Bank of America expects third-quarter investment banking fees to fall more than 10%; shares slide
The muted outlook from the country's second-largest bank by assets could be an early signal that Wall Street's AI boom might have hit turbulence.
TL;DR
- Bank of America's CEO Brian Moynihan expects a more subdued second half of the year for the bank's trading and advisory businesses.
- Investment banking fees are projected to fall by more than 10% in the third quarter compared to the previous year.
- Trading revenue is expected to be roughly flat in the third quarter, a contrast to a 33% jump in the second quarter.
- Bank of America shares fell 5% following Moynihan's comments.
- Citigroup anticipates low-single-digit revenue growth in investment banking and mid-single-digit growth in trading for the third quarter.