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Citibank vs Bank of America

Side-by-side credit pricing comparison from Pillar 3 disclosures.

Last updated: March 2026 · Data source: public Pillar 3 disclosures
Verdict:

On a representative BBB+ EUR 25M 5-year term loan, Bank of America is the cheaper lender by 6bp in minimum spread. For a EUR 25M facility, that's EUR 14,375 per year.

Bank profiles compared

Metric Citibank
United States		 Bank of America
United States
IRB approachA-IRBA-IRB
Cost-to-income65.0%60.0%
Effective tax rate24.0%24.0%
Avg corporate PD1.21%0.73%
Avg LGD unsecured36.6%27.5%
Avg LGD secured20.0%15.0%
Funding spread (bp)15bp12bp
Corporate EADEUR 1301bnEUR 2098bn

Sample RAROC: BBB+ EUR 25M 5Y term loan

Both banks priced on the exact same deal — 150bp spread, 20bp commitment fee, 60-month maturity. Higher RAROC means the bank earns more from this deal. Lower min-spread means the borrower gets a better rate.

Component Citibank Bank of America
Annual revenueEUR 385,000EUR 385,000
Operating costEUR 154,000EUR 154,000
Expected lossEUR 28,750EUR 28,750
Capital required (FPE)EUR 2,451,320EUR 2,451,320
RAROC (after tax)7.40%7.67%
Min spread for 12% RAROC249bp243bp
This is just one sample deal.

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Citibank full profile Bank of America full profile All banks RAROC methodology

FAQ: Citibank vs Bank of America

Which bank is cheaper on corporate credit: Citibank or Bank of America?
On a BBB+ EUR 25M 5-year term loan, Bank of America requires a minimum spread of 243bp to reach a 12% RAROC hurdle, versus 249bp at the other bank — a difference of 6bp on the same deal.
How do Citibank and Bank of America compare on corporate PD?
Citibank reports an EAD-weighted corporate PD of 1.21%, while Bank of America reports 0.73%. The gap reflects differences in obligor mix and geography rather than underwriting quality.
How do the two banks differ on IRB approach?
Citibank uses A-IRB and Bank of America uses A-IRB. The IRB approach determines whether internal LGD models or supervisory LGDs apply, which materially affects capital required on every corporate facility.
What deal is used in this comparison?
A single standardised facility: BBB+ rated, EUR 25M drawn on a EUR 30M commitment, 5-year tenor, 150bp spread, 20bp commitment fee. Both banks are priced on this exact deal using their own disclosed Pillar 3 parameters.