Bank of America and the Other TwoWide moat

JPMorgan Chase (JPM) — moat facet

Same charter, same regulator, same products, and a persistently lower return -- which makes this moat executional rather than structural, and therefore copyable.

The three banks most similar to JPMorgan are the clearest evidence that the moat is executional rather than structural.

Return on tangible common equity20%JPMorgan 202518%Bank of America, projectedJPMorgan trades near 2.7x book; Bank of America near 2.2x tangible book.
Two or three points, compounded for a decade, is the whole gap.

Bank of America, Wells Fargo and Citigroup operate under the same charter, the same supervisor, the same stress test and the same capital framework. They offer the same products to overlapping customers. And they have earned less on them for a decade: JPMorgan produced a 20% return on tangible common equity in 20251, while Bank of America's is projected to reach 18% only over the next two years2.

Two or three points of ROTCE compounded over a decade is the difference between a wide moat and an ordinary bank, and the market prices it accordingly — JPMorgan trades near 2.7 times book while Bank of America trades near 2.2 times tangible book3.

Where the gap comes from is unglamorous: a better cost position, a stronger investment bank, and fewer self-inflicted problems. Wells Fargo spent years under an asset cap. Citigroup has been restructuring for most of a decade.

The reason this is a competitive page rather than a victory lap is that none of those disadvantages are permanent. A peer that fixes its cost base is a peer earning JPMorgan's returns with JPMorgan's funding.

Watch the ROTCE spread against the big three. It is the cleanest available measure of whether this is a moat or a management team.

Moat trajectory: Widening

The ROTCE gap persists: 20% for JPMorgan in 2025 against a Bank of America figure analysts expect to reach 18% only over the next two years, and JPMorgan trades at a corresponding premium to book.

The number that tests this moat
Third-party estimate
ROTCE against the closest peer
20% vs an 18% Bank of America projection

Same charter, same supervisor, same products, and two to three points of return separating them — compounded over a decade, that is the difference between a wide moat and an ordinary bank. It is also executional rather than structural, which means a peer that fixes its cost base earns JPMorgan's returns with JPMorgan's funding.

JPMorgan's 20% is reported; the Bank of America figure is an analyst projection, not a reported result.
Source: JPMorgan FY2025 results; peer analysis of Bank of America ↗
References
  1. Reported2025 net income $57,048M, diluted EPS $20.02, return on equity 17% and return on tangible common equity 20%.
    JPMorgan Chase & Co., Form 10-K FY2025 — consolidated financial statements and management's discussion (SEC, CIK 19617). Total net revenue $182,447M (2024 $177,556M, 2023 $158,104M); total noninterest expense $95,640M (2023 $87,172M); pre-provision profit $86,807M; provision for credit losses $14,212M; net income $57,048M; diluted EPS $20.02; ROE 17%, ROTCE 20% (2024 22%, 2023 21%); overhead ratio 52% (2024 52%, 2023 55%); loans-to-deposits 58% (56%, 55%); deposits 63% of total liabilities. Total assets $4,424,900M, loans $1,493,429M, deposits $2,559,320M, tangible common equity $290,018M, book value per share $126.99, tangible book value per share $107.56, dividends declared per share $5.80 (2024 $4.80, 2023 $4.10). Segment total net revenue: CCB $76,029M / $71,507M / $70,148M; CIB $78,454M / $70,114M / $64,353M; AWM $24,073M / $21,578M / $19,827M. Banking & Payments by client coverage: Global Corporate Banking and Global Investment Banking $25,285M, Commercial Banking $11,851M. Deposit average balances and rates: US non-interest-bearing $572,014M (2024 $611,734M, 2023 $635,791M); US interest-bearing demand $321,145M at 3.26%; US savings $875,519M at 1.41%; total deposits 1.80% (2024 2.08%, 2023 1.70%). An estimated bargain purchase gain of $2.8bn was recorded for the year ended 31 December 2023 on the First Republic acquisition, with a further $588M First Republic-related gain in the first quarter of 2025; 2024 revenue included a $7.9bn net gain on Visa shares. — FY2025 · publ. 2026-02-13 · source ↗
  2. Third-party estimateBank of America's return on tangible common equity is projected by analysts to reach 18% over the next two years.
    Peer analysis of the large US banks — Bank of America's return on tangible common equity is projected by analysts to improve to 18% over the next two years; its shares closed at $63.81 on 11 August 2026, implying a price-to-tangible-book multiple of roughly 2.2 times against tangible book value per share of $29.37. In the second quarter of 2026, net income rose 41% at JPMorgan, 84% at Goldman Sachs, 58% at Morgan Stanley, 27% at Bank of America, 45% at Citigroup and 17% at Wells Fargo. — Q2 2026 · publ. 2026-08 · source ↗
  3. Third-party estimateJPMorgan trades near 2.7 times book value; Bank of America closed at $63.81 on 11 August 2026, roughly 2.2 times tangible book value per share of $29.37.
    Peer analysis of the large US banks — Bank of America's return on tangible common equity is projected by analysts to improve to 18% over the next two years; its shares closed at $63.81 on 11 August 2026, implying a price-to-tangible-book multiple of roughly 2.2 times against tangible book value per share of $29.37. In the second quarter of 2026, net income rose 41% at JPMorgan, 84% at Goldman Sachs, 58% at Morgan Stanley, 27% at Bank of America, 45% at Citigroup and 17% at Wells Fargo. — Q2 2026 · publ. 2026-08 · source ↗
Sources
Generated September 23, 2026