Bank of America expects third-quarter investment banking fees to fall more than 10%; shares slide

Bank of America is seeing a far more subdued few months for its Wall Street advisory and trading businesses after a blockbuster second quarter, CEO Brian Moynihan told analysts Monday. Investment banking fees will likely decline by more than 10% in the third quarter from the year-earlier period, while trading revenue will be roughly flat, Moynihan said at a conference . That compares to a second quarter in which the bank posted a 50% jump in investment banking fees and a 33% jump in trading revenue. "What we're seeing is the market generally in investment banking is down 10%," Moynihan said, citing Dealogic data. "We're not as well positioned in some of the businesses that have more activity, so we'll be down probably a bit more than that." Bank of America shares were down 5% in afternoon trading Monday following Moynihan's comments. The muted outlook from the country's second-largest bank by assets could be an early signal that Wall Street's AI-fueled advisory and trading boom might have hit turbulence. While Moynihan pointed to a robust deal pipeline, particularly in middle-market investment banking, the projected double-digit decline in investment banking may make investors wonder if the industry's surge in capital markets activity will prove short-lived. Later Monday, Citigroup CFO Gonzalo Luchetti told analysts that investment banking is tracking for "low-single-digit" revenue growth in the third quarter, while trading was heading for "mid-single-digit" revenue growth. Those figures could climb if Citigroup's bankers and traders end the quarter on a strong note, he said. "September is a key month," Luchetti said. "These few weeks are very meaningful."

🔥 EXCLUSIVE PARTNER OFFER

Pair 100W Motorcycle Headlight Fog Lights Led Auxiliary Driving Light Spotlight Headlamp Dual Color Flasher Farol Moto Fog Lamp.

Special Price

🎯 Best price guarantee! Order now and enjoy fast shipping with global tracking.

🛒 Buy Now on AliExpress →

Affiliate link — Commission earned at no extra cost to you

📰 Original source: https://www.cnbc.com/2026/09/14/bank-of-america-bac-q3-investment-banking-fees.html

© EcoNews DZ — Global Economic & Financial News