< Back to situations

Monitor this situation.

[SITUATION] · [ACTIVE] · [BUSINESS]

2 clusters · 11 sources · 3 days · First seen · Last updated

Bank of America investment banking revenue decline

Overview

Bank of America CEO Brian Moynihan projected a decline in third-quarter investment banking fees of at least 10% compared to the previous year. The bank expects investment banking revenue to fall to between $1.6 billion and $1.8 billion, down from $2 billion in the same period last year.

Moynihan attributed the slowdown to broader market conditions, noting that industry-wide investment banking activity has declined by approximately 10%. This guidance represents a reversal from the second quarter, which saw a 50% increase in investment banking fees and a 33% surge in trading revenue. While the bank expects sales and trading revenue to remain relatively flat, rising interest rates may slow financing demand.

Following these projections, Bank of America shares fell by over 5%. In contrast to Bank of America’s outlook, Citigroup CFO Gonzalo Luchetti provided a more optimistic forecast, stating that investment banking revenues are tracking toward low-single-digit growth.

Entities

Bank of America · Brian Moynihan · Citigroup · Wall Street · Barclays

Timeline

  1. 4 days ago

    [BUSINESS] 3 sources
    Bank of America expects third-quarter investment banking fees to fall over 10%

    Bank of America shares fell 5% after CEO Brian Moynihan projected third-quarter investment banking fees will drop by over 10% due to broader market slowdowns.

  2. 6 days ago

    [BUSINESS] 8 sources
    Bank of America expects 10% drop in Q3 investment banking fees

    Bank of America CEO Brian Moynihan projects a minimum 10% drop in third-quarter investment banking fees, though sales and trading revenue is expected to remain flat.

Sources

ad-hoc-news.de · di.se · finanzen100.de · finnewsnetwork.com.au · foreignpolicyjournal.com · it-boltwise.de · rocketnews.com · sharecafe.com.au · srnnews.com · stocknews.com · theascent.com