- Bank of America’s investment banking fees will likely decline by more than 10% in the third quarter from the year-earlier period, while trading revenue will be roughly flat, CEO Brian Moynihan said Monday.
- That compares to a second quarter in which the bank posted a 50% jump in investment banking fees and a 33% jump in trading revenue.
- The muted outlook from the country’s second-largest bank by assets could be an early signal that Wall Street’s AI-fueled advisory and trading boom might have hit turbulence.
s AI-fueled advisory and trading boom might have hit turbulence.
While Moynihan pointed to a robust deal pipeline, particularly in middle-market investment banking, the projected double-digit decline in investment banking may make investors wonder if the industry’s surge in capital markets activity will prove short-lived.
Later Monday, Citigroup CFO Gonzalo Luchetti told analysts that investment banking is tracking for “low-single-digit” revenue growth in the third quarter, while trading was heading for “mid-single-digit” revenue growth.
Those figures could climb if Citigroup’s bankers and traders end the quarter on a strong note, he said.
“September is a key month,” Luchetti said. “These few weeks are very meaningful.”
Source: https://www.cnbc.com/2026/09/14/bank-of-america-bac-q3-investment-banking-fees.html