Bank of America Shares Fall 5% on Fee Decline Forecast

Bank of America expects its third-quarter investment banking fees to decline by more than 10% compared to the same period last year. The projection follows a strong second quarter characterized by a 50% increase in investment banking fees and a 33% rise in trading revenue.

Chief Financial Officer Alastair Moynihan stated that the general investment banking market is down 10%, but the bank is less well-positioned in sectors with higher activity, which will result in a steeper decline for the firm. While trading revenue is expected to remain roughly flat, the bank's shares fell 5% in Monday afternoon trading following the announcement.

Moynihan noted that the bank maintains a robust deal pipeline, particularly within middle-market investment banking, despite the broader quarterly outlook.