Bank of America

The business has recurring elements across consumer banking and wealth with diversified fee streams, but earnings are cyclical with the credit and rate cycle. The 2025 Federal Reserve stress test again demonstrated large-bank resilience, and Bank of America’s SCB fell, indicating improved modeled drawdown under stress.

Still, NII is rate sensitive and provisions will normalize with the cycle, which reduces visibility versus true tollbooth businesses. Overall predictability is above average for a bank given mix and scale, yet below that of subscription or network monopolies.