Bank of America’s investment banking fees are projected to increase by 10% to 15% in the second quarter compared to the same period last year, CEO Brian Moynihan announced on Thursday. This comes after nearly two years of industry decline due to market volatility, rising interest rates, and geopolitical turmoil.
Moynihan also mentioned that trading revenue is expected to grow by a low single-digit percentage in the current quarter. While equities are performing strongly, revenue from fixed income remains mostly flat, he told investors at a conference.
Similarly, Goldman Sachs President John Waldron noted that equity capital markets are recovering, albeit more slowly than debt markets.
Wall Street executives have observed early signs of a broader recovery in investment banking as equities approach record highs and corporate clients adapt to prolonged high interest rates.
Moynihan highlighted that consumer spending continues to grow, though at a slower pace, and U.S. loan demand remains steady but not robust due to higher borrowing costs.
Bank of America, the second-largest U.S. lender, expects its net interest income (NII)—the difference between what it earns on loans and pays out on deposits—to be 1% below its forecast of $14 billion for the second quarter.
During the first-quarter earnings call in April, BofA Chief Financial Officer Alastair Borthwick indicated that NII would likely hit a low point in the second quarter before rising again in the second half of the year.
Shares of Bank of America fell 2% in afternoon trading.
