Bank of America expects investment banking fees to fall by more than 10%
Bank of America expects fee income from investment banking services to decline by more than 10% in the third quarter compared with the same period last year. At the same time, trading revenue is expected to remain approximately at last year's level, the bank's CEO Brian Moynihan said.
Outlook after a strong second quarter
As CNBC Top News reports, Bank of America recorded a 50% increase in investment banking fee income and a 33% rise in trading revenue in the second quarter.
At a conference, Moynihan cited Dealogic data showing that the investment banking market as a whole declined by 10%. He explained that Bank of America has weaker positions in certain segments with higher activity, so the decline in the bank's indicator could be somewhat greater than that of the market.
More current news is available on the UA.News Telegram channel Telegram.
Stock reaction
Following Moynihan's comments, Bank of America shares fell by 5% on Monday during the second half of the trading session. CNBC notes that the restrained outlook from the country's second-largest bank by assets may be an early signal that the rise in advisory and trading activity on Wall Street linked to the artificial intelligence boom has encountered difficulties.
At the same time, Moynihan reported a significant pipeline of potential deals, including in investment banking for middle-market companies.
