Bank of America Corporation, through its subsidiaries, provides various financial products and services for individual consumers, small and middle-market businesses, institutional investors, large corporations, and governments worldwide. It operates through four segments: Consumer Banking, Global Wealth & Investment Management (GWIM), Global Banking, and Global Markets. The Consumer Banking segment offers traditional and money market savings accounts, certificates of deposit and …
Full BAC analysis →
Competitive advantage assessment
Key strengths
Strong Capital PositionCapital position is strong (score 0.81), exceeding regulatory minimums.
Bank of America Corporation ranks #12 of 19
scored companies in Banks - Diversified by moat score — the top 63%.
The widest moat in the group is Bank of N.T. Butterfield & Son (NTB)
at 75/100.
Moat scores for companies ranked near BAC in Banks - Diversified
A deposit franchise is the cheapest and most valuable thing a bank can own.
Lending Advantage
Score 46
· 18% of the moat score
Lending advantage is the ability to originate loans at attractive spreads without buying that volume with looser credit standards.
Capital Strength
Score 66
· 20% of the moat score
Capital is the buffer between loan losses and insolvency, and it is what regulators judge a bank on first.
Cost Discipline
Score 27
· 16% of the moat score
Banking carries high fixed costs in branches, compliance and technology, so what it costs to run the bank relative to what the bank earns is a genuine competitive variable.
Revenue Diversification
Score 36
· 14% of the moat score
A bank earning everything from net interest income is a leveraged bet on the rate cycle.
Risk Management
Score 67
· 10% of the moat score
Risk management is the defense that only reveals itself late.
Bank of America Corporation (BAC) scores 49 out of 100 on the StatsAlpha Moat Map, which rates its competitive advantage as developing. It ranks #12 of 19 scored companies in Banks - Diversified, the top 63%. The score is a weighted composite of 6 competitive defenses, each measured against industry peers of 31 companies in Banks - Diversified. Its strongest defense is Risk Management (67/100) and its weakest is Cost Discipline (27/100).
How does Bank of America Corporation compare with other Banks - Diversified companies?
Bank of America Corporation ranks #12 of 19 scored companies in Banks - Diversified by moat score. The widest moat in Banks - Diversified is Bank of N.T. Butterfield & Son (NTB) at 75/100. The companies ranked closest are Banco Santander, S.A. Sponsored (SAN) at 50 just above it and ING Group, N.V. (ING) at 47 just below it.
How is the moat score calculated?
Each company is scored with an industry-specific template — Bank Specialized in this case, chosen because the defenses that matter to a bank are not the ones that matter to a software company. Every defense combines several financial signals, and each signal is measured as a percentile against a peer group of 31 companies in Banks - Diversified. The defenses are then weighted to produce the overall score out of 100.
Why is Bank of America Corporation scored with the Bank Specialized template?
A bank does not sell a product at a margin. It funds itself, lends at a spread, and books profits that remain an estimate until the loans are actually repaid. That makes the usual margin-and-return questions misleading, so the Bank template scores what really determines a bank's durability: where its funding comes from, what it lends against, how much capital stands behind it, and whether it has been pricing risk honestly.
Which competitive defenses are measured for Bank of America Corporation?
The Bank Specialized template measures 6 defenses, and BAC scores: Deposit Franchise (49), Lending Advantage (46), Capital Strength (66), Cost Discipline (27), Revenue Diversification (36), Risk Management (67). Each is scored independently as a percentile against peers, so a company can be strong on one and weak on another — the overall score reflects how those defenses are weighted for this industry.
We value your privacy
We use cookies to enhance your browsing experience, analyze site traffic, and personalize content. By clicking 'Accept All', you consent to our use of cookies.
Read our cookie policy
Cookie Preferences
Manage your cookie preferences. Essential cookies are always enabled.