Bank of America Sees >10% Drop in Q3 Investment Banking Fees

Bank of America expects its investment banking fees to decline by more than 10% in the third quarter compared with the same period a year earlier, while trading revenue is projected to remain flat, according to CEO Brian Moynihan. The outlook marks a sharp reversal from the bank’s second quarter, when investment banking fees surged 50% and trading revenue rose 33%. Moynihan cited Dealogic data indicating a broader 10% decline in the broader investment banking market, with Bank of America’s performance likely worse due to less exposure in high-activity sectors. The bank’s shares fell 5% in afternoon trading following the guidance, signaling investor concern over the sustainability of Wall Street’s recent boom in advisory and trading activity, which has been fueled by AI-driven demand for capital markets services.