The Business Model of

Bank of America

Traditional Bank $23.8 billion1

Bank of America operates three businesses, the largest of which is a traditional bank that accepts deposits and makes loans.

1. All revenue figures relate to the first six months of 2015.

Consumer72%

Traditional Bank $23.8 billion

Most of the traditional bank’s earnings come from serving consumers, who account for 72% of its revenue.

Consumer72% Commercial

28%

Traditional Bank $23.8 billion

The other 28% comes from serving commercial customers.

Consumer72% Commercial

28%

Traditional Bank $23.8 billion

Investment Bank

$10.5 billion

Bank of America’s investment bank is its second-largestbusiness, accounting for $10.5 billion in net revenue through the first six months of 2015.

Consumer72% Commercial

28% Trading36%

Traditional Bank $23.8 billion

Investment Bank

$10.5 billion

The plurality of B of A’s investment banking revenue, or 36%, comes from trading debt and equity securities.

Consumer72% Commercial

28% Trading36%

Advisory & Underwriti

ng28%

Traditional Bank $23.8 billion

Investment Bank

$10.5 billion

The next largest share stems from advising businesses on mergers and acquisitions, and from underwriting stock and bond sales.

Consumer72% Commercial

28% Trading36%

Advisory & Underwriti

ng28%

Traditional Bank $23.8 billion

Investment Bank

$10.5 billion

Prime Brokerage 11%

11% of investment banking revenue comes from B of A’sprime brokerage, which offers trading-related services toinstitutional investors such as hedge funds and PE firms.

Consumer72% Commercial

28% Trading36% Interest

& Other25%

Advisory & Underwriti

ng28%

Traditional Bank $23.8 billion

Investment Bank

$10.5 billion

Prime Brokerage 11%

The remaining 25% derives from net interest income and other ancillary activities.

Consumer72% Commercial

28% Trading36% Interest

& Other25%

Advisory & Underwriti

ng28%

Traditional Bank $23.8 billion

Asset/WealthManagement$9.1 billion

Investment Bank

$10.5 billion

Prime Brokerage 11%

Bank of America’s third main business line is an asset andwealth manager, accounting for revenue of $9.1 billion inthe first and second quarters of 2015.

Consumer72% Commercial

28%

Merrill Lynch83%

Trading36% Interest

& Other25%

Advisory & Underwriti

ng28%

Traditional Bank $23.8 billion

Asset/WealthManagement$9.1 billion

Investment Bank

$10.5 billion

Prime Brokerage 11%

Merrill Lynch’s “thundering herd” of financial advisors generates the lion’s share, or 83%, of the unit’s revenue by serving America’s mass affluent (net worth > $250k).

Consumer72% Commercial

28%

Merrill Lynch83%

U.S. Trust17%

Trading36% Interest

& Other25%

Advisory & Underwriti

ng28%

Traditional Bank $23.8 billion

Asset/WealthManagement$9.1 billion

Investment Bank

$10.5 billion

Prime Brokerage 11%

The remaining 17% comes from U.S. Trust, a subsidiaryserving high net worth and ultra high net worth clients.

Consumer72% Commercial

28%

Merrill Lynch83%

U.S. Trust17%

Trading36% Interest

& Other25%

Advisory & Underwriti

ng28%

Traditional Bank $23.8 billion

Asset/WealthManagement$9.1 billion

Investment Bank

$10.5 billion

Prime Brokerage 11%

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