Bank of America (BAC) Q3 investment banking fees to drop over 10%
cnbc.com • • business
Key Points:
- Bank of America CEO Brian Moynihan forecasted a slowdown in Wall Street advisory and trading businesses for the coming months after a strong second quarter performance.
- Investment banking fees are expected to decline by more than 10% in Q3 compared to the previous year, while trading revenue is anticipated to remain roughly flat.
- The bank experienced a 50% increase in investment banking fees and a 33% rise in trading revenue in Q2, highlighting the contrast with the subdued outlook.
- Moynihan noted that the overall investment banking market is down 10%, with Bank of America potentially underperforming due to less exposure in more active sectors.
- Following these comments, Bank of America shares dropped 5%, suggesting concerns about a possible slowdown in the AI-driven advisory and trading boom on Wall Street.
