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This statistic highlights Bank of America’s Revenue Breakdown from 2016 onwards, split between consumer banking, global banking, global markets, global wealth & investment management, net interest income, non-interest income, and all other revenues.
Bank of America’s Revenue Breakdown.
Bank of America Corporation generated total revenue of $45,753 million in Q1 2021 from the following business verticals:
|Segment||Q1 2021||Q1 2020||YoY Growth||Revenue share in Q1 2021|
|Global Wealth & Investment Management||$4,971||$4,936||1%||11%|
|Net Interest Income||$10,197||$12,130||-16%||22%|
(All figures in millions, except percentages)
Bank of America has various banking and nonbanking subsidiaries throughout the U.S. as well as in international markets through which they offer a diversified range of banking and non-banking financial products and services.
Consumer Banking offers a wide range of banking, credit, and investment products and services to consumers and small businesses. The products and services range from CDs, IRAs, traditional savings, to residential mortgages, loans, and credit and debit cards. Consumer banking covers deposits and consumer lending which determines the net impact of migrating customers and their related brokerage asset, deposit, and loan balances.
In Q1 2021, Consumer Banking accounted for 18% of total revenue. The segment generated $8.07 billion in Q1 2021. However, there have been adverse year-over-year growth of -12% from $9.13 billion of Q1 2020. This segment posted a 49% profit increase because of reserve releases, but there has been a fall in revenue because of lower interest rates and loan balances, higher provision for credit losses, and higher expenses.
The global banking segment of Bank of America includes Global Corporate Banking, Global Commercial Banking, Global Investment Banking, and Business Banking. This segment offers lending-related products and services like underwriting services, advisory services, working capital management, treasury solutions, and investment banking products. The customers in this segment are usually middle-market companies, not-for-profit organizations, commercial real estate firms, and corporations of various sizes.
In Q1 2021, Global Banking generated $4.63 billion which was 10% of the total revenue of Bank of America. This segment also witnessed 1% year-over-year growth from Q1 2020.
The global market segment offers sales, trading, and research services like financing, securities clearing, custody, settlement, and market-making services to institutional investors in support of their investing and trading activities. This segment also provides risk management products using interest rate, credit, equity, foreign exchange, currency and commodity derivatives, and mortgage-related products.
In Q1 2021, Global Markets generated $6.20 billion which was 14% of the total revenue of Bank of America. This segment also witnessed 19% year-over-year growth from Q1 2020. The increase in revenue was mainly due to gains across fixed income and equities trading, as well as underwriting fees.
Global Wealth & Investment Management
Under global wealth & investment management (GWIM), Bank of America serves high net worth and ultra-high net worth clients by providing financial advisory, banking, retirement, and brokerage services. Here, the focus is on clients having a minimum of $250,000 investable assets. Clients are given customized solutions to meet their wealth structuring, investment management, and banking needs.
In Q1 2021, Global Markets generated $4.97 billion which was 11% of the total revenue of Bank of America. This segment also witnessed 1% year-over-year growth from Q1 2020. In Q1 2021, revenue from GWIM increased due to an increase in security-based lending, and custom lending.
Net Interest Income
Net Interest Income is calculated by subtracting Interest expenses from Interest income. Interest income includes loans, leases, debt securities, federal funds sold, trading account assets, and other income. Interest expenses include deposits, short-term borrowings, trading account liability, and long-term debt.
In Q1 2021, net interest income was $10.20 billion which was 22% of the total revenue of Bank of America. However, there has been -16% year-over-year growth from Q1 2020. The decrease in net interest income was primarily due to lower interest rates and loan balances.
Non-Interest Income is the aggregate of fees and commission received by the bank which include card income, service charges, investment and brokerage services, and investment banking fees.
In Q1 2021, non-interest income was $12.62 billion and contributed 28% to the total revenue. There has been the highest year-over-year growth of 22% in non-interest income. Card income increased due to an increase in client activity and merchant services. Investment and brokerage services income increased due to higher market valuations and higher assets under management (AUM) flows. Investment banking fees increased due to higher equity issuance and advisory fees.
Bank of America’s “All Other” segment includes ALM activities, non-core mortgage loans, servicing activities, liquidating businesses, equity investments, and other activities which are not categorized in the above segments. In Q1 2021, there has been a revenue loss of $939 million from this segment.
The Bank of America Corporation is an American-based multinational investment bank that was incorporated in 1998. Its principal executive offices are in Charlotte in North Carolina. Its common stocks are publicly traded on the New York Stock Exchange, under the trading symbol “BAC”.
It is one of the world’s largest financial institutions that serves individual consumers, small- and middle-market businesses, large corporations, institutional investors, and governments. It operates across the United States, its territories as well as in 35 other countries. Bank of America faces competition from JPMorgan Chase & Co., Goldman Sachs Group Inc., Citibank, Standard Chartered, BNP Paribas, Morgan Stanley, HSBC, Citigroup, and private equity firms.
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