The Small Business Owner: Twenty Quarters at Number OneNarrow moat

Bank of America (BAC) — moat facet

Bank of America has been the country's leading small business lender for twenty straight quarters, which is where tomorrow's corporate clients come from.

Small businesses are the bridge between Bank of America's consumer and corporate franchises. The bank describes itself as the number one small business lender for 20 consecutive quarters, citing FDIC data1, and it counts small business clients within its 69 million consumer and small business clients2.

Consumer Banking ($M)41,436Revenue 202443,673Revenue 202510,759Net income 202412,245Net income 2025Bank of America Form 10-K FY2025, segment note
Households and small firms, both growing.

The appeal is the same as the household: operating accounts with modest balances, an owner who often banks personally at the same place, and a relationship that grows with the business. Small business loans and deposits sit within Consumer Banking, which produced $43,673 million of revenue and $12,245 million of net income in 20253.

Small business credit sits in the consumer book, and the bank's own investor-day commentary called consumer credit stable and the lower end of the credit spectrum a watch item, especially if the labour market softens4.

The franchise is valuable because a small business owner who borrows from the bank usually runs the business account there too.

Consumer Banking's profit growth accelerated in 2026. Its net income rose 21% in the first quarter5, and it earned $3,281 million in the second6. Small business lending is part of that result, alongside household deposits and cards.

The ranking is published each quarter. Losing the number one position after twenty quarters would suggest competitors had found a cheaper way to lend to small firms, and it would matter because these clients are the next generation of corporate treasurers.

Moat trajectory: Holding steady

No. 1 small business lender for 20 consecutive quarters.

The number that tests this moat
Reported
Consumer Banking net income, full year
$12,245M (2025) vs $10,759M (2024)

Profit from households and small businesses together; a fall with no rise in provisions would mean the franchise was losing pricing.

Source: Bank of America Form 10-K, FY2025 ↗
References
  1. ReportedThe bank describes itself as the number one small business lender for 20 consecutive quarters, citing FDIC data, and it counts small business clients within its 69 million consumer and small business clients.
    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 ↗
  2. ReportedThe bank describes itself as the number one small business lender for 20 consecutive quarters, citing FDIC data, and it counts small business clients within its 69 million consumer and small business clients.
    Bank of America Form 10-K for fiscal 2025 - Item 1 business: footprint, clients and employees. — FY2025 · publ. 25 February 2026 · source ↗
  3. ReportedSmall business loans and deposits sit within Consumer Banking, which produced $43,673 million of revenue and $12,245 million of net 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 ↗
  4. Third-party estimateSmall business credit sits in the consumer book, and the bank's own investor-day commentary called consumer credit stable and the lower end of the credit spectrum a watch item, especially if the labour market softens.
    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 ↗
  5. ReportedIts net income rose 21% in the first quarter, and it earned $3,281 million in the second.
    Bank of America first-quarter 2026 earnings presentation, Form 8-K exhibit 99.2 - segment net income growth. — Q1 2026 · publ. April 2026 · source ↗
  6. ReportedIts net income rose 21% in the first quarter, and it earned $3,281 million in the second.
    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