Bank of America CEO sees at least 10% drop in Q3 investment banking fees

NEW YORK, Sept 14 (Reuters) - ‌Bank of ​America ​expects its investment banking fees to drop by at least 10% in the third quarter, while sales ‌and trading revenue will be flat, CEO Brian ⁠Moynihan said on Monday.

Shares of BofA extended losses after his comments, dropping ‌over 5% by late afternoon ‌trade. The S&P 500 banking index was down 2.7%.

Moynihan projected investment banking revenue to be between $1.6 billion and $1.8 billion ​in the third quarter, down from $2 billion in the same period a year earlier.

"What we're seeing is the ⁠market generally in investment banking is down 10% or so," he said at the ​Barclays global financial services conference.

"We're down to small position in some of the businesses that had more ​activity, so we'll be down ‌probably a bit more than that."

Moynihan said he expects sales and trading revenue to be roughly ⁠flat in the third quarter, versus $5.4 billion in the third quarter of 2025.

He said the deals pipeline remains strong, but cautioned if ⁠interest rates go up, that will slow down some of the financing ​demand.

"Right now we're seeing it solid, and the pipelines are staying full," Moynihan said.

Global brokerages expect the Federal Reserve to raise interest rates ‌this year after stronger-than-expected inflation readings reinforced bets that policymakers will keep tightening monetary policy.

Moynihan said ‌consumers are still spending and credit quality has been as ⁠good as "it's been (for) a ‌long time."

"We feel very ​good about the underlying U.S. economy," he said.

(Reporting by Saeed Azhar and Pritam Biswas; Editing by Chris ‌Reese)

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