Bank of America expects third-quarter investment banking fees to fall over 10%

Bank of America expects a significant decline in its third-quarter investment banking fees, projecting a drop of more than 10% compared to the previous year. CEO Brian Moynihan attributed this slowdown to broader market conditions, noting that industry-wide investment banking activity has declined by approximately 10%.

This guidance marks a sharp reversal from the second quarter, during which the bank saw a 50% increase in investment banking fees and a 33% surge in trading revenue. Following the announcement, Bank of America shares fell 5% in afternoon trading. While the bank expects trading revenue to remain largely unchanged, its performance in certain segments may trail industry averages.

In contrast, Citigroup CFO Gonzalo Luchetti provided a more optimistic outlook, stating that investment banking revenues are tracking toward low-single-digit growth and trading revenue is expected to achieve mid-single-digit growth for the quarter.