Bank of America Warns Q3 Investment-Banking Fees Will Fall More Than 10%
Updated
Updated · CNBC · Sep 15
Bank of America Warns Q3 Investment-Banking Fees Will Fall More Than 10%
3 articles · Updated · CNBC · Sep 15
Summary
More than 10% is how far Bank of America expects third-quarter investment-banking fees to drop from a year earlier, CEO Brian Moynihan told analysts, reversing the bank's 50% growth in the second quarter.
Dealogic data showed the broader investment-banking market down 10%, and Moynihan said Bank of America is "not as well positioned" as rivals with more activity, leaving it likely to underperform that decline.
5.14% was the stock's drop after the warning, which also came with a flat trading-revenue outlook and fee guidance of $1.6 billion to $1.8 billion, below expectations near $2 billion.
The weak forecast adds to signs that Wall Street's AI-fueled advisory and trading boom may be fading as higher Treasury yields and borrowing costs weigh on dealmaking.