Brian Moynihan, Chairman and CEO of Bank of America, testifies during a Senate Banking Committee hearing at the Hart Senate Office Building on December 06, 2023 in Washington, DC.\u00a0<\/p>\n
Win Mcnamee | Getty Images<\/p>\n
Bank of America<\/a> is seeing a far more subdued few months for its Wall Street advisory and trading businesses after a blockbuster<\/a> second quarter, CEO Brian Moynihan<\/a> told analysts Monday. <\/p>\n Investment banking fees will likely decline by more than 10% in the third quarter from the year-earlier period, while trading revenue will be roughly flat, Moynihan said at a conference<\/a>. That compares to a second quarter<\/a> in which the bank posted a 50% jump in investment banking fees and a 33% jump in trading revenue.<\/p>\n “What we’re seeing is the market generally in investment banking is down 10%,” Moynihan said, citing Dealogic data. “We’re not as well positioned in some of the businesses that have more activity, so we’ll be down probably a bit more than that.”<\/p>\n Bank of America shares were down 5% in afternoon trading Monday following Moynihan’s comments. <\/p>\n The muted outlook from the country’s second-largest bank by assets could be an early signal that Wall Street’s AI-fueled advisory and trading boom<\/a> might have hit turbulence. <\/p>\n While Moynihan pointed to a robust deal pipeline, particularly in middle-market investment banking, the projected double-digit decline in investment banking may make investors wonder if the industry’s surge in capital markets<\/a> activity will prove short-lived.<\/p>\n