Bank of America expects 10% drop in Q3 investment banking fees

Bank of America CEO Brian Moynihan expects investment banking fees to decrease by at least 10% in the third quarter. Moynihan projected that investment banking revenue will fall to between $1.6 billion and $1.8 billion, compared to $2 billion during the same period last year.

Despite the decline in investment banking, Moynihan anticipates that sales and trading revenue will remain relatively flat for the third quarter. While the deals pipeline remains strong, he cautioned that rising interest rates could potentially slow financing demand.

Following these comments, Bank of America shares experienced a decline of over 5%, contributing to a broader drop in the S&P 500 banking index.