729 = 58.7%. Uninsured deposits 723.0 + 134.9 = 857.9 billion; 857.9 / 2,018.7 = 42.5%; insured and other 2,018.7 - 857.9 = 1,160.8 billion. Consumer deposits per checking account 957.0 billion / 38.7 million = about $24,700. Securities: held-to-maturity unrealised loss as a share of common equity 108,596 / 244,800 = 44% (2022); 82,094 / 276,100 = 30% (June 2026). Held-to-maturity amortised cost 2021 674,591 - 2025 522,685 = 151,906 (about $152 billion); 2020 438,279 to 2021 674,591 = +236,312 (about $236 billion); 2021 fair value 665,890 - cost 674,591 = -8,701. Runoff time 505,828 / 34,794 = 14.5 years. Agency MBS share of loss 67,309 / 80,257 = 84%. Net interest income H1 31,742 / 29,113 - 1 = 9.0%. Capital: CET1 headroom (11.2% - 10.0%) x 1,792 billion = about 21.5 billion; 2027 minimum 4.5% + 3.5% + 2.5% = 10.5%. Capital returned 2025 (8.1 + 21.433) / 29.055 = 101% of net income to common. Average diluted shares 7,680.9 / 11,236.2 - 1 = -31.6%. EPS growth (3.81 / 1.31)^(1/10) - 1 = 11.3% a year. Price to tangible book 56.03 / 29.37 = 1.91. Revenue 2023 102,769 to 2025 113,097 = +10%. Compensation 42,346 / 69,727 = 61% of noninterest expense. Financial centers 3,530 / 3,664 - 1 = -3.7%. Noninterest expense Q2 2026 18,627 / 17,183 - 1 = 8.4%. Berkshire holding 483,394,015 / 1,032,852,006 - 1 = -53%. Investment banking fees Q2 2025 implied 2.1 / 1.5 = 1.4 billion. Segments (FTE, 2025): segment revenue 43,673 + 24,883 + 24,108 + 24,096 = 116,760; less All Other 3,054 = 113,706; less FTE adjustment 609 = 113,097. Shares of total FTE revenue: Consumer 43,673 / 113,706 = 38.4%; GWIM 24,883 / 113,706 = 21.9%. Shares of net income 30,509: Consumer 12,245 = 40.1%; Global Banking 7,793 = 25.5%; Global Markets 6,111 = 20.0%; GWIM 4,670 = 15.3%. Net income margins: Consumer 12,245 / 43,673 = 28.0%; GWIM 4,670 / 24,883 = 18.8% (2024 4,263 / 22,929 = 18.6%; 2023 3,947 / 21,105 = 18.7%); Global Banking 7,793 / 24,108 = 32.3%; Global Markets 6,111 / 24,096 = 25.4%. Consumer net interest income 35,309 / 43,673 = 81%; Consumer provision 4,649 / 5,675 = 82%. Growth 2023-2025: Consumer 43,673 / 42,031 - 1 = 3.9%; GWIM 24,883 / 21,105 - 1 = 17.9%; Global Markets 24,096 / 19,533 - 1 = 23.4%; Global Banking net income 7,793 / 10,072 - 1 = -23%. Consumer H1 2026 revenue 11,336 + 11,049 = 22,385. GWIM net interest income 7,197 / 24,883 = 29%. Revenue per dollar of year-end assets: Global Markets 24,096 / 1,032,858 = 2.3 cents; Consumer 43,673 / 1,039,346 = 4.2 cents. GWIM client balances 4,751,394 / 4,252,106 - 1 = 11.7%, increase 499,288; net flows 81,997 / 4,252,106 = 1.9%; consumer investment assets 639.5 / 599.1 - 1 = 6.7%. Revenue per dollar of balances: Private Bank 4,167 / 759,082 = 0.55%; Merrill 20,716 / 3,992,312 = 0.52%; Private Bank share of GWIM balances 759,082 / 4,751,394 = 16% and revenue 4,167 / 24,883 = 17%. Investment and brokerage services 19,956 / 17,766 - 1 = 12.3%. Common equity 277,251 / total assets 3,411,738 = 8.1%. AUM net flows 81,997 / 2,177,708 = 3.8%. Held-to-maturity loss 2023 97,994 / 263,249 = 37%. Share price 56.03 / 52-week high 65.23 - 1 = -14%. First half 2026 (Q1 + Q2): Consumer Banking revenue 11,049 + 11,336 = 22,385 and net income 3,060 + 3,281 = 6,341; Global Banking net income 2,087 + 2,046 = 4,133; Global Markets revenue 7,109 + 8,022 = 15,131 - capital, valuation, returns and comparisons with JPMorgan. — 2015-2026 · publ. September 2026 · source ↗
    Method: Arithmetic on figures reported in Bank of America's Forms 10-K and 10-Q, earnings releases, JPMorgan's 10-K, Berkshire 13F tables and market data; operands shown in the source line.
  7. ReportedThe segment's return on allocated capital was 15% in the second quarter of 2026, the lowest of the four businesses.
    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's U.S. commercial real estate loans averaged $60.4 billion in 2025, a fraction of total loans, and commercial reservable criticized exposure fell $5.8 billion in the year to June 2026.
    Bank of America Form 10-K for fiscal 2025 - financial highlights, income statement, capital and shareholders' equity. — FY2025 · publ. 25 February 2026 · source ↗
  9. ReportedThe bank's U.S. commercial real estate loans averaged $60.4 billion in 2025, a fraction of total loans, and commercial reservable criticized exposure fell $5.8 billion in the year to June 2026.
    Bank of America second-quarter 2026 earnings release, Form 8-K exhibit 99.1 - consolidated results, credit quality, capital and forward-looking risks. — Q2 2026 · publ. 14 July 2026 · source ↗
Sources
Generated September 25, 2026