BAC Return on Equity (ROE) Analysis
Updated 1227h 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
42th percentileBAC
11.2%
Sector Median
13.2%
Sector Avg
16.4%
Prior Period
10.6%(Jul 2026)
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.
Learn More About Return on Equity (ROE)
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.
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11.2%
Sector Median
13.2%
Sector Avg
16.4%
How BAC's Return on Equity (ROE) compares to sector peers.
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Not financial advice. Research tool only. Data may be delayed.