BACNEUTRAL

BAC Return on Equity (ROE) Analysis

10.6%

Higher than 29% of Financial Services sector peers

Updated 312h ago·SEC filings & market data

Key Takeaway

Return on equity (ROE) measures how much profit a company generates for each dollar of shareholders’ equity — BAC’s current 10.6% means it earns $0.106 for every $1 of equity.

Sector Performance

29th percentile

BAC

10.6%

Sector Median

13.4%

Sector Avg

17.9%

Prior Period

10.1%(Apr 2026)

↑ Improving

📊

Deep Analysis

Return on equity (ROE) measures how much profit a company generates for each dollar of shareholders’ equity — BAC’s current 10.6% means it earns $0.106 for every $1 of equity.

That sits below the Financial Services sector median of 13.4%, placing BAC in the 30th percentile among its peers. The year-over-year change is not available, but quarter-over-quarter ROE rose by 5.0% (from 10.1% to 10.6%). Although the metric trails the sector median, the positive quarterly trend suggests a recent uptick in profitability. For an investor, this combination of below‑median level plus improving direction carries moderate risk: the company is not a standout performer but is heading in a better direction. This metric supports the overall NEUTRAL verdict, as BAC’s ROE is neither strong enough to justify bullishness nor weak enough to warrant a bearish call given the recent improvement.

Frequently Asked Questions

What does the Return on Equity (ROE) tell investors about BAC?

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.

How is the Return on Equity (ROE) calculated?

Return on Equity (ROE) is calculated as: Net Income / Shareholders' Equity.

How does BAC's Return on Equity (ROE) compare to its sector?

BAC's Return on Equity (ROE) of 10.6% compares to a Financial Services sector median of 13.4%, placing it in the 29th percentile.

Who are BAC's closest peers by Return on Equity (ROE)?

The closest Financial Services peers by Return on Equity (ROE) include: PFG (13.4%), HDB (13.8%), SPGI (13.9%), AIZ (14.9%), IBN (16.4%).

📚

Learn More About Return on Equity (ROE)

What Is Return on Equity (ROE) and Is Higher Always Better?

Return on equity ROE measures how efficiently a company generates profit from shareholder capital. Learn how to decompose ROE using DuPont analysis and why high leverage can make it dangerous—with Apple and JPMorgan examples.

The Formula

Net Income / Shareholders' Equity

Why It Matters

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.