Bank of America CEO Brian Moynihan stated that the company expects third-quarter trading revenue to be "relatively flat" compared to the same period last year. This projection marks a shift from the significant surge in trading activity observed across Wall Street during the first half of the year.
Investment banking fees are anticipated to range from $1.6 billion to $1.8 billion for the third quarter. Moynihan noted that this represents at least a 10% drop from the $2 billion recorded in the prior year's third quarter, attributing this decline to a general market downturn of about 10% in investment banking. This information was shared at the Barclays global financial services conference.
Earlier in July, Moynihan had commented on a jump in equity trading revenue, attributing a significant portion of it to the AI trade and increased activity in Asia. Despite a blockbuster second quarter for many Wall Street banks, with double-digit profits and strong gains in equities trading and investment banking fees, CEOs had cautioned that this might not be the new normal. Moynihan himself had acknowledged strong market conditions but also highlighted geopolitical uncertainties, such as the war in Iran, which could impact market perception and IPOs.
