Bank of America Sees Q3 Banking Fees Fall Over 10% as Shares Drop 5%
Updated
Updated · CNBC · Sep 14
Bank of America Sees Q3 Banking Fees Fall Over 10% as Shares Drop 5%
3 articles · Updated · CNBC · Sep 14
Summary
Bank of America told analysts its third-quarter investment banking fees will fall by more than 10% from a year earlier, while trading revenue is expected to be roughly flat.
Brian Moynihan said the broader investment-banking market is down about 10% by Dealogic data, and the bank is more exposed to businesses seeing less activity.
Shares fell 5% after the comments, a sharp reversal from the second quarter, when Bank of America posted a 50% jump in investment-banking fees and a 33% rise in trading revenue.
Moynihan still pointed to a robust deal pipeline, especially in middle-market banking, but the weaker outlook may signal that Wall Street's AI-driven advisory and trading boom is losing momentum.